Guidance is offered for the preparation of a budget request. Following this guidance will facilitate the review and approval of a requested budget by insuring that the required or needed information is provided. These guidelines address major line items. They are not necessary aligned with the order of the applicable budget summary format that you will need to prepare nor will the line items necessarily reflect the order of the award instrument you ultimately receive. Please provide the justification and support in the same order as the summary budget form.

A. Salaries and Wages: For each requested position, provide the following information: name of staff member occupying the position, if available; annual salary; percentage of time budgeted for this program; total months of salary budgeted; and total salary requested. Also, provide a justification and describe the scope of responsibility for each position, relating it to the accomplishment of program objectives.

B. Fringe Benefits: Fringe benefits are usually applicable to direct salaries and wages. Provide information on the rate of fringe benefits used and the basis for their calculation. If a fringe benefit rate is not used, itemize how the fringe benefit amount is computed.

C. Consultant Costs: This category is appropriate when hiring an individual to give professional advice or services (e.g., staff training, expert consultant, evaluation, development of curriculum, etc.) for a fee but not as an employee of the grantee organization. The consultant’s efforts contribute to the program objectives; however, their work is not designed to achieve the objectives. The services are usually professional in nature (as opposed to clerical or manual), requiring advanced education or experience in a specific technical field. See also Contractual/Subcontractual in Section H below. Written approval must be obtained from CDC prior to establishing a written agreement for consultant services. Approval to initiate program activities through the services of a consultant requires submission of the following information to CDC (see Budget Appendix A):

1. Name of Consultant;

2. Organizational Affiliation (if applicable);

3. Nature of Services To Be Rendered;

4. Relevance of Service to the Project;

5. The Number of Days of Consultation (basis for fee); and

6. The Expected Rate of Compensation (travel, per diem, other related expenses)—list a subtotal for each consultant in this category.

7. The basis of selection (competitive bids, sole source, single source, customer directed, etc.)

If the above information is unknown for any consultant at the time the application is submitted, the information may be submitted at a later date as a revision to the budget. In the body of the budget request, a summary should be provided of the proposed consultants and amounts for each.

D. Equipment: Provide justification for the use of each item and relate it to specific program objectives. Maintenance or rental fees for equipment should be shown in the "Other" category.

E. Supplies: Individually list each item requested. Show the unit cost of each item, number needed, and total amount. Provide justification for each item and relate it to specific program objectives. If appropriate, General Office Supplies may be shown by an estimated amount per month times the number of months in the budget category tied to some basis of allocation (usually FTEs).

F. Travel: Dollars requested in the travel category should be for staff travel only. Travel for consultants should be shown in the consultant category. For other attendees, advisory committees, review panels, etcetera, the costs should show up as Other Direct Costs. Travel for staff, consultants, advisory committees, review panel, etc. should be itemized in the same way specified below. It is helpful to provide clear information regarding who, when, where, why, and how and to tie it to specific program objectives.

In-State Travel—Provide a narrative justification describing the travel staff members will perform. List where travel will be undertaken, number of trips planned, who will be making the trip, and approximate dates. If mileage is to be paid, provide the number of miles and the cost per mile. If travel is by air, provide the estimated cost of airfare. If per diem (Meals and Incidental Expenses (M&IE) and lodging) is to be paid, indicate the number of days and amount of daily per diem as well as the number of nights and estimated cost of lodging. Include the cost, mode, and purpose of ground transportation when applicable.

Out-of-State Travel—Provide a narrative justification describing the same information requested above. Include CDC meetings, conferences, and workshops if required by CDC. Itemize out-of-state travel in the format described above.

NOTE: It is helpful if you utilize the allowable travel and per diem rates that are established for all Government-related travel. These can be found at:

Per diem: http://policyworks.gov/org/main/mt/homepage/mtt/perdiem/perd01d.html (don’t forget to add taxes to lodging)

Airline Flights: http://www.fedtravel.com/gsa/

G. Other: This category contains items not included in the previous budget categories. Individually list each item requested and provide appropriate justification related to the program objectives. It is helpful to provide a basis of allocation.

Note: Any item that exceeds one percent of the grant value is subject to additional scrutiny. Please be sure to provide adequate information for these items.

H. Contractual Costs: There are two types of contractual relationships: The first is closer to being subcontractual, the second is more general in nature. For the purposes of preparing your proposal, include subcontractual costs in the section of your budget headed Contractual. A subcontractor is an entity that performs duties that are either the same as or directly related to the scope of work of the project. Their efforts contribute directly to the outcome of the project. They actually do the program objectives. The subcontractor is basically doing the work on behalf of the grantee. Examples of subcontractors would be program trainers, community outreach workers, community advisors.

Cooperative Agreement recipients must obtain written approval from CDC prior to establishing a third-party contract to perform program activities. Approval to initiate program activities through the services of a contractor requires submission of the following information to CDC (see Budget Appendix B):

1. Name of Contractor;

2. Method of Selection (competitive bids, single source, customer directed, same as last year, etc.);

3. Period of Performance;

4. Scope of Work;

5. Method of Accountability; and

6. Itemized Budget and Justification.

If the above information is unknown for any contractor at the time the application is submitted, the costs will be restricted. It is essential that supporting information along with a request to have restrictions lifted be submitted to PGO as soon after award as possible. Failure to do this will result in delays and withholding of payments. Copies of the actual contracts should not be sent to CDC, unless specifically requested. In the body of the budget request, a summary should be provided of the proposed contracts and amounts for each.

For contractual costs that are more general in nature (janitorial, maintenance, payroll services, bookkeeping services, CPA, Audit, etc.) but their costs can be directly tied to the project at hand (the cost is allocable), then these should be considered contractual costs under Other Direct Costs. If you charge indirect via a rate, be careful that these indirect-type costs were not included in the indirect cost pool when the indirect cost rate was calculated. If they were included, then you will be double billing the Government and you will have an audit finding. You do not need to provide the level of justification that you do for subcontractual costs. However, be certain to include the basis of allocation and the method of formulation.

Show total direct costs by listing totals of each category.

To claim indirect costs, the applicant organization must have a current approved indirect cost rate agreement established with the cognizant Federal agency. A copy of the most recent indirect cost rate agreement must be provided with the application.

If the applicant organization does not have an approved indirect cost rate agreement, then costs normally identified as indirect costs (overhead costs) can be budgeted and identified as direct costs. Cost breakdowns, justifications, and calculations such as indicated above will be necessary in order to support these costs.