THE ROBERT WOOD JOHNSON FOUNDATION

NATIONAL PROGRAM SITE BUDGET PREPARATION GUIDELINES

OVERVIEW

An important component of your grant application is the preparation of a detailed budget and budget narrative. This document links the funding you have requested with specific elements of the project you have proposed. Therefore, the budget you propose should be an appropriate and accurate projection of the program expenses.

Policy guidelines established by the Foundation's Board of Trustees usually preclude support for:

Your proposed budget will be reviewed in detail and negotiated to ensure that it meets the goals and objectives of your proposed project and that it is consistent with Foundation policies. Therefore, during budget negotiation, your budget may need revisions.

During the budget negotiation process, Foundation and National Program Office staff may deem it appropriate to eliminate a line item or support only a percentage of the funding requested for a particular line item. In these cases, you may need to identify and specify other sources of support.

Applicants should read carefully the "Request for Project Support and Conditions of Grant" form, which must be signed as part of your application package. This document contains information regarding the legal, financial, communications, and program responsibilities of a grantee and becomes binding upon you if you receive a grant.

Any questions concerning the budget preparation for a proposal to be submitted to The Robert Wood Johnson Foundation can be directed to the Financial Monitoring Office at (609) 627-5851.

PLEASE NOTE: Attachment A outlines The Robert Wood Johnson Foundation Financial Reporting/Budgeting Practices and Attachment B outlines the Grant Budget Revision Guidelines.

GUIDELINES

The budget must be independent of the proposal document. If information is contained in your proposal that will strengthen the budget narrative provided, please reference the page number. This, however, cannot substitute for a separate and complete explanation for each line item in the budget.

The budget should be divided into two parts: a line-item budget and a budget narrative.

The sample line-item budget attached shows the format in which costs associated with the proposed project should be identified. Not all line items will be applicable to your proposal, and, in some cases, you will need to add line items. Note: Line items entitled "Miscellaneous" should not be included. If your institution's accounting system does not adhere to the line items listed on the sample line item budget, you may present your budget using your institution's format.

The budget narrative must include an explanation for every line item. In general, each narrative statement should describe, in as much detail as possible:

For grant proposals that require funding for more than one year, the budget is usually divided into twelve-month periods. If your project warrants it, you may request periods of other than twelve-months such as three eight-month periods or one fifteen-month period and one nine-month period. Occasionally, a project may be for an uneven length of time. For example, if a grant lasts 27 months, the budget may be prepared utilizing two twelve-month budgets and one three-month budget. The three-month budget can be either at the beginning or the end of the proposed grant period. A line-item budget and budget narrative should be prepared for each year/period for which you are requesting Foundation support, and a consolidated line-item budget should be prepared for the entire proposed grant period.

A column labeled "Other Support" is included in the sample line item budget. This column is to be completed if other sources of funds are to be applied to the line items in the budget. For example, if a Project Manager is to be partially funded by the Foundation and partially or completely by his/her institution, the institution's commitment should be listed as "Other Support." All sources of non-Foundation financial support should be identified in the budget narrative.

The following pages of this document contain a sample line-item budget as well as budget narrative guidelines. Please read them carefully.

THE ROBERT WOOD JOHNSON FOUNDATION
SAMPLE LINE ITEM BUDGET
(Insert Instituion Name Here)

Grant Period: (from ___/____/____ to ____/____/___)

Budget Period: (from ___/___/___ to ___/___/___)

PROJECT YEAR 1 2 3 4 Consolidated (please circle)

I. PERSONNEL:
Name Position Base
Salary 		% Time Total RWJF
Support 		Other
Support
 
 


Fringe Benefits (______%) 		______ ______ ______
 
SUBTOTAL ______ ______ ______

II. OTHER DIRECT COSTS
OFFICE OPERATIONS ______ ______ ______
  Supplies ______ ______ ______
  Duplicating ______ ______ ______
  Telephone ______ ______ ______
  Postage ______ ______ ______
  Equipment Rental ______ ______ ______
  Service Agreement(s) ______ ______ ______
 
COMMUNICATIONS/MARKETING ______ ______ ______
 
SOFTWARE ______ ______ ______
 
COMPUTER TIME ______ ______ ______
 
MEETING COSTS ______ ______ ______
 
TRAVEL ______ ______ ______
 
LEASED SPACE ______ ______ ______
 
SUBTOTAL ______ ______ ______

III. EQUIPMENT 		______ ______ ______
 
IV. CONSULTANT/CONTRACTUAL AGREEMENTS ______ ______ ______
 
V. INDIRECT COSTS ______ ______ ______
 
TOTAL ______ ______ ______

BUDGET NARRATIVE

Listed within each category is a description of the information that we require in order to review your proposed budget. A Roman numeral corresponding to the sample line-item budget form organizes each category.

Other Support: Please itemize the amounts and sources of cash and in-kind support.

I.  PERSONNEL:  In addition to the information required on the sample line-item budget form, include a detailed description of the activities and FTE (full-time equivalency) of each position as it relates to the project. For example:

The Project Director is accountable for planning, organizing, and directing the implementation and operations of this project. Specific responsibilities include directing staff, orientation, training, counseling, evaluation, and discipline in accordance with department standards. Directs the implementation and operations, distributes work, directs and personally handles public relations, estimates costs of programs, develops the budget, oversees and negotiates contracts with subcontractors, monitors and assesses project performance and performs other related non-clinical duties. The Project Director directly supervises three case managers, one nurse clinician, and a secretary.

The Case Manager provides comprehensive case management services to residents and potential residents of housing and supported work programs. Duties include needs and skills assessment, service planning, agency linkage and liaison, resource development, family liaison and support, transportation coordination and assistance, services evaluation, and record keeping. The maximum caseload will be thirty clients per case manager with a projected client turnover rate of 20% every six months. Forty-two clients will be served annually per case manager.

Fringe Benefits:  Indicate what benefits will be provided and how the amount was calculated. If different rates were used for different individuals, your narrative should contain a table that summarizes the calculation for each individual.

Sample Table: Salary Fringe Rate Fringes
Project Director $40,000 .25 $10,000
Case Manager 25,000 .20 5,000
Research Assistant 20,000 N/A -0-
Total fringes $15,000

II.  OTHER DIRECT COSTS

Office Operations:  The projected expenditures for Supplies, Duplicating, Telephone, Postage, Equipment Rental and Service Agreement(s) should be listed separately along with a description of how estimates for each were determined. Staff training (i.e., computer software training, time management classes, writing and speaking classes, etc.) would also be classified under this category. For example:

Supplies - The requested supply budget is $2,500 in Year 01. This includes $1,000 for office supplies such as tape, stationery, fax paper, pens, pencils, and business cards. Additionally, $1,500 is budgeted for computer supplies to support the component of our project that involves data analysis.

Duplicating - Copying of project correspondence and reference materials to be utilized in the training of the Home Health Aides. The total requested budget is $2,100 per year.

Telephone - There are two separate costs associated with this line item: the installation of three incoming lines, and long distance calls. Three incoming lines will be installed for the Project Director, Administrative Assistant, and Program Manager. The estimated cost is $200 total. The long distance calls will be made for the 50-state survey. This entails the initial interview call and one follow-up call. The anticipated costs are $4,000. Therefore, the total telephone budget is $4,200.

Postage - The total requested postage budget is $2,600. This includes mailing routine correspondence as well as the community health assessment questionnaire. The questionnaire is an integral component of our activities in Year 01 as outlined on page 22 of our proposal. The total number of questionnaires to be mailed are 7,500 @ $0.33 = $2,475. The $125 balance is for mailing of routine correspondence.

Equipment Rental - We are requesting the rental of a copy machine for the purpose of copying daily correspondence and the necessary reports to be sent to the Foundation. Our vendor has provided us with an estimate of $200 a month.

Service Agreement(s) - We will require service contracts for a copier and fax machine in order to maintain this equipment in proper working condition. This equipment is essential to the secretary in order to perform tasks outlined in his/her job description. Total costs are $1,400 ($200/year for the fax machine and $100/ month for the copier).

Communications/Marketing - Funds can be allocated to increase awareness and visibility as well as promote your project. In addition, costs associated with the printing of brochures, newsletters, press kits, etc., should be listed along with a description. For example:

Billboards and public service announcements will be developed and placed or aired in our service area. Since our target population (ages 13-18) does not generally read the newspaper, we believe that this is the best way to reach the target population. Public service announcements are part of the community bulletin board; therefore, the local radio station will air our announcement at no charge. However, billboard advertising will cost $450 a month for six months. Total cost is $2,700.

Two brochures will be printed describing Fetal Alcohol Syndrome. One will be printed in Spanish and one in English. The five Case Managers will each be given 2,000 brochures to utilize during outreach activities. The total cost for typesetting and printing 10,000 brochures is $7,000.

In addition, $500 for two days of media training for the Project Director is essential to enhance our ability to highlight the project in the community.

Software - Itemize the software requested and provide a statement outlining how the software will be used to fulfill project goals. For example:

A customized software package will be developed to collect data that will allow us to link maternal and neonatal outcomes with prenatal care. Additionally, we will track newborn admissions and transfers. The software vendor's estimate is $850.

Computer Time - Costs associated with processing information on a mainframe computer should be explained as they relate to the objectives of the grant. For example:

We will require 125 hours of mainframe time at $70 per hour totaling $8,750. The requested number of mainframe hours is necessary due to the multiple data sets to be merged and analyzed.

Meeting Costs - Projected expenses for meetings should be included in this line item. Such expenses would include meeting room rental, audiovisual equipment rental, slide presentation costs and meals. For example:

The total cost for the Steering Committee meeting is $390. This includes $240 for lunch (7 committee members and 5 project managers), $100 room rental and $50 for audiovisual equipment. The purpose of this meeting is to convene the five project managers to provide them with technical assistance. Each committee member will lead a workshop on their area of expertise.

Travel - The projected expenditures for Project Staff and Consultant Travel should be outlined.

Project Staff Travel: The projected expenditures for local and non-local travel should be described in this section. The basis for the calculation as well as the purpose for all travel should be provided. Travel estimates for local travel should be based on your institution's current policies - for example, $0.32/mile.

As a rule, for non-local travel, the Foundation allows up to $1,110 for a one night-one day meeting and $1,360 for a two night-two day meeting where air travel is necessary. This figure includes airfare, lodging, meals, and ground transportation. If you are able to identify the specific destination and rates for airfare and lodging, you should include the actual amounts in your budget and narrative. For example:

Local Travel - As outlined in the job description, the three Case Managers will travel daily between the project office and the community for outreach activities. Additionally, they will travel to the local Office of Human Services, clinics, and other resource agencies. We have estimated that they will each travel 100 miles/week X $0.32 = $32.00/week. Therefore, the total travel cost for three Case Managers per year is $4,992.

Non-local Travel - Two site visits by the Project Director to existing community-based programs serving an elderly clientele with prospective payment systems and/or full case management services. The Project Director will be exploring possible applications in the areas of product design, marketing techniques, and utilization. Travel estimate is based on $1,110/trip for a one-night stay giving a total of $2,220.

Annual Meeting Travel: You should budget a two-night stay ($1,360) for two project staff to attend the National Program’s annual meeting each year (total $2,720 per year), unless otherwise directed by your National Program Office. You should check with the National Program Office regarding whether any additional grantee meetings or travel should be budgeted in addition to the annual meeting.

Consultant Travel: As with Project Staff Travel, the travel costs should be outlined in detail, including destination, purpose and the basis for calculation. However, the actual work to be performed should be detailed under CONSULTANT/CONTRACTUAL AGREEMENTS. For example:

As outlined in the narrative for Consultant/Contractual Agreements, Dr. Smith will meet with the staff of two hospitals (one in Boston, and one in Philadelphia) and will also require one trip to an insurance company to discuss malpractice issues. The travel estimate is based on three one-night trips X $1,110 = $3,330.

Leased Space - If you occupy leased space or due to the Foundation funded project you will incur space costs, you may charge a prorated portion of the cost to your project. You should provide the method used to allocate space costs and how the costs were calculated, such as, cost-per-square-foot basis identifying the actual prorated cost from your lease agreement, prorated costs based on full-time equivalency (FTE) of personnel charged to the grant, etc.

IV.  EQUIPMENT:  Although Foundation grants are not made for the sole purpose of funding capital costs, a limited amount of equipment may be requested if appropriate for the accomplishment of program objectives. Please follow your institution's or organization's equipment capitalization threshold policy to determine whether an item is classified under equipment or supplies. Itemize the equipment requested and include a statement outlining how the equipment will be used to fulfill project goals. You should examine the option of purchasing vs. leasing/rental, and explain your choice. Generally, the Foundation does not support large amounts of equipment. Therefore, we encourage you to explore whether other sources of funds can be obtained for equipment. For example:

We are requesting an IBM compatible personal computer and printer. We do not currently have access to a computer system. Obtaining the computer will assist us in meeting our program objectives by allowing us to undertake the following: analyze and manage the survey results; collate the demographics of our clients; respond to requests for information; and track client progress and adherence to scheduled appointments. The total cost is $4,500 ($2,500 for the personal computer and $2,000 for the printer) of which we are requesting Foundation support of $2,250 or half the total cost. The clinic will assume the remaining costs.

V.  CONSULTANT/CONTRACTUAL AGREEMENTS

Consultant: The need for each consultant must be outlined in detail. A workplan for each, including the tasks to be accomplished, should be provided. Fees paid by the Foundation are up to $500/day for a full day of work. For example:

Consultant costs are budgeted at $6,000/year for the participation of Dr. Smith. He will provide expertise in the field of hospital malpractice and serve as our liaison to hospital risk managers and insurers. He will participate in project meetings, refinement and fielding of the questionnaire, review of research methods and draft papers, and work with underwriters and other companies to implement risk-adjusted premiums, as appropriate. The $6,000 estimate is based on twelve days/year at $500/day.

Contractual Agreement(s):  For each proposed contract for which you request Robert Wood Johnson Foundation support, you should provide an explanatory paragraph that describes in detail the services to be provided. If possible, you should also provide a separate line-item budget and budget narrative. If the specifics of the contract are not available during budget development, you will need to submit a fact sheet (or a copy of the actual contract) once you have identified the contractor. The fact sheet (or actual contract) should outline the following:

* contractor
 
* dates
 
* dollars
 
* tasks/deliverables

The Foundation should not be listed as a party to the contract. The grantee maintains fiscal responsibility for its contracts, which includes reporting expenses associated with the contract to the Foundation. We recommend that you consider including right to audit provisions and record retention expectations when negotiating contracts.

VI.  INDIRECT COSTS:  Indirect costs may be calculated up to 9 percent on budget categories I, II, III and IV. However, if CONSULTANT/CONTRACTUAL AGREEMENTS (category IV) represents a significant portion of your budget, we reserve the right to negotiate the amount of indirects costs allowed for this category.

This line item is intended to cover grant-related costs that are not easily identified but are necessary to conduct the grant, i.e., reporting costs, payroll processing, utilities, space rental costs, etc. Prorated leased space costs should be identified under the line item Leased Space under OTHER DIRECT COSTS (category II). Note: If you have a unique overhead cost situation and would like to discuss an alternative to the Foundation's customary indirect cost rate, please contact the Financial Monitoring Office at 609-627-5851.

ATTACHMENT A

THE ROBERT WOOD JOHNSON FOUNDATION
FINANCIAL REPORTING/BUDGETING PRACTICES

FINANCIAL REPORTING AND OVER EXPENDITURES

You are required to report expenditures on a line-item basis corresponding to your approved budget. However, you may overspend an existing line item provided you do not exceed the approved budget subtotal (Personnel, Other Direct Costs, Equipment, and Consultant/Contractual Agreements) amount plus 5 percent. For example:

PERSONNEL APPROVED
BUDGET		 TOTAL
EXPENDITURES		 VARIANCE PERCENTAGE
 
Project Director 45,000 48,000 (3,000) 107
Secretary 20,000 18,000 2,000 90
Research Asst. 30,000 35,000 (5,000) 117
Fringe Benefits 19,000 18,700 300 98
 
SUBTOTAL 114,000 119,700 (5,700) 105

As this example illustrates, the expenditures reported in the Personnel budget category do not exceed the approved budget category amount by more than 5 percent. Therefore, no explanation or budget revision would be required. It should be noted, however, that we might request additional information for expenditures reported against individual line items. Although you may overspend any CATEGORY by 5 percent, you must remain within the total approved budget per year (unless a revised budget has been approved).

CONTRACTUAL AGREEMENTS

If a fact sheet (or copy of the actual contract) was not provided at the time you negotiated your grant budget; or, if any elements of the contract have changed including the dates, dollars, or deliverables from that previously approved, the following information is required prior to expending funds under the initial or amended subcontract:

  • a copy of the actual contract or contract amendment; or

  • a fact sheet providing the grant identification number, the contractor’s name, the contract dates, the dollar amount of the contract and the deliverables. The document should identify, and provide an explanation for, those elements that are being changed.

The Foundation should not be listed as a party to the contract. The grantee maintains fiscal responsibility for its contracts, which includes reporting expenses associated with the contracts to the Foundation. We suggest that you consider including right to audit provisions and record retention expectations when negotiating or amending contracts.

UNEXPENDED FUNDS

Unexpended grant funds remain in the grant account and are not automatically carried forward to the next budget period. Grantees may request that funds unexpended from previous budget periods be used in subsequent budget periods. A revised budget and budget narrative must be submitted that outlines the use of these funds.

GRANT EXTENSION

An extension may be granted to provide extra time to complete your project. Grantees may also request that funds unexpended from previous budget periods be used to extend the award beyond the original end date. In both instances, the proposed activities must be consistent with the original objectives of the award, an explanation regarding the activities to be undertaken during the extension period should be provided, and the dates of the extension period should be explicitly stated. If unexpended funds are being applied to the extension period, a separate budget and budget narrative are required as well.

Grant Budget Revision Guidelines are available to assist you in preparing a revised budget and/or extension request. Any questions related to this document or other general financial questions should be addressed to the Financial Monitoring Office at (609) 627-5851.

ATTACHMENT B

THE ROBERT WOOD JOHNSON FOUNDATION
GRANT BUDGET REVISION GUIDELINES

Revisions to your approved grant budget must be requested when changes in your grant project result in the need for additional line items, and/or you anticipate spending in excess of the approved budget categories by more than 5 percent. These categories include Personnel, Other Direct Costs, Equipment, and Consultant/Contractual Agreements. The guidelines that follow will assist you in preparing your budget revision. If you have any questions, please contact the Financial Monitoring Office at (609) 627-5851.

Your budget revision request should include a NARRATIVE describing those line items you are requesting to change. A LINE-ITEM BUDGET should be submitted in a format that displays your entire original budget for that period and your requested changes. Please be sure to identify the budget period and illustrate your reallocation as demonstrated below. In addition, you should include a narrative that explains how the revised budget item(s) relate to the project, why the change(s) are needed, and how the proposed amount(s) were determined. If any element of a contract has changed, including the dates, dollars, or deliverables from that previously approved, the following revised information is required: a copy of the contract amendment; or a fact sheet outlining and explaining what elements have changed.

Grantee: Community Health Coalition Grant #12345
BUDGET PERIOD - January 1, 1995 through December 31, 1995

Line Items Approved
Amount		 Revision
Request		 Proposed
Budget		 Expenses
Incurred (to date)
PERSONNEL
Project Director 40,000 - 3,000 37,000 9,250
Case Manager -0- 25,000 25,000 -0-
Secretary 25,000 -0- 25,000 3,000
OTHER DIRECT COSTS
Duplicating 2,500 - 1,500 1,000 750
Supplies 1,000 -0- 1,000 250
Marketing 8,000 - 3,500 4,500 2,500
Travel 7,000 - 5,000 2,000 -0-
CONSULTANT/CONTRACTUAL AGREEMENTS
XYZ Corp. 40,000 -12,000 28,000 28,000
Health Care Corp. 5,000 -0- 5,000 -0-
TOTAL 128,500 -0- 128,500 43,750


THE FOLLOWING POINTS WILL ASSIST YOU IN DEVELOPING YOUR REVISION.

  1. Submit your revision in a format that displays your entire budget and your requested changes.

  2. Line items for which expenses have been incurred cannot be deleted from your budget. The line item must state the actual expenses incurred as of the date of the revision.

  3. Any addition or deletion of approved items should be explained in your budget narrative.

  4. Budget revisions may require recalculation of the amount approved for indirect costs.

  5. Revisions to personnel line items may change the approved amount for fringe benefits. The proposed fringe benefit amount should be recalculated and stated in the narrative section.

  6. In some circumstances, a minor revision of your budget can be requested over the telephone. This method of approval is generally related to revisions in the "Other Direct Costs" category.

Revised: 5/1/01