Part Two: It’s All About the Budget

1. Part Two: It’s All About the Budget Patty Linduska, R.N. Alaska Primary Care Association PattyL@AlaskaPCA.org 907-929-2730 Service Area Competition CHC Grant Writing

2. Expected Outcomes • Know the budget presentation content requirements; • Know how to prepare the budget and budget justification; • Know how to fill out the various budget forms; and • Know what is required to complete Criterion 6: Support Requested.

3. Funding Restrictions • Funds under this announcement may not be used for fundraising or the construction of facilities. The HHS Grants Policy Statement (HHS GPS) available at http://www.hrsa.gov/grants includes information about allowable expenses. • Pursuant to existing law and consistent with Executive Order 13535 (75 FR 15599), health centers are prohibited from using Federal funds to provide abortion services (except in cases of rape or incest, or when the life of the woman would be endangered). This includes all grants awarded under this announcement and is consistent with past practice and long-standing requirements applicable to grant awards to health centers.

4. Funding Restrictions, cont. Salary Limitation • -74). The law limits the salary amount that may be awarded and charged to HRSA grants. Award funds may not be used to pay the salary of an individual at a rate in excess of Executive Level II of the Federal Executive Pay scale. The Executive Level II salary is $179,700. This amount reflects an individual’s base salary exclusive of fringe benefits and any income that an individual may be permitted to earn outside of the duties to the applicant organization. This salary limitation also applies to sub-awards/subcontracts for a substantial portion of the project under a HRSA grant.

5. Funding Restrictions, cont. • Any proposed changes in scope requiring prior approval MUST be submitted through HRSA’s Electronic Handbook (EHB). The EHB can be accessed from anywhere on the Internet using a standard web browser, https://grants.hrsa.gov/webexternal/. • Please refer to the most recent guidance on changes to scope contained in PIN 2009-03: Technical Revision to PIN 2008-01: Defining Scope of Project and Policy for Requesting Changes (available at www.bphc.hrsa.gov/policy/pin0903.htm/).

6. SF-424 Application Face Page • You will need to know how much you are allowed to request • Check your NGA #13 • You will need to know your new project period start and end dates • Check your NGA #6 (unless you have been notified of another date by the BPHC)

7. Estimated Funding • Box 18: Estimated Funding: Complete the required information based on the funding request for the first year of the project period. This information should be consistent with the total provided in your SF-424A Budget for Non-Construction Programs.

8. Notice of Award Example Make sure you have the MOST RECENT NGA #1-Supercedes Award Notice Dated: #2-Project Period-Longest period at the end of which you need to do a SAC application #3-Budget Period-Usually one year at the end of which you do a Budget Period Renewal #4-Amount of Financial Assistance this Action #5-Recommended Future Support- Make sure that your grant request matches This amount.

9. SF-242 Estimated Funding • 15. ESTIMATED FUNDING: a. Federal $ .00 b. Applicant $ .00 c. State $ .00 d. Local $ .00 e. Other $ .00 f. Program Income $ .00 g. TOTAL $ .00

10. Summary of Changes Criterion 7 • Form 2: Staffing Plan has been updated to include a column to report staff expenses to be charged to the SAC grant (i.e., requested federal dollars). • Form 3: Income Analysis has been revised to simplify the reporting of projected income.

11. Criterion 7: SUPPORT REQUESTED (10 points) • Review Criteria • The extent to which the applicant provides a detailed and reasonable budget presentation that will reasonably support the proposed project, including planned service delivery and patient/visit projections. • The extent to which the applicant establishes that the Federal request for funds is appropriate given other sources of project income. • The extent to which the applicant predicts and describes expected shifts in payer mix and potential impact on the overall budget (e.g., as a result of the Affordable Care Act).

12. Budget Presentation • A complete Budget Presentation includes: • SF-424A • Budget justification • Form 2: Staffing Profile • Form 3: Income Analysis • Federal Object Class Categories form.

13. Form 2: Staffing Profile • The Staffing Profile reports personnel salaries supported by the total budget for the first year of the proposed project. • Applicants should include staff for the entire scope of the project (i.e., total for all sites). • Anticipated staff changes within the proposed project period should be addressed in the program narrative. • Include those that are part of the IDCR. • Do not include contracted staff or volunteers on this form.

14. Form 3: Income Analysis Format • Must be completed for the first year of the proposed project. • Complete the form using the template provided in the system and upload as an attachment. • This is an estimate of your proposed program income.

15. Form 3, cont. • The Income Analysis Form provides a format for presenting the estimated non-federal revenues (all other sources of income ASIDE FROM the section 330 grant funds) for the application budget. • Any specific entries that require additional explanation (e.g., projections that include reimbursement for billable events that the UDS does not count as visits) should be discussed in the “Comments/Explanatory Notes” box and if necessary, detailed in the Budget Justification.

16. Form 3, cont. • Applicants should not use this form to provide additional narrative beyond that included in the Program narrative. • The worksheet must be based on the proposed project. • It may not include any grant funds from any pending supplemental grants or other unapproved changes in sites, services or capacity.

17. Form 3, cont. There are two major classifications of revenues: • Part 1: Program Income The program income section groups billable visits and income into the same five payer groupings used in the Uniform Data System • Part 2: Other Income This section includes all income other than the patient service revenue shown in Part 1 (exclusive of the section 330 SAC grant request). It includes other federal, state, local, and other income. It is income that is earned but not directly tied to providing visits, procedures, or other specific services.

18. Budget Justification • A detailed budget justification in line-item format must be provided for each requested 12- month period of Federal funding. • A three-year budget justification is required. • An itemization of revenues and expenses is necessary only for the first year of the budget justification. • All years of the budget justification should be broken down into Federal and Non-Federal resources.

19. Budget Justification, cont. • The budget justification must clearly describe each cost element and explain how each cost contributes to meeting the project’s goals. • Be very careful about showing how each item in the “other” category is justified. • For subsequent budget years, the justification narrative should highlight the changes from year one or clearly indicate that there are no substantive budget changes during the project period.   • The budget justification MUST be concise. Do NOT use the justification to expand the program narrative.

20. Budget Justification, cont. • Expert Tip regarding Indirect Cost Rates (IDCR): Give a detailed explanation of what the IDCR covers for YOURagency. IDCR agreements vary. Example of info included: Indirect Charges @ 48% • Alaska CHC has a Federal Indirect cost rate of 48% that applies to the total direct cost minus equipment. The Federally approved Indirect Cost Rate Agreement will be mailed. The indirect rate covers all general administrative expenses including, but not limited to: • Salaries: Executive Director, Medical Director, Finance Director, Director of Grants and Program Development, Director of IS, and Support Staff. • Supplies: General office and printing supplies. Information Services supplies for network and computer management. • Travel: Travel to NACHC, Primary Care Association meetings, and other Board/Management Travel • Other: Communications, office rent, audit services, legal fees, NACHC dues, insurance, postage, utilities, marketing/outreach, technical assistance, etc.

21. Budget Justification, cont. • New for FY 2014: The budget justification must detail the costs of each line item within each object class category from the Federal Object Class Categories form (federal section 330 request and non-federal (non-section 330) funding). • The budget justification must contain sufficient detail to enable HRSA to determine if costs are allowable.

22. Budget Justification, cont. • It is important to ensure that the budget justification contains detailed calculations explaining how each line-item expense is derived (e.g., number of visits, cost per unit).

23. Budget Worksheet-Tribal Example • This is an example of my worksheet to develop a budget that includes IHS funding as an in-kind contribution.

24. Complete Sections A, B, and E. Complete Section F if applicable. • Instructions are in Appendix C.

25. SF-424A-Budget Information for Non-Construction Programs, cont. • As necessary, utilize a separate column on the SF 424A section B and E to list funds by type of health center program (Community: CHC, Migrant: MHC, Homeless: HCH, and/or Public Housing: PHPC). The budget should clearly indicate cost for each program. • All budgets should be prepared for a 12-month period based on the budget period end date. (reference Item 13 or Item 19 on Notice of Grant Award). • The Federal cost principles apply only to Federal grant funds, as stated in the Health Centers Consolidation Act of 1996. • Amounts in the budget(s) must be rounded to the nearest whole dollar.

26. Narrative: Support Requested • Provide a complete, consistent, and detailed budget presentation through the submission of the following: SF-424A, budget justification, Form 2: Staffing Profile, Form 3: Income Analysis, and the Federal Object Class Categories form. • Describe how the total budget is aligned and consistent with the proposed service delivery plan and number of patients to be served (consistent with Form 1A: General Information Worksheet).

27. Support Requested, cont. • Describe how the proportion of requested Federal grant funds is appropriate given other sources of funding, including those specified in Form 3: Income Analysis, the Federal Object Class Categories form, and the budget justification. • Describe expected shifts in payer mix and potential impact on the overall budget (e.g., as a result of the Affordable Care Act).

28. Support Requested, cont. • Example

29. Related Attachments • Attachment 4: Position Descriptions, and • Attachment 5: Biographical Sketches.

30. Attachment 4: Position Descriptions • Position descriptions must include the roles, responsibilities, and qualifications of proposed project staff. • When applicable, biographical sketches should include training, language fluency, and experience working with the cultural and linguistically diverse populations served.

31. Attachment 4, cont. • Key management staff: Chief Executive Officer (CEO), Clinical Director (CD), Chief Financial Officer (CFO), Chief Information Officer (CIO), and Chief Operating Officer (COO). • Indicate on the position descriptions if key management positions are combined and/or part time.

32. Position Descriptions, cont. • Each position description should be limited to one page and must include, at a minimum, • the position title; • description of duties and responsibilities; • position qualifications; • supervisory relationships; • skills, knowledge, and experience requirements; • travel requirements; • salary range; and • work hours.

33. Attachment 5: Biographical Sketch • Should not exceed two pages each. • When applicable, biographical sketches must include training, language fluency, and experience working with the cultural and linguistically diverse populations to be served. • In the event that an identified individual is not yet hired, include a letter of commitment from that person with the biographical sketch.

34. Resources FY 2014 Service Area Competition (SAC) Technical Assistance SAC-FAQs

35. To Be Continued… • Part 3: • Criterion 1-Need • Criterion 2-Response Next Webinar is on 7/31/13 at noon.