15d. Annual Budget Review
15d.1 SCMF Burn Rate Tool
This resource was designed to help grantees to better manage their funds and determine available dollars that will be used to offset the next renewal. Grants that are projected to have an unexpended balance as of the grant’s annual expiration date must use those funds to offset the next 12-month grant renewal. This tool may be used to estimate the amount of unexpended funds at grant expiration. The use of this tool is highly encouraged but not required. Click on excel or pdf to download your preferred version of the tool.
Each year HUD will review the HUD-91186-A for reasonableness and reserves the right to reduce the requested amount. In accordance with 2 CFR §200.404, a cost is reasonable if, in its nature and amount, it does not exceed that which would be incurred by a prudent person under the circumstances prevailing at the time the decision was made to incur the cost.
- HUD Field staff will review extension requests, in tandem with the vouchers and semi-annual financial reports submitted by the grantee.
- HUD staff must ensure that the budget amounts are in line with actual expenses and activities. If field staff find errors, or need additional clarification of proposed activities and costs, the grantees must make the relevant changes and resubmit a revised HUD-91186-A, if deemed necessary by the Grant Specialist.
- Annual Approved Amount. The CY 2018 funding will be the approved 12-months’ need, minus any CY 2017 offsets and/or available project funds. These extension funds are to be used only to meet a critical need and in cases where no other funding source is available. Grantees must first use available project funds in whole or in part before requesting an annual extension.
15d.3 Annual COLA Increase
Subject to the availability of funds, the Department may apply an increase based on the most recent COLA or other percentage as determined by the Department. Such determination will not be made until a full-year budget is authorized. The annual increase must be applied to the salary, fringe benefits, quality assurance and/or indirect cost, if applicable, budget line items.
An organization may provide a salary and fringe increase over the percentage amount as provided by HUD, such funding however must come from sources other than these grant funds.
15d.4 Budget Line Items Thresholds
For each full-time equivalent (FTE) HUD has established funding thresholds for training, travel and supplies/materials. For each grant award, a threshold amount has been established.
- Supplies and Materials. When the size of a property exceeds a total unit count of 100, HUD will increase the threshold amount from $600 for general supplies/ materials to a reasonable amount, not to exceed $1,000. Such increases will be on a case-by-case basis and must be supported by a written justification. Such justification must be submitted as a statement or attachment via Grant Notes/ Application Notes.
- Based on the availability of funds, HUD may establish a threshold to ensure cost containment. Any changes to budget line items must be communicated to the grantee during the review process.
15d.5 Budget Revisions
To the fullest extent possible, grantees must comply with the approved HUD-91186-A. A revised HUD-91186-A may be resubmitted when any of the following conditions are satisfied:
- Training. SCs must have met a minimum of 36 training hours of classroom/ seminar time before hiring, or must complete this minimum training requirement within 12 months of initial hiring. If a new hire, the annual budget amount may be revised to cover the cost of training.
- Supplies and Materials. Grantees may revise annual budget amounts to cover the cost of equipment replacement above the amount established in D.1 (above) on an as needed basis.
- BLI Redistribution. Redistribution of funds amongst the budget line items (BLI) is permitted at the time of renewal, not to exceed established thresholds and the previously approved total amount.
HIGHLIGHT: The Department recognizes annual increases associated with fringe benefits and will allow for the redistribution of funds to meet such needs, not to exceed the total approved amount. For each previously approved budget line item that is reduced, grantees must evidence how such needs will be satisfied with sources other than these grant funds.
- Post-Award Revisions. Any budget revisions after awards must be in accordance with 2 CFR Part §200.308. Outside of circumstances beyond the grantees control, the practice of redistributing funds throughout the performance period must be avoided. A request for budget line item redistribution must be made by the authorized entity (or designee) and uploaded to GrantSolutions. HUD will not accept any request for budget revisions from a third-party provider unless such entity is the management agent and authorized to execute the NOA on behalf of the Owner as a designee.