Budget Narrative
** Instructions **


TANF
Types of Applications that Must Include This Document
Priority health area applications
Community Primary Prevention implementation applications
If you are applying for a priority health area grant that includes both TANF funds (for
teen pregnancy prevention) and general funds (for one or more of the other priority health
areas), you must submit two Budget Narratives: one for the TANF funds you are
requesting and one for the general funds you are requesting. Do not include TANF and
general funds in the same Budget Narrative.
Include a narrative that explains each budget line item for your budget request. Your
budget must be consistent with your proposed activities, and your Budget Narrative must
justify your proposed expenditures. All costs included in the budget must be directly
related to the EHDI grant.
Your funding request must include at least 10% dedicated for evaluation-related
activities.
The funding amounts in your Budget Narrative should match the funding amounts on
your Budget Form.
The Budget Narrative should not exceed six pages. It does not have to be double-spaced.
Use 12-point font and at least one-inch margins.
Include a narrative that addresses the following topics.
Salary and Fringe Benefits
For each proposed staff person who will work directly on the EHDI grant, indicate:
the position title and name of the staff person if known; the full-time equivalent (see
definition below) to be charged to the EHDI grant; the actual or expected rate of pay;
the fringe benefits, and the total amount expected to be paid for the staff person. If
the EHDI grant will not be the only funding source for the staff person, indicate the
amount of salary and fringe benefits that will be paid by other funding sources. You
may want to provide this information in a table format.
The staff included in this section of the budget narrative should be the same as the
staff included in the Staffing Narrative. Other staff, such as supervisors and
bookkeepers, should be included on the Administrative Costs line item.
“Full-time equivalent” (or FTE) is defined as the percentage of time a person will
work. To calculate the FTE, divide the hours the person will work by the standard
number of work hours, which is 40 hours per week, 174 hours per month, or 2,080
hours per year. For example, a person who works 20 hours per week is a 0.50 FTE
(20 divided by 40 equals 0.50).
Evaluation
If you are applying for an implementation grant, briefly describe the evaluationrelated activities to be performed by staff persons included on this line item and
indicate the cost of those staff activities.
Contractual Services
For each proposed contract, indicate: the scope of work, including tasks and
deliverables, that the contractor will provide; the time period for the contract; the total
amount expected to be paid to the contractor; the name of the staff person who will
supervise or manage the contract; the name of the contractor, if known; whether the
contractor is non-profit or for-profit, if known; and the method to be used to select the
contractor, such as bids, requests for proposals, or sole-source.
Prior approval must be obtained from MDH for all contracts.
Evaluation
Briefly describe the evaluation-related activities to be performed through contractual
services included on this line item and indicate the cost of those contractual services.
Travel
Include the costs of your local travel, indicating the number of miles you expect to
travel and the mileage rate you will pay, or the expenses of an agency-owned vehicle
you expect to charge to the EHDI grant.
Also include the cost for at least one staff person to attend EHDI trainings or
workshops. Include the cost of two staff to attend the Community Health Conference,
Fall 2012 ($700 per person)
For budgeting purposes, plan for two one-day meetings in the metro during the
contract year. Indicate the expected travel costs, including mileage, hotels, and
meals.
EHDI grant funds cannot be used for out-of-state travel without prior written
approval from your OMMH grant manager.
Evaluation
Briefly describe the travel related to evaluation included on this line item and indicate
the cost of that travel.
Supplies and Expenses
Indicate the expected costs for general operating expenses, such as office supplies,
postage, photocopying, printing, telephone equipment and services, internet
connection costs, teleconferences, videoconferences, meeting space rental, and
equipment purchases or rental.
TANF
Include the costs you expect to have to ensure that community representatives who
are included in your activities can participate fully. Examples include
translators/interpreters, transportation, child care, and stipends (Stipends are limited
to $50 per person per year). If you are applying for a priority health area grant to
address teen pregnancy prevention, see the RFP for information about the types of
expenses you cannot use federal TANF funds for.
EHDI funds may be used to purchase computers that will be directly used for your
proposed activities, but EHDI funds may not be used to purchase any individual piece
of equipment that costs more than $5,000.
Evaluation
Briefly describe the supplies and expenses related to evaluation included on this line
item and indicate the cost of those supplies and expenses.
Other
Describe any other expected EHDI-related costs that do not fit on any other line item.
Examples include purchases of educational or promotional materials, media expenses,
conference sponsorships, and incentives.
EHDI funds may not be used for alcohol, gifts for staff, staff meals (except during
approved travel), parties, capital improvements or alterations, cash assistance paid
directly to individuals to meet their personal or family needs outside your proposed
activities, any individual piece of equipment that costs more than $5,000, or any cost
not directly related to the grant.
TANF
TANF (teen pregnancy prevention) funds may not be used to provide medical care or
reimbursement for child care, transportation, or other cash payments to participants,
including gift cards. TANF funds must be used to support group, not individual,
activities.
You may use EHDI general funds to provide prevention or screening services, such as
those included in the menus of activities in Appendices D-K, including
immunizations and disease management programs. You will not be able to use
general funds for on-going medical care or treatment of disease and disability.
Evaluation
Briefly describe the other expenses related to evaluation included on this line item
and indicate the cost of those other expenses.
Administrative Costs
Administrative costs (sometimes called indirect costs) are costs that represent the cost
of doing business that are not easily identified with a particular grant, contract,
project, program, function, or activity, but are necessary for the overall operation of
the organization and the conduct of the activities it performs. Examples of such
expenses include accounting, human resources, general administration, rental of
office space, and costs to operate and maintain facilities. Salaries for supervisory
staff are also usually considered an administrative cost, unless they are providing
program services.
Administrative costs can be calculated in one of three ways:

based on a federally-negotiated indirect cost rate;

through a formally adopted agency-wide cost allocation plan; or

through an informal plan for allocation to specific funding sources.
Indicate how the requested administrative costs were calculated. Administrative
costs cannot be more than 15 percent of the total proposed budget, unless your
organization has a higher federally-negotiated rate.
In-kind Contributions
Describe the costs of your proposed activities (if any) that will be paid for or
contributed by your organization or your community partners.
Matching Funds
There is a required 10% match for EHDI grants. These funds can be in-kind
contributions.