Budget & Programmatic Adjustments Overview

Through the life of a grant, costs frequently change from the time of the application submission to the time of implementation. When costs associated with a grant change, a budget or programmatic adjustment is needed. These adjustments are for the correction of allowable programmatic, administrative, or financial changes associated with an award.

1. Programmatic Adjustments are used to update changes in project scope or to gain prior approval for changes with programmatic costs and activities. Adjustments should use one of the following two formulas:
   • Personnel: Person’s Name, effective date of change, (hourly wage x total number of hours = total)
   • Remaining Cost Categories: Item description (Item cost x total number of items = total)

2. Budget Adjustments are required to move funding from one cost category to another. These adjustments include the same information as a programmatic adjustment with the addition of the funding amount to be moved from one cost category to another. For example, requesting to decrease the amount in supplies by

$500 and increasing the amount in equipment by $500 requires a budget adjustment.

Requesting a Budget or Programmatic Adjustment

Budget and Programmatic Adjustments must be made prior to incurring new expenses. If the new expense is made without approval, it will be considered an unauthorized cost. All budget and programmatic adjustment inquiries must be requested by sub-recipients electronically through the OCJS online Grants Management System. Adjustment requests need to be submitted no later than 30 days prior to the end of the funding period.

Necessary Communication

If at any point during implementation, challenges arise such as hiring personnel, staff turnover, or difficulty with purchasing items that may be on backorder, please contact your Grant Planner or Grant Coordinator as soon as possible. In most cases, OCJS can easily problem-solve the issue when identified early.

No Cost Extension Request Overview

In addition to cost changes, circumstances outside of an organization’s control may delay implementation of grant activities. In this case, an extension may be requested in the online grants management system. No Cost Extension requests are reviewed on a case-by-case basis. Only requests providing a reasonable justification for delays will be granted no-cost extensions. Examples of reasonable justification include difficulty hiring staff or staff turnover and challenges with equipment purchases.

Organizations may request a no-cost extension by submitting a request in the online grants management system at least 30 calendar days prior to the end of the award period; however, it is important that organizations act as soon as possible to submit an extension request to allow the grant administrator sufficient time to pro- cess the request.

Extension Requests

Extension requests may be submitted:

• If no additional funds are required
• If there will be no change in the project’s originally approved scope
• If no term of award specifically prohibits the extension

In order to justify an extension, one of the following criteria must be applicable:

• Additional time beyond the established expiration date is required to ensure adequate completion of the originally approved project
• Continuity of grant is required while a competing continuation application is under review
• Extension is necessary to permit an orderly phase-out of a project that will not receive continued support

As a reminder, the award period will not be extended merely for the purpose of using unobligated funds.

Necessary Communication

If at any point during implementation, challenges arise such as hiring personnel, staff turnover, or difficulty with purchasing items that may be on backorder, please contact your Grant Planner or Grant Coordinator as soon as possible. In most cases, OCJS can easily problem-solve the issue when identified early.

Fringe Benefits Overview

Fringe benefits are supplementary compensation made in addition to wages, the objective being to stimulate the interest of the workers and to make the job more attractive and conducive. Some fringe benefits, such as social security and health insurance, are required by law; while others are voluntarily provided by the employer. The various fringe benefits provided to employees vary from one company to another because the employer can choose the benefits that will be provided during a certain period. Fringe benefits typically fall into one of three categories: security, status, and work benefits for hourly wages earned.

Quarterly Subgrant Report Overview

Subgrantees are required to submit a Quarterly Subgrant Report (QSR) reflecting project progress and expenditures for each quarter, even if the expenditures amount is $0. The QSR acts as a mechanism to request reimbursement for expenses incurred during the particular funding period. QSRs should be submitted no later than 30 days after the last day of the funding quarter.

Necessary Communication

If at any point during implementation, challenges arise such as hiring personnel, staff turnover, or difficulty with purchasing items that may be on backorder, please contact your Grant Planner or Grant Coordinator as soon as possible. In most cases, OCJS can easily problem-solve the issue when identified early.

QSR Supporting Documentation Overview

QSRs are quarterly programmatic and financial summaries of the grant activities over the last 90 days. This report is also a request for financial reimbursement for expenditures. QSRs are submitted through the OCJS online grant management system and reviewed by Grant Coordinators before forwarding them to Fiscal Monitors for budget review.

Expenses reported in a QSR should:

• Only be for the specific reporting period
• Align with the approved budget or approved programmatic/budget adjustment
  • Include a match percentage along with requested OCJS funds if required
  • Report actual expenditures as of the quarter’s end date
  • Equal the actual dollar amounts shown
  • Contain support documentation

OCJS fiscal monitors approve QSRs for payment in the form of Vouchers.

The fiscal monitor’s role is to ensure:

• Correctness of the project and funding period
• Exactness of the sum of current expenditures
• Consistency with the reimbursement amount, current expenditures, and cash-on-hand amounts.
• Uniformity of the organization’s address on the QSR and Voucher

Backup Documentation

• Documentation is required to justify any expense charged to a Federal or State grant. The backup documentation for expenditures should be adequate to support and justify:
  • The expenses were tied directly to grant activities
  • The expenses comply with any award restrictions and approval requirements outlined in the terms and conditions of the award
  • Any items purchased with grant funds must be supported with backup documentation, including, but not limited, to the below:

Common Errors with QSR Submissions Include:

• Miscalculations in salary/wages or fringe benefits
• Expenditures submitted for reimbursement do not match approved budget or adjustments
• Sales tax has been included as a requested reimbursement
• Programmatic adjustments not submitted with a change in salary or personnel assigned to the grant
• Requested reimbursement amounts do not match incurred expenditures
• Project and funding periods do not align

Frequently Asked Questions

1. The mailing address at my organization changed, do I need to update OAKS and the online grant management system?
   • Yes, if there is an address change, both OAKS and the online grant management system need update.
2. Do I need to notify my grant coordinator if my business address changes?
   • Yes, anytime there is an address change, please notify your grant coordinator.
3. My organization has a new project director, do I need to update the online grants management system?
   • Yes, if your organization has any change in staff that are listed as a point of contact for a grant, please update the online grants management system.
4. We have a lot of turn over at my organization, do I need to update OCJS when we have staff or salary changes?
   • Yes, please complete a programmatic adjustment and include the staff or salary changes.
5. If I am not sure whether or not I should ask for an adjustment or a no cost extension, what should I do?
   • Please reach out to OCJS staff and we can answer your questions.
6. If I put a dollar amount in my original budget but the cost has increased since then, do I need to do anything prior to purchasing the item?
   • Yes, a programmatic adjustment need to first be completed and approved, otherwise the costs is considered unauthorized.
7. If I have approval in an e-mail to change my budget, do I need to do something in the online grants management system?
   • Yes, a programmatic adjustment needs completed in the online grant management system.
8. If I have unspent funds, can I go ahead and make purchases without prior approval?
   • No, all changes must be approved prior to any purchases.
9. When I am billing for FICA, can I also include Medicare in the percentage of costs?
   • Yes, as long as Medicare is not charged twice.
10. For retirement benefits, can I bill PERS and private retirement both?
    • No, only PERS can be charged since it is the employer contribution.
11. How do I calculate FTEs?
    • A Full Time Equivalent (FTE) is equal to 2080 hours. .5 FTE equals 1040 hours. If a staff person does not work either number of hours, please divide 2080 by the number of hours to be worked and that will be the FTE charged to the grant.
12. Should I review my budget before making purchases to make sure I am doing the right thing?
    • Yes, and if something has changed, please submit a programmatic or budget adjustment.
13. If the individual authorized to sign my forms is not listed in the online grants management system as a part of the grant, do I need to add them?
    • Yes, please make sure the authorized signer is listed in the online grants management system.
14. When I enter my county in Agate, do I enter the county in which the payment is coming or the county of the implementing agency if it is different?
    • Please enter the county of the payment address.

And if you are in doubt, please reach out!