Revised 3/17/14

SAMPLE - Budget Narrative – SAMPLE

(NOTE: The Budget Narrative is the justification of ‘how’ and/or ‘why’ a line item helps to meet the program deliverables.)

A. Salary – Total: $377,000.00

Program Managerbrief description of duties:e.g.the program manager will hire, supervise, and train staff. There are six Program Manager positions. Four Program Managers are paid $56,000.00annually and will be allocated at 100% for the 12 months of the contract. Two Program Managers are paid $60,000.00 annually and will be allocated at 100% for the 12 months of the contract.

Administrative Assistant brief description of duties: e.g. There is oneposition. This individual’s annual salary is $33,000.00 and will be allocated at 100% for the 12 months of the contract.

B. Fringe – Total: $103,298.00brief description of benefits:

FICA will be paid for all salaries: $377,000.00 x .0765 = $28,840.50.

Medicare cost is $346,840.00 x .145 = $50,291.80.

Retirement for full-time employees: $377,000.00x .08 =$30,160.00.

Health Insurance cost for full-time employees: Manager: $335.63 x 12 months= $4,027.62x 6 = $30,024.00

C. Travel--Expenditures for training and travel for contract related purposes as authorized in the contract and in accordance with State of Louisiana Travel Policies and Procedures (PPM 49) unless otherwise stated in the contract such as registration fees, mileage, meals, lodging, etc. See budget instructions for level of details

D. Operating Expenses – Total: $0.00 List each type with complete description of item and costs, and include a detailed explanation of these charges. E.g. rent, utilities, telephone, etc. See budget instructions for level of details

E. Supplies--Expenditures for articles and commodities which are consumed, to be consumed, or materially altered when used in the operations of business of a business. E.g. office supplies/small equipment, binders,file folders, printer paper, toner, staples, postage, etc.

F. Professional Services--Expenditures for services provided in specialized or highly technical fields by sources outside of the contractor. Professional services include accounting and auditing, management consulting, engineering and architectural, legal, medical, and dental.

G. Other Charges– Expenditures peculiar to a contractor and not otherwise chargeable to another expenditure category. List each type with complete description of item and costs. Include a detailed explanation of these charges. E.g. printing, flyers, etc.

H. Equipment/Acquisition– Tangible assets purchased for use in the operations of an office such as office machines and furniture. Costs include purchase price, delivery charges, taxes, and other purchase related costs. Equipment is defined as any item of value and/or has a useful life of more than one (1) year. The value of equipment is defined by the user agency and funding source. E.g. office machines, furniture, etc.

I. Indirect Costs– Administrative or other expenses that are not directly allocable to a particular activity or project; rather they are related to overall general operations and are shared among projects and/or functions. Administrative costs should be no more than the agreed on percentage.

Total: $480,298.00