Blanket Justification for Arts Endowment Funding Application Guidelines and Requirements for Government Agencies

3/27/19

Partnership Agreement Budget Instructions
Use the Project Budget Form available on the website at
https://www.arts.gov/grants/manage-your-award.


Show only the required 1:1 cost share/match. Many SAAs and RAOs can and do ultimately exceed the
required cost share/match, but to streamline review of your application, we ask you to limit the cost
share/match to just the 1:1 for this budget. It is important to remember that all costs included in this
budget (and on subsequent payment requests and financial reports for this award) must be allowable
per the General Terms & Conditions for your award and 2 CFR 200.



This budget cannot include overlapping project costs with any other Federal award, including
previous years’ Partnership Agreements. SAAs that have designated Folk Arts partners who receive
Arts Endowment grants as well as SAA grants for statewide Folklife activity must take specific care to
ensure that there are no overlapping project costs between awards. The partners almost always
include SAA staff time in their project budgets as in-kind, potentially causing time to be allocated to
the SAA staff at greater than 100%.



All costs included in this budget must be incurred within the allowable Period of Performance, which
may begin no earlier than July 1st. Enter your grant period in the period of performance boxes, and
be sure to account for sufficient time to advertise, review, award, and closeout all subawards made
with Arts Endowment or required cost share/matching funds. Note that all activities supported under
this award must be related to the State Arts Plan that was approved in your FY19 application. Funds
cannot be "rolled over" for future use.



Any subawards reflected on this budget must be made in accordance with the requirements of 2 CFR
200.331. This includes specific requirements regarding applicant eligibility, award notice requirements,
subrecipient monitoring and closeout, and other national policy requirements; review the General
Terms & Conditions for Partnership Agreements for more detail.



Provide budget figures for your entire grant. Round all numbers to the nearest $100. Describe like
costs on a single line if necessary to fit the space provided.

DETAILED INSTRUCTIONS

Organization. Enter your SAA’s or RAO’s legal name and street address. The address should match your
entity’s SAM registration record.
Application/Award #. Enter your offered application number.
Project Budget Date: Enter the date your Authorizing Official approved this budget.
Period of Performance Requested. Enter the start and end date of your requested project period. Note that
all costs in the budget must be incurred within the Period of Performance. The earliest allowable start date
is July 1.
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Project Description.
 Enter the date you will begin making subawards - to expedite processing by the Arts Endowment for
DATA Act compliance and for entering required subgrants into the FSRS.
 Include any updates to your proposed activities/plan.
The next section gives you the opportunity to change the “participants” on the application. Consider who
should have access to the REACH system to manage the application and award and update as needed.


Authorizing Official. Enter the name, title, email address, and phone number for the person who has
the legal authority to approve this budget on behalf of your organization.



Project Director. Enter the name, title, email address, and phone number for the person in charge of
administering your partnership agreement.



Primary Contact. Enter the name, title, email address, and phone number for an additional contact
person, if desired.

PROJECT COSTS
The PROJECT COSTS section of the project budget form must show how the total project costs – i.e., the
combined Arts Endowment funds and your cost share/matching funds – will be spent. Direct costs are those
that are identified specifically with the partnership agreement. These costs must be allocable and allowable
under the General Terms and Conditions for your award and 2 CFR 200.
A. DIRECT COSTS
 Salaries and Wages
List compensation for personnel, both administrative and artistic, who are paid on a salary basis. Fees for
contractual personnel/consultants and compensation for artists who are paid on a fee basis should be listed
under Direct Costs: Other Costs and not here.
Indicate the title and/or type of personnel, the number of personnel, and the percentage of time that will
be allocated to the partnership agreement on an annual basis. List key staff positions, and combine similar
functions.
Example:
Title and/or type of
personnel

Number of
personnel

Annual or average
salary range

% of time devoted to
this project

Amount

Executive Director

1

$120,000

10%

$12,000

Program Directors

2

$70,000

50%

$35,000

Education/Outreach

5

$25,000 - $50,000

20-30%

$75,000

Salaries and wages for performers and related or supporting personnel must be estimated at rates no less
than the prevailing minimum compensation as required by the Department of Labor Regulations. (See "Legal
Requirements" for details.)
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Reminder: Under 2 CFR Part 200 Subpart E − Cost Principles, costs for fundraising activities that are necessary
to meet the objectives of the Federal award are now allowable. You may include pro-rated salaries for
personnel who undertake fundraising activity if they are directly allocable to approved Partnership
Agreement activity.
Fringe benefits are those costs other than wages or salary that are attributable to an employee, as in the
form of pension, insurance, vacation and sick leave, etc. They may be included here only if they are not
included as indirect costs.
 Travel
All travel costs must be estimated according to your organization's established written travel policies and
must related to activity outlined in your project narrative. Airfare costs charged to the award may not exceed
the cost of the least expensive class (e.g. coach) available. Include subsistence costs (e.g., hotels, meals) as
part of the amount listed for each trip, as appropriate.
Foreign travel, if any is intended, must specify the country of origin and destination and must conform to
government regulations, including those of the U.S. Treasury Department Office of Foreign Asset Control. See
the General Terms & Conditions for additional information.
Indicate travel costs according to the example below. Unless travel is to foreign countries, you do not need to
specify destinations; simply indicate whether travel is within your state or out of state. List all trips – both
foreign and domestic – individually.
Example:
# of travelers

From

To

Amount

10

In state

$6,000

4

Out of state

$4,000

 Other
List subgrants, consultant and artist fees, contractual services, promotion, acquisition fees, rights,
evaluation and assessment fees, access accommodations (e.g., audio description, sign-language
interpretation, translation, closed or open captioning, large-print brochures/labeling), internet access,
telephone, copying, postage, supplies and materials, publication, distribution, transportation of items other
than personnel, rental of space or equipment, and other project-specific costs.
List artist compensation here if artists are paid on a fee basis.
If you intend to purchase any equipment that costs $5,000 or more per item and that has an estimated useful
life of more than one year, you must specifically identify that item here, and provide a justification for the
expenditure on this form or in an attachment.
Example:
Subgrants

$200,000

Contractual Services (web design, marketing)

$35,000
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Administration (% of rent, supplies, communications)

$50,000

Equipment (purchase of high def audio/visual system for state-wide webcasts)

$7,500

Access Accommodations

$10,000

Do NOT include entertainment or hospitality activities, alcoholic beverages, concessions (e.g., food, T-shirts),
fines and penalties, bad debt costs, deficit reduction, cash reserves or endowments, lobbying, marketing
expenses that are not directly related to the partnership agreement, contingencies, miscellaneous, or costs
incurred before the beginning of the official period of performance. These costs are unallowable and may
not be supported with Federal or cost share/matching funds.

Total DIRECT COSTS is the total of all direct cost items listed in Salaries and Wages,
Travel, and Other.
B. INDIRECT COSTS
Indirect costs are overhead or administrative expenses that are not readily identifiable with fulfilling the
partnership agreement. The costs of operating and maintaining facilities and equipment, depreciation or
use allowances, and administrative salaries and supplies are typical examples of indirect costs.


For SAAs: You may include costs required under a Statewide Cost Allocation Plan here. However, you
must provide details on how the SWCAP amount was calculated.
If your indirect cost rate agreement (ICRA) is not negotiated with the Arts Endowment, provide a copy
of your current rate agreement along with the budget.



For RAOs/NASAA: In order to claim indirect costs on this line, you must have a rate negotiated with
the Arts Endowment or another federal agency. (If so, provide a copy of your current rate agreement
with this budget.) If your organization has never had an indirect cost rate agreement, 2 CFR 200 allows
you to claim a "de minimis" rate of no more than 10 percent of modified total project costs. Indicate
"de minimis" if you choose this option.

Note: If you do not have an ICRA and do not choose the de minimis option, you may still claim
administrative/overhead costs as direct costs under Direct Costs: Other. However, you cannot claim both.

TOTAL PROJECT COSTS is the sum of Total Direct Costs and Indirect Costs (if applicable).
PROJECT INCOME
Cost Share Requirement. The total match for the project must be equal to the NEA’s Offered Amount below
(unless you are receiving Arts Endowment funds that do not require a cost share/match). This may include:
 Organization Share: CASH
List cash donations (including items or services that are provided by the applicant organization), appropriated
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funds, grants, and/or other revenues that are expected or received for the partnership agreement.

3/27/19



For SAAs: Note the Arts Endowment legislative requirements for cost share/match which state that
"The non-Federal funds required…to pay 50 percent of the cost of a program or production shall be
provided from funds directly controlled and appropriated by the State involved and directly managed
by the State agency of such State."



For RAOs/NASAA: Funds proposed as cost share/match must be allowable per the General Terms &
Conditions for State Arts Agencies and Regional Arts Organizations. Do not include Arts Endowment
or other federal grants that are anticipated or received here.

 THIRD-PARTY IN-KIND
List goods or services donated by a third-party individuals/entities outside your organization.


For SAAs: In-kind cost share/match cannot be used to meet the minimum matching requirement
for your award.



For RAOs/NASAA: In-kind can include donated space, supplies, and volunteer services – i.e., goods
and services that are donated by individuals or organizations other than the applicant. To qualify as
matching resources, these same items also must be listed under direct costs. The dollar value of
these non-cash donations should be calculated at their verifiable fair-market value. Identify sources.
Proper documentation must be maintained for all items noted as "in-kind."

TOTAL RECIPIENT SHARE is the sum of CASH and IN-KIND.
NEA AMOUNT = List the total amount of recommended funding or offered amount per the
accompanying notification.

TOTAL PROJECT INCOME is the sum of Total Recipient Share and NEA Amount.

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