§ 130.460 - Budget justification.

§ 130.460 Budget justification.

Cross Reference

Link to an amendment published at 88 FR 76646, Nov. 7, 2023.

The SBDC

(a) General. The SBDC Lead Center Director, as a part of the annual renewal

application

proposal, or the applicant organization's authorized representative, in the case of a new SBDC application, shall prepare and submit to the SBA Project Officer the budget justification for the upcoming budget period. The budget

shall

will be reviewed annually upon submission of a renewal application.

(

a

b)Direct costs.

Unless otherwise provided in applicable OMB circulars, at least eighty percent (80%)

At least 80 percent of SBA funding must be allocated to the direct

costs

cost of

Program

program delivery.

(

b

c) Indirect costs. If the applicant organization or recipient organization waives all indirect costs

to meet the Matching Funds requirement, one hundred percent (100%)

, then 100 percent of SBA funding must be allocated to program delivery. If the reimbursements of some, but not all, indirect costs are waived to meet the

Matching Funds

matching funds requirement, the lesser of the following may be allocated as reimbursed indirect costs of the Program and charged against the Federal contribution:

(1) Twenty percent

(20%)

of Federal contribution

,

; or

(2) The amount remaining after the waived portion of indirect costs is

subtracted

deducted from the total indirect costs allowed by the SBA.

(

c

d)Separate SBDC service provider budgets.

(1)

The applicant organization shall include separate budgets for all

subcontracted

SBDC service providers in conformity with

OMB requirements

2 CFR part 220, appendix A. Applicable direct cost categories and indirect cost base/rate agreements

shall

will be included for the Lead Center and all SBDC service providers, using a rate equal to or less than the negotiated predetermined rate. If no such rate exists, the sponsoring SBDC organization or SBDC service provider

shall

will negotiate a rate with its

Cognizant Agency

cognizant agency. In the event the sponsoring SBDC organization or SBDC service provider does not have a

Cognizant Agency

cognizant agency, the rate shall be

negotiated with the SBA Project Officer

, in accordance with OMB guidelines:

(

see OMB Circular A–21).

(2) The amount of cash, in-kind contributions and indirect costs for the Lead Center and all sub-contracted SBDC service providers shall be indicated in accordance with OMB requirements.

(d

1) Negotiated with the SBA Project Officer; or

(2) Apply the OMB de minimis rate.

(e) Costs associated with lobbying. No portion of the Federal contribution received by an SBDC may be used for lobbying activities, either directly by the SBDC or indirectly through outside organizations, except those activities permitted by OMB. Restrictions on and reports of lobbying activities by the SBDC shall be in accordance with OMB requirements, Section 319 of Public Law No. 101–121, and the annual Program Announcement.

(

(e) Cost principles. Principles for determining allowable costs are contained in

OMB Circulars A–21 (cost principles for grants, contracts, and other agreements with educational institutions), A–87 (cost principles for programs administered by State and local governments), and A–122 (cost principles for nonprofit organizations).

2 CFR part 200, subpart E.

(f) Salaries.

(1) If a Where the recipient organization is an educational institution, the salaries of the SBDC Lead Center Director and the subcenter Directors SBDC Service Center Director at a minimum must approximate the average annualized salary of a full professor and an assistant professor, respectively, in the school or department in which the SBDC is located. If a recipient organization is not an educational institution, the salaries of the SBDC Lead Center Director and the subcenter Directors must approximate the average salaries of parallel positions within the recipient organization. In both cases, the recipient organization should consider the Director's longevity in the Program, the number of subcenters, the size of the SBDC budget, the number of service centers, and the individual's experience and background when determining the salary.

(2) Salaries for Lead Center Directors should be comparable to salaries paid Lead Center Directors in other states or regions with comparably sized programs, responsibilities, and authority.

(3) Salaries for all other positions within the SBDC should be based upon level of responsibility

,

and be comparable to salaries for similar positions in the area served by the SBDC.

(

3) Recruitment and salary increases for SBDC Directors, subcenter Directors and staff members should conform to the administrative policy of the recipient organization.

(g) Travel. g) Equipment. In accordance with 2 CFR part 200, capital expenditures for equipment must have the prior approval of the Program Manager of the OSBDC, either through a specific disclosure in an annual cost proposal or through an approved amendment to an existing cooperative agreement.

(h) Travel.

(1) All travel must be separately identified in the proposed budget

as

under the categories of: planned in-

State

state/region, planned out-of-

State

state/region,

unplanned

unanticipated in-

State or unplanned

state/region, or unanticipated out-of-

State. All proposed travel must use coach class, apply directly to specific work of the SBDC or be incurred in the normal course of Program administration, and conform to the written travel policies of the recipient organization or the sponsoring SBDC organization. (Per diem rates, including lodging, shall not exceed those authorized by the recipient organization.

state/region. Unplanned travel estimates may be based on the SBDC's experience.

(2) Transportation costs must be justified in writing, including the estimated cost, number of persons traveling, and the benefit to be derived by the small business community from the proposed travel.

A specific projected amount, based on the SBDC's past experience, where appropriate, must also be included in the budget for unplanned travel. A more detailed justification must be given for unplanned out-of-State travel.

(3) Any proposed unplanned out-of-

State

state/region travel exceeding the approved amount budgeted

amount

for

travel

this category must be submitted to the

Project Officer

SBA for approval on a case-by-case basis

. Travel outside the United States must have prior approval by the AA/SBDCs on a case-by-case basis.

(h) Dues. Costs of memberships in business, technical, and professional organizations shall be allowable expenses. The use of Federal funds to pay dues for business, technical and professional organizations shall be permitted, provided that the payments are included in the budget proposal, are approved by the SBA and comply with § 130.460(e).

prior to traveling.

(4) All foreign travel requests must be submitted to the appropriate District Director and the SBDC Program Manager for review and provided to the AA/SBDC for final approval in accordance with the notice of funding opportunity. Foreign travel charged to the SBDC cooperative agreement or performed by SBDC staff, while on duty for the recipient organization, must be approved in advance.

(i) Planned foreign travel costs allocable to the SBDC cooperative agreement for SBDC network staff may be approved by AA/SBDC through the annual proposal process, but such planned costs must be fully disclosed and justified in the budget narrative for Agency review. Prior approval should be obtained from the AA/SBDC prior to travel in accordance with 2 CFR part 200.

(ii) Unanticipated foreign travel must be approved using the process set forth in this paragraph (h).

[88 FR 76646, Nov. 7, 2023]