THE CHART BELOW REPRESENTS A SPREADSHEET FOR TRACKING FINANCIAL TRANSACTIONS DURING A GRANT PROJECT PERIOD, AND THE OVERALL COMPARISON OF BUDGETED VS. ACTUAL EXPENSES. IN THE SECOND COLUMN THE AGENCY APPROVED BUDGETED AMOUNTS ARE LISTED. ALL PROJECT EXPENSES SHOULD BE TOTALED AND FILLED INTO THE EXPENSES COLUMN. THE FINAL COLUMN WILL SHOW LINE ITEM BALANCES BASED ON YOUR CALCULATIONS.

8. The chart below represents a spreadsheet for tracking financial transactions during a grant project period, and the overall comparison of budgeted vs. actual expenses.  In the second column the agency approved budgeted amounts are listed.  All project expenses should be totaled and filled into the expenses column.  The final column will show line item balances based on your calculations.

Complete the chart to reflect financial transactions described below it:

Expense Category    Budgeted Amount    Total Expenses    Balance
(Budget less Actual Exp)
Salaries & Benefits Expenses      92,000

Honorariums      11,000
Consultants
16,000
Equipment      37,500
Supplies      19,500
Indirect Costs      42,320
Totals    218,320

•    During the three years of the grant period, salaries and benefits totaled $28,000 for year 1, $32,500 for year 2, and $31,000 for year 3.
•    Honorariums were paid to project contributors not in the organizational payroll system; these totaled $5,000 in year 1, $0 in year 2, and $6500 year 3.
•    Consultants working on the project, including a contractor, added expenses totaling $4000 for year 1, $8600 for year 2, and $3200 for year 3.
•    Equipment costs totaled $13,000 for year 1, $11,000 for year 2, and $17,000 for year 3.
•    Supply costs totaled $ 4200 for year 1, $3300 for year 2, and $7400 for year 3.
•    The negotiated indirect cost rate for your organization is 46%; this percentage is applied to total salary & benefits expenses only.  (So, 46% of the funds expensed as S&B are then expensed as indirect costs.)

Additional notes:
•    Your funder has given you 10% line item flexibility.  This means you can move funds between budget lines up to a maximum of 10% of the total budget.
•    Line item flexibility DOES NOT apply to salary & benefit budget lines, nor does it apply to amounts budgeted for indirect cost.
•    The project period has ended; the chart above will be used for preparation of your final financial report.
•    You may add additional columns to the right of the chart showing adjustment and updated balances columns if you wish.
•    You may also copy & complete this chart in excel or another spreadsheet program to for calculation purposes; the completed chart must be submitted with your midterm.

Answer the following based on your completed chart:

8.1. According to your calculations, what is the remaining fund balance once all your expenses have been deducted from the budgeted amounts?

8.2. How would you address variances between budgeted and actual expenses?  (Please be specific; use dollar amounts where possible.)

8.3. What would you do with the remaining balance?  (ie, is there any option for spending it?)