General Guidance - Bill & Melinda Gates Foundation



Grant Budgeting & Financial ReportingDETAILED INSTRUCTIONSFor use by granteesTABLE OF CONTENTS TOC \o "1-3" \h \z \u 1General Guidance PAGEREF _Toc92370981 \h 41.1About this document PAGEREF _Toc92370982 \h 41.2BMGF contact for questions PAGEREF _Toc92370983 \h 41.3Template overview PAGEREF _Toc92370984 \h 51.3.1Budgeting / Investment Development PAGEREF _Toc92370985 \h 51.3.2Financial Reporting PAGEREF _Toc92370986 \h 52Budget template PAGEREF _Toc92370987 \h 62.1Overview PAGEREF _Toc92370988 \h 62.2Privacy and Non-Confidentiality Notice PAGEREF _Toc92370989 \h 72.3General Information worksheet PAGEREF _Toc92370990 \h 72.3.1Proposal Information PAGEREF _Toc92370991 \h 82.3.2Budgeting & Reporting Periods PAGEREF _Toc92370992 \h 82.3.3Indirect Cost PAGEREF _Toc92370993 \h 92.3.4Non-USD Currencies PAGEREF _Toc92370994 \h 102.3.5Breakdown by an Additional Dimension PAGEREF _Toc92370995 \h 112.3.6Multiple Funders PAGEREF _Toc92370996 \h 122.3.7Budgeting for Performance-Based Incentives PAGEREF _Toc92370997 \h 142.4Budget Details worksheet PAGEREF _Toc92370998 \h 142.4.1Overview PAGEREF _Toc92370999 \h 142.4.2Personnel PAGEREF _Toc92371000 \h 152.4.3Inflation PAGEREF _Toc92371001 \h 162.4.4Travel PAGEREF _Toc92371002 \h 172.4.5Consultants PAGEREF _Toc92371003 \h 172.4.6Capital Equipment PAGEREF _Toc92371004 \h 182.4.7Other Direct Costs PAGEREF _Toc92371005 \h 182.4.8Subawards PAGEREF _Toc92371006 \h 192.4.9Developing budget details when using a breakdown by an Additional Dimension PAGEREF _Toc92371007 \h 202.4.10Including line items not funded by BMGF PAGEREF _Toc92371008 \h 212.4.11Expenditure Responsibility grants PAGEREF _Toc92371009 \h 212.5Financial Summary worksheet PAGEREF _Toc92371010 \h 222.5.1Overview PAGEREF _Toc92371011 \h 222.5.2Cash Flow Summary PAGEREF _Toc92371012 \h 232.5.3Summary by Expense Category PAGEREF _Toc92371013 \h 232.5.4Summary by Additional Dimension PAGEREF _Toc92371014 \h 232.5.5Total Project Cost PAGEREF _Toc92371015 \h 242.5.6Funding Plan PAGEREF _Toc92371016 \h 252.5.7Currency PAGEREF _Toc92371017 \h 272.6Payment Schedule PAGEREF _Toc92371018 \h 282.7Analytics PAGEREF _Toc92371019 \h 292.7.1Basic Graphs PAGEREF _Toc92371020 \h 292.7.2Comparison Tool PAGEREF _Toc92371021 \h 303Budget narrative PAGEREF _Toc92371022 \h 313.1.1Overview of the budget narrative PAGEREF _Toc92371023 \h 314Financial Reporting PAGEREF _Toc92371024 \h 324.1Financial Summary & Reporting worksheet PAGEREF _Toc92371025 \h 334.1.1Cash Flow Summary PAGEREF _Toc92371026 \h 344.1.2Summary by Expense Category PAGEREF _Toc92371027 \h 344.1.3Breakdown by Additional Dimension PAGEREF _Toc92371028 \h 354.1.4Total Project Cost PAGEREF _Toc92371029 \h 354.1.5Funding Plan PAGEREF _Toc92371030 \h 354.1.6Currency PAGEREF _Toc92371031 \h 364.1.7How we calculate budget variances PAGEREF _Toc92371032 \h 384.2Progress narrative PAGEREF _Toc92371033 \h 385Supplements & Re-budgeting PAGEREF _Toc92371034 \h 395.1Preparing the template for Supplements & Re-budgeting PAGEREF _Toc92371035 \h 395.2Budgeting for Supplements & Re-budgeting PAGEREF _Toc92371036 \h 41General GuidanceAbout this documentThe purpose of this document is to provide you with sufficient guidance to complete your grant budgeting and financial reporting in the budget template provided by the Bill & Melinda Gates Foundation (also referred to as ‘BMGF’ or ‘the foundation’). The document intends to address common questions and issues and includes numerous examples and tips. Rather than read these detailed instructions upfront, please feel free to use the Quick Start Guide on the first sheet in the Excel template to start working and then use the direct links in the Excel template to go directly to any area of interest in this document. We recommend watching the short instructional videos linked at the top of the Quick Start Guide to get a hands-on demonstration of the template’s use for budgeting and reporting. Screenshot of the Quick Start GuideThis document is likely to change as we refine the guidance based on partner feedback and observation. Therefore, please access the latest version online if you have not done so in a while. BMGF contact for questionsThe main person responsible for your grant at BMGF is the Investment Owner who is typically referred to as the Program Officer. If you have questions about the budget template, it is best to contact your Investment Coordinator (also referred to as Program Coordinator), unless you are already connected with a Finance (of FP&A) person involved with the grant. If necessary, the Investment Coordinator can connect you with a Finance person or other BMGF individuals who can help. Important: Please copy the Investment Coordinator on all email correspondence related to the grant and include your investment ID (INV-xxxxxx).Template overview Budgeting / Investment DevelopmentAt the proposal development stage, there are two budget-related documents to be submitted:Budget Template: A structured Excel workbook that is designed to capture the financials of your grant in a standardized way while allowing for a degree of flexibility to accommodate a wide variety of grantees and projects. The Excel file is the primary destination for quantitative budget information. Budget Narrative: A series of budget-related questions included in the Investment Document that are intended to elicit additional qualitative context and explanation regarding the budget numbers and the connection between the budget and the scope of the grant. Please make sure that the reporting periods align between the Budget Template and other submitted documents. Similarly, if the budget is broken down by an additional dimension, please ensure that the terminology is consistent across documents. Important: While we are striving for minimal overlap and redundancy between information captured in different documents, it is important to pay attention to consistency across documents when you submit your materials. If your proposal development takes multiple iterations, please double-check documents for discrepancies when resubmitting them to avoid unnecessary rework and delays. Financial ReportingAt the beginning of a BMGF-funded project, a reporting & payment schedule is defined and documented in the grant agreement. Reporting typically happens on an annual basis and includes both a programmatic and a financial update with retrospective and forward-looking information.Importantly, Expenditure Responsibility (ER) grantees must report on a fiscal year end schedule, regardless of the project start date. Please see the Expenditure Responsibility section in these instructions for additional information.As part of a reporting cycle, there are two financial documents to be submitted:Budget Template: The Excel workbook that was used for budgeting purposes. Once the grant is approved, the workbook also captures information on actual expenditures and is used for projections of future expenditures through the end of the grant, including any extensions.Financial Update narrative: Similar to the narrative that was submitted with the initial budget, a narrative for progress reports serves to provide complementary information (such as comments on variances) alongside the Excel workbook.Important: As mentioned for the proposal stage above, the Excel file and the narrative should tell a coherent story with the other Progress Report content. Variances in spending should be put in context of programmatic progress. Budget templateOverviewThe Excel template has the following three worksheets that need to be filled out by the grantee for every grant:General Information: Used to capture several basic facts about the project and its budget. Some of the information entered in the General Information sheet drives what needs to be entered in the following sheets. Therefore, the General Information worksheet should always be populated first.Budget Detail: Used to capture detailed line items that collectively make up the total budget.Financial Summary & Reporting: Used to summarize the budget in rollup tables that are automatically calculated from the budget detail entered in the corresponding worksheet. The Financial Summary also includes tables to manage cash flow and (where applicable) project costs and contributions across multiple funders. Reporting actual and projecting future expenditures at the end of each period are also part of this worksheet. In addition to the three sheets described above, there are additional sheets included in the template that are optional and/or hidden. Grantees do not need to populate these additional sheets, but for transparency, you will find an overview below. Payment Schedule: This sheet auto-generates a payment schedule which is then incorporated into the grant agreement by BMGF. Occasionally, BMGF may make changes to the default schedule. Grantees can preview the auto-generated schedule in this sheet. Analytics: Contains two analytic features: a set of Basic Charts and a Comparison ToolBudget Pivot (typically hidden): Excel Pivot table that can be used to analyze the data in the Budget Detail sheet.If you would like to include additional information (or are asked for it by BMGF) in the Excel file, you can add extra sheets for this purpose. However, please do not make any changes to the structure or formatting of the existing sheets, such as inserting rows or changing formulas.Cells where data is entered are formatted in color:Some cells may have dropdowns or other validations that prevent entering incorrect data. Please do not enter information into white or grey cells. If you use your own internal tools for grant budgeting, you can copy and paste information into the BMGF template. However, please be aware that there is a risk of corrupting the template if this is not done properly. Important: Use Paste Values whenever transferring data from an external source into the template to ensure that you copy your information into the template without problems. If you don’t use the Paste Values function, your information and/or the template can become corrupted. If needed, you can unhide additional rows to enter more information in most of the tables. Please do not insert additional rows or delete existing ones. Privacy and Non-Confidentiality Notice The Internal Revenue Service (IRS) administers U.S. federal tax laws and requires that the foundation publish a list of its grants. We may also provide a general description of our grants and contracts on our web sites, in press releases, and in other marketing materials. Subject to the foundation’s Privacy & Cookies Notice, the foundation may also share information you provide to us (either orally or in writing) with third parties, including external reviewers, key partners and co-funders. Like other grant documents, the Budget template is subject to the foundation’s Terms of Use. If you have questions or concerns regarding providing specific information requested in the Budget template, please reach out to your foundation contact.General Information worksheetInformation in the General Information worksheet should always be entered prior to populating the other sheets. The information in the General Information worksheet is provided at the beginning of the project and generally does not need to be modified throughout the course of the project. Important: Much of the information in the General Information worksheet is also part of other proposal documents. Therefore, please ensure that it is consistent across documents when the package is submitted. Proposal InformationOrganization Name: Please enter your organization’s official full name as it is stated on the Investment Document’s cover page. Investment Name: Please enter name as stated on the Investment Document’s cover page.Subaward budget: Select whether this is a Subaward budget from the drop-down list. Subawards are contracts or grants that your organization has negotiated (or will negotiate) with other organizations who directly contribute to the scope of this project. For subawards of a certain size, BMGF requests a separate budget template and this question is intended to flag that the file is being used for a subaward budget.Budgeting & Reporting PeriodsPlease ensure that you are selecting the correct reporting cadence before inputting the budget details. If you need to readjust the reporting periods, the budget details will need to be revised as well to reflect the changes.Anticipated Start Date: Enter the expected start date for the project. This is typically 2-6 months after initial submission of the proposal package, depending on the time required for review and revision of materials, as well as BMGF-internal approvals and development of the legal agreement. Please check with your Investment Coordinator (Program Coordinator) to discuss your expected timeline. Anticipated End Date: Enter the expected end date for the project.Project Duration: No entry is necessary. This will be calculated automatically and expressed in months based on what you entered in the Anticipated Start and End Dates. Preferred Reporting Cadence: Selecting appropriate time periods for budgeting and subsequent reporting is important to manage the project from a programmatic, financial and administrative perspective. In most cases, BMGF is flexible in how periods are defined. The default is to define the periods as 12-month increments from the beginning of the project. However, you may select a different setup from the drop-down list if you prefer. For example, you can choose to align the periods with the calendar year, with your organization’s fiscal year or with the cadence of another funder supporting the project. The template automatically calculates each period’s start and end date and number of months. In exceptional cases, custom periods may be appropriate, but please check with your foundation contact before selecting this option. Important: Expenditure Responsibility (ER) grantees must report on a fiscal year end schedule. Please see the Expenditure Responsibility section in these instructions for additional information.Example: 4-year grant starting on April 1st, 2022Preferred Reporting Cadence: 12-month incrementsPreferred Reporting Cadence: calendar year Preferred Reporting Cadence: fiscal year (with a fiscal year start date on July 1st)Indirect Cost Please read BMGF’s Indirect Cost Policy where this topic is described in detail and applicable rates depending on the organization type are listed. The template allows setting individual Indirect Cost rates for two distinct components of the primary grantee’s Indirect Cost (see below). Organization Type: Select your organization type from the drop-down list. This information will determine the maximum allowable Indirect Cost rate for BMGF funds spent on your project. Indirect Cost Rate on Primary Grantee's Portion: This rate is used to calculate the allowable Indirect Cost over and above the Direct Cost incurred by you as the primary grantee (excluding subawards). The percentage is applied to the sum of the following categories: Personnel, Travel, Consultants, Capital Equipment and Other Direct Costs. Important: The Indirect Cost Policy defines what expenses qualify as direct costs for BMGF-funded projects. Please pay close attention to these guidelines and avoid including items in the Budget Detail worksheet that are considered indirect costs. Primary Grantee's Indirect Cost Rate on Subaward Portion: This rate is used to calculate the allowable Indirect Costs awarded to the primary grantee for the costs incurred in administering any subawards (on top of pass-through payments made to subawardees). This rate is different from the Indirect Costs that subawardees receive for the work that they perform on behalf of the primary grantee. The maximum percentages defined in the BMGF Indirect Cost Policy do not differ between the Indirect Cost Rate on Primary Grantee's Portion and the Primary Grantee's Indirect Cost Rate on Subaward Portion, but the two percentages are called out separately as there will be situations where they differ, e.g. in the event of large subawards where administrative overhead for the primary grantee may be a relatively small percentage. Important: According to BMGF’s Indirect Cost Policy, the same policy guidelines apply to subgrantees receiving BMGF funds. The percentage applicable to the subgrantee depends on the organization and may be different from the primary grantee. The Indirect Costs that go to subgrantee are captured in the Budget Detail sheet and not in the General Information sheet. Non-USD CurrenciesIf your operating currency will be different from USD (U.S. Dollars), this can have a significant impact on the cost of the project in relation to the approved funds in USD. Longer projects with exposure to volatile currencies are especially at risk. To better understand how those issues might impact your project, we ask that your currency assumptions are made transparent at the initial budgeting stage and that you state currency gains and losses when reporting. If your operating currency will be different from USD, select “Yes” next to the corresponding question:If you select “Yes”, the instructions will refer to the following question, where you are expected to enter the 3-letter currency code (“INR” in this example):You will then enter the budget rate in the Budget Details sheet, which is the rate that will apply to convert your budget from your operating currency into USD. The budget rate that you enter should be as close as possible to the spot rate on the date of budget submission to the foundation. There are many sources of spot rates including reputable websites or information terminals, banks, or other financial institutions. The foundation does not require the use of a specific source. By default, the budget rate stays constant over the duration of the grant. However, in certain situations, a budget revision using an updated rate may be necessary (see section on Supplements and Re-budgeting).Please provide additional information by filling out the Currency Exchange section of the budget narrative. If your organization has institutionally defined rates and policies that affect how you manage currencies in the grant budget template, please explain in the narrative.For more information, see the Currency section in the Financial Summary & Reporting part of these instructions.Breakdown by an Additional DimensionThe template is structured such that any budget will be broken down by expense categories (personnel, travel, consultants, capital equipment, other direct costs, and subawards). Additionally, the template allows breaking down the total budget by an additional dimension (e.g., by outcome, geography, product candidate, projects within a portfolio, or other) by allocating individual cost items to a set of “bins” you define (see Budget Detail section for more information). Depending on the nature of the project, the relevance of showing cost by an additional dimension varies significantly. For example, it could be important to understand the individual cost for different outcomes that are part of the grant scope, or payment for one part of the project may be contingent on the completion of the other, thus creating a need to isolate the cost for the two parts. Note: Please confirm your additional dimension bins with the Program Officer before developing your budget.If you have not discussed a potential cost breakdown by an additional dimension with your BMGF contact or received written guidance from BMGF and believe budgeting by additional dimension might be useful, please contact your Program Officer before populating the Budget Detail worksheet. To enable the budget breakdown by an additional dimension in the template, select “Yes” next to the corresponding question:If you select “Yes”, the below table will appear at the bottom of the General Information worksheet. Populate the Additional Dimension table with the bins reflecting the breakdown agreed upon with BMGF (you can unhide additional rows, as needed). An example is shown below: Note: In many instances, it is recommended to include “cross-cutting” or “other” as a bin within the dimension breakdown to accommodate costs that cannot be cleanly allocated to another bin. If you find that most budgeted costs fall into the “cross-cutting” bin, you probably need to either redefine your dimension breakdown or reconsider the usefulness of budgeting by an additional dimension. For readability, please keep the wording short. To prevent inconsistencies, avoid making updates to the table once you have started populating the Budget Detail sheet.As you populate the Budget Detail sheet, the budget breakdown by the additional dimension is automatically generated in a summary table in the Financial Summary & Reporting sheet. As part of the subsequent reporting cycles, actual expenditures are then reported against this summary table. Please see the relevant section under the instructions for the Budget Details sheet for additional detail on how to populate the Budget Detail sheet with information on your budget by Additional Dimension.Multiple FundersFor projects that are co-funded between BMGF and other funders, the template allows to you capture the full project budget and not just the BMGF-funded portion of the budget. We consider a project to be “co-funded” when funding from multiple sources (i.e., BMGF funding and non-BMGF funding) is required to reach the outcomes for the project as described in the BMGF Investment Document. If funding from multiple sources is required to reach the outcomes for the project, please select “Yes” in the General Information sheet when answering the following question: For projects with multiple sources of funding, we are interested in two key pieces of information which will be captured in the budget template:Total Project Cost: The overall cost budgeted to accomplish the targeted project outcomes, including costs that will be covered by other funding sources. As explained below, the template allows for different ways of showing the Total Project Cost. Funding Plan: The expected contributions from different funding sources over the life of the project.The way to show the total project cost for your grant is determined via a second question (which only appears on the General Information sheet if you answer “Yes” to the previous question):There are three or four options available for that question, since the Excel template can capture total project cost at different levels of detail and broken down differently. If your project is co-funded, you should receive guidance from your foundation contact on which option to select.Total only (default selection) – The total project cost is shown only as one total amount per period, without breaking it down into expense categoriesBy Category – The total project cost is shown broken down by expense category in each periodBy Additional Dimension – The total project cost is shown broken down by additional dimension in each period (this option will only show if budgeting by additional dimension has been selected in the question above)At line item level – The total project cost (not just the BMGF-funded portion) will be entered as detailed expense line items within each expense category, irrespective of who provides funding for which part of the budget. Importantly, you should not select the last option if you are an Expenditure Responsibility (ER) grantee. Please see the Expenditure Responsibility section in these instructions for additional information. If you choose option 1, 2 or 3, we still require budget details for the BMGF-funded part of the project, which should be entered in the “Budget Details” sheet. Finally, if you choose option 1, 2 or 3 you may still be asked for additional information on the total project cost, as available. For projects with multiple sources of funding, please ensure that BMGF funding is not used for “Prohibited Activities” such as: General operating supportActivities intended to influence legislation (i.e., “lobbying”) Activities intended to engage in political campaign activities Activities intended to make equity investments in other organizations Activities intended to provide “additional funds” as Performance Based IncentivesActivities intended for any non-charitable purposePlease state clearly in the Investment Document that BMGF funding will not be used for any Prohibited Activities over the life of the grant, including any extensions. Please reach out to your foundation contact with any questions.Once you’ve answered the questions on the General Information sheet, you should develop your budget by entering your information in the Budget Details sheet. Once that step is completed, you can include information on your Total Project Cost and Funding Plan in the Financial Summary & Reporting sheet. More specific guidance on this step can be found here. Budgeting for Performance-Based IncentivesSome of our grants include performance-based incentives (PBI), which typically involve a grantee receiving funds when meeting previously agreed-upon milestones or outcomes. Please connect with your foundation contact for more information if your grant includes performance-based incentives, or if you would like to learn more.Budget Details worksheetOverviewThe Budget Details worksheet represents a bottom-up build of the project’s budget.Before you input your budget details, please ensure that you are selecting the correct reporting cadence. If you need to readjust the reporting periods, your budget details will need to be revised as well to reflect those changes.If you indicated in the General Information sheet that your operating currency is different from USD, you will be asked to enter the budget rate that applies for converting your budget from the operating currency into the USD numbers in the BMGF budget template. See here for additional information on currency. We recognize that there are different ways to define budget line items (e.g., budget for travel by expense type, by team member, by destination/geography, by programmatic purpose, etc.) and that you may have a preferred approach. The BMGF template provides flexibility so that you can develop your budget using your preferred approach. In defining the line items, please be sure to provide sufficient detail on large expenditures so we can understand the significant cost drivers for the project. Note: Generally speaking, a single line item should not exceed 5% of the total budget or $100k (whichever is less). Where it is not practical or meaningful to break a line item into component parts, you can use the budget narrative to explain the nature of the expenditure. The Budget Detail sheet covers six different expense categories in sequence as you scroll down, starting with Personnel and ending with Subawards. The structure of line items follows a coherent pattern across all categories, but includes customized labels per category. For example, as shown below, the generic “Purpose” column should be populated with the job title for Personnel line items. Additional Dimension (expand column C, only required if the budget is being broken down by an additional dimension): Select the relevant bin for the line item from the drop-down list showing the additional dimension as defined in the General Information sheet. For more specific instructions, read the relevant section below.Description (column D): Please include a brief description of the line item.Purpose (column E): What is the purpose of this line item?Unit Cost (column F): What is the cost per unit in US Dollars? Please note that in most sections of the budget there is significant flexibility in how you define a “unit” (for example, a travel unit could be a trip, a flight, etc.). If your operating currency is different from USD, make sure you convert numbers into USD using the budget rate stated at the top of the sheet.Quantity (columns G-P): How many units will be needed per period?Five additional columns include information that varies by category and provide an opportunity to include notes or use custom attributes: Additional Information (columns Q-R, relevant only for Personnel, Consultant and Subaward categories): This is used to capture additional category-specific information where required.Notes (column S, optional): Can be used to capture notes specific to any line itemAttributes (columns T-U, optional): An open category that can be used to further mark or classify items, if useful (e.g. geographic region)Please see the sections on Breakdown by an Additional Dimension and Expenditure Responsibility for more information on how you can use these optional columns, as needed.PersonnelWhen entering personnel items, each line should be for no more than one individual (i.e., multiple individuals should not appear in a given row). If the budget will be broken down by an additional dimension, it is acceptable to budget for fractions of the same individual across multiple dimensions, as needed.The unit cost is the annualized salary (or wage compensation) per full-time equivalent (FTE) position in Period 1. To account for salary increases, an annualized percent increase can be included. Fringe costs (employee benefits) are captured as a percentage on top of salaries in a separate column. Note: The allocation per period is expressed as a fraction of a full work year. If a period spans 12 months, this corresponds to the fraction of time an individual dedicates to the project. If a period’s length is less than 12 months, the value entered needs to be discounted accordingly. For example, (see below), an FTE dedicating 80% of their time to a project over a three-month period translates into an FTE allocation of 0.20 in the template (i.e., 3/12 * 0.8 = 0.2).Example: Personnel data in a scenario with uneven budget periodsThere are several reasons why we chose this approach for entering personnel, including:Transparency – We would like to see total person-years budgeted over the full duration of the project, which is possible by adding up allocations over periods.Consistency – We would like to have line items across all categories in the Budget Details sheet follow the consistent equation of unit cost x number of units per period.Reliability – Occasionally, budgeting periods can change, e.g. if a no-cost extension occurs. In these situations, we want to avoid that the personnel budget calculation can yield a different figure simply as a result of changing budgeting periods.When estimating the FTE allocation for new positions, it is important to consider the typical time lag between the start date of the grant and the new person being in place. Therefore, for positions to be hired we expect that you discount the FTE allocation in period 1 according to typical hiring delay.Why should there be only one individual per line item? This approach simplifies error-checking since the length of a given period sets a clear maximum for FTE allocations (e.g., the maximum FTE allocation for a 12-month period is 1.0 FTEs, whereas the maximum for a 3-month period would be 0.25 FTEs). InflationFor personnel, you can include inflation in the “% Inflation per Period” section:50993239842500For all other budget categories, if applicable, please include inflation in the cost per item, and explain in the budget narrative.TravelLine items in the Travel category can be entered in a variety of ways to suit your budgeting preference. Multiple identical trips by multiple people can be reflected in the same line, as illustrated in line 1 in the example below. Lines 2-5 represent a more detailed way of budgeting the same set of trips and can be used if this is how you are used to budgeting travel expenses. Alternative ways of budgeting travel are also acceptable. Same travel activity budgeted in a more detailed way: Alternatively, you can also budget for travel by (for example) programmatic activity:In contrast, an example that does not provide sufficient detail is shown below:Please note that BMGF offers US based grantees participation in the Grantee Group Purchasing Program, designed to leverage the collective buying power of the foundation, our grantees, and others in order to save money on common operating expenses like supplies, equipment, and Travel.?Please consider this opportunity when developing your budget.ConsultantsThe Consultant category includes individuals who are working on the project but are not your employees, such as independent contractors. Contracts with consulting firms that are set up in a fixed fee arrangement or do not have individualized rates may be included in the Subaward category instead. One way to enter the requested budget for individual consultants is to express the fees as a daily rate multiplied by the number of days. Alternatively, if the contract is based on an hourly/weekly/other rate, you may populate the template accordingly, but please make sure to always use the extra column to indicate what type of rate is being used. Line 1 in the example below identifies “Daily” in the “Billing Unit / Expense” column, which then identifies the “Billing Rate” of $500 for the Safety Expert is the Daily Rate and the 50 billable units over the three periods are the number of days the Safety Expert is anticipated to be working on this project. If the consultant contract allows reimbursable expenses, they can be represented in different ways, depending on your budgeting preferences. Line 2 has “Billing Rate” set to $1 and captures the anticipated expenses for site visits as “Billable Units”. The alternative example shows the same amount of expenses but expressed as unit cost of $2,400 (per site visit) multiplied with the number of planned site visits. Same expenses budgeted in an alternative way:Capital EquipmentCapital Equipment includes only items with a unit cost of at least $5,000 (USD) and a useful life of more than one year. Goods that do not fit this definition should be included under Other Direct Costs.An example is shown below: Capital equipment should only include items that are purchased after the execution of the grant agreement for the purposes outlined in the grant proposal and in accordance with the BMGF Indirect Cost policy. For equipment that is shared with work not funded by BMGF, a fractional quantity can be entered to reflect a fair cost share to be covered by the BMGF grant. Other Direct CostsThis category typically includes supplies and equipment with a unit cost generally under $5,000 USD. It also serves as a place to capture everything that qualifies as a direct cost and does not fit any of the other categories, as illustrated by the example below.To avoid rework or follow-up questions, please include only allowable items per the BMGF Indirect Cost policy. Please avoid line items that represent significant amounts without being specific enough, such as the following example:A better way to represent these costs might look like this:Note: Generally speaking, a single line item should not exceed 5% total budget or $100k (whichever is less). Where it is not practical or meaningful to break a line item into component parts, you can use the budget narrative to explain the nature of the expenditure. Peer-reviewed publications: BMGF will cover individual article processing charges and fees to the extent required to enable grantees to comply with the foundation’s Open Access Policy. Only publication fees for fully Open Access (OA) journals or journals committed to OA transformation will be paid. In alignment with cOAlition S the foundation has discontinued paying publishing fees to hybrid journals. Grantees should not pay these fees out of their own pocket, or grant budget, or seek reimbursement from the foundation. Rather, see the “Payment of Publishing Fees” section of the Open Access Policy website for detailed information or email openaccess@. Note: Individual article fees covered by the central open access budget do not include other costs related to publications such as personnel costs, additional fees for special issues or journal supplements, dissemination materials, white papers, WHO guidance documents, user guides, sensitization materials, brochures, etc.Group Purchasing: Please note that BMGF offers US based grantees participation in the Grantee Group Purchasing Program, designed to leverage the collective buying power of the foundation, our grantees, and others in order to save money on common operating expenses like supplies, equipment, and Travel.?Please consider this opportunity when developing your budget.SubawardsSubawards are contracts or grants that the primary grantee has negotiated (or will negotiate) with other organizations who contribute to the completion of this project. A subaward is “under” the main grant award; the primary grantee receives the funds and passes them through to the subawardee. The primary grantee is responsible for negotiating the subaward budget, overseeing the work of the subawardee, disbursing funds in accordance with the subaward agreement and ensuring all applicable policies are met. In the budget spreadsheet, please enter each subaward as a separate line item with the expected disbursement for each period broken out. Important: When entering subaward amounts in your budget per period, please consider how much you expect to pay out in the corresponding timeframe, which may be different from the cost the subawardee will incur in the same period. For example, a contract could span periods 1 & 2, but invoices may only be paid at the conclusion of the work in period 2; therefore, you would enter $0 in period 1 and period 2 would include the full cost of the contract. Please be aware that the limitations defined by the BMGF Indirect Cost policy apply to both the primary applicant organization and any subgrantees. In the template, the indirect cost claimed by the subawardee should be budgeted as part of the amounts entered under each period. In the column labeled “% Indirect Cost”, please enter the rate that has been applied for each subaward. For example, the second item below represents a subaward of $330,000 in total, including $300,000 in direct cost and 10% ($30,000) in indirect cost.Note: Indirect Costs awarded to subawardees are not automatically calculated in the template. Please state the full amounts, inclusive of indirect cost, for each period and use the “% Indirect Cost” column to indicate the applied Indirect Cost rate for each subaward, consistent with the limits defined by the BMGF Indirect Cost policy.It is important for us to have a good understanding of all the significant cost drivers behind a given grant budget. Therefore, please explain the assumptions behind subaward line items in the budget narrative. For subawards greater than $1,000,000, please submit separate subaward budget in the BMGF format. This rule also applies if any one organization is receiving more than the threshold amount through multiple subawards under the same grant. On occasion, we may ask to see a separate subaward budget, even if it is less than $1,000,000, when we consider it necessary for our budget review. If you have concerns with using the BMGF templates with your subawardees, please reach out to your foundation contact. If the subawardee and/or amounts are not known at the time you develop the budget, please provide the estimated cost and rationale for each subaward. For subawards that are expected to exceed the applicable threshold once they are negotiated, you will be asked to submit a detailed budget for review at a later date. Finally, it is important that Expenditure Responsibility (ER) grantees specify whether their subawards (if any) are either subgrants or subcontracts. If you are submitting an ER grant request that includes subawards, please be sure to fill out that information in the “Subaward Type” column in this section of the template. Please see the Expenditure Responsibility section of this document for more information. Developing budget details when using a breakdown by an Additional DimensionIf you are developing your budget with a breakdown by an Additional Dimension, you should use the “Additional Dimension” column (column C) in the Budget Details sheet. You may have to reveal that column by clicking on the “+” sign above column D. Each line in the “Additional Dimension” column on the Budget Details sheet has a drop-down selection that auto-populates with the Additional Dimension’s bins defined in the General Information sheet. Please see the Breakdown by Additional Dimension section for additional information on setting up the budget breakdown by an Additional Dimension.2800350620395 Please use the “Additional Dimension” column to attribute each line item to one of the bins; line items that span multiple bins can be repeated with fractions of the total quantity distributed among the relevant bins. Note: Costs that cannot be allocated cleanly to a single bucket in the dimension break-down should be categorized as “other” or “cross-cutting.” If you find that the vast majority of budgeted costs fall into the “cross-cutting” bucket, you probably need to either redefine your dimension break-down or reconsider the value of budgeting by an additional dimension. Including line items not funded by BMGFAs noted above, all BMGF-funded direct costs should be included in the Budget Details worksheet. When there are multiple sources of funding, the worksheet can also include budget details covered by other funders if the option is chosen to capture total project cost at line item level (this corresponds to the last option in the dropdown list described in this section). Importantly, if a project is funded by multiple donors (including BMGF) and includes items for which BMGF funding cannot be used (e.g., lobbying, political activities, non-charitable purposes), please:Make it clear in the budget narrative that BMGF funds will not be used for those purposes, for example by adding the following statement: “This proposal includes lobbying activities. Funding from the Bill & Melinda Gates Foundation will not be used toward those lobbying activities over the life of the grant, including any extensions.” Mark any line items associated with these purposes in the budget template by using the “Notes” column (column S) or one of the “Attributes” columns (columns T and U) in the Budget Detail sheet. You may have to reveal these columns by clicking on the “+” sign above column V in the spreadsheet. Please reach out to your foundation contact with any questions.Expenditure Responsibility grantsOur work with certain types of organizations requires the foundation to exercise “Expenditure Responsibility” over the grants made to those organizations, which involves additional diligence, oversight and reporting requirements for us and our partner. Expenditure Responsibility (ER) is generally required for the following types of organizations:US and non-US organizations that are not US public charitiesPrivate foundationsPrivate operating foundationsFor-profit organizationsNew organizations that have not received a determination letter from the US Internal Revenue ServiceCertain supporting organizationsYour foundation contact will advise you whether your proposed project is an Expenditure Responsibility (or ER) grant. If your proposed project is subject to ER, we ask that you ensure that BMGF funding is not used for “general operating support”, for activities intended to influence legislation (i.e., “lobbying”) or to engage in political campaign activities, to make equity investments in other organizations, or to provide “additional funds” as Performance Based Incentives or for any non-charitable purpose (collectively, “Prohibited Activities”).Please reach out to your foundation contact with any questions.Financial Summary worksheetOverviewThe Financial Summary & Reporting worksheet provides a high-level summary of the key financial information throughout the entire life of the grant. From left to right, the worksheet lines up financial snapshots of the grant at different points in time, starting with the budget section (in blue), followed by up to ten reporting sections (in green). At the stage of proposal development and approval, only the “Budget” section is relevant. With each subsequent reporting cycle, a new reporting section will be populated and can be compared against the budget or previous reporting cycles. For convenience, the sections can be collapsed or expanded as necessary, and you can show 5 or 10 periods at a time. From top to bottom, the Financial Summary & Reporting worksheet is organized in a series of tables:Cash Flow Summary: Tracks the disbursement and spending of BMGF funds (becomes more relevant during reporting).Summary by Expense Category: Shows the sum of the line items entered in the Budget Detail worksheet along the expense categories.Breakdown by Additional Dimension (optional, as needed): Shows the sum of the line items entered in the Budget Detail worksheet by the additional dimension defined in the General Information sheet (e.g., by outcome, geography, product candidate, projects within a portfolio, or other).Total Project Cost (only if there are multiple funders): If only the BMGF-funded portion has been captured in the Budget Details worksheet, this table is intended to show the full project budget.Funding Plan (only if there are multiple funders): If the project has multiple funders, this table shows the (anticipated) contributions of BMGF and other funders.The following sections provide more specific information on the use of these tables at the time when the original budget is being developed. For information on what to do at the time of financial reporting, please refer to the Financial Reporting section. Cash Flow SummaryAs part of the budgeting effort, you do not need to enter any information into this table. The numbers displayed will be incomplete until the BMGF payment amounts have been entered (by BMGF staff). Once the payment amounts have been entered, you can see the expected balance on hand at the end of each period. This balance is typically carried over into the following period as per the calculation in the spreadsheet. In case your activities under the grant are expected to earn revenue (besides interest from grant funds), please inform your foundation contact so the template can be set up to account for the planned extra income. Summary by Expense CategoryThis table is an automatic roll-up of all details entered into the Budget Details worksheet. If only 100% BMGF-funded items were included there, this summary view corresponds to the total requested BMGF funds broken down by category. If the project is co-funded and the full project budget was entered into the Budget Detail worksheet, this table includes both BMGF’s and other funders’ shares. In that situation, the Funding Plan table is used to specify contributions by funder.As described in the Financial Reporting section, this table is the baseline against which actual expenditures will be reported in the first period. Summary by Additional DimensionThis table is only relevant if the budget will be broken down by an additional dimension (e.g., by outcome, geography, product candidate, projects within a portfolio, or other). If you answered “No” to the question “Will the budget be broken down by an additional dimension?” on the General Information sheet, then this table will be grayed out and does not get populated. If you answered “Yes” to that question, then this table will show the direct cost from the Budget Detail worksheet rolled up by the additional dimension as defined in the General Information sheet. If the project is co-funded and the full project budget was entered into the Budget Detail worksheet, this table includes both BMGF’s and other funders’ shares. In that situation, the Funding Plan table is used to specify contributions by funder.It’s worth noting that this table is an alternative view against which actual expenditures will be reported, in addition to the expense category level. Please see the Financial Reporting section for additional detail.Please ensure that the Total Direct Cost between this table and the previous one always match. Total Project CostThis table is only relevant if there are multiple funders for the project. If you answered “No” to the question “Will the total cost of this project require contributions of funding from sources other than BMGF?” on the General Information sheet, then this table will be grayed out and does not need to be populated. If you answered “Yes” to that question, then the answer to the second question on the General Information sheet (“How will the total project cost be captured in the budget template?”) determines what information needs to be captured in the Total Project Cost table.Depending on the selected answer to this question, the Total Project Cost table in the Financial Summary & Reporting sheet will update and highlight the cells where you should enter information. Only the yellow cells need to be populated. Please reach out to your foundation contact if you are unclear about how the co-funding mechanism works and what information needs to be entered.Since the total budget is inclusive of the BMGF portion in the tables shown above the Total Project Cost table, please check that all amounts in this table are equal or higher than the BMGF-funded portion of the budget. The following paragraphs and screenshots describe the four different appearances of the Total Project Cost table: Total only (default selection) – The total project cost is shown only as one total amount per period, without breaking it down into expense categoriesBy Category – The total project cost is shown broken down by expense category in each periodBy Additional Dimension – The total project cost is shown broken down by additional dimensions in each periodAt line item level – The total project cost should be built up in the Budget Details sheet. The information in the Budget Details sheet will reflect the total cost for the project for all funders, and not just the BMGF-funded portion of the project. If you selected “At line item level”, the total project cost table will automatically show the corresponding total and no input is needed. Please also remember that for Expenditure Responsibility grants, there are some additional budget and reporting considerations. Please see the Expenditure Responsibility section in these instructions for additional information and reach out to your foundation contact for further guidance. Funding PlanFor projects with multiple funders, the Funding Plan is a critical piece of the budgeting exercise. It shows how the total project cost is covered by contributions from different funding sources. The BMGF lines will be populated automatically based on the budget details entered and the indirect cost percentage. For funders other than BMGF, list their names and anticipated contributions by period. You may use multiple rows to separate individual grants, especially if some are secured, and others are not. We recommend including both secured funding and potential funding. If multiple applications for potential funding are pending with a low likelihood of all of them materializing, it may be more appropriate to bundle them into one line item and enter an estimate of likely funding. At the bottom of the table, add up the total amount per period representing requested BMGF funds plus the total of secured funding from other sources listed above, which gives us a sense of the share of total funding which will be secured with the approval of BMGF funds. The template automatically subtracts these amounts from the funding plan totals to determine the amount of identified potential funding, which indicates the share of total funding that is currently at risk and will still need to be secured. The template then automatically compares the sum of BMGF + secured + potential funding to the Total Project Cost (in the table above) to determine the level of over- or under-funding of the overall project. In the example below, $100,000 from Funder A and $140,000 from Funder B’s existing grant are considered secured whereas the future grant from Funder B is a potential contribution that has yet to be secured. At this point, the total BMGF + secured funding is $680,000 out of the $880,000 total. If all funding materializes as planned, this project will be sufficiently funded (over/under Funding is $0). In the event of over- or under-funding, the bottom lines of the table will show the corresponding amounts per year. The exception to the approach described above is if you are using the mode where the total project cost is entered at line item level into the Budget Detail sheet. In that case, the cells for BMGF Direct Cost and BMGF Indirect Cost will show in yellow and the default formulas do not apply. Delete the formulas and manually allocate the respective portion of the budget to BMGF (and each other funder, as described above). This step will determine the requested funding amount from BMGF for each of the periods and in total. Make sure to split direct and indirect cost in accordance with the appropriate indirect cost rate for BMGF’s contribution to the project. The example below is of a $2.2M grant with 2-year duration where BMGF and Funder X have each committed to fund $1.1M (50/50 split). The project has budgeted an annual spend of $1.1M for each year (as shown in the Summary by Expense Category table). Of each year’s spend, $1M is direct cost and $100,000 is indirect cost (reflecting a 10% indirect cost rate). So, in the Funding Plan section, the BMGF Direct Cost line shows $500,000 in direct cost for each year with BMGF Indirect Cost an additional 10% on top. Funder X shows $550,000 for each year (without breaking out indirect cost). In total, BMGF contributes $1.1M and Funder X contributes $1.1M. CurrencyThis table is only relevant if the operating currency of the grant is different from USD. If you answered “No” to the question “Will the financials of this project be managed in a currency other than USD?” on the General Information sheet, then this table will be grayed out and does not need to be populated. At the proposal stage, no information needs to be entered. The table takes the budget rate as defined in the Budget Details sheet as a constant value throughout the project. If your project is co-funded (see sections above), please use this same rate for converting the numbers from your operating currency into USD. (In some instances, it may be necessary to revise the budget before the end of the grant, which is described here. In this case, the budget rate may be updated and show a different value for future periods.)The rows below the one displaying the budget rate will become relevant at the time of reporting, which is described here.Payment Schedule A core part of the grant agreement is a table that is referred to as the reporting & payment schedule. A basic example is shown below:Investment PeriodTarget, Milestone, or Reporting Deliverable Due ByPayment DatePayment Amount (U.S.$)Countersigned AgreementWithin 15 days after receipt of countersigned Agreement$204,806.00Start Date to July 31, 2022Progress ReportAugust 31, 2022October 2022$245,097.00August 1, 2022 to July 31, 2023Progress ReportAugust 31, 2023October 2023$107,441.00Start Date to End DateFinal ReportWithin 60 days of End Date???????Total Grant Amount$557,344.00In essence, the reporting & payment schedule consists of five elements:The investment periods (or reporting periods) to be covered in each of the recurring progress reportsThe targets, milestones or reporting deliverables that are due as required by the grant agreementThe due dates for these targets, milestones or reporting deliverablesThe anticipated dates of payments that are contingent on the targets, milestones or reporting deliverablesThe payment amounts that are planned for disbursement at the corresponding datesImportant: Over the course of multi-year grants, financial needs often evolve. In particular, delays can lead to a lower rate of spend. The foundation often adjusts amounts of subsequent payments to avoid disbursing more than the projected cash need (see Financial Reporting) and amounts shown in the payment schedule should therefore be seen as ‘up-to’ amounts that are subject to change.Multiple factors influence the reporting & payment schedule, such as:Budget periods that are defined in the General Information sheetSelection and timing of targets or milestones that are identified as relevant for paymentsAssumptions on time lag between the end of a reporting period and report submissionAssumptions on time lag between report submission and payment executionSpecific grantee needs and preferencesApproach for managing programmatic or financial risk Irregular rates of spending within periods (e.g. large subaward payments)Use of performance-based incentives, if anyAdministrative constraints (end-year period where no BMGF payments are possible)Workload considerationsThe budget template supports the development of a reporting & payment schedule through a calculator that is included in the Payment Schedule sheet. The full process for composing the payment & reporting schedule for a new grant typically looks as follows:You (the grantee) set budget periods in the General Information sheet (possibly with input from BMGF)You (the grantee) develop the budget by populating the Budget Details sheet, which rolls up to a requested amount per period and a total grant amount as shown in the Financial Summary & Reporting sheetThe Payment Schedule sheet automatically calculates a default schedule based on (1) the information entered into the template, and (2) our assumptions on how long it typically takes to submit a report and process the next payment. By default, we assume 1 month will be needed to submit a report after the end of a reporting period and 2 months will be needed to process the payment after a report was submitted. The latter includes time for BMGF to review the report and the grantee to make revisions, if necessary. (These default time lags can be modified by BMGF, for example to allow grantees more time for reporting on complex grants involving subawardees for major parts of the project.)Note: In calculating the payment amounts, the tool assumes that the budget in each period will be spent at a constant run rate over the duration of the period. You (the grantee) preview the default schedule in the Payment Schedule sheet (see screenshot below). If you have questions or concerns about the default schedule, please reach out to your foundation contact.BMGF reviews the default schedule and may customize it, considering several factors, including possible milestones that should be included. If significant modifications were made, the schedule is typically shared with the grantee for review. BMGF includes the final reporting & payment schedule in the grant agreement which is subject to internal approval and grantee signature. Payment Schedule WorksheetAs the project progresses, the reporting & payment schedule can be altered to account for deviations from planned expenditure, changes to targets or milestones that are identified as relevant for payments, or grant extensions. BMGF may use the calculator tool to revise the reporting & payment schedule and will process a grant amendment if required. Analytics The Excel template includes a separate worksheet intended for analytic support around common needs. The available components and their practical use are described below. Grantees may use the features to analyze the budget as well as actuals & projections, but do not need to enter any information into this sheet. Available features include a set of Basic Graphs and a Comparison Tool (relevant as the grant progresses) as well as the option to view numbers in your operating currency, if different from USD.Basic GraphsThis section is intended to show a set of basic charts that visualize some of the information in the Financial Summary & Reporting sheet or in the Historic Budget Summaries sheet (see Supplements & Re-budgeting). Via the selection box at the top of the section, one can choose which set of numbers from the Financial Summary & Reporting sheet or the Historic Budget Summaries sheet should be visualized. The values named “Budget” and “End of Period […]” refer to numbers from the Financial Summary & Reporting sheet, whereas the values named “Original Budget” and “Budget Revision […]” refer to numbers from the Historic Budget Summaries sheet.For example, selecting “Budget” will show information from the budget section (blue header) of the Financial Summary & Reporting sheet, whereas selecting “End of Period 2” will show information from the second reporting section (green header). That way, charts can be generated for the grant’s financials at any point in time as it progresses. There are four standard graphs:Total Amount by Category: Over the full duration of the grant, how much is projected to be spent (or was spent) by expense category?Amount by Category for Each Period: For each period of the grant, how much is projected to be spent (or was spent) by expense category?Total Amounts for Additional Dimension (only relevant if budget has been broken down by an additional dimension): Over the full duration of the grant, how much is projected to be spent (or was spent) in each defined bin of the additional dimension?Amounts for Additional Dimension (only relevant if budget has been broken down by an additional dimension): For each period of the grant, how much is projected to be spent (or was spent) in each defined bin of the additional dimension?The graphs are preceded by tables of the numbers being shown. Comparison ToolThis section is intended to compare different sets of numbers from the Financial Summary & Reporting sheet or the Historic Budget Summaries sheet (see Supplements & Re-budgeting). For example, the actuals & projections after two periods can be compared to the estimates in the proposal budget. Via the selection box at the top of the section, one can choose which sets of numbers from the Financial Summary & Reporting sheet or the Historic Budget Summaries sheet should be compared. For example, selecting “Budget” as the Baseline and “End of Period 2” as the Comparison will compare the second reporting section (green header) and the budget section (blue header) in the Financial Summary & Reporting sheet. In this way, tables can be generated to compare the grant’s financials between any two points in time as it progresses. There are two subsections in the comparison tool, each featuring two tables that show the difference between numbers both as absolute amounts and as relative percentages:Comparison by expense category: these tables show the difference between the standard expense categories that are used throughout the budget file. Comparison for additional dimension: If an additional dimension is defined and the budget is broken down accordingly, these tables show the difference between the bins of the additional dimension.The comparison tables are preceded by two tables showing the Baseline and Comparison figures. Budget narrativeOverview of the budget narrativeThe Investment Document includes a Budget Information section to provide information in narrative form (also referred to as the budget narrative). The purpose of this section is to supplement the information provided in the Excel budget template by justifying how the budgeted items are necessary to implement project activities and accomplish project results. Please focus on key costs and risks and avoid repeating information contained in the budget template. Together, the Investment Document’s narrative section and Excel budget template should provide a complete quantitative and qualitative description that supports the proposed budget. Specifically, the budget narrative is: A tool to help foundation staff fully understand the budgetary needs of the project funded by the grant An opportunity for grantees to provide descriptive information about their budgeted costs beyond the constraints of the budget spreadsheetA means for grantees to articulate the link between project outcomes and direct costs as well as speak to what is covered by the requested indirect cost rate. A place to highlight specific risks (including currency risk) and discuss other sources of support, as applicable. Instructions for the budget narrative are included in the Investment Document template. Ideally, the budget narrative should be filled out in tandem with the Excel budget template. The line-item descriptions provided in the Excel budget template can be brief, whereas the budget narrative is meant to provide a more in-depth explanation of key aspects of your budget, as appropriate. If your proposal includes any subcontracts and/or subgrants greater than $1,000,000, please submit a separate budget spreadsheet for each organization and discuss it under the Subaward section in the Investment Document’s budget narrative. In addition, if a project funded by multiple donors (including BMGF) includes items for which BMGF funding cannot be used (e.g., lobbying, political activities, non-charitable purposes), please make it clear in the budget narrative that BMGF funds will not be used for those purposes (see here).Financial ReportingThe reporting cadence is determined upfront when the grant is approved and is defined in the grant agreement. Typically, a budget is built in 12-month cycles (either from the beginning of the grant or aligned to a fiscal/calendar year) and financial reporting is conducted against these budget periods. Periods could be shorter than 12 months, either as a consequence of partial fiscal/calendar years, or when a grant uses more frequent reporting cycles or customized reporting periods of varying length. Whatever the reporting cadence, a financial report is usually due a month or two after the end of a period. In some instances, a report may cover a 12-month period plus a shortened period at the beginning or end of the grant. All regular financial reporting in the Excel template takes place on the Financial Summary & Reporting worksheet. This worksheet provides a high-level summary of the key financial information throughout the entire life of the grant. Important: If your project is going through a significant change in scope or timeline relative to the original plan, or if there are other developments that would make the original budget outdated, it may be necessary to revise the detailed grant budget (also referred to as “re-budgeting”). Please reach out to your foundation contact to determine whether re-budgeting is appropriate for your situation. Guidance on how to conduct a budget revision in the budget template can be found in the Supplements and Re-budgeting section. If your grant includes subawards, please consider these important points related to Subaward reporting: For large subawards that have been budgeted in separate Excel files, we do not generally require you to submit separate reporting for these files but may do so in some instances. For any subawards, please factor past and future disbursements to subawardees into your own reporting of actuals and projections for the subaward expense category. We expect that you manage disbursements to subawardees in accordance with their rate of spend so as to avoid large balances being carried unnecessarily by subawardees. If subaward payments are adjusted, please reflect this in the actuals and projections. In the progress report narrative, please fill out the table with the subawardees’ actual expenditure that they have reported to you.For large subawards where no separate budget file was submitted to the foundation at the time of grant approval (because negotiations had not progressed far enough), you will be expected to submit the negotiated subaward budget as part of your first financial report, unless the grant agreement specifies an earlier or later date for sharing it with the foundation.Financial Summary & Reporting worksheetFrom left to right, the worksheet lines up financial snapshots of the grant at different points in time, starting with the budget section (blue header) and then up to ten reporting sections (green header). With each reporting cycle, a new reporting section will be populated and can be compared against the original budget or reporting sections from previous reporting cycles. For convenience, the sections can be collapsed or expanded as necessary using the “+” signs at the top of the sheet. From top to bottom, the Financial Summary worksheet is organized in a series of tables. In the context of financial reporting they serve the following purpose:Cash Flow Summary: BMGF payments and spending of BMGF funds, including balance on hand and past & future paymentsSummary by Expense Category: Actual expenditures and future projections for each of the expense categoriesBreakdown by Additional Dimension (optional, as needed): Actual expenditures and future projections by the additional dimension (e.g., by outcome, geography, product candidate, projects within a portfolio, or other, if applicable)Total Project Cost (only relevant if there are multiple funders): If only the BMGF-funded portion has been captured in the Budget Details worksheet, this table is intended to track the full project actuals & projectionsFunding Plan (only relevant if there are multiple funders): If the project has multiple funders, this table tracks the actual and anticipated contributions of BMGF and other fundersCurrency (only relevant if the operating currency is different from USD): This table tracks exchange rates and bank balances over time. The paragraphs below provide more specific information on the use of these tables at the time of reporting.Cash Flow SummaryAs part of the reporting cycle, please enter the following four amounts for the most recent period:BMGF payment(s) receivedInterest earned from BMGF fundsCurrency Gains/(Losses), see section REF _Ref68207719 \r \p \h 4.1.6 on Currency below. Interest spent that was earned from BMGF fundsThe following items will be automatically populated:Carry-over balance from prior period (if applicable)BMGF funds spent on direct cost (from table below)BMGF funds spent on indirect cost (from table below)As in the upfront budgeting cycle, grantees are not expected to populate the blue cells for future payments. The foundation may modify future payment amounts and reflect these in an amended reporting & payment schedule and the blue cells in the budget template, factoring in carry-over balances and projected costs (see next section). Summary by Expense CategoryIn a reporting cycle, this table is used to capture actuals and future projections for each expense category. Since reporting takes place at this level, it is no longer an automatic roll-up of details entered into a different worksheet. Please populate the light green cells with the latest reporting period’s actual expenditures by category and state actual indirect cost at the bottom of the table. If you spent any interest earned from grant funds, report the spent amount only in the Cash Flow Summary and do not include it in the Summary by Expense Category. If actuals have been reported in prior periods, they will automatically be copied from the corresponding tables to the left.Note: The budget spreadsheet assumes cash accounting. This means that reported actuals should only include funds that have actually been spent or disbursed by the primary grantee (e.g., disbursed by the primary grantee to a subawardee). Actuals should not include projected spend or projected disbursements by the primary grantee. The light yellow cells for future years are intended for an updated projection of expenditures over the remaining duration of the grant based on new information (but not a full re-budgeting exercise or extension). Important: Projections need to be realistic and consider the latest plan of activities with updated costs. For example, projections should not just carry forward previously unspent budget amounts into the next period. Instead, please reassess expected spending for the next and each future period. In total, the projections should not exceed the total approved grant amount, but can be lower. Over the course of a grant’s life, the foundation may adjust the timing and amounts disbursed to the grantee. This is done to avoid oversized cash balances on grantee bank accounts when spending is slower than originally budgeted. Realistic and up-to-date projections are a crucial input for right-sizing disbursements. If you plan to spend interest earned from grant funds, please indicate this in the narrative and do not include planned spending of interest in the projections. If the project is co-funded and the option was selected to represent the total project budget at line item level in the Budget Detail worksheet, this table includes actual and projected spending for both BMGF’s and other funders’ funds. In that situation, the Funding Plan table (see below) is used to specify actual and projected contributions by funder.Breakdown by Additional DimensionIf an additional dimension was defined when the grant budget was developed, this table is used to break down actuals and projections accordingly. Please report actuals and provide updated projections for each of the bins that make up the additional dimension. The Total Direct Cost should match with the Summary by Expense Category above for each period. Indirect cost does not need to be restated in this table. If the project is co-funded and the option was selected to represent the total project budget at line item level in the Budget Detail worksheet, this table includes actual and projected spending for both BMGF’s and other funders’ funds. In that situation, the Funding Plan table (see below) is used to specify actual and projected contributions by funder.Total Project CostThis table is only relevant if the project is co-funded and the Budget Detail worksheet contains only 100% BMGF-funded items. If these conditions do not apply, the table does not need to be populated. If applicable, please enter the full project’s actuals and projections directly into this table. Depending on the chosen setting, the numbers may be entered as a total only or broken down by category or additional dimension. Since this table includes the BMGF portion in the tables above, please check that all amounts are equal or higher than the BMGF portion reported in the tables above. Funding PlanFor co-funded projects, the Funding Plan is a critical piece of each reporting cycle. It shows how the total project cost is covered by different funding contributions. For the latest reporting period, please enter the actual expenditures that were attributed to each funder. Then update the expected future attribution for each funder and enter the numbers for BMGF + secured funding based on the latest information. If a new funder has been identified, you can add a line item and populate it in the current reporting cycle’s table (but not the original budget). If you are using the template in the co-funding mode that captures total project cost at line item level in the Budget Details sheet, the cells for BMGF Direct and BMGF Indirect Cost will show in green and yellow and the default formulas do not apply. Please delete any of the formulas in the green and yellow cells and enter the actual expenditures that were attributed to BMGF and each other funder for the latest reporting period. Then update the expected future attribution of the forecasted total spend for each period based on the agreed funding split that applies for the project. A different ratio at an individual period level is usually acceptable, but please make sure that the funding split for the total project cost continues to reflect the agreed upon split between BMGF and co-funder(s). The total BMGF Direct and Indirect Cost cannot exceed the approved BMGF grant total and the indirect cost rate needs to be applied consistently with the previously approved budget. In a continuation of the example of the grant from section REF _Ref91769817 \r \h 2.5.6, the Funding Plan table is shown below at the time Period 1 actuals are reported. We will assume that a combined $1.2M have been disbursed in Period 1 from BMGF and Funder X, which is shown in the first column under “Total BMGF and Secured Funding”. The grantee has spent $990,000 in Period 1. Of this amount, 50% was attributed to BMGF and 50% to Funder X. The Period 2 forecast captures the rest of the grant amount, $1.21M, forecasted to be attributed at the same ratio to each funder. Overall, the funding is split 50/50 as agreed upfront. Depending on the circumstances, there could be situations where allocations or funding commitments evolve over the duration of the project. In those cases, please work with your foundation contact to devise the best method of reporting and forecasting. CurrencyThis section is relevant for projects with an operating currency different from USD.As projects progress, exchange rates fluctuate and affect the projected cost for the remainder of the project when expressed in terms of USD. It is important for the foundation to understand the degree to which variances to original budget are driven by gain/loss from currency exchange fluctuations versus other factors, such as program implementation. The BMGF budget template requires all grantees to provide project-related budget and spending information in USD. The expectation is that the budget rate set in the original budget will be used throughout the life of the grant for the purposes of grant reporting when converting amounts in your operating currency into USD, including all budgeted unit costs, actual and projected spending, and related financial information. As part of each reporting cycle, please report gains/losses resulting from exchange rate fluctuations in the “Currency Gains / (Losses)” line of the Cash Flow Summary in the budget template. In doing so, the impact of foreign exchange (positive or negative) will be clearly stated and separated in grant reporting. More detail on this topic and approved options for calculation of foreign exchange realized gains and losses are covered in BMGF’s Foreign Exchange Guidelines for Reporting (please reach out to your foundation contact if you need a copy). The foundation may request that you submit a supplemental schedule if the currency gains or losses are large and a significant number of currencies or conversions are occurring during the reporting period.In the Currency section, please populate the light green cells for the most recent reporting period. For the applicable budget rate, restate the rate used for developing the budget and reporting actuals in USD for the reporting period. Since the budget rate is meant to remain constant, this is the same value as the budget rate that was established at the time the proposal was approved, unless a budget revision has taken place since then (see Supplements & Re-budgeting). Below the budget rate, enter the prevailing spot rate of the operating currency at the end of the reporting period. When compared to the budget rate, this more recent read on the exchange rate provides an indication of how far the currencies have drifted apart since the budget rate was established. In addition, the ending account balances of funds held in USD, in operating currency and in any other currencies should be reported. The template calculates a Total Balance in USD based on spot rates using the three amounts entered. This balance is typically a different amount from the balance in the Cash Flow Summary above. In the illustrative example below, where INR represents the operating currency, the grant was budgeted at an INR to USD rate of 75.00 while the spot rate at the end of the reporting period was 78.23. The project held $250,000 USD in an USD denominated bank account, INR 5,737,545 in an INR denominated bank account, and no balance in other non-USD bank accounts.How we calculate budget variancesFor the purposes of financial reporting and analysis, we focus on two types of variance: Latest period variance: compares expenditures that occurred in the most recent reporting period against the projections that were provided at the beginning of the same period. In the template, this variance is referred to as “P[eriod] 1 Actuals Variance”, “P[eriod] 2 Actuals Variance”, etc.Example: At the end of period 2, actual spending for period 2 (the “latest period”) is compared to the amount that was projected to be spent in period 2, which was provided at the time of the previous reporting cycle (i.e. at the end of period 1 when updated projections for period 2 and beyond were submitted). Budget variance: compares the sum of current actuals plus current projections to the budget. Example: After two years, a five-year grant has two years of actual expenditures and three years remaining. To calculate the budget variance, the template adds up actuals for periods 1-2 plus projections for periods 3-5 and compares this total amount to the total amount budgeted for periods 1-5. We review variances at both the total grant and expense category levels. These variances are automatically calculated in the budget template in the Financial Summary & Reporting sheet as part of each reporting section. The allowable variance range is defined in the grant agreement. In the progress narrative (see below), any variances greater than 10% (positive or negative) should be explained. Progress narrativeThe Investment Document includes a Financial Update section which is part of the progress narrative and submitted with each reporting cycle. The purpose of the Financial Update section in the progress narrative document is to complement the quantitative information provided in the Financial Summary & Reporting sheet with additional (qualitative) explanations. Together, the narrative’s Financial Update section and Excel budget template should provide a comprehensive description of the current financial situation of the grant and expected future costs.While we expect that the original grant budget was developed in a thorough effort using all available information at the time, we also recognize that the programmatic scope and financial situation of a grant can evolve over its lifecycle. Regular reporting cycles play a critical role in providing transparency on the actual use of foundation funds and as opportunities for discussing issues & risks and any changes regarding the future use of funds. In addition to reaching out to your foundation contact whenever issues arise that affect the grant financials, please use the progress narrative to document and discuss such issues. Instructions for the Financial Update narrative are included in the Investment Document template. Ideally, the narrative should be filled out in tandem with the Excel budget template and refer the variances calculated there. For subawards, the narrative includes a table which provides more detail than the subaward total in the budget template. Please list the subawardees with the respective amounts that were disbursed, spent, and contracted. Make sure that the sum of the amounts disbursed equals the corresponding number in the budget template. Additional explanations on subaward spending can included in the text field below the table, which is particularly relevant for large subawards where actual and projected spending are significantly different from prior projections. In some cases, the foundation may request updated budget files for subawards greater than $1,000,000.If applicable, please also use the narrative to provide an update on other sources of support and external factors that affect the financial situation of this project. This may include information on co-funding, comments on interest earned/spent, and currency exchange impacts.Supplements & Re-budgetingOccasionally, grants may require a supplement or need to be re-budgeted.Supplement – The original grant requires additional funding for some reason, such as an expansion of project scope, cost overruns, major currency losses, etc. Re-budgeting – The grant budget needs to be revised while staying within the original approved budget amount (e.g., due to a major change in scope/timeline or shift in resources between activities)In either case, we expect to see a revised version of the budget at a detailed level which can then be reviewed and approved. Important: The process for a supplement or re-budgeting is done by exception and requires an upfront conversation with the Program Officer. Do not initiate the steps below until that conversation has occurred and the foundation has provided guidance on the appropriate way to proceed.In the BMGF budget template, the process for completing a supplement is inclusive of the re-budgeting process in the sense that re-budgeting essentially corresponds to a $0 supplement. (However, the additional documentation and approval processes are different.) The following guidance describes the steps to be taken in the budget template, including the preparation stage and the budgeting stage. The result will be a revised budget showing in the blue section of the Financial Summary & Reporting sheet. This budget will be a combination of actual expenditures for past periods and revised budget line items for future periods. The former numbers are automatically populated from the actuals reported in the Financial Summary & Reporting sheet, whereas the latter numbers are rolled up from the revised information in the Budget Details sheet. Preparing the template for Supplements & Re-budgetingWhen working with the template, the following steps should be taken as preparation for a supplement or re-budgeting:Ensure that actual expenditures for the most recent period are entered In the Financial Summary & Reporting sheet, fill out the green cells in the column that is used to capture actuals for the most recent period. Skip this step if no full period of actuals is available yet. For more guidance on entering actuals, see Financial Reporting section. Preserve the previously approved budget summary for reference Unhide the Historic Budget Summaries sheetCopy the values from the blue Budget section of the Financial Summary & Reporting sheet into the first unpopulated section in the Historic Budget Summaries sheet (within the dotted outline). This will allow comparing the revised budget to the previously approved one, using the Analytics sheet.Hide the Historic Budget Summaries sheetPreserve previously approved budget details for reference Create a copy of the prior Budget Details sheet for reference and label it “Budget Details – Original” (or similar name). Note: The copy’s contents will remain available in the workbook but will no longer be connected to the formulas in the Financial Summary & Reporting sheet.Optional: You may hide the copy if you are concerned about having too many tabs visible.Set up the template for the budget revision, using the General Information sheetIndicate that the budget will be revised by selecting “Yes” as the answer for the corresponding question.A follow-on question will appear where you are asked to indicate how many periods of actual expenditures are available. For example, if a supplement is requested within the third period of the grant, you would select “2 Periods of Actuals” to indicate that actual expenditures for periods 1 and 2 are available at this time. If the anticipated end date of the grant changes, you can change it in the Budgeting & Reporting Periods section. Do not modify any of the other parameters in this section. Remove information on past periods from Budget Detail sheet After setting the parameter on the Periods of Actuals in the General Information sheet, only information on future periods will be relevant in the Budget Detail sheet. Therefore, it is recommended to delete all detailed information in the prior periods of the Budget Detail sheet as it does not drive any formulas. (The record of the prior Budget Details is retained in the sheet copied earlier.)Example: If “2 Periods of Actuals” was selected in the General Information sheet, delete information under periods 1 and 2. For these periods, only actual expenditures that are captured in the Financial Summary & Reporting sheet are relevant. Past budget details do not need to be updated and can be deleted instead to avoid inconsistencies in the Excel file. Before:After:Budgeting for Supplements & Re-budgetingOnce the template has been set up as described above, the revised budget can be developed. The following steps walk through the different sheets in the template and describe what needs to be done in each of them: General Information: Confirm anticipated grant end dateBudget Details: If the project’s operating currency is different from the USD, update the budget rate at the top of the table, such that it is as close as possible to the spot rate on the date of submitting the revised budget to the foundation. This rate will apply for all remaining periods (unless there is another budget revision in the future).Revise the information in the Budget Detail sheet for the future periods. When budgeting for a supplement, the revised budget details need to include the full projected expenses for the remainder of the grant, not just supplementary budget items.Example: If “2 Periods of Actuals” was selected in the General Information sheet, revise line items relevant for period 3 and beyond. Optional: The Notes and Attribute columns (columns S through U) can be used to distinguish the items that have been added and/or updated from the unchanged ones. This can simplify the review of the budget changes.Financial Summary & Reporting:Make sure that actual expenditures for the periods where they are available are entered in the corresponding columns, as described in step 1 under Preparing the template for Supplements & Re-budgeting. Check that actuals are showing correctly in the blue section. With the modified setting in the General Information sheet, the periods for which actuals are available have automatically been switched to “Actual” in the blue Budget section and formulas now show actual expenditures from the green Actuals & Projections sections to the right. This is to make sure that the new requested budget shows a combination of actuals to date for past periods and revised budget details for future periods.Example: If actuals are available for periods 1 and 2, the blue Budget section’s period 1 (column E) should show the values from period 1 (column S) under “Period 1 Actuals & Projections” and period 2 (column F) should show the values from period 2 (column AI) under “Period 2 Actuals & Projections”.If the grant is co-funded, update the numbers in the corresponding tables under the blue section, including both actual expenditures to date and future projections. In the Currency section, you should see the previous budget rate stated for prior periods; there is no need to restate reported actuals with the new budget rate. However, for future periods, the revised budget rate should show and will apply going forward. Due to the change in budget rates, the carryover balance is automatically adjusted by the template.Example: If a balance of $100,000 based on an exchange rate of 75 was reported in the Cash Flow Summary at the end of period 2, this corresponds to 7,500,000 in operating currency in the grantee’s books. If the revised budget rate is 92, the USD balance will be adjusted to $81,521.74 (= $100,000 * 75 / 92).If the budget revision coincides with a regular reporting cycle at the end of a given period, please make sure that the projected numbers in the current green section of Actuals & Projections are consistent with the numbers in the revised blue section.Example: If the reporting cycle is at the end of period 2, the projected numbers for period 3 and beyond (yellow cells in column AJ and beyond) should match the blue Budget section. You can accomplish this by copying the corresponding values from column G and beyond.Analytics:To see a before/after picture of the budget revision, use the Comparison Tool in the Analytics sheet (more information on this tool can be found here). Select the last formal revision of the budget (typically “Original Budget”) as the baseline and “Budget” as the comparison to see the two sets of numbers next to each other. Scroll down to see the difference tables with delta amounts and a breakdown by additional dimension (if applicable).For supplements, the incremental budget requested corresponds to the total difference in USD (cell O132). Use this amount when filling out the Supplement section of the Investment Document. ................
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