Budgetary Considerations

Managing the program budget requires regular attention from the Director. In addition to getting expenditure and draw down reports from the finance office and reconciling them to the cuff accounts, the Director will need to keep track of additional “reportables” and make requests for budget modifications with the project officer, when necessary.

Reconciling Financial Reports With the Cuff Account

At least once each quarter, it is recommended that the expenditure reports from the finance office are reconciled to agency cuff accounts. This will identify any outstanding encumbrances and/or questioned entries. 

  • The process of reconciling is accomplished by comparing the expenditure report from finance with the cuff accounts that are kept in the program office and marking, or highlighting, what cuff account entries also show up on the expenditure report.  This will show that the expenditure that was approved, initiated, and encumbered at the program level was also paid in full by finance.

  • When expenditures that were initiated do not show up on the finance expenditure report, it is wise to keep a separate list or itemization of them as “outstanding,” and to research the status of the expenditure with the finance office.

  • The last, or Reconciliation tab on the Sample Cuff Account Download Sample Cuff Account shows a worksheet that reflects the outstanding items at the end of the year.  This documentation will be important to demonstrate what funds are necessary to close out the current grant year.

  • The sample cuff account produces a running budget to actual tracking that will ensure each budget line stays within approved parameters.

Additional “Reportables”

Additional items the Director will have to track include:

  • Match contributions—the TVR grants are funded at 90% of the total agency budget. The remaining 10% must come from tribal contributions—in the form of cash or in-kind contributions.  A sample in-kind match contribution template with instructions can be found here Download here and a sample in-kind match verification form is here Download here. Tracking comparable services to participants can help meet this requirement.

  • This document Download This document provides guidance on how to valuate and document matching and cost-sharing expenditures by the Tribe or other programs.

  • Time and Effort Reports are required for any staff member that isn’t paid 100% from grant funds.  An example of this form can be found here Download here.

Budget Modifications

When it becomes clear to the Director that the established and approved project budget cannot meet the program’s needs, the Director must work with their RSA project officer to prepare, justify, and submit a budget modification. More information can be found in Module 3 under "Establishing the Initial Program Budget from Program Documents."

Strategic Planning

Strategic budget planning involves reviewing your expenditures and projecting the next year’s program costs while staying within your budget. 

When developing the next year's budget, it is useful to examine the current year's expenditures and to decide whether costs will be similar in the next year or how they may increase or decrease.  Here are some things to consider:

  • What costs did you have in the current year that you won't in the next? Or what costs will you have in the next year that you don't in the current?
  • Will salaries increase due to a Cost of Living Allowance (COLA)? Be sure to check with finance or HR about this.
  • Will benefits costs increase? Again, check with finance.
  • What was the average cost of services per participant? You can calculate this by dividing the total amount spent on participant by the number of participants to get the average amount per case.
  • Did you plan to serve more participants in the next year? If so, multiply the cost per case by the planned number for the next year to get a projected amount.
  • The travel and staff development budgets may change from year. Refer to your initial budget proposal for guidance.
  • If you had staff turnover and a position was open for a period of time, you may have some unspent salary funds that could be used to hire a consultant to provide services or help with a special project. What are the possibilities for that?
  • Is there carry over from the previous year? Has it been spent? What were the activities it was to be spent on and what is the status of those activities?
  • Is there an excessive balance for the current year? If so, there will need to be a plan in place for expending the funds. It is important to work with the RSA project officer to plan this. It is possible that if there is a balance at the end of the fiscal year, that the following year's budget will be reduced so that the agency will start the next fiscal year with the amount originally planned.
  • Remember to include Indirect costs when totaling the budget.

When there are difficulties putting the next year's budget together, if is useful to work with the department's supervisor, the grants and contracts office, or the finance office. Contact the project officer if there are questions. If the projected costs exceed the budget, items will have to be prioritized and some activities or costs may have to be cut.

For questions or issues around carry over or an excessive balance, it is best to contact the RSA project officer to discuss strategies. There is more information about excessive balances at the end of this step.

Order of Selection (OOS)

When the TVR program does not have enough funds to serve all applicants who are determined eligible for services, the program must consider using an Order of Selection (OOS) process. Many state VR agencies use OOS because they have more applicants for services than they have resources for. Many state VR agencies have a webpage for OOS that you can look at to get more information.

In OOS, the TVR program serves participants with the most significant/severe disabilities first. When an applicant is determined eligible, they are placed in a priority category. The Severity of Disability Certification Download Severity of Disability Certification form, provided by Lanor Curole at the United Houma Nation, can be used to certify disability severity to place a participant in a priority category.

All those in the "most significantly/severely disabled" category will be served first, followed by everyone in the "significantly/severely disabled" category and then the "disabled category." Within each category, participants are served according to date of application. The person who applies first is served first, the person who applies second is served next, and so on, until everyone in that category has been served.

Photo of a fictional TVR staff meeting

Sharing Cases

There are times when it is beneficial for a TVR program to share a case with another VR agency, such as another nearby TVR program or the State VR, in order to split or share high case service costs. This can result in the program's ability to stretch participant service dollars and serve more participants. Additionally, the services provided by another agency can be considered Comparable Services and Benefits.

When it appears that sharing a case would be beneficial, the VRC must first consult with the participant to see if they are willing to have their case shared. If they are and they sign a release to share information with the other program, the VRC will reach out to a nearby TVR program (if there is one) or the local State VR office and schedule an appointment with the appropriate staff. VR services offered through the Veteran's Administration is another option. A combined introductory meeting with the two VRCs and the participant and their family (if applicable) often takes place, and supporting disability documentation is usually provided to the new agency. The referring program's eligibility statement can be shared, but the new agency is responsible for its own determination of eligibility, and may request or gather additional documentation or assessment records.

When both agencies have determined eligibility, there may be another meeting where all parties meet to develop the IPE, with each agency planning to provide different parts of the necessary services. Service provision continues as usual, with the participant responsible for checking in with both agencies to report progress. VRCs collaborate to help the participant troubleshoot issues that come up. Both agencies are able to claim a successful employment outcome when a shared participant maintains employment for at least 90 consecutive days.

Excessive Balances

This section contains content provided directly by RSA.

Definition of an excessive or large available balance: 

  • If, at the end of the second quarter of the grant year (March 31st), 100% of the year's grant funding is unspent; or
  • If, at the end of the third quarter of the grant year (June 30th), 70% of the year's grant funding is unspent.

How is an excessive balance determined? Starting in April of each year, the RSA AIVRS team runs an available balance report for all grantees. The report is reviewed by the RSA project officer for each grant. This report is updated every month until all non-competing continuations are awarded.

When a grantee is identified as having a large available balance, it does not always mean there is a problem, or a failure, on the part of the grantee.  Some grantees use their own [tribal] funds to operate, and then reimburse themselves with funds from their G5 account.  Other grantees draw funds from the G5 accounts on set schedules, such as monthly or quarterly, according to the accounting and cash management procedures of the tribe. If there are excessive balance issues that require resolution, the assigned RSA project officer will contact grantees and document in the grant file how the excessive or large available balance issues were, or will be, resolved.

Steps a grantee should take to resolve an excessive balance: 

  • Grantees should review their respective budgets and expenditures, and reconcile all records, with their Finance office. Directors should also request that their Finance office to conduct regular drawdowns, and that they be sent verification of those drawdowns. 
  • If an excessive or large available balance is determined, the assigned RSA project officer will ask the grantee for documentation that may include but is not limited to:
    1. identifying any remaining activities that could not be accomplished during the budget period and a providing a rationale or justification to support why the planned activities could not be accomplished;
    2. a plan for how the grantee intends to obligate any remaining funds by September 30th of the grant year;
    3. how much is projected to carryover to the next budget period, and
    4. how carryover will be applied in the next budget period.

RSA is preparing a template for projects to use when submitting a plan for spending large available balances in subsequent grant years.

Consequences of Excessive Balances: In cases where the assigned RSA project officer does not concur with the grantee’s explanation for planned expenditures, the continuation amount to be awarded for the following budget period may be reduced.  Before making this recommendation, however, the RSA project officer must be sure that the grantee will have enough funds available to complete the next budget period and any activities not completed from the prior budget period.  Failure to resolve an excessive balance may result in special conditions placed on the award or a reduction in the amount of the award based on past history or patterns of excessive balances.

If there are further questions about excessive balances, it is recommended that a director contract their RSA project officer.