PHCO0513 Leadership & Management Essentials for Public Health - Week 5 – 2/19/25

Week 5 Agenda/Focus

• Welcome to Week 5/Module 5!
• Fostering Collaborations:
  • Competency #1: Describe the context in which organizations exist and some of the macro factors that influence organizational behavior (Assessed by Final Take-Home Examination).
• Week 4 Readings/Resources: Assigned Readers – Meghana, Caroline, Robert, Alliyan & Leila.
• Class Presentation & Class Group Activities – Budget Planning & Resource Management
• Week 5 Homework
  • Week 5 Reflection Journal required & Personal Budget Extra Credit: (both due Tuesday, 2/25/25 by 11:59 pm
• Week 5 Readings: Be prepared to discuss on 2/26/24. Assigned Readers- Jasmine, Myo, Keith, Venson & Breanna.
• Your Coalition’s Mission, Vision, & (3) Strategic Goals – Due by Wednesday, 2/26/25 by 11:59 pm

Today’s Objectives

• Tips - Mission Statements & Strategic Goals
• Planning & Personal budgeting
• Program budgets and the various elements of how to put a program and coalition budget together

Semester Project Coalition Letter of Inquiry DUE DATES

• Your Coalition Name and Brief Description (Purpose) Done 02/05/25 (2 pts)
• Your Coalition Vision, Mission and Strategic Goals 02/26/25 (5 pts)
• Your Coalition Budget (Draft #1) COMPLETE IN-CLASS!! 03/05/25 (5 pts)
• Letter of Inquiry (Draft #1) 04/16/25 (8 pts)
• Peer Review Comments on Draft Letter of Inquiry 04/23/25 (5 pts)
• Letter of Inquiry and Budget (Final Version) 04/30/25 (12 pts)

Assignment: Develop a Coalition to Influence Public Health (Coalition Letter of Inquiry)

• Prepare a vision statement, a mission statement, and at least three strategic goals for your proposed coalition.
• Be sure to write your vision and mission statements using principles of good vision and mission statements.
• Your strategic goals (activities) should cover what you want the coalition to accomplish during the timeframe of your funding period (one or two years).

ORGANIZATIONAL MANAGEMENT: PLANNING, BUDGETING AND RESOURCE MANAGEMENT PART 1 – 2/19/25

• Leadership and Management Essentials for Public Health PHCO 0513

Budget and Resource Management Sessions

• Budget and Resource Mgmt – Part 1 (2/19/25)
  • Key Concepts and Program Budgets
• Budget and Resource Mgmt – Part 2 (2/26/25)
  • Organizational Budgets and Resource Mgmt
• A budget is more than just a series of numbers on a page; it is an embodiment of our values. -Barack Obama (2005)

Topics: Planning, Budgeting and Resource Management

• Part 1:
  • Key Concepts
  • Program Budgets
• Part 2:
  • Organizational Budgets
  • Resource Management

Session Objectives

• Part 1:
  • Name the key components of a typical budget
  • Build a program budget
• Part 2:
  • Read an organizational budget
  • Compare and contrast strategies for adjusting budgets
  • Discuss resource management principles

Budgeting Time

• Working with your group, what do you know and want to know today about budget management?
• KNOW, WANT TO KNOW, LEARNED (In small groups, led by student leaders)

P-O-L-C Framework: The four commonly accepted functions of management

• Planning
  • Vision & Mission
  • Strategizing
  • Goals & Objectives
• Organizing
  • Organization Design
  • Culture
  • Social Networks
• Leading
  • Leadership
  • Decision Making
  • Communications
  • Groups/Teams
  • Motivation
• Controlling
  • Systems/Processes
  • Strategic Human Resources

Logic Model

• Inputs -> Activities -> Outputs -> Outcomes/Effects -> Impact
• $ -> Knowledge -> Attitudes -> Skills -> Behavior/Behavioral Intentions

Budgeting

• Budgets as a planning and controlling tool:
  • In its simplest form, it is stated in terms of income and expenses
  • It reflects the goals and objects of providing programs and services
  • Commitments with funding authorities for services and programs to be rendered, and facilitate the process of evaluating how successfully the programs and services are being provided
• The control function of budgets is increasing as accountability needs increase

Budget Levels

• Program/Project (Grant) budget
  • Can include multiple organizations
• Department/Unit budget
• Organizational budget
  • Operating budget

Key Budgeting Concepts

• Fixed vs. Variable Costs - examples
  • Fixed cost: Stays constant while volume increases or decreases (e.g., Salaries)
  • Variable costs: Fluctuate dependent upon volume (e.g., Printing supplies)

Fixed vs. Variable Costs

• Salary—fixed
• Rent—fixed
• Supplies for staff—variable
• Supplies for community activities—variable
• What is generally the largest cost for an organization providing public health services? PERSONNEL

Key Budgeting Concepts

• Fixed vs. Variable Costs
• Direct and Indirect Costs
  • What are Direct Costs and can you name a few examples of Direct Costs?

Direct Costs

• Costs that can be specifically and easily identified for a particular project or activity:
  • Salaries/Wages and fringe benefits for those involved in the project
  • Project-related research and scientific supplies
  • Telephone expenses for calls to project participants
  • Advertising costs for recruiting subjects

Indirect Costs

• Sometimes called Facilities and Administrative (F&A) Costs or Overhead
• Facilities and Administrative (F & A) costs are "those [costs] that are incurred for common or joint objectives and therefore cannot be identified readily and specifically with a particular sponsored project, an instructional activity, or any other institutional activity." OMB Circular A-21 Section E.1
  • Building and Equipment Depreciation
  • Operations and Maintenance (utilities, housekeeping, security)
  • Library
  • General/Central Administration (HR, A/P, Student Services)
• For federal grants: Negotiated by the Organization/ University with the Federal Government
• Rutgers Indirect Cost Rate = 57%

Key Budgeting Concepts

• Fixed vs. Variable Costs
• Direct and Indirect Expenses
• Costs Related to Personnel
  • Salary
  • Fringe Benefit
  • Taxes and required insurance

Personnel: Salary

• Who
  • Organizations: Director and Support Staff
  • Programs/Grants: Principal Investigator (PI), Co-Investigators (Professional Staff), Support Staff
  • Consultant Costs
• Percentage of Effort [More Related to Grants] (How much time will they spend on a program/project?)
  • Estimate by percentage of year, the number of months, or hours per week dedicated to the program/project
  • For percent of year, use 200 workdays as denominator
  • Base Salary Requested on Percentage of Effort and then Estimate Fringe Using Rate Provided by Your Organization

Personnel: Percentage of Effort

• “Effort” refers to the amount of time program/project staff will spend completing program/project-related activities
• EXAMPLES:
  • Person A: has an average work week of 40 hours, works 10 hours per week on Grant X and is paid $60,000 per year =>
    • Percentage of Effort = 25%
    • How much of annual salary on grant = $15,000
  • Person B: has an average work week of 35 hours, works 14 hours per week on Grant X and is paid $45,000 per year =>
    • Percentage of Effort = 40%
    • How much of annual salary on grant = $18,000
• Reviewers use this figure to assess whether the program/project-related activities can be completed with the amount of effort your staff plan to commit to a proposed project
• Never ask for more than 100 percent effort on a single grant. You cannot include overtime or claim you're efficient enough to do more than one year's worth of work over the course of a year.

Personnel: Fringe Benefit

• What is it?
  • An extra benefit supplementing an employee's salary/wages (full-time employees)
• How is it calculated?
  • State of NJ develops and submits its fringe benefit rates annually to the U.S. Department of Health and Human Services Cost Allocation Services, the federal cognizant audit agency for approval, as does Rutgers for its specific parts
• What is Rutgers rate?
  • Pension = 29.20%
  • Health = 30.30%
  • T.D.I. = 0.20%
  • U.S.L. = 0.15%
  • W/C = 0.36%
  • T/R = 0.63%
  • V/P = 0.47%
  • ABP Match = 0.29%
• FY2023 Fringe Rate- Rutgers = 60.95%

Personnel: FICA

• FICA is a U.S. federal payroll tax. It stands for the Federal Insurance Contributions Act and is deducted from each paycheck.
• FICA helps fund both Social Security and Medicare programs, which provide benefits for retirees, the disabled, and children.
• FICA = 7.65% (added to anyone's salary/wage)
• 6.2% of your gross wages goes to Social Security tax.
• 1.45% of your gross wages goes to Medicare tax.
• Your employer matches these percentages for a total of 15.3%

Personnel: Summary

• Salary (wages)
• Fringe Benefit Rate – Negotiated Rate = 60.95% (FY23) at Rutgers
  • Full-time employees
• FICA = 7.65% for Everyone
  • Full-time and part-time employees
• FY2023 FULL Fringe Benefit Rate-At Rutgers = 68.60% (60.95% + 7.65%)
  • Full-time employees

Non-Personnel Costs

Key Budgeting Concepts

• Fixed vs. Variable Costs
• Direct and Indirect Expenses
• Costs Related to Personnel
  • Salary
  • Fringe
  • Taxes and required insurance
• Costs Related to Non-Personnel

Non-Personnel: Examples

• Supplies
  • Brochures, factsheets, etc. (printing or purchasing)
  • Incentives
  • Intervention materials and supplies
  • Office supplies
• Equipment
  • Items greater than $5,000 per item (typically)
• Travel
  • Local mileage (Reimbursed at $0.56 per mile – IRS rate)
  • Present at conferences ($1500 per person - estimate)

Non-Personnel: Examples (cont.)

• Other
  • Telephone/fax expenses
  • Food and refreshments
  • Web survey costs
  • Postage (shipping and handling)

How Does it Fit Together?

Assessing Program (Grant) Budgets

• Typical questions grant funders use to assess budgets:
  • Can the job be accomplished with this budget?
  • Are the costs reasonable for the market, too low or too high?
  • Is the budget consistent with proposed activities?
  • Is there sufficient budget detail and explanation?

Key Budgeting Concepts: In Conclusion

• Projected amounts
  • Personnel Costs
  • Non-Personnel Costs
  • Indirect Costs
• Realistic and as accurate as possible
• Specific, no miscellaneous category
• Includes both administrative and program costs
• Flexible (less so for program/grant budgets)
• Has a budget justification (description of each category)

Topics: Planning, Budgeting and Resource Management

• Key Concepts, Program Budgets, Organizational Budgets, Resource Management

Types of Budgets

• Program/Project (Grant) Budgets
  • Prepared specifically for a project or program
  • Includes expenses and, if appropriate revenues, related to a specific project only
  • Budgeted amounts divided into major categories such as personnel and non-personnel
• Operating (Organizational) Budget
  • Revenues and expenses for the various cost centers within the organization
  • Budgeted amounts divided into major categories such as revenues, salaries, benefits, and non-salary expenses
  • Encompasses supporting information, such as staffing and head counts

Sources of Public Health Funding

• Public sources
  • Federal grants
  • State grants
  • Local grants
• Private sources
  • Foundations
  • Family Foundations
  • Individual donors
• Income
  • Fee for services
  • Investment income (larger orgs only)

Program Budget-Year 1

• DIRECT COSTS ONLY
• List PERSONNEL
• FROM, THROUGH, NAME, ROLE ON PROJECT, Cal. Acad. Summer, INST.BASE, Mnths Mnths Mnths SALARY, SALARY, FRINGE, REQUESTED BENEFITS, TOTAL PD/PI SUBTOTALS

Program Budget Year 1: Example

• Time: 15 minutes Working in small groups, build Year 1 of Program Budget, using the following information:
  • Personnel:
    • Executive Director ($138,450 annual salary; % of effort= 7.5 hours per week out of 37.5 full-time week)
    • Database Manager ($85,000 annual salary; % of effort= 7.5 hours per week out of 37.5 full-time week)
    • Data Analyst ($52,000 annual salary; % of effort= 9.38 hours per week out of 37.5 full-time week)
    • Fringe = 22% (includes FICA)

Program Budget-Year 1 (cont.)

• Working in small groups, build Year 1 of the Program Budget, using the following:
  • Non-Personnel:
    • Consultant Costs: Legal: $500/hr x 60 hrs; Data integration: $80/hr x 125 hrs
    • Equipment: none
    • Supplies: Printing and copying (500 sheets x $2/sheet)
    • Travel: 45 miles week in Year 1 @ $0.575/mile plus parking and tolls ($154)
    • Other: Participant Recruiting Costs for 6 focus groups (10 people each): ($1500 per focus group; Gift Cards Focus Groups & 60 Interviewees ($25/person); Refreshments at Focus Groups ($15/person x 60 pp) and at interviews ($10.25/person x 60 pp); Transcription (60 interviews x $120 each); Meeting Support ($100/meeting x 5 meetings); Maternal Health Awareness Day ($500): Conferences (2 confs/year; $1000 each)
    • Subcontract Costs (Consortium/Contractual): $125607

Program Budget-Year 1 (cont.)

• Personnel:
  • Executive Director ($138,450 annual salary; % of effort= 7.5 hours per week out of 37.5 full-time week)
  • Database Manager ($85,000 annual salary; % of effort= 7.5 hours per week out of 37.5 full-time week)
  • Data Analyst ($52,000 annual salary; % of effort= 9.38 hours per week out of 37.5 full-time week)
  • Fringe = 22%
• Non-Personnel:
  • Consultant Costs: Legal: $500/hr x 60 hrs; Data integration: $80/hr x 125 hrs
  • Equipment: none
  • Supplies: Printing and copying (500 sheets x $2/sheet)
  • Travel: 45 miles week in Year 1 @ $0.575/mile plus parking and tolls ($154)
  • Other: Participant Recruiting Costs for 6 focus groups (10 people each): ($1500 per focus group; Gift Cards Focus Groups & 60 Interviewees ($25/person); Refreshments at Focus Groups ($15/person x 60 pp) and at interviews ($10.25/person x 60 pp); Transcription (60 interviews x $120 each); Meeting Support ($100/meeting x 5 meetings); Maternal Health Awareness Day ($500): Conferences (2 confs/year; $1000 each)
  • Subcontract Costs (Consortium/Contractual): $125,607
  • Facilities and Administrative Costs (Indirect): 22%

Program Budget-Years 1-3

• Based on the budget provided, what does this project entail?
• When are most of the trainings taking place?
• Calculate the direct and total costs for each year of Together for Health’s Health for Cities Initiative.
• What would the total budget in each year be using the indirect rate of 54%?
• In many project budgets, a percentage of a staff person’s time is covered. Personnel detail for this budget is on the second page. What percentage of each staff person’s salary is included in this budget in Year 3?
• If you were to add an hourly worker to the budget, what would the fringe rate be for them?
• What percentage of this budget is being sub-contracted to other organizations?

Assignment: Coalition Budget (Draft #1)

• Due by 03/05/25 [2-3 pages]:
  • You can ask for up to two years and $100,000 per year ($200,000 total) – doesn’t include the indirect costs
    • Year 1
    • Year 2 (if asking for two years)
    • Total Budget (include even if only asking for one year)
• Your budget should include personnel costs (salary + fringe; fringe=29% excluding FICA); non-personnel costs; and facilities and administrative costs, also called indirect costs (set at 22%).
• You will present your draft budget in class to receive feedback from your classmates