The CTP Program funding cycle starts outside of the CTP Program. Congress, the President, and Federal agencies work both internally and externally to develop the Federal budget. The end result of several years of budget development is a budget bill passed by Congress.
Congress passes (or approves) – a Congressional appropriation of funding to Federal agencies.
The President signs the bill into law.
Note
Additional Funding Source
All CTP Program funding does not come from Congress. The NFIP also receives funding from policy fees on flood insurance policies that can be used for mapping activities by CTPs. Though not a requirement, in some cases, CTPs contribute their own funding to the mapping projects as well. However, the agency still needs a budget to proceed as discussed in this course.
4-Step Funding Cycle
Budget formulation occurs when the agencies work with the Office of Management and Budget (OMB) and Congress to identify needs, typically 1--2 years before the budget year.
Congressional actions occur when Congress approves the budget and enacts appropriation.
The next step is budget execution. During execution of the budget, the CTP scopes of work are finalized, and awards are made.
The final step in the cycle is audit and review, which occurs throughout the project and upon closeout.
CTPs are responsible for budget execution (Step 3) once financial awards are made.
Budget Execution (Step 3)
Budget execution begins with a financial award. The type of financial award used for CTPs is a “cooperative agreements.” You may hear this term used interchangeably with “grants,” though there is a difference. The distinguishing factor in a cooperative agreement is that a cooperative agreement requires “substantial Federal involvement” beyond routing, monitoring, and technical assistance.
Additionally, grant/cooperative agreements are used rather than contracts, due to the following definition of contracts:
If the purpose of the funded activity is to provide something for the direct benefit or use of the Federal Government, then a contract is the appropriate legal instrument to use.
If the purpose of the funded activity is to support or stimulate activities that are not for the direct benefit or use of the Federal Government, an assistance agreement (grant or cooperative agreement) may be used.
The NOFO is a document that outlines all the information you would need to apply for a cooperative agreement, including background on the program, eligible activities, how to apply, and terms and conditions of the award.
Required Submittal Data
Application and Budget (424/424A)
Budget Narrative
Partnership Agreement
Mapping Activity Statement (MAS)/Statement of Work (SOW)
Directs costs can be directly assigned to a final cost objective (such as a CTP project) with relative ease and a high degree of accuracy. These may include salaries of personnel directly performing work in support of the project.
Form SF-424A
Indirect Costs
Incurred for common or joint purposes, indirect costs may benefit more than one cost objective and are not readily assignable to a specific award. An example may be training for personnel or human resources activities.
