Transcript Budget 101 - Ohio Northern University

Budget 101
Overview of a typical grant budget
Erin Scott, CRA
ONU Budget Template
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Please see handout
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This spreadsheet can be found at:
http://www.onu.edu/administration/advancement/grants_and_proposals/forms_and_resources
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We are requesting that all faculty and staff submitting proposals begin
using this spreadsheet to calculate budgets.
General Considerations
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The proposal budget should be derived directly from the project description.
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Budgets are generally computed on a 12-month basis, unless the project will
have a different time frame.
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The proposal budget for all years of a multiyear project is generally reviewed
and approved before the project begins.
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Follow sponsor guidelines for format.
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Determine what costs the sponsor allows. For example, some government
and non-profit sponsors do not allow faculty academic year time to be charged
time to a project.
Salary Costs
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Types of personnel frequently involved in projects include:
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faculty members, academic year and off-duty quarter
Co-investigator
undergraduate assistants
consultants
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For each person involved in the project, list name (if known), position and
percentage of time on the project.
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When projects are charged for personnel salaries, the associated fringe
benefits are also charged.
Direct Appointments/Release Time
Salary
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Funds to cover the cost of faculty and staff time spent on a project can be
requested from most sponsors.
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The time that faculty and staff members who are already paid from
department or college operating accounts spend on a project is called release
time.
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Faculty with nine-month contracts may receive up to three-ninths of their
academic year salary during their off-duty quarter, if the funds come from nonuniversity sources (e.g., a research grant or contract).
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Persons who are hired specifically to work on sponsored projects (e.g.,
research assistants and associates) have direct appointments to the project
and their salaries are paid directly from project funds. Should project funding
end, the appointments end.
Effort – How to Calculate
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A PI on a 9 month appointment contributing 11% academic effort (1 PM) and
66% summer effort (2 PM). Salary $60,000 AY Fringe Benefits 34%
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$60,000 x 11% = $6,600 AY
$60,000/9*3 = $20,000 x 66% = $13,200 Summer
$6,600 x 34% = $2,244 AY & $4,488 Summer
Person Months
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9 x 11 % = 1 AY PM
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3 x 66 % = 2 Summer PM
Equipment
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For an item to be considered equipment, it must meet all three of the
following criteria:
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1) Cost $5,000 or more
2) Have a useful life of at least one year
3) Be stand-alone and function independently
If a project recovers F&A costs at the appropriate negotiated rate,
e.g., 42% of modified total direct costs (MTDC), equipment is
excluded from the MTDC base and from F&A charges.
Other Direct Costs
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Animal Costs
Include housing, supplies, food
Materials & Supplies
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Do not include “general” office supplies. These costs must be directly
related to the project.
Other Costs
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Publication costs, statistical costs, project specific costs
Travel
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Use federal rates when calculating per diem rates
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Subcontracts
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A subcontract may be required if part of the research effort under a grant or
contract is to be performed by another organization
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Subcontracts are always awarded to an organization or institution, not to an
individual. ONU project employees cannot have financial interests in any
organization receiving a subcontract. (COI)
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If an individual not affiliated with an organization is doing part of the work, that
individual must be paid as a consultant.
Budgeting Subcontracts
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In the proposal budget the total cost of the subcontract, including fringe
benefits and F&A costs, is shown as a single line item.
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Typically, the budget breakdown submitted by a potential subcontractor is
signed by an official of the subcontracting institution to indicate that all
institutional requirements have been satisfied.
Facilities & Administrative (F&A) Costs
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F&A costs are those costs associated with providing and maintaining the
infrastructure that supports the research enterprise (buildings and their
maintenance, libraries, etc.) and which cannot easily be identified with a
specific project.
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"Facilities" is defined as depreciation and use allowances, interest on debt
associated with certain buildings, equipment and capital improvements,
operation and maintenance expenses, and library expenses.
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"Administration" is defined as general administration and expenses,
departmental and college administration, sponsored projects administration,
and all other types of expenditures not listed specifically under one of the
subcategories of Facilities.
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F&A cost rates are determined in conjunction with auditors from the U.S.
Department of Health and Human Services.
Cost Sharing
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Cost sharing means charging part of the costs of a sponsored project
to a source other than the sponsor.
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Sometimes a program requires cost sharing; e.g., large equipment
awards. This is known as required cost sharing.
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If cost sharing is included in a proposal to a federal sponsor and the
proposal is funded, the promised cost share becomes a requirement
of the award whether or not that requirement is specified in the award
document.
Questions?
Beckie Watercutter:
419-772-2038
[email protected]
http://www.onu.edu/administration/advancement/development/grant_proposal
Erin Scott
419-772-3954
[email protected]