Transcript Building Budgets that Survive the Real World

Building Realistic Budgets
Judy Harris, Proposal Processing
Division of Sponsored Research
U N I V E R S I T Y OF F L O R I DA
What is a Budget?
 An estimate of costs required to
perform a statement of work
with a specific start and end
date.
U N I V E R S I T Y OF F L O R I DA
Proposal Budgets
 Made up of costs that can be explained
or verified and are reality-based
 No “Educated Guesses” or “Off The
Wall” estimates
 May require several drafts before it is
finalized
 May vary in structure and complexity
U N I V E R S I T Y OF F L O R I DA
Why Is a Budget Important?
 It is the second most scrutinized part of the proposal
 A clear concise budget supported by a strong budget
justification can increase the chances of a proposal
being funded
 The proposal budget can become the actual award
budget
U N I V E R S I T Y OF F L O R I DA
Basic Proposal Budget Components
1. Direct Costs
2. Facilities and Administrative
Costs, or F&A
(a.k.a. Indirect Costs)
U N I V E R S I T Y OF F L O R I DA
Direct Costs
 Expenses identified specifically with a
particular sponsored project, instructional
activity, or other institutional activity
 Must be allowable, allocable, reasonable &
necessary for the program, given consistent
treatment and conform to sponsor limitations
U N I V E R S I T Y OF F L O R I DA
Facilities & Administrative Costs
 Costs incurred for common or joint objectives
which cannot be identified to a specific direct
cost activity
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Facilities and Utilities
Administrative and Clerical Salaries
DSR/Purchasing/HR/Controller
Postage
Local Telephone
Office Supplies
Data Processing/Computer Supplies
General Purpose Software
Memberships
Subscriptions
U N I V E R S I T Y OF F L O R I DA
Major Budget Categories
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Personnel Costs
Fringe Benefits
Travel
Research Supplies
and Materials
Participant Support
Patient Care
Consultants
Tuition
 Equipment
 Subcontracts
 Facilities and
Administrative Costs
(F&A)
 Other Direct Costs
U N I V E R S I T Y OF F L O R I DA
Personnel Costs
 Personnel Categories:
 Academic Personnel (includes Faculty
& Post Docs)
 TEAMS/USPS
 OPS (includes Graduate Research
Assistants, Student Assistants & Other
Temporary Employees)
U N I V E R S I T Y OF F L O R I DA
Domestic Travel
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Airfare
Lodging
Car Rental
Per Diem
Mileage
Parking Fees
Registration Fees
Local Transportation (Taxi, Metro, Shuttle)
Includes travel to Canada
U N I V E R S I T Y OF F L O R I DA
Foreign Travel
(Generally subject to prior approval from sponsor).
 Airfare
 Apartment Rental
 Car Rental
 Local Transportation
 Lodging
 Per Diem (Federal travel subject to GSA
Schedule)
 Registration Fees
 Includes travel to Mexico
U N I V E R S I T Y OF F L O R I DA
Budgeting Travel
 Should include detailed
information in budget narrative:
Number of Travelers
Length of Trip
Destination
Per Diem
Travel Fares
Registration Fees/
Conference Costs
U N I V E R S I T Y OF F L O R I DA
Equipment
 Costs more than $1,000 (State of FL, not
Federal definition)
 Has a useful life of one year or more
 Some sponsors may require supporting
documentation/quote at proposal
submission
U N I V E R S I T Y OF F L O R I DA
Tuition
 All new proposals, including resubmissions,
competing renewals and supplements, that
include salary/stipend for graduate assistants
and where tuition is an allowable cost, must
budget appropriate amounts for tuition.
U N I V E R S I T Y OF F L O R I DA
Consultants
 Non-UF Employees
 Not a subcontractor – no substantial
programmatic involvement
 Normal daily rate
 Supported by letter/quote from Consultant
U N I V E R S I T Y OF F L O R I DA
Subcontractors
 Can be:
 Other Institutions
 Commercial Companies
 Subcontractor has substantive
programmatic involvement and may
be co-author on resulting publications
U N I V E R S I T Y OF F L O R I DA
Subcontractors
 Before submitting the proposal obtain:
 Letter of Commitment from institutional
authorized official.
 Written Quotes/Budgets
 Statement of work
U N I V E R S I T Y OF F L O R I DA
Participant Support
 Payments to individuals
required on the project with no
obligation to provide work or
services (Generally
workshops)
 Typical costs
− Stipends
− Travel-related costs
U N I V E R S I T Y OF F L O R I DA
Other Direct Costs
 Tuition, fees, stipends
U N I V E R S I T Y OF F L O R I DA
Other Direct Costs
 Facilities
 Rental Space
 Renovation
U N I V E R S I T Y OF F L O R I DA
Facilities & Administrative Costs (Indirect Costs)
 Applied to ALL sponsored projects unless
sponsor policy/program limits indirect recovery
 Following sponsor types have specified
F&A rates:
State of Florida: 10%TDC/25%TDC
Water Management Districts 25% TDC
Other Florida Governmental Entities 25% TDC
Clinical Trials 25% TDC
U N I V E R S I T Y OF F L O R I DA
Facilities & Administrative Costs (Indirect Costs)
University rates are based on the following
factors:
Function/Purpose Location of Project
Research
Instruction
Other
On-Campus
Off-Campus
U N I V E R S I T Y OF F L O R I DA
Facilities & Administrative Costs (Indirect Costs)
Function
Location
On Campus
Off Campus
Organized Research
AREC
Other Sponsored Acts
46.5%
46.4%
33.6%
26.0%
25.0%
26.0%
Instruction
50.0%
26.0%
48.5%
28.0%
Department of Defense (contracts)
U N I V E R S I T Y OF F L O R I DA
Calculating F&A
• Identify Exclusions
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Equipment
Capital Expenditures (includes renovations)
Patient care charges
Tuition remission
Rental costs of off-site facilities
Scholarships
Fellowships
Subcontract amounts in excess of first $25,000
• Modified Total Direct Cost Base (MTDC) =
Total Direct Costs minus items not charged with F&A.
• Total Direct Cost Base (TDC) =
Total Direct Costs x F&A rate without any exclusions.
U N I V E R S I T Y OF F L O R I DA
Total Budget
Total Direct Costs
+ F&A Costs
= Total Budget
U N I V E R S I T Y OF F L O R I DA
Cost Sharing in Budgets
 Identifies necessary project costs not requested from
sponsor
 Should be a sponsor requirement
 Should be referenced in budget as directed by sponsor
 Shows UF’s/Third Party commitment to Project
 Should follow UF Cost Sharing Policy
U N I V E R S I T Y OF F L O R I DA
Charging Costs Directly or Indirectly to Sponsored Projects
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In order to comply with (OMB) Circular A-21 and the Cost Accounting Standards
Board’s cost accounting standards, UF’s policy for charging costs to federally
sponsored projects is:
 Clerical and administrative salaries will be charged indirectly unless direct charging can be
justified in accordance with OMB Circular A-21.
 Postage will generally be charged indirectly.
 Basic telephone charges will generally be charged indirectly, including cell phones.
 Lab supplies will generally be charged directly.
 Office supplies will generally be charged indirectly.
 General purpose software will generally be charged indirectly.
 Technical software will generally be charged directly.
 Subscriptions will generally be charged indirectly.
 Institutional and individual memberships will generally be charged indirectly.
 Repair and maintenance charges for equipment purchased on the award will generally be
charged directly.
 Other related costs (photocopies, travel, technical and scientific equipment, animal care
and other services provided by specialized service facilities) will generally be charged
directly.
U N I V E R S I T Y OF F L O R I DA
Arithmetic – Double Check Budget!
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Fringe Benefit Rates
GRA Tuition
F&A Rate
MTDC Exclusions
On & Off Campus
Budget Total
U N I V E R S I T Y OF F L O R I DA
Review and Finalize Budget
 Review draft
 ceiling price exceeded?
 Revise
 How much to cut? add?
 Cut logical places
 Should the technical proposal be revised due to budget
changes?
 Are Cost Share funds required?
 Have cost-share commitments been secured?
 Proposed effort documented?
 Equipment match documented?
U N I V E R S I T Y OF F L O R I DA
Final Budget Presentation
 Prepare Sponsor budget forms
 Accurate
 Neat
 Legible
U N I V E R S I T Y OF F L O R I DA
Finalizing Budget
 Prepare justification/budget
narrative (Follow agency
guidelines)
 Should be arranged in order of
Sponsor’s budget form
 Clear & Concise
 Explanation of request
U N I V E R S I T Y OF F L O R I DA