Transcript Developing a Winning Grant Budget

Developing a Grant Budget
College of Arts & Humanities
University of Central Florida
March 1, 2010
Budget
Your Goal
 To develop a budget that is
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Reasonable
Appropriate
Allowable
 Draft a rough budget FIRST before writing the
proposal
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Your time, other faculty, students, etc.
Expenses (travel, materials, consultants, equipment)
Indirect
Budgeting Basics
 Getting Started – Resources needed
 Types of Costs
 Personnel
 Expenses
 Equipment/Capital Outlay
 Participants
 Subcontracts
 Cost Share or Match
 Indirect Costs
 Budget Narrative
Have Source - Getting Started
 Find the budget section in the RFP
 Work from the RFP budget format (form)
 Read the full RFP for more guidance
 Always budget whole dollars
 Beware that expenses are allowed unless the
RFP specifically prohibits*
*Must align with OMB A-21 see handout
http://www.research.ucf.edu/sponsoredprograms
/Proposal/budget/allowablecosts.htm
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Resources You Will Need
 Kristin Wetherbee- [email protected]
 Ext. 3-0908
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Salary schedules
CAH process
 UCF Rates: Fringe, Travel, & Indirect Cost
(F&A)
http://www.research.ucf.edu/SponsoredProgram
s/Proposal/factsheets.html
Types of Costs
 Personnel
 Expenses
 Equipment/Capital
Outlay
 Participants
 Subcontracts
 Match
or Cost Share
 Indirect Cost
Personnel Costs
 Personnel may be the largest part of your
budget
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So estimate these costs early (after indirect)!
 Salaries and fringe benefits are calculated as
separate costs on the forms.
Salaries
 Follow UCF’s salary schedules (see Kristin)
 The project year may not be the same as
your salary year
 Add in any special payments or stipends.
 Factor in a 3% salary increase for multi-year
grants (and consider step increases)
 Full-time employees typically work 2080
hours per year (40 hours/week x 52
weeks/year)
Graduate Research Assistant
 New UCF policies on hiring GRAs and tuition
waivers available at:
http://www.research.ucf.edu/SponsoredProgram
s/Proposal/forms/GraduateTuitionRegulations
.pdf
Fringe Benefits
 32.11% of full-time salaries (see Kristin)
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1.46% of OPS salaries & Adjuncts
.01% of student salaries
11.66% Post Doc
 UCF schedule of fringe benefits
http://www.research.ucf.edu/SponsoredProgram
s/Proposal/forms/Fringe_Rates.pdf
Personnel Considerations
 Have you included all required personnel?
 Two part-time positions may be less expensive than
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one full-time position.
Consider the use of internal staff vs. external staff.
Provide (course) release time for project personnel.
Make sure the salary classification is appropriate to
the job.
Supplementing vs. supplanting
What happens when the funding ends?
Equipment or Capital Outlay
 Typically refers to equipment, but may include
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Some library costs
Construction
 Equipment
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nonexpendable property over $1,000
useful life of more than one year
 This includes software purchase with the
same dollar value.
Equipment
 Equipment below $1,000 threshold should be
placed in the supplies or other direct cost
budget line item ($5,000 federal)
 Bidding or estimating costs.
 Capital equipment purchases from any
source of funds over $10,000, which must
have CAH approval
http://www.research.ucf.edu/SponsoredProgram
s/Contracts_Grants/projmmgt/expenditures.ht
m
Equipment Considerations
 Limits on equipment
 You must provide a list with descriptions and
per item costs
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Include costs for shipping, installation, training,
maintenance, additional supplies
 Purchase early and must be tracked
 Transfer of ownership
Participant Costs
 Typical costs include:
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Training (tuition, books, materials, fees)
Stipends or honoraria
Meals
Lodging
Travel
Miscellaneous (art materials & supplies,
insurance, training materials, etc.)
Participant Cost Considerations
 Calculate the cost per participant
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There may be a limit on this cost
 Some costs may be disallowed
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T-shirts
Food
Expenses
 Typically includes:
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Materials & supplies
Travel (must indicate international)
Contractual services (consultants, other)
Tuition
Other
 Optional to factor in increase
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Tuition - 5%
Travel - 10%
Travel
 Often treated separately
 Provide detailed calculation
•Airfare (domestic carrier)
•Lodging (including taxes)
•Mileage to/from the airport •Meal allowance
•Tolls
•Local transportation
•Airport parking
•Baggage handling (misc)
•Airport transfer
•Conference registration
Other Expenses
 Publications/Printing
 Postage
 Maintenance agreements
 Telephone
 Special fees
 Honoraria
Expense Considerations
 Think about hidden costs to the organization
 Make sure it’s allowable (ask Kristin or ORC)
 OMB circular A-21
 Other guidelines
 RFP
Contract Services
 Employee or contractor?
 Special Consultants
Maximum day rate? Ask ORC
 Vendor Contracts
 Negotiated by procurement, not faculty…
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Maximum Salary Rates
Agency
Max. Rate
U.S. Dept. of Education
No Specific Limit except $513/day for
Rehabilitation Training Program grants
National Endowment of the Humanities
None Specified
National Endowment of the Arts
National Aeronautics & Space
Administration (NASA)
None Specified
Up to Level IV of the Executive Schedule
(exclusive of expenses and indirect costs )
None Specified
National Institute of Health (NIH)
National Science Foundation (NSF)
Note: The NIH salary cap does not apply
to payments made to consultants.
$537/day
Subcontracts or Sub-awards
You will must obtain 3 items:
 1. Letter of Commitment – with authorized
signature
 2. Detailed Statement of Work
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Deliverables
Timeline (consider your start/end dates)
 3. Detailed Itemized Budget & Narrative
 (call me if you need examples)
Subcontracts
 Subcontracts in excess of $1,000,000 must
receive approval from UCF President
 Subcontracts in excess of $50,000 require bid
process
 Over 50% of total $ - ORC approval
 UCF charges facilities and administrative
costs (F&A) on the first $25,000 of each
subcontract through the life of the project
period.
Subcontract Considerations
 Recommend discussing with OOR Contracts
Manager (terms & conditions)
 UCF has a standard contract form
 If you name a contractor in a proposal, it may
be binding.
 “the disclosure should include a clear
description of the work to be performed, and
the basis for selection of the subawardee
(except for collaborative/joint arrangements)”
Cost Share or Match
 Is it required?
 Cash match
 In-Kind Contributions
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Calculate as if in the budget
How much MORE will the program cost?
What have you not included?
Cost Share or Match
 Reasonable, justifiable, and verifiable
 Cash or in-kind
 Can’t match federal grants with other federal
funds
 Don’t use the same match twice.
 Third party in-kind must be tracked just like
UCF cost share
 http://www.research.ucf.edu/SponsoredProgr
ams/Contracts_Grants/projmmgt/ucf_costsha
re.htm
Cost Share or Match Sources
 UCF Federal Match Program
 Faculty FTE (.05 -.10 FTE)
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Always requires department/CAH approval
 New equipment purchases
 Service Learning – volunteer (tracking)
 Building space (off campus – not UCF)
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Must document
Cost Share Considerations
 Must fund and track (must be allocable)
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Legal commitment
Subject to audit
 Make sure costs aren’t part of the indirect
calculation
 Match account handled by CAH
 Watch grant budget dates and fiscal year
budget dates
Indirect Costs
 Also called Facilities & Administrative costs
(F&A) or overhead
 Costs borne by UCF to support sponsored
projects that cannot be clearly identified with
a specific project
 Includes:
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Infrastructure
Facilities
Administration (26% maximum)
Indirect Costs
 Federally approved indirect cost rate
http://www.research.ucf.edu/SponsoredProgram
s/Proposal/F_A_Summary_of_Rates.html
 Recovering indirect costs can be significant
Estimate these costs first!
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$250,000 / 1.44 = $173,611 Total Cost
available
= $76,389 Indirect Costs
 Sometimes limited or disallowed by funders
Distribution of Indirect
 55% Office of Research & Commercialization
 45% College of Arts & Humanities
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10% Department
10% Principal Investigator
The departmental and PI portions will be
deposited into to separate accounts.
Each department or program must keep
accurate records on indirect dollars.
Indirect Cost Considerations
 Understand the costs that have been
included in UCF’s calculation of the indirect
cost rate
 These costs CANNOT be budgeted as direct
costs
 Understand your policy about indirect
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UCF requires a written statement from the
funder to disallow indirect
How is indirect used?
Budget Narrative
 Make your case that the budget is
reasonable, appropriate, and adequate.
 Describe the policies that govern your
budgetary decisions.
 Provide detail about items to be purchased.
 Indicate how costs were calculated.
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Insert parts of the spreadsheet as tables.
 Make sure the budget narrative is consistent
with the grant narrative.
Thank you!
Any questions:
College of Arts & Humanities
Kristin Wetherbee, [email protected] x3-0908,
Office of Research & Commercialization
Celeste Rivera-Nuñez, Paula Seigler
[email protected], [email protected]
x2-1155, x2-1129
Jo Ann Smith
407-823-2223
[email protected]