Transcript OFFICE OF RESEARCH AND GRADUATE PROGRAMS DIVISION …

Sponsored Programs
How to Budget
BUDGETING
BASIC CONSIDERATIONS
Benefit the Project
Allowable Costs
Total Cost Concept
Direct Costs
Indirect Costs (F & A)
The Total Cost Concept Also Relates to Cost
Sharing & Cost Accounting Standards Policies
BUDGET DEVELOPMENT CONCEPTS
WHAT ARE DIRECT COSTS?
Needed to Perform & Advance the Scope of Work
Can Be Accounted for With a High Degree of Accuracy
Easily Identified & Allocable to a Specific Project
BUDGET DEVELOPMENT CONCEPTS
WHAT ARE INDIRECT COSTS?
Not Easily Identifiable As a Specific Expense
Not Easily Allocable to the Sponsored Project
BASIC BUDGETING
MAJOR BUDGET CATEGORIES
Personnel ( Salary, Fringe, Health)
Equipment
Tuition
Travel
Project Supplies
Patient Care Costs
Other Categories (Subcontracts, Consultants)
COST SHARING
A Term Describing Any Circumstance
Whereby the University Is Not
Reimbursed for Allowable Costs of
Performing a Project Because the
Requested or Approved Budget Does Not
Cover the Full Costs Associated With the
Specific Project
Total Cost Concept
COST SHARING
Cost Shared Expenses in a Proposal Must Meet the Following Criteria
Identifiable and Authorized
Verifiable in the University’s Accounting Records
Not Included as Cost Sharing on Another Project
Necessary and Reasonable for the Project
Allowable and Allocable Under OMB-A21 (Federal)
Generally Provided for in the Approved Budget
Cannot Use Fed Funds to Cost Share On Fed Awards
Conform to OMB A-110, A21
COST SHARING
Any Portion of Project Costs Not Paid by the Sponsor
Matching-$ for $ Cash Match (NEH Challenge Grants)
In-kind-Third Party Contributions
COST SHARING
Mandatory Cost Sharing
Required By Law or Regulation
RFP, RFA, Sponsor Guidelines
Program Announcement
Must Be Identified
Accounted For
Auditable Accounting System
Reported to the Sponsor in Fiscal Reports
COST SHARING
VOLUNTARY COST SHARING
Offered by the University
Not Required By Sponsor or Regulation
Must Be Identified & Authorized By College Dean
Accounted for in an Auditable System
May/May Not Have to Be Reported to Sponsor
Subject to Verification & Audit
Voluntary Cost Sharing Becomes Mandatory Cost Sharing When
It Appears in the Award Documentation
COST SHARING
WHY IS COST SHARING IMPORTANT TO YOU?
Must Be Identified & Authorized Before the Proposal
Is Submitted to the Sponsor
DSR Requires Copy of Sponsor Guidelines & Letter From
Individual Authorized to Commit Cost Sharing for Mandatory CS
Policy States Letter With Dean’s Authorization for Voluntary CS
Must Have an After the Fact CS Tracking System to
Account for CS
Aggregate CS Has a Negative Impact on the
University’s Facilities & Administration Rate
COST SHARING
HOW DOES COST SHARING IMPACT IDC?
The Aggregate Dollars for CS Are Added Together
Included in the Base Number (The Denominator)
Used to Calculate the University’s F & A Rate
As Denominator (the Base) Increases, the % Rate
Is Reduced
(Numerator Generally Remains in the Same Range)
COST ACCOUNTING STANDARDS
WHAT ARE THE COST ACCOUNTING
STANDARDS (CAS)?
CAS Are Regulations in OMB A21
OMB A21 States That Direct Costs
Are Specifically Identifiable on a Particular Project
With A Relative High Degree of Accuracy
Incurred for Same Purposes, Under Like Circumstances
Treated Consistently As Either a Direct or an Indirect Cost
COST ACCOUNTING STANDARDS
WHY IS THIS IMPORTANT TO YOU?
It Is Important Because Costs You Think
Should Be Charged As a Direct Cost to a
Federal Project May Not Be Allowed to Be
Charged to That Project, Even If They Are in
the Approved Budget
COST ACCOUNTING STANDARDS
WHAT DOES UF POLICY SAY?
We Will
Charge Project Expenses in Like
Circumstances the Same Way, Either as Direct or Indirect
Costs (F & A)
OMB A 21
Identifies Which Expenses Will Be Charged
Directly & Indirectly
Total Cost Concept
COST ACCOUNTING STANDARDS
WHAT DOES UF POLICY SAY CAN NOT BE
CHARGED DIRECTLY?
Clerical, Administrative,
or Secretarial Positions
Postage
General
Office Supplies
General
Computer Supplies or General Software
Memberships
or Subscriptions
Local Telephone
An Example of Like & Unlike Circumstances
“THE PENCIL”
When a pencil is a writing tool & we use it to write with everyday in the
course of doing business. Is it a direct or indirect cost?
However, a pencil might be a direct charge if it is an item in a training
packet being distributed with other training materials to participants
attending a training program. The UF Accounting System does not know
the difference. What can you do?

A pencil might become a lab supply when a scientist is studying the lead
composition qualities of number 1, 2 & 3 pencils and performing research
activities on the pencil to demonstrate scientific attributes or prove
technical theories. The UF accounting system does not know the difference.
What should be done in this case?

CAS PRACTICAL ADVICE
Tools to Help With CAS
Review C & G Monthly Reports
Cost Transfer Expenses to Non-Federal Projects
Process a Request To Allow a Direct Charge
Diligence in the Academic Units
Email or Call C & G or DSR With Questions
Use the Right Codes
BUSINESS ASPECTS
Budgets
Indirect Cost, Cost Sharing, CAS
Insurance/Indemnification
Intellectual Property
Authorized University Official (Who Signs)
Compliance, Certifications, Assurances
BUSINESS ASPECTS
COMPLIANCE, CERTIFICATIONS, ASSURANCES
Human Subjects Protection (IRB)
Institutional Animal Use & Care Committee
Recombinant DNA/RNA
Hazardous Waste
Responsible Conduct in Research (Misconduct)
COMPLIANCE
CONFLICT OF INTEREST
Federal Regulations
PHS/NSF Disclosure of Significant Financial COI
State Regulations
Section 112.313(12)(h) FS
Monitoring Plan
University Regulations
Disclosure of Outside Activities
AWARD ADMINISTRATION OFFICE
Post Award Business Transactions
Compliance
Subcontracts Issuance
Close-out & Termination
AWARD ADMINISTRATION
Receives & Reviews Funding Documents
Generates a Notice of Acceptance (NOA)
Contracts & Grants Assigns Account Number
Engineering Sets up Its Own Accounts
IFAS Sets up Its Own Accounts (IFAS C & G)
PI Gets Funds Released in C & G Using a TR 20
POST AWARD
THE AWARD ADMINISTRATION OFFICE ASSISTS
WITH ALL POST AWARD BUSINESS FUNCTIONS
Budget Transfers
No Cost Extension
Compliance With Sponsor & University Policies
IRB & IACUC Follow-up
Transfer of Grants to & From University
Subcontracts & Sub-accounts
Close-out
ELECTRONIC RESEARCH ADMINISTRATION (ERA)
Federal Commons
NSF FastLane
ERA/NIH Commons
EDISON
ONR
American Heart Association
Grants Electronic Application Proposal Process (GEPPS)
Grants Electronic Proposal Processing
DOD Central Contractor Registration
IBM Forms (Purchasing system)
Others