Transcript Slide 1

Institute for Research Development
What You Will Learn Today
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Purpose of a budget
Guiding principles
Getting started
Direct vs. Indirect Costs
Budget Justification
Cost Sharing
Sponsored Programs Accounting Overview
Major Projects
Effort Certification
Institute for Research
Development
What is a budget?
 Financial aspect of your proposal
 Detailed statement
 Outlines estimated costs
 Supports proposed work
 Sponsors want to know how funds will be used
 Reviewers see if costs are reasonable in relation to
the proposed work
Institute for Research
Development
OMB Circular A-21
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Defines allowable costs
Defines unallowable costs
Specifically identifies direct & indirect costs
Establishes accounting standards for allowability
 Reasonable
 Consistent
 Allocable
Institute for Research
Development
Reasonable (A-21 Section C-3)
“A cost may be considered reasonable if the
nature of the goods or services acquired or
applied, and the amount involved, reflect
action that a prudent person would have
taken under the circumstances prevailing at
the time the decision to incur the cost was
made.”
Allocable
 Is the cost benefitting the project?
 Is the cost incurred solely to advance
the work of the project?
 If the benefit extends to other ASU
projects, that cost should be pro-rated
Consistent
 Is the cost consistent with ASU’s policies?
 Remember Research Governing
Principles
 Is the cost incurred solely for the same
purpose, in like circumstances and treated
consistently as direct or F&A?
 If cost is unallowable for ASU, it’s
unallowable for a grant:
 No 2% raise for ASU employees
 No 2% raise for grant employees
Allowable
Compliance with sponsor’s policy, A-21 & ASU
 Specific UNallowable Costs
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Alcoholic beverages
Entertainment
Fines & penalties
Fundraising & alumni activities
Internal interest charges
Subscriptions
Advertisement or public relations
Travel in excess of coach
Clerical salaries & general office supplies (IDC)
University Policies & Procedures
ASU Operating Policies and Procedures
http://www.astate.edu/a/finance/procedures/ind
ex.dot
Sponsored Programs Accounting (SPA) Procedures
http://www.astate.edu/a/spa/index.dot
ASU Research Governing Principles
http://www.astate.edu/dotAsset/cfd5ff63d23d-4165-8c91-797cb8b45d2b.pdf
Institute for Research
Development
How do I get started?
 Responsibility rests with PI
 Required approvals
 Department
 College
 Department and College of any ASU coPIs
 ORTT
Guidelines Vary
Every sponsor has
specific budget
restrictions.
Read the solicitation
carefully to ensure you
understand the
requirements.
Then, read the
solicitation AGAIN!
Planning a Budget
 Numbers come from
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Actual sources
Pay scales
Historical experience
Quotes from vendors
Budget Checklist
 Solicitation
 Direct cost limit
 Indirect cost restrictions
 Project dates
 Number of years
 Who is involved & what are the roles?
 Subawards? Consultants?
Budget Checklist Cont.
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Equipment? (any over $5000)
Supplies, materials
GA tuition
Participant Costs
Travel
 How many people?
 Where?
 Purpose?
ASU’s Accounting Categories
614000 Sponsored Salary
615000 Part-Time Salary
620000 Fringe
710000 Supplies
710701 Workshop Fees
710801 Consulting
710807 Honorariums
711004 Subawards
720000
730000
750000
790300
Travel
Capital/Equipment
Stipends
F&A
2014 Estimated Fringe Rates
Employee Category
Salary Range
Estimated Percentage
Student
N/A
0.21%
Part-time Non-Student
N/A
7.86%
Consultants (through payroll)
N/A
7.86%
Full-time A
0-20,000
62.17%
Full-time B
20,001-45,000
41.24%
Full-time C
45,001-70,000
31.28%
Full-time D
70,001 and up
27.29%
N/A
17.86%
9-month Faculty Summer Rate
Direct Costs
Indirect Costs (F&A)
 Specifically applied to
project
 Cannot be tied to
particular project
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Salaries & Fringe
Equipment
Travel
Supplies
Tuition Remission
Subawards
Other
 Utilities & Maintenance
 Support or admin staff
 Federally negotiated rate
 36% of MTDC
 11% off campus
 Exceptions
 Sponsor doesn’t allow
 Under $10,000
IDC Rate Letter:
http://www.astate.edu/dotAsset/dabe148c-99a2-468b96a6-c39c0290ea2a.pdf
Budget Justification
 One of the most important nontechnical sections of your proposal
 Rationale for each budget category
 Brief & project-related
 Follow same line-item format as
budget form
Should Justify
 Personnel
 Each role and tasks performed
 Effort required (person months or %)
 Do NOT write a bio
 ASU employees canNOT be consultants
 Materials, Supplies & Equipment
 Less specific about brands
Should Justify
 Costs that fluctuate or only appear once
 Unusual items
 Items normally disallowed by OMB
Circular A-21
Cost Sharing/Matching
 Part of the project not paid by sponsor
 MUST be pre-approved by chair and dean
 A-21 Guidance:
 Matching funds must follow the same
conditions as sponsored funds
 Costs claimed as match cannot be claimed on
other projects
 If unallowable on grant, unallowable as
match
 Cannot match federal with federal
Types of Cost Sharing
 Mandatory
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Required by sponsor
Must be tracked & reported
Often expressed as a percent of budget
Should not exceed amount required
 Voluntary Committed
 Must be tracked & reported
 ASU does not encourage
 Voluntary Uncommitted (incidental, unplanned)
 PI effort above commitment
 No mechanism for reporting
Suggestions for Cost Sharing
 PI time
 Unrecovered F&A
 Specialized Equipment Use
 Specialized Facilities Use
 Specialized Services/Processes
 Travel
 Supplies
Program Income
 Recipients must account for income related
to projects financed by the federal
government
 May retain and use income if allowed by
agency by:
 Adding to the project to further the objectives
 Financing the non-federal share
 Deducting from the total cost of the project
 No obligation for income earned after end of
project
Budget Templates
 http://www.astate.edu/a/ortt/forms/
 Samples
Break Time!
Sponsored Programs Accounting
 Located on the sixth floor of the Dean B. Ellis Library
 Staff
 Nikki Turner, Director
 Jessica Daniels, Accountant
 Jenny Estes, Accountant
 Whitney Lumpkin, Accountant
 Chelsea Gambill, Accounting Technician
 Website: http://www.astate.edu/a/spa/index.dot
Division of Responsibility
 Jenny Estes
 College of Science &
Mathematics
 Jessica Daniels
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College of Education
AVC Research
College of Agriculture
College of
Communications
 Whitney Lumpkin
ABI
Museum
Delta Heritage
College of Business
College of Engineering
College of Humanities and
Social Sciences
 University College
 Student Affairs
 Nursing
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What Do We Do?
 Assist the PI and grant staff with questions about
the grant
 Work with the Sponsors on any financial questions
 Understand and follow sponsor and University
guidelines
 Establish fund in Banner system
 Monitor and approve expenditures
 Prepare invoices and financial reports
 Time and Effort Reporting
 Post-Award Training
When Do I Need to Contact SPA?
 Change in scope or objective
 Change in key personnel listed in approved
proposal
 Absence of PI for more than three months
 Additional funding
 Transfers between direct and F&A costs
 Transfers of trainee expenses to other categories
 Subcontracting portions of work
 Budget Transfers in “Letter Agreement” Funds
Time and Effort Reporting – Why?
 Effort is the total of an employee’s time spent
on university activities for which he/she is
compensated
 Effort reporting is a process for verifying how
an individual utilizes his or her time during a
given reporting period
 Required under Circular A-21
 Must be certified at least twice per year
Time and Effort Reporting – Who?
 Full-time employees are expected to certify
their own time, unless due to circumstances
beyond their control, in which case PI’s can
certify.
 PI’s are required to certify for part-time
employees and students.
 Deans/ Dept. chairs may be alternate certifiers
with suitable means of verification
Time and Effort Reporting – When?
 Effort certification at ASU is through
Self-Service Banner
Semester
Dates covered
Certification dates
Spring
Jan 1 – May 15
June 1 - 30
Summer
May 16 – Aug 15
Sept 1 - 30
Fall
Aug 16 – Dec 31
Feb 1 – Mar 2
Time and Effort Reporting – How?
 Payroll documents (ESF and Assignment
Change Forms) are used to create the
payroll distribution in Banner.
 SPA extracts after-the-fact data to SelfService
 During the certification period, faculty and
staff certify in Self-Service
Sponsored Programs Website
 SPA Procedures
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Administrative Cost
Cost Sharing
Cost Transfer
Effort Certification
Fund Closeout
Residual Balance
Subrecipient Monitoring
Student Support Payment
 SPA Forms
 Internal Award Notice
 Request for Advance
Account
 Expense Transfer Form
 Student Support Payment
Request
 Administrative Cost
Justification
http://www.astate.edu/a/spa/index.dot
Sponsored Programs Training
 Sponsored Projects Overview
 Allowable vs. Unallowable Costs
 Self-Service & Internet Native Banner
 Special Issues (Match Issues and Time
and Effort)
Wrap Up
 Questions, comments?
 Homework
Thank you!
Cheryl Dison: 870-972-2694 [email protected]
Nikki Turner: 870-972-2400 [email protected]
Institute for Research
Development