Transcript Module 2: Proposal and Budget Preparation

Module 2: Proposal and
Budget Preparation
Office of Research and Sponsored Programs
The University of Mississippi
100 Barr Hall ~ 662-915-7482
www.research.olemiss.edu
Proposal elements
READ agency announcement/guidelines
 Cover page
 Abstract or project summary
 Narrative
 References/citations
 Personnel vitae
 Budget and justification
 Facilities/resources statement
 Certifications/assurances
 Current and pending support
Updated February 2011
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Cover page
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Most federal agencies will specify format
Generally includes items such as:
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Project title
Project period
Amount of funding requested
Investigator name and title
Signature of investigator
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Signature of Authorized Institutional Representative*
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(*at UM, Vice Chancellor of Research and Sponsored Programs)
Updated February 2011
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Signature of the investigator(s)
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Signature of the investigator(s) [sometimes
optional] –
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Indicates that the data in the proposal is true and
correct
Indicates the investigator’s acknowledgment of
responsibility for the conduct of the project and
submission of technical reports
Indicates the investigator’s compliance with all
required certifications
Updated February 2011
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Signature of the Authorized
Institutional Representative
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Signature of the Authorized Institutional
Representative [usually mandatory] –
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Indicates that to the best of the signer’s knowledge the data
in the proposal is true and correct
Indicates that the proposal has been duly authorized by the
institution
Indicates that the applicant will comply with all required
certifications and assurances
Applicant is The University of Mississippi
UM’s Authorized Institutional Representative is the Vice
Chancellor for Research and Sponsored Programs
Updated February 2011
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Abstract or project summary
The abstract is a very brief description of the
project, its goals, and its projected outcomes,
including the significance of the project to the
particular field being studied.
Updated February 2011
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Abstract or project summary
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Agency will usually specify the length
Written in less technical language than the
proposal narrative
Some technical terms should be used
May be used by the agency to assign
reviewers or to direct the proposal to an
appropriate study panel
Often used by the agency to illustrate to the
public what the agency is funding
Updated February 2011
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Project narrative/statement of work
(SOW)
The narrative identifies the need for the project
and explains how the work will be
accomplished.
Updated February 2011
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Project narrative/statement of work
(SOW)
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Defines the need and how it is related to the
overall societal issues identified in the
program announcement
Defines quantifiable and achievable
objectives of the project
Defines the methodology or approach that
will be used to accomplish the objectives
Updated February 2011
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References/citations
A list of works cited in the proposal
Updated February 2011
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Current and pending support
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Some agencies (e.g., NSF, US Army) require
a list of the investigator’s current and pending
support
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Format is provided by the agency
Updated February 2011
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Personnel vitae
The personnel vitae (a.k.a. curriculum vitae, or
c.v.) is a document detailing a person’s
academic and professional accomplishments.
Updated February 2011
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Proposal budget
The budget is the financial expression of the
project.
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Budget format and content must meet agency
requirements
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ORSP requires a detailed budget [link to
sample]
Updated February 2011
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Purpose of the budget
The budget serves two purposes:
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It estimates the cost of doing the work
described in the narrative or statement of
work
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It provides a means for monitoring the
financial aspects of the project
Updated February 2011
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Sections of the budget
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Direct costs
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Facilities and administrative costs (a.k.a. F&A
or indirects or overhead)
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Narrative justification
Updated February 2011
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Relevant regulations
We are bound by OMB, federal, state, agency,
and university regulations.
Updated February 2011
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Direct costs
As defined by the federal government:
Direct costs are those costs that can be
identified specifically with a particular
sponsored project, an instructional activity,
or any other institutional activity, or that can
be directly assigned to such activities
relatively easily with a high degree of
accuracy.
2 CFR, Part 220 Cost Principles for Educational Institutions
(a.k.a. OMB Circular A-21)
Updated February 2011
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Direct costs
Costs incurred for the same purpose in like
circumstances must be treated consistently as
either direct or F&A costs.
Where an institution treats a particular type of cost
as a direct cost of sponsored agreements, all costs
incurred for the same purpose in like circumstances
shall be treated as direct costs of all activities of the
institution.
2 CFR, Part 220 Cost Principles for Educational Institutions
(a.k.a. OMB Circular A-21)
Updated February 2011
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Facilities and administrative (F&A)
costs
F&A costs are those that are incurred for
common or joint objectives and therefore
cannot be identified readily and specifically
with a particular sponsored project, an
instructional activity, or any other institutional
activity.
2 CFR, Part 220 Cost Principles for Educational Institutions
(a.k.a. OMB Circular A-21)
Updated February 2011
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Direct cost criteria
Direct costs must be:
 Reasonable – a prudent person conducting the
project would spend the funds in the same manner
under the same circumstances
 Allocable to the project – goods or services
involved are chargeable to the project in direct
relation to the benefits received
 Consistently treated – like costs must be treated
the same way throughout the university (can’t be
charged as a direct cost on some projects and as
F&A on other projects)
 Allowed by the sponsoring agency and the
university (some agencies don’t allow things like
equipment, foreign travel, food, etc.)
Updated February 2011
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Allowable and unallowable costs
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See OMB Circular A-21, Section J for general
provisions for selected items of cost
The purpose and circumstance of the cost
generally determine allowability
Principal investigators have ultimate
responsibility for defending all costs charged
to their sponsored projects and to the
university
Updated February 2011
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Allowable costs
Allowable costs are those costs that are eligible
for reimbursement by the sponsoring agency.
Updated February 2011
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Allowable costs
To be allowable, costs must be:
 Reasonable – a prudent person conducting the
project would spend the funds in the same manner
under the same circumstances
 Allocable to the project – goods or services
involved are chargeable to the project in direct
relation to the benefits received
 Consistently treated – like costs must be treated
the same way throughout the university (can’t be
charged as a direct cost on some projects and as
F&A on other projects
Updated February 2011
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Unallowable costs
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Are NOT eligible for reimbursement by the
sponsoring agency
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Should NOT be charged as either a direct
cost or an F&A cost or cost shared on a
federal agreement
Updated February 2011
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Unallowable costs
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Unallowable activities include:
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Fundraising
Lobbying
General public relations
Unallowable transactions include:
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Alcoholic beverages
Entertainment
Memberships in social, dining, or country clubs
Gifts
Updated February 2011
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Direct cost items – salaries and fringe
benefits
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Salaries and fringe benefits of faculty/staff who will
be working on the project (based upon the
individual’s institutional base salary)
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Faculty (may include restrictions such as NIH salary cap of
$199,700 per year as of 01/01/2010)
Technicians
Post-docs
Administrative and clerical personnel costs are normally
included in the university’s F&A. If included as a direct cost
item, such costs must be highlighted in the budget and
clearly justified in the budget justification.
Updated February 2011
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Direct cost items – salaries and fringe
benefits
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Salaries and fringe benefits of students who
will be working on the project
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Graduate students
Undergraduate students
Updated February 2011
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Notes about personnel costs
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The university is required by OMB Circular A-21 to
maintain a personnel reporting system for all
employees paid either directly or as a cost share on
federal projects.
“Failure to make the required confirmation [effort
reporting and certification]…in an accurate and
timely manner…is one of the principal internal
control weaknesses associated with recent cases of
noncompliance.”
OMB Circular A-133 Compliance Supplement for 2006
Updated February 2011
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Direct cost items – tuition
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Graduate Assistant Tuition Remission
Cost and Policy:
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Tuition remission cost for 2010-2011: $2,718 per
semester for full-time graduate students (9 hours)
University policy: Tuition remission for graduate
assistants is required on grants and contracts
unless not allowed by the agency or program.
Any variations must be approved by the Vice
Chancellor for Research and Sponsored
Programs.
Updated February 2011
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Direct cost items – consultants
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Consultants – individuals whose expertise
and skills will add value to a project
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Daily rate plus travel
Cost must be reasonable
Updated February 2011
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Direct cost items – equipment
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Equipment necessary to complete the work of
the project
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Must be project-specific, not general purpose
Must be necessary and reasonable
Must be clearly justified
Sometimes agency and UM definitions are
different
Updated February 2011
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Direct cost items – equipment
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Non-expendable equipment (≥$5,000)
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If the item is $5,000 or more, and if the sponsoring
agency is federal, existing equipment must be
screened to determine if suitable equipment is
already available, thus:
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Avoiding the purchase of unnecessary items
Determining the most economical and practical
procurement
Expendable equipment (<$5,000)
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If no category for expendable equipment, list
under supplies category
Updated February 2011
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Direct cost items – supplies
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Supplies
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Must be project-specific
Consumable supplies and materials which are
necessary to the project
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Examples:
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Glassware
Chemicals
Reagents
Animals
Equipment <$5,000 may be included if no
expendable equipment category
Office supplies are normally treated as F&A
Updated February 2011
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Direct cost items – travel
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Travel
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Must be reasonable and directly benefit the
project
Must comply with the university’s travel policy
Some funding agencies require that a proposal
distinguish between domestic and foreign travel
If funding agency is federal, any air transportation
to, from, between, or within a country other than
the U.S. of persons or property must be
performed by a U.S. flag air carrier if service
provided by such a carrier is “available”
Updated February 2011
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Direct cost items – subcontracts
Subcontract – collaborative work with other
institution in which an investigator at the other
institution will assist UM in accomplishing an
externally funded project by performing
substantive work on the project (collaborator
engages directly in the performance of the
specific aims of the project)
Updated February 2011
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Direct cost items – subcontracts
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Proposed costs should be reasonable and
allowable
Competitive bidding should be done prior to
proposal submission
Federal regulations state that we can only
charge F&A on the first $25,000 (regardless
of the period covered by the subcontract)
If subcontractor is identified in the proposal,
must include itemized budget
Updated February 2011
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Direct cost items – other
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Other direct costs include such things as:
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Communications
Publications
Animal care costs (not purchase of animals)
Human subjects costs
Maintenance/service contracts
Graphic arts/photographic services
Updated February 2011
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Facilities and administrative (F&A)
costs
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Those expenditures incurred in support of an
institution’s major, mission-related functions
or activities
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Allocated based on a determined percentage
of the Modified Total Direct Costs
Updated February 2011
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Modified total direct costs
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MTDC are total direct costs less:
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Equipment ≥$5,000
Capital expenditures
Tuition and patient care
Rental or lease of off-site facilities
Construction and renovation costs
Scholarships and fellowships
Subaward costs in excess of $25,000
Certain other costs pursuant to the institution’s
negotiated F&A rate agreement (e.g., recharge
center rates)
Updated February 2011
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Facilities and administrative (F&A)
costs
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Current rates for The University of Mississippi:
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On campus – 43%
Off campus – 26%
(In general, “off campus” means more than 50% of the
work will be conducted off campus)
Updated February 2011
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To determine F&A:
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Take your total direct costs
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Subtract out all the things we listed (equipment
>$5,000; capital expenditures; tuition and patient
care; rental or lease of off-site facilities;
construction and renovation costs; scholarships
and fellowships; subaward costs in excess of
$25,000)
Multiply the remainder (the MTDC) by the
appropriate rate
Updated February 2011
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A note about administrative and
clerical costs
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Items such as office supplies, postage, local
telephone costs, and memberships shall
normally be treated as F&A costs
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The salaries of administrative and clerical
staff should normally be treated as F&A costs
2 CFR, Part 220 Cost Principles for Educational Institutions
(a.k.a. OMB Circular A-21)
Updated February 2011
42
Sample budgets
Sample #1: Salaries by Monthly Effort
Updated February 2011
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Sample budgets
Sample #2: Salaries by Per Cent of Effort
Updated February 2011
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Cost share
Cost sharing or matching means that portion of
the project or program cost not borne by the
Federal Government.
Uniform Administrative Requirements for Grants and Agreements
with Institutions of Higher Learning, Hospitals,
and Other Non-Profit Organizations
(OMB Circular A-110)
Updated February 2011
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University of Mississippi policy
Cost sharing should be included in the budget
accompanying the proposal submission only
if such arrangements are required or strongly
encouraged by the sponsor’s program
guidelines.
Updated February 2011
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Federal government guidelines for cost
share
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Be verifiable from recipient’s records
Not be included as contributions for any other
federally-assisted project or program
Be necessary and reasonable for proper and
efficient accomplishment of project or program
objectives
Be allowable under OMB Circular A-21
Not be paid by the federal government under
another award (except where authorized)
Be provided for in the approved budget (when
required)
Conform to other provisions of OMB Circular A-110
Updated February 2011
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If cost sharing is mentioned anywhere
in the proposal, we are required to
document and report to the agency.
Updated February 2011
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Cost shared costs can be:
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Cash (such as purchases made specifically for the
project)
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In-kind (employee time or other goods and services)
Provided by the university
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Cannot normally use Fund 10 for cash cost share
The university’s agreement to any such cost sharing must
be secured by the prospective investigator during the
proposal development process.
Provided by a third party
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At the time of the proposal submission, the prospective
investigator must have written confirmation from the third
party on the amount and nature of cost sharing to be
provided.
Updated February 2011
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A note about third party contributions
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Volunteer services – value at rates consistent with
those paid for similar work in the recipient’s
organization
Employee services – value at employee’s regular
rate of pay plus fringe benefits
Donated supplies – value at fair market value at
time of donation
Loaned equipment or space – value at fair market
rental rate
Donated equipment – determine cost share
according to purpose of award
[work with Accounting on these]
Updated February 2011
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Often used for cost share:
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Salaries plus associated fringe benefits (and
F&A)
Tuition remission
Others, such as graduate students,
equipment, travel, supplies, etc. (plus their
associated F&A)
Unrecovered F&A costs, when allowed by
sponsor
Updated February 2011
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How to calculate cost share
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It depends on the proposal guidelines
Some require a percentage of MTDC
Some require a percentage of total project
value
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Your Program Development Specialist in the
ORSP will help you determine the correct amount.
Updated February 2011
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Budget justification (narrative)
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One of the most important pieces of the
proposal
Provides a categorical justification for the
requested funds
Purpose is to show the need of requested
budget items
Explains staffing patterns, benefits (fringes),
other personnel support costs, facilities and
equipment needs, supply needs, etc.
Updated February 2011
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Facilities/resources statement
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Identifies the resources and facilities of the
institution as a whole and of the department
that are available to the project
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Identifies any unique staffing resources
available to the project, but for which funding
is not required
Updated February 2011
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Certifications/assurances
Certifications and assurances are commitments
that the university is in compliance with
various laws and executive orders applicable
to federal assistance.
Updated February 2011
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Certifications/assurances – examples
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Certification Regarding Lobbying and Disclosure of
Lobbying Activities
Certification Regarding Debarment and Suspension*
Misconduct in Science
Conflict of Interest
Blood Borne Diseases
Human Subjects Compliance
Use of Animals in Research
*Common audit finding. Institutions must ensure that vendors,
contractors, and subrecipients are not suspended, debarred, or
otherwise excluded from transactions with the government.
Updated February 2011
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Resources
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2 CFR Part 220 (OMB Circular A-21): Cost
Principles for Educational Institutions
2 CFR Part 215 (OMB Circular A-110): Uniform
Administrative Requirements for Grants and Other
Agreements with Institutions of Higher Education,
Hospitals and Other Non-Profit Organizations
OMB Circular A-133: Audits of States, Local
Governments, and Non-Profit Organizations
UM Institutional Information for Proposal Preparation
UM Manual for Research and Sponsored Programs
UM Accounting Guidelines and Policies
UM ORSP Program Development Specialists [x7482]
Updated February 2011
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