Budget Preparation

Office of Sponsored Programs

Points of Contact
Loretta Derrick

Grant Development Specialist

Roberta Hohmann

Administrative Secretary

Dr. Paul E. Meyers

Executive Director
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Budget Topics
Defining the budget Getting started Budget sections University guidelines

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What is the Project Budget?

Reflects costs of items and activities described in the project Defines the project narrative with costs Justifies the project narrative with costs Puts all costs in one place to facilitate review

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Why is the Budget So Important?

Generally reviewed before any other part of the proposal Summarizes the proposal Discloses the consistency of the proposal A quick way for reviewers to tell if guidelines have been followed Defines costs for each year of the project

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Getting Started: Funds Available on Campus

What do you already have on hand to support the project?
personnel facilities space supplies equipment travel funds external support

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Getting Started: External Funds Needed

Personnel Space Supplies Equipment Travel funds Other

Hint -Look to the Project Narrative for project needs

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Getting Started
Funds Needed - Funds Available = Budget Proposal Create a reasonable budget based on the funding you would need to complete the project if awarded by the sponsoring agency
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Estimate Total Costs

Give a best estimate of your needs The Grant Budget helps you determine what you want the sponsor to fund and what part of the project, if any, UHCL or other agencies need to fund A fine line between asking for too much and asking for too little
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Budget Principles
Think about the budget when searching for a sponsor Think about the budget early in the proposal development

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Budget Principles
Refer to budget lines frequently in the proposal, especially in:
Need Statement Objectives Management Plan (especially here) Evaluation Plan Dissemination Plan Continuation Plan

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Sections of the Budget

Direct Costs Personnel (Generally 70%-80% of total) salaries fringe benefits Maintenance and Operation Costs Facilities and Administrative Costs (Indirect Costs) Total Costs Total Matching Costs Total Cash + Matching Costs = Total Project Costs
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What are F & A (Indirect) Costs?

General Costs that cannot be attributed to any one project -- for campus up-keep Are negotiated with the Federal Agency DHHS UHCLs current rate: 40% of Modified Total Direct Costs on campus 17% of Modified Total Direct Costs off campus
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Sponsors Maximum Award Limit

When the sponsoring agency states it will award no more than $300,000, what does that mean?
$300,000 including F&A costs? $300,000 plus F&A costs?

Review guidelines for maximum award limit prior to completing the budget
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What is Cost Sharing?

. . . that portion of the project or program cost not borne by the sponsor . . . OMB Circular A-110

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To Qualify as Cost Sharing, A Cost Must Be . . . (A-110)

Verifiable from the recipients records Necessary and Reasonable for accomplishment of project objectives Allowable under OMB Circular A-21 (Section 23) Un-recovered indirect costs may be included only with prior approval of sponsor (usually stated in guidelines)
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What About A-21?

A-21 does not mention cost sharing
may use same allowable items as funded by sponsor (e.g., personnel, fringes, materials, travel, equipment, space, etc.) Same rules apply to verifying use of cash from the sponsor: separately budgeted and accounted for internal application of institutional funds consistent cost accounting standards are applied

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Reporting Cost Sharing

A-21 Requirements: All costs must be classified consistently regardless of the funding source A-110 Requirements: Actual expenditures must be verifiable from the recipients records Sponsor Requirements: Commitments are a condition of the award and must be met

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Most Common Cost Sharing Problems?

Tendency to over commit PIs generate many proposals, receive fewer awards Offering cost sharing when not required Proposals which include no cost sharing Does sponsor expect some institutional cost sharing from PI? What do we accumulate and report; how do we capture project-related effort?
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The Facts on Cost Sharing

Look for sponsors that do not require cost sharing first FYI--Two kinds of cost sharing: Cash In-Kind (also know as non-cash) Use only if sponsor requires Meet the minimum required Think of in-kind sources first
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UHCL Cost Sharing Sources

Departmental salaries and fringes Dean or VP Materials and supplies Travel Equipment Internal Grants (during the same award period) Other External Grants (not federally funded)
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Sources of Cash Cost Sharing

Your department--discuss with Department Chair Your Deans Office External partners Cannot use an existing external federal award to cash cost share in a new federal proposal Cannot use money from an award you anticipate receiving
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Recapping Cost Sharing

See Dept. Chair, Dean, and OSP early in proposal development if you need cost sharing Think of value of non-cash direct and indirect infrastructure (UHCL & partners) that can be applied first Then think of UHCL cash sources All sources used must be reasonable and certifiable for audit and sponsor
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In-Kind (Non-Cash) Cost Sharing Sources**

Volunteers

calculate salaries and fringes

Space Materials Travel Equipment Facilities **(i.e, outside of UHS)

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In-Kind Cost Sharing

Certifiable non-cash costs not drawn from any UHCL account Examples:

facility space totally dedicated to the project equipment depreciation for items over $500 totally dedicated to the project volunteer salaries and fringes

Add an itemized in-kind cost section immediately below the cash cost section
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Calculating Salaries
Determine personnel needed to accomplish project objectives and activities Obtain current salaries for all personnel from the school business coordinator Determine the amount of time each person will dedicate to the project Determine if there are cash or in-kind cost sharing requirements from the sponsors guidelines
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Calculating Salaries
Determine how much personnel time you want the sponsor to fund and how much you want to cost share Calculate salaries using % release time, or by number of estimated days on the project Tie the method to project objectives Dont forget about in-kind volunteer help Calculate their salaries and put in the in-kind section of the project budget
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Release Time
The part of an employees contract dedicated to the project May be funded by
Sponsor UHCL Sponsor and UHCL

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Calculating Salaries
For multiple-year projects, figure a 3% Cost of Living Allowance increase for each consecutive year of the project. UHCL fiscal year is September 1 through August 31 Disclaimer: 3% increase for each year of grant budget is only an estimate This standard is university-approved for planning grant and contract budgets Sponsors award this amount
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Fringe Benefits
Fringes include: Retirement FICA Unemployment Workers compensation Disability Life Insurance Health Insurance The OSP can calculate current rates for UHCL employees
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Fringe Benefits
Fringe rates are based on actuals and change periodically Check with the Office of Sponsored Programs for current fringe benefit rates.

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Maintenance and Operations Costs

Operating costs known as M & O are the second part of the budget Operating costs consist of the costs of the materials, travel, equipment, and other costs that enable accomplishment of objectives to solve the problem Operating costs need to be defined in the itemized budget and budget justification
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The Proposal Signoff Sheet

Project Budget Summary UHCL Cash Cost Sharing Commitments Indicate In-Kind cost sharing Supplemental Pay and/or Summer Pay

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The Budget Narrative

Is a narrative justification of your costs Follow the format of your budget Describe all costs in terms of UHCL and/or standards of the sponsor Must be familiar with sponsors guidelines This is where you show your work
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Organizing the Proposal

Need Statement Goals/Objectives Project Plan Management Plan & Key Personnel Evaluation Plan Dissemination Plan Continuation Plan
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Organizing the Proposal (cont.)

Facilities and Equipment Budget and Budget Explanation and
Abstract Table

of Contents Appendices

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Review Guidelines for Submission

The number of copies that should be submitted How the proposal should be submitted
Some proposals are submitted via U.S. mail Some proposals require electronic submission

When the proposal should be submitted

Target

date vs. deadline Postmark date Receipt date

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Pre-submission Check Off

Proposal packet has been reviewed for:
Content Grammar/Spelling Page numbering/order

Submit to OSP for review Executive Director for OSP approves proposal Proposal sent to Provost for signature
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Proposal Process Completed

Next Step? Breath a sigh of relief!

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