Preparing Proposal Budgets

Matt Berry, Tonya Easley, Tena Smith and Fran Stephens

Proposal Development Specialists

Office of Research Services

Types of Proposals

Federal or Non-Federal (State or Local) Foundation/Non-Profit Industry International Subcontract/Subaward

Budget Components

Direct Costs Indirect Costs (IDC) – hereinafter referred to

as Facilities and Administrative Costs (F&A)

Direct Costs

Expenses identified specifically with a particular sponsored project, instructional activity, creative or artistic pursuit, or other institutional activity

Expenses that can be assigned to a particular sponsored project with a high degree of accuracy

Must be allowable, allocable, reasonable & necessary for the program, given consistent treatment and conform to sponsor limitations

Typical Direct Costs

Include: Compensation of employees for work under a

sponsored agreement Related fringe benefit costs Materials consumed or expended in the performance

of the work Other items of expense incurred for the sponsored

agreement provided such costs are consistently treated (e.g., travel, equipment)

Facilities & Administrative Costs

Costs incurred for common or joint objectives which cannot be identified to a specific direct cost activity Facilities Salaries of administrative and clerical staff Office supplies (May be allowable if attributed

directly and specifically to the project) Postage (May be allowable if attributed directly

and specifically to the project-NO STAMPS!) Memberships

Budget Categories

Personnel Costs Fringe Benefits Equipment Travel Participant Support

Costs

Other Direct Costs Research Materials and

Supplies Publication costs Consultants Computer/ADPE

Services Subcontracts Tuition Other

Facilities & Administrative Costs (F&A)

Cost Sharing

Note the following slides are formatted to follow the ORS generic budgetspreadsheet which is recommended for all budgets.

Types of Personnel Costs

Faculty – Academic Year Faculty - Summer Professional Staff Post Docs Professional Staff –

Limited (temporary) Classified Staff (hourly)

Graduate Students (GRA/GTA)

Undergraduate Students

Other

Fringe Benefits Rates - FY 07

Full Time Employees

Temporary Employees

Post Docs, Fellows

GRAs Undergraduates

40.5% 9.8% 16.5% 4.6% 1.1%

Equipment

Items costing over $5,000 and having a useful life of one year or more

Includes freight and shipping costs Fabricated Equipment Exempt from F&A

Domestic Travel

Airfare, Lodging Car Rental (Not in Oklahoma) Per Diem, Mileage Parking Fees/Pike Pass Registration Fees Local Transportation (Taxi, Metro, Shuttle) Travel to Canada or Mexico is agency specific GSA Rates (http://www.gsa.gov) OU Travel Policy link:

http://www.ou.edu/aa/travel.htm

Foreign Travel

Airfare Apartment Rental Car Rental Local Transportation Lodging Per Diem Registration Fees Safety and security costs may also be included

dependent on location Travel to Canada or Mexico is agency specific

Participant Support Costs

Agency specific (only applicable in limited circumstances)

Intended for conferences, meetings, symposia, training activities, and workshops

Participants or trainees may not be employees

Stipends Cost of transportation Subsistence Other related costs

Other Direct Costs

Research Materials & Supplies

Publication Costs Consultant Services Computer Services Subcontracts Tuition Other

Other Direct Costs

Chemicals Expendable Equipment Computer Software Computer Supplies Lab Supplies (Gases

and Fuels)

Cartridges for Copiers/Printers/Faxes

Research Supplies (allocable to the project)

Reference Materials

Research Materials & Supplies

Other Direct Costs

Publication CostsConsultant Services

Letter of commitmentComputer ServicesSubcontracts

Entire sub-proposalInstitutional letter of commitment

Other Direct Costs - Tuition

Graduate Research Assistant (GRA) labor budgeted on sponsored programs determines the amount of tuition to be budgeted

GRA labor budgeted is multiplied by a percentage to arrive at the tuition amounts requested from sponsor and provided by the Graduate College

Tuition is excluded from F&A

Sponsor Share Graduate College Share

13% 19%

FY 07 Cost of Tuition Remission is 32%

Other Direct Costs - Other

Communication Costs: Express Mail Charges Fax Charges Mobile Phone Services/Pager Fees Postage (No Stamps!) Telecommunication Long Distance charges All charges must be directly attributable to

project

Other Direct Costs - Other

Copying Animal care costs Human subject care costs Maintenance agreements Audio/visual services Construction/renovation/remodeling costs Costs for workshops/conferences/technical meetings

(if including food costs, state such in budget & justification)

Contractual expenses/services/fees

Other Direct Costs(Excluded from F&A)

Amount of Subcontract exceeding $25,000 Scholarships/Fellowships Tuition Remission Rental Costs – Off Campus Facilities Equipment and Capital Expenditures Patient Care Costs

Facilities & Administrative (F&A) Cost Rates – FY 07

On-Campus Off-Campus

48% 26%

Calculating F&A

Identify Exclusions Equipment Capital Expenditures Tuition remission Rental costs of off-site facilities Scholarships/Fellowships Subcontract amounts in excess of first $25,000 Patient Care Costs

Modified Total Direct Base (MTDC)= Total Direct Costs minus exclusions listed above

Common Budget Dilemmas

Subcontractor versus Consultant or Vendor Consultants on Oklahoma Teachers

Retirement Fellowship versus Stipends for Students (Is

the student an employee?)

Cost Sharing - Sources

PI Contributions Departmental Contributions University Contributions Vice President for Research Third Party Contributions (Subcontractors,

Industry, etc.) Oklahoma Regents for Higher Education Contributed and Unrecovered F&A

Sponsor-Required Cost Sharing

Equipment Contributed F&A Unrecovered F&A (F&A not allowed or F&A

associated with Cost Sharing; not in all cases-check guidelines)

Regents Matching Funds

Requesting Cost Sharing from the Vice President for Research

http://research.ou.edu/about/cost_share_req.asp

Arithmetic Fringe Benefit Rate GRA Tuition Rate F&A Rate MTDC Exclusions Budget Total

Correct? Within Sponsor Limits? For All Years?

How ORS can help you

Perform budget review Ensure calculations,

fringe and F&A rates are correct

Ensure budget conforms to sponsor requirements or limitations

Ensure that subagreement documents are in line with budgeted amounts

Ensure that any cost sharing is approved and documented prior to submission

Useful Link for Proposal Preparation:

http://research.ou.edu/proposal/generic_budget.htmlSite with downloadable budget templates.

http://research.ou.edu/about/rateagr.htmlSite with downloadable F&A and fringe benefit

rate agreements.

Preparing Proposal Budgets

Thanks for joining us today!

Tena Smith (A – D) : tena@ou.edu

Tonya Easley (E – L): teasley@ou.edu

Fran Stephens (M – R): fran@ou.edu

Matt Berry (S – Z, CIMMS) : mberry@ou.edu

(405) 325-3901