Tips and Tricks of Budget

Development

Jesús Palomo and Sharmila Pathikonda

May 4th and May 8th 2017339 Blocker and 801 Harrington

Budget

• An “estimate” of expenditures for each project year

• Provides organized and easily understood breakdown of funds

• A detailed budget helps youo Identify spending priorities

o Identify start date that works for you

o Determine spending priorities beyond payroll

o Execute the project with fewer “snafu’s”

Budget = Key Part of your Proposal Package

All federal, state, and private agencies require “A

specific” budget form with varying levels of detail₸

o US DOE (lot of details and detailed

justifications)

o NSF (good amount, limited pages for

justifications)

o NIH (can be very simple or complex;

depends whether the budget is

modular or not)

o USDA (more detail, the better)

o Foundations (depends on specific RFP)

₸Tip1: Budget and budget justification must be perfectly matched

Main Parts of the Budget

IDC-Bearing Items

• Payroll/Personnel

• Travel

• Supplies

• Publication

• Rental Fees

• Subcontracts

IDC-Exempt Items

• Participant support

• Student tuition

• Equipment greater

than $5,000

IDC or indirect costs are also called F&A

(facilities and administration) costs

Personnel₸

1. PI, Co-PI’s, Co-I’s

– Who can be PI’s?

– Co-PI’s/Co-I’s versus

consultants

2. Technical, non-technical staff

3. Students (GAR’s or hourly)

4. Post-doctoral trainee

5. No administrative

1. ≥1% minimum effort and/or effort

based on the scope of the project

1. % FTE depends on their role

2. GAR’s at 25 or 50% (Monthly or

Hourly: Masters student min =

$1,100 and PhD = $1,750/mo)

3. % FTE depends on their role

4. Exception: can include if IDC rate

is restricted by the sponsor

Type Percent Effort

₸Tip 2: Don’t forget extras on top of salary: fringe benefits and GAR tuition

Trick 1: Consultants are cheaper than subcontracts to Co-I

Travel

• Most sponsors allow thiso Some need a total cost as a one line item

o Some need more details

o Some travel may be mandatory per RFP

• Internationalo Check off “export control” on compliance list (Maestro)

• Domestico Conferences, investigator meetings

o Field visits – to collect data

Materials and Supplies

• Lab supplieso Chemicals, glassware, etc.

o Research animals purchase

o Animal Purchase

• Curriculum materialso Newsletters, related materials

o Books

o iPads

• No office supplies allowed (paper, pens, e.g.)

• Consultant or professional service fees

• Facility rentalo For example – mini conferences,

seminars, office space

• Single piece of equipment less than $5,000

• Conference registration

• Computer serviceso Licensing

o Software

o Warranties

o Database and data storage space costs

“Other” Costs

Other Categories• Publication costs

– Not widely used

– If you have RFP-specified publication needs

– Some journals are very expensive to publish in, so do allocate money under this section

• Equipment– Any single item/equipment more than $5,000

– Exempt from IDC’s

Other Items Exempt from IDC

• Tuitiono For graduate students assistants (FTE-based)

o Tuition is matched on the amount of effort allocated o E.g. 25% GAR allocated ½ of tuition

• Participant Support Costs

– Stipendso Don’t call them honorariums – leave them as stipends

o Incentives (gift cards)

– Travelo Participants travel to project site

o Per diem and lodging

– Subsistenceo Food and drinks (no alcohol)

Sub-recipient Costs

• Sub-recipients on your proposal– A formal written agreement₸ is made between TAMU

and other organization to perform a significant portion

of the proposed work

– Charge IDC on the first $25,000

– No IDC charged on “Internal subs”

(e.g., TAMUS campuses)

Trick 2: Work on these as early as

possible!! the main budget cannot be finalized until all sub-

recipient budgets are in final form

₸ Tip 3: We can help fill the sub-recipient commitment form.

Please direct the sub-recipients’ info to our office.

Indirect Costs

• IDC’s charged on all IDC bearing items

• Types of IDC rates

– On campus = 48.5%

– Off campus = 26%

– Other activities = 28%

(e.g.: clinical research, study abroad programs)

• If deviations from the above are proposed, then a

waiver must be processed; common situations:

o International sponsor not allowing IDC

o Private sponsor not allowing IDC

₸ Tip 4: Voluntary reduction in IDC rate below level sponsor

allows is highly discouraged

Cost Share/Matching FundsSource of matching funds required per the RFP need to be finalized before submission. Trick 3: some ideas for generating matching funds

1. TAMU

• Department commitment

– Cash (graduate students) or in-kind (space, equipment, facilities)

– Letter/account numbers

• College

• Provost

• Center

• PI (e.g., salary savings for GAR support)

2. Third party cost share

• Cash (support letter committing to the amount)

• In-kind (support letter committing to either space, software, equipment, etc. –have to show the monetary value of this type of support in the letter)

Example Budget Template

Budget Justification

• Explain the need for your budget line

itemso We can draft a budget justification

o You will be adding details about the roles for

personnel, explaining how their expertise fits

project needs

Trick 4: This is a good place to showcase the expertise of the personnel, in case you are limited on space under facilities, biosketches, or main body of text

Thank You

Questions?