Developing a Grant Budget
College of Arts & Humanities
University of Central Florida
March 1, 2010
Budget
Your Goal
To develop a budget that is Reasonable Appropriate Allowable
Draft a rough budget FIRST before writing the proposal Your time, other faculty, students, etc. Expenses (travel, materials, consultants, equipment) Indirect
Budgeting Basics
Getting Started – Resources needed Types of Costs
Personnel Expenses Equipment/Capital Outlay Participants Subcontracts Cost Share or Match Indirect Costs
Budget Narrative
Have Source - Getting Started
Find the budget section in the RFP Work from the RFP budget format (form) Read the full RFP for more guidance Always budget whole dollars Beware that expenses are allowed unless the
RFP specifically prohibits* *Must align with OMB A-21 see handout
http://www.research.ucf.edu/sponsoredprograms/Proposal/budget/allowablecosts.htm
Resources You Will Need
Kristin Wetherbee- [email protected] Ext. 3-0908
Salary schedules CAH process
UCF Rates: Fringe, Travel, & Indirect Cost (F&A)
http://www.research.ucf.edu/SponsoredPrograms/Proposal/factsheets.html
Types of Costs
PersonnelExpensesEquipment/Capital OutlayParticipants SubcontractsMatch or Cost Share Indirect Cost
Personnel Costs
Personnel may be the largest part of your budget So estimate these costs early (after indirect)!
Salaries and fringe benefits are calculated as separate costs on the forms.
Salaries
Follow UCF’s salary schedules (see Kristin) The project year may not be the same as
your salary year Add in any special payments or stipends. Factor in a 3% salary increase for multi-year
grants (and consider step increases) Full-time employees typically work 2080
hours per year (40 hours/week x 52 weeks/year)
Graduate Research Assistant
New UCF policies on hiring GRAs and tuition waivers available at:
http://www.research.ucf.edu/SponsoredPrograms/Proposal/forms/GraduateTuitionRegulations.pdf
Fringe Benefits
32.11% of full-time salaries (see Kristin) 1.46% of OPS salaries & Adjuncts .01% of student salaries 11.66% Post Doc
UCF schedule of fringe benefits
http://www.research.ucf.edu/SponsoredPrograms/Proposal/forms/Fringe_Rates.pdf
Personnel Considerations
Have you included all required personnel? Two part-time positions may be less expensive than
one full-time position. Consider the use of internal staff vs. external staff. Provide (course) release time for project personnel. Make sure the salary classification is appropriate to
the job. Supplementing vs. supplanting What happens when the funding ends?
Equipment or Capital Outlay
Typically refers to equipment, but may include Some library costs Construction
Equipment nonexpendable property over $1,000 useful life of more than one year
This includes software purchase with the same dollar value.
Equipment
Equipment below $1,000 threshold should be placed in the supplies or other direct cost budget line item ($5,000 federal)
Bidding or estimating costs. Capital equipment purchases from any
source of funds over $10,000, which must have CAH approval
http://www.research.ucf.edu/SponsoredPrograms/Contracts_Grants/projmmgt/expenditures.htm
Equipment Considerations
Limits on equipment You must provide a list with descriptions and
per item costs Include costs for shipping, installation, training,
maintenance, additional supplies Purchase early and must be tracked Transfer of ownership
Participant Costs
Typical costs include: Training (tuition, books, materials, fees) Stipends or honoraria Meals Lodging Travel Miscellaneous (art materials & supplies,
insurance, training materials, etc.)
Participant Cost Considerations
Calculate the cost per participant There may be a limit on this cost
Some costs may be disallowed T-shirts Food
Expenses
Typically includes: Materials & supplies Travel (must indicate international) Contractual services (consultants, other) Tuition Other
Optional to factor in increase- Tuition - 5% Travel - 10%
Travel
Often treated separately Provide detailed calculation
•Airfare (domestic carrier)•Mileage to/from the airport•Tolls•Airport parking•Airport transfer
•Lodging (including taxes)•Meal allowance•Local transportation•Baggage handling (misc)•Conference registration
Other Expenses
Publications/Printing Postage Maintenance agreements Telephone Special fees Honoraria
Expense Considerations
Think about hidden costs to the organization Make sure it’s allowable (ask Kristin or ORC)
OMB circular A-21 Other guidelines RFP
Contract Services
Employee or contractor? Special Consultants
Maximum day rate? Ask ORC Vendor Contracts
Negotiated by procurement, not faculty…
Maximum Salary Rates
Agency Max. Rate
U.S. Dept. of Education No Specific Limit except $513/day for Rehabilitation Training Program grants
National Endowment of the Humanities None Specified
National Endowment of the Arts None Specified
National Aeronautics & Space Administration (NASA)
Up to Level IV of the Executive Schedule (exclusive of expenses and indirect costs )
National Institute of Health (NIH)
None Specified
Note: The NIH salary cap does not apply to payments made to consultants.
National Science Foundation (NSF) $537/day
Subcontracts or Sub-awards
You will must obtain 3 items: 1. Letter of Commitment – with authorized
signature 2. Detailed Statement of Work
Deliverables Timeline (consider your start/end dates)
3. Detailed Itemized Budget & Narrative
(call me if you need examples)
Subcontracts
Subcontracts in excess of $1,000,000 must receive approval from UCF President
Subcontracts in excess of $50,000 require bid process
Over 50% of total $ - ORC approval UCF charges facilities and administrative
costs (F&A) on the first $25,000 of each subcontract through the life of the project period.
Subcontract Considerations
Recommend discussing with OOR Contracts Manager (terms & conditions)
UCF has a standard contract form If you name a contractor in a proposal, it may
be binding. “the disclosure should include a clear
description of the work to be performed, and the basis for selection of the subawardee (except for collaborative/joint arrangements)”
Cost Share or Match
Is it required? Cash match In-Kind Contributions
Calculate as if in the budget How much MORE will the program cost? What have you not included?
Cost Share or Match
Reasonable, justifiable, and verifiable Cash or in-kind Can’t match federal grants with other federal
funds Don’t use the same match twice. Third party in-kind must be tracked just like
UCF cost share http://www.research.ucf.edu/
SponsoredPrograms/Contracts_Grants/projmmgt/ucf_costshare.htm
Cost Share or Match Sources
UCF Federal Match Program Faculty FTE (.05 -.10 FTE)
Always requires department/CAH approval New equipment purchases Service Learning – volunteer (tracking) Building space (off campus – not UCF)
Must document
Cost Share Considerations
Must fund and track (must be allocable) Legal commitment Subject to audit
Make sure costs aren’t part of the indirect calculation
Match account handled by CAH Watch grant budget dates and fiscal year
budget dates
Indirect Costs
Also called Facilities & Administrative costs (F&A) or overhead
Costs borne by UCF to support sponsored projects that cannot be clearly identified with a specific project
Includes: Infrastructure Facilities Administration (26% maximum)
Federally approved indirect cost rate
http://www.research.ucf.edu/SponsoredPrograms/Proposal/F_A_Summary_of_Rates.html Recovering indirect costs can be significant
Estimate these costs first! $250,000 / 1.44 = $173,611 Total Cost
available = $76,389 Indirect Costs
Sometimes limited or disallowed by funders
Indirect Costs
Distribution of Indirect
55% Office of Research & Commercialization 45% College of Arts & Humanities
10% Department 10% Principal Investigator The departmental and PI portions will be
deposited into to separate accounts. Each department or program must keep
accurate records on indirect dollars.
Indirect Cost Considerations
Understand the costs that have been included in UCF’s calculation of the indirect cost rate
These costs CANNOT be budgeted as direct costs
Understand your policy about indirect UCF requires a written statement from the
funder to disallow indirect How is indirect used?
Budget Narrative
Make your case that the budget is reasonable, appropriate, and adequate.
Describe the policies that govern your budgetary decisions.
Provide detail about items to be purchased. Indicate how costs were calculated.
Insert parts of the spreadsheet as tables. Make sure the budget narrative is consistent
with the grant narrative.
Thank you!
Any questions:College of Arts & Humanities
Kristin Wetherbee, [email protected] x3-0908,
Office of Research & Commercialization
Celeste Rivera-Nuñez, Paula Seigler
[email protected], [email protected]
x2-1155, x2-1129
Jo Ann Smith
407-823-2223
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