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Sponsored Programs at NYU: Developing the Budget With Dollars and Sense Betty Farbman, Associate Director, Office of Sponsored Programs Nancy Daneau, Associate.

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Presentation on theme: "Sponsored Programs at NYU: Developing the Budget With Dollars and Sense Betty Farbman, Associate Director, Office of Sponsored Programs Nancy Daneau, Associate."— Presentation transcript:

1 Sponsored Programs at NYU: Developing the Budget With Dollars and Sense Betty Farbman, Associate Director, Office of Sponsored Programs Nancy Daneau, Associate Director of Research Administration Training & Institutional Liaison

2 What we’ll cover….  Resources and budget categories  What can (or can’t) be charged to a sponsored project?  Making the calculations  How to treat and incorporate a budget from collaborator(s)  F&A: what is it and why do we care?  Cost sharing  Justifying the cost estimate  Tools and references

3 Common Budget Categories  Direct Costs Salaries and Wages Fringe Benefits Equipment Materials and Supplies Travel Consultant Services Participant Support Costs Patient Care Costs Subcontracts Other Direct Costs  Tuition remission  Stipends  Rent  Human Subject Payments  Facilities and Administrative (F&A)/Indirect Costs

4 Salaries and Wages  Principal Investigator (PI) and Senior/Key Personnel  Technicians (programmers, scientists)  Post docs  Graduate Research Assistants  Undergraduate Students  Administrative support (direct charge only when allowable and justifiable)

5 Salaries and Wages (cont’d)…  To charge salary, individuals must be NYU employees External collaborators are not employees; correctly identify as consultants or subawards  PI must commit effort to conduct research or oversee project activities  $’s requested for faculty and other key personnel must be in proportion to the effort devoted to the project  For key personnel, entering $0 dollars and no effort is unacceptable  Total dollars, equivalent to 100% effort may not exceed annualized salary  Define effort in person months  To convert percent of effort to person months: Utilize person-months/percent effort calculator found at: grants.nih.gov/grants/policy/person_months_conversion_cha rt.xls On internal budgets, note both person months and percent effort

6 Salaries and Wages (cont’d)…  Check for agency limitations  Ex: For NSF, no academic year salary may be charged  Summer salary across all NSF-funded grants may not exceed two-ninths of academic year salary (2 summer months)  NIH imposes a cap on salaries charged to awards; refer to http://grants.nih.gov/grants/policy/salcap_summary. htm for current rates http://grants.nih.gov/grants/policy/salcap_summary. htm

7 Salaries and Wages (cont’d)…  To calculate amount of salary to be requested: multiply person months x monthly base salary  9 month appointments Divide 9 month base salary by 9, then multiply by the # of person months devoted to project  11 month appointments Divide 11 month salary by 11, then multiply by the # of person months devoted to project  12 month appointments Divide 12 month salary by 12, then multiply by the # of person months devoted to project  Salaries that span fiscal years should be “weighted” to incorporate increases

8 Calculating salary across fiscal years  Project period 1/1/2008-12/31/2008 Base Salary in FY’08 = $50,000 Base Salary in FY’09 = $51,500 (3.5% increase)  (12 month employee) Salary calculation  Jan – Aug = $33,336  Calculation - 8 mos @ $4,167/mo  Sept – Dec = $17,168  Calculation – 4 mos @ $4,292 Budget for project period = $50,504

9 Salaries and Wages (cont’d)…  To calculate salary on NIH proposals subject to the cap Salary for 9 month appt = $160,000 Annualize to 12 months  $160,000 / 9 = $17,777/month x 12 = $213,333  With salary for FY 07 capped at $186,600, monthly rate is capped at $15,550 ($186,600 / 12)  Salary request for 2 person months in summer totals $31,100 ($15,550 x 2)

10 Salaries and Wages (cont’d)…  Post-docs Years of experience in field typically drives rates for post-docs Check with Administrator or HR personnel for salary rates specific to your school/dept For NIH NRSA institutional training grants and individual fellowship applications  NIH sets rates, based on years of experience, for post-docs http://grants2.nih.gov/grants/guide/notice- files/NOT-OD-07-052.html http://grants2.nih.gov/grants/guide/notice- files/NOT-OD-07-052.html

11 Salaries and Wages (cont’d)…  Graduate Research Assistants Check with Administrator or HR personnel for salary rates specific to your school/dept NIH maximum: zero level postdoctoral stipend In addition to salary, GRA’s entitled to tuition remission  Goes in “Other Direct Costs” budget category  Rates  FAS & CIMS: 37% of salary  All Other Units: 51% of salary

12 Salaries and Wages (cont’d)…  Undergraduate Students Check with departmental administrator or HR personnel Hourly rate must be at or above minimum wage Number of hours per week limited to 15-20 for enrolled students May work full-time (35 hours) during breaks and summer Not entitled to fringe benefits

13 Salaries and Wages (cont’d)…  Administrative Support Salaries of admin and clerical staff  Generally part of the administrative portion of the F&A/indirect cost pool and therefore not direct- charged  Exceptions:  Major projects or center grants (defined in Exhibit C of OMB Circular A-21, Cost Principles for Educational Institutions) http://www.whitehouse.gov/omb/circulars/a021/a21_2 004.html#exc http://www.whitehouse.gov/omb/circulars/a021/a21_2 004.html#exc  Projects requiring extensive data collection and analyses  Conference grants requiring administrative support for making extensive travel arrangements

14 Fringe Benefits  Includes social security (FICA), retirement, unemployment, worker’s compensation, health/life/disability insurance  Fringe benefit rate applied to salary dollars requested for full- time, eligible NYU personnel in proposed budget  Portion of fringe benefits estimated in proposal budget tied to person-months committed  NYU’s federally negotiated fringe benefit rates 9/1/2007 to 8/31/2008: 27% 9/1/2008 to 8/31/2009: 27.5%  Increases by.5 points per year thereafter  Fringe should be weighted across fiscal years  Ex: PI salary request = $25,000  Fringe Benefits request = $6,750 $25,000 x 27% = $6,750

15 Equipment  Defined at NYU as: Acquisition cost of $3,000 or more per unit with at least one year useful life Include fabricated items (even if individual components cost under $3K)  Defined as sum of individual parts to procure and build workable equipment item On proposals to *federal sponsors*, do not request funds for desktop computers, laptops unless justifiable due to nature of project  Deemed to be part of F&A/departmental research support  Exclude from F&A/indirect cost assessment

16 Materials and Supplies  Laboratory supplies  Animals http://www.nyu.edu/uawc/doc/animalperdiemr ate.pdf  Software  Training/curricula/workbook materials  Publication/reprint costs  On proposals to *federal sponsors*, do not request funds for general office supplies, local telephone charges, postage, etc. unless justifiable due to nature of project  Deemed to be part of F&A/departmental research support

17 Travel  Airfare, lodging, car rental, mileage if using personal automobile, per diem for meals  Foreign travel: Fly America Act—use of U.S. air carriers required except in exceptional circumstances Refer to Fly America Act: http://acquisition.gov/far/current/html/Subpart%2047_4.html http://acquisition.gov/far/current/html/Subpart%2047_4.html  Provide detailed estimate Number of trips, number of days per trip Number of individuals traveling Destination and purpose  NYU reimbursement rates Maximum Per Diem for Meals (unsubstantiated): $50 per day Maximum Expenses for Lodging & Meals (substantiated): $350 per day Business Mileage Rate: 48.5 cents per mile Refer to guidance on travel reimbursements: http://www.nyu.edu/cdv/site20/policies/busexp.html#travper m http://www.nyu.edu/cdv/site20/policies/busexp.html#travper m

18 Consultant Services  External collaborators  Provide expertise, service and support, and/or skills not found within NYU’s permanent staff  Do NOT utilize NYU resources, space, facilities, etc. to conduct work  No employer/employee relationship exists  Identify name, affiliation, hourly or daily rate No maximum, but must be reasonable, based on market value Estimate number of hours or days necessary Budget for travel costs if applicable, i.e. airfare, mileage, lodging, per diem for meals, etc.  Use NYU reimbursement rates

19 Participant Support Costs (specific to NSF)  Transportation, per diem, stipends and other costs of trainees for: Conferences Meetings Symposia Workshops  Trainees may NOT be employees Exception for NSF proposal budgets  Local school districts where teachers are trainees  In this case, stipends may be categorized as participant support as long as school district has accounting mechanism in place to track and report stipends separate from salary  Exclude from F&A/indirect cost assessment

20 Patient Care Costs  If inpatient and outpatient costs are requested, separate and provide detail for both  Include Number of participants Estimated cost per day/per patient Expected number of visits/tests/trials Estimated cost per visit/test/treatment

21 Subawards and Subcontracts with Collaborators  Transfer of a substantive portion of the programmatic effort to another organization/institution Statement of Work drives the budget Determine $ amount required by subrecipient to conduct assigned portion of the work  Include direct and indirect costs at subrecipient organization’s rates Collaborating institution’s total budget estimate (direct and indirect costs) is shown as a direct cost on NYU’s proposed budget  Assess NYU’s F&A/indirect rate on only the first $25K of each subaward; remainder is excluded from indirect cost assessment

22 Other Direct Costs  Tuition Remission FAS & CIMS  9/1/97 to (until further notice): 37% of salary All Other Units  9/1/90 to (until further notice): 51% of salary  Stipends NOT allowed on research grants Permitted on training grants and/or fellowships Different from salaries in that fellows are not NYU employees; they are NYU trainees A set rate, no fringe benefits charged, no taxes withheld (yet income reported via 1099) Used for living allowance

23 Other Direct Costs (cont’d)…  Rental expense (only if off-site facility is to serve as project site) Specify rate per square foot and size of space needed Specify lease amount per month, annualize  Human Subject Payments Funds given to subjects for following protocol Set amount for each visit Can be lump sum based on completed participation

24 Facilities and Administrative (F&A) Costs  Costs that can’t readily be identified with one specific project Called F&A, Indirect, Overhead  Cover a portion of institution’s operating costs including, but not limited to: maintenance and management of research laboratories, libraries, and other facilities departmental administration and support central administrative support including payroll, OSP, SPA, University Animal Welfare Committee (UAWC), and University Committee for Activities Involving Human Subjects (UCAIHS)

25 Facilities and Administrative (F&A) Costs (cont’d)…  Indirect cost rates are negotiated with NYU’s cognizant agency DHHS and based on costs for research operations incurred during the previous FY Rate applied to a modified total direct cost (MTDC) base MTDC = Total direct costs less:  Capital equipment  Tuition remission  Subawards beyond the first $25,000  Participant Support Costs Apply stated rate to all proposal budgets unless F&A/indirect cost limited to a set amount or percentage in sponsor guidelines (sponsor policy must be in writing)

26 Facilities and Administrative (F&A) Costs (cont’d)…  On Campus  9/2005 - 8/2007 53.0% MTDC  9/2007 - 8/2008 53.5% MTDC  9/2008 - 8/2009 54.0% MTDC  Off Campus 9/2005 - 8/2007: 26% MTDC 9/2007 - 8/2008 26% MTDC 9/2008 - 8/2009 26% MTDC Per federally negotiated rate agreement with NYU’s cognizant agency DHHS, dated July 2, 2007 Off-site rate used only when a preponderance of work is taking place off-site and no NYU space or resources being utilized Refer to OSP website to obtain current rates http://www.nyu.edu/osp/policies/basicinfo.php http://www.nyu.edu/osp/policies/basicinfo.php

27 Two Cents About Cost Sharing  Costs of conducting a project borne by NYU and not charged to the sponsor Most often in form of time and effort (salaries, fringe benefits, unrecovered indirect costs only when approved by sponsor)  NYU policy Cost sharing allowed only when mandated by sponsor in written guidelines Quantified  Specified as percentage or person months in proposal  = Voluntary committed cost sharing  Must be tracked in separate cost sharing account, reported to sponsor and included in organized research base for F&A calculation Unquantified  Referenced in proposal or justification but not quantified  =Voluntary uncommitted cost sharing

28 Two Cents About Cost Sharing (cont’d)…  Voluntary committed cost sharing Requires approval by Chair, Dean Has negative impact on NYU’s F&A rate  Costs included in the organized research base portion of F&A  Results in lower F&A rate recoverable  Voluntary uncommitted cost sharing Does not need to be quantified, tracked, or reported upon No impact to the F&A base

29 Outside Support  Third Party Contributions Cash  Document commitment of financial resources by letter of support stipulating amount and any restrictions In-kind  Value of non-cash contributions  Ex: value of volunteer services

30 Budget Justification  Narrative to accompany the cost estimate  Breaks down each category of cost  Provides detailed explanation of how costs derived Quantify total costs of each line item and document cost calculation Specify line items for each year and time frame during which you expect they’ll be expended Elaborate on line items—use narrative form to justify necessity; how costs will be used for successful project implementation

31 Hints and Tips  Costs must be allowable, allocable, and reasonable A-21, Cost Principles for Educational Institutions http://www.whitehouse.gov/omb/circulars/a021/a21_2004.html #j NYU and sponsor policies  Read the guidelines as they relate to budget development Comply with sponsor-imposed limits based on funds available  Specify the budget period start and end dates  Budgeting in the out-years Personnel (Salaries and Wages): Increase 3.5% each year Other than Personnel Services (OTPS): Increase 4% each year Tuition: Increase 5% each year

32 Hints and Tips (cont’d)…  Rules for federal sponsors differ from rules of foundations, corporations, others Provides flexibility; it may be possible to direct charge items not normally allowable under a federal award Agency specific instructions take precedence  Put cost estimates into agency specific language or budget format and forms as necessary  Justification of costs should follow the order listed on budget sheet  Make it easy for reviewers to understand how cost estimate derived by walking through details

33 Reference for Unallowable Costs  Per A-21, following are unallowable: Alcoholic beverages Alumni activities Bad debts Commencement or convocation costs Charitable contributions, donations, remembrances Development/fundraising costs

34 Unallowable Costs (cont’d)… Entertainment costs: tickets to shows or sporting events, meals, lodging, rentals, transportation, and gratuities associated with entertainment Fines and penalties Goods or services for personal use of employees (including gifts) Housing and personal living expenses of University officers Investment management costs Lobbying

35 Unallowable Costs (cont’d)… Cost overruns on other sponsored agreements Pre-award costs (unless approved by the sponsoring agency or permitted under expanded authorities) Selling and marketing costs of any products or services of the institution Student activity costs incurred for intramural activities, student publications, student clubs Travel: First class tickets (unless extenuating circumstances)

36 Questions? Contact your Projects Officer in OSP or Betty Farbman – betty.farbman@nyu.edubetty.farbman@nyu.edu Nancy Daneau – nancy.daneau@nyu.edunancy.daneau@nyu.edu


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