Presentation is loading. Please wait.

Presentation is loading. Please wait.

HOW TO WRITE A BUDGET…. The Importance of Your Budget Preparation of the budget is an important part of the proposal preparation process. Pre-Award and.

Similar presentations


Presentation on theme: "HOW TO WRITE A BUDGET…. The Importance of Your Budget Preparation of the budget is an important part of the proposal preparation process. Pre-Award and."— Presentation transcript:

1 HOW TO WRITE A BUDGET…

2 The Importance of Your Budget Preparation of the budget is an important part of the proposal preparation process. Pre-Award and peer reviewers are responsible for comparing the level of funding requested to the work proposed. Therefore, the budget section of the proposal should reflect, as accurately as possible, the funding needed to carry out the project.

3 Budget Categories Direct Costs: Costs/Expenses that are directly charged to your grant account/contract. Indirect Costs: Facilities and Administrative (F&A) costs, also called overhead or indirect costs, reimburse the University for laboratory and office space, utilities, administrative services (e.g., Purchasing, Accounting, Research Administration, Human Resources, Security), Custodial Services, and building, grounds, street and parking lot maintenance. In other words, they include those things essential to support sponsored activities which cannot be specifically identified and directly charged to a specific research grant or contract.

4 Direct Costs Personal Services: Salaries & Wages, Fringe Benefits Non Personal Services Travel Supplies & Materials Other Operating Expenses (i.e. Subscriptions, Registrations, Advertising, etc.) Software Publications & Printing Per Diem & Fees -Expense (i.e. Consultant, Lecturers, Interpreters, etc.) Per Diem & Fees –Reimb. (Travel for non employees, reimb. to non employees) Contracts (i.e. subcontracts) Stipends Equipment (Non-Inventory & Inventory)

5 Indirect Costs Indirect costs are expenses incurred by the University for its facilities and services. Indirect costs are not profit, but are real costs to the University to support research and sponsored activities. The institution, as a policy matter, has decided to cover these costs out of the instructional budget, using indirect cost funds. Examples of indirect costs incurred by the University include building maintenance and operation, utilities, libraries, computer services and other facilities, payroll, accounting, purchasing, research administration, departmental administration, personnel services, and general administration. The University attempts to recover all of these support costs in accordance with guidelines. Kennesaw State University allocates a significant portion of its operating budget and facilities to the support of research and development activities.

6 KSU’s Indirect Cost Rates The federal government actually establishes an indirect cost rate for KSU, which we are authorized to use when preparing our federal grant applications. KSU's indirect cost rate is 34 % of direct cost excluding capital expenditures (buildings, individual items of equipment, alterations and renovations) and that portion of each sub award in excess of $25,000. This is the maximum indirect cost we can charge. KSU’s current indirects Agreement was renewed July 2005 and is in effect until June 30, 2009. All fixed price contract grants will be required to support an 8% indirects/overhead fee. This overhead is calculated on the total budget.

7 Key Points to Remember When Writing Your Budget Personal Services Fringe benefits need to be included for anyone being paid under Personal Services except graduate research assistant. For temporary employees (i.e. student assistants and temporary staff) must at least budget FICA and FICA Med (7.65%). Fringe benefits for Faculty – 30% Academic Year, 20% Maymester and Summer If paying Faculty member an overload (extra compensation for Faculty):  Fringe benefits need to be calculated and budgeted for the overload amount.  Need to find out when to be paid. (Fall, Spring, Maymester or Summer (next FY)  If during the Summer, need to make sure that the Faculty understand if the grant ends June  30th, need to be paid during Maymester.  NOTE: If paid from Federal Award, cannot be paid an overload (Academic or Maymester/Summer) Faculty members are paid during the academic year 9 times….August-May During summer if being paid from an NSF grant the maximum a faculty member can be paid is 2/9 of their academic year salary…1month of pay = 1/9 of academic year salary, 2 months of pay = 2/9 of academic year salary During summer if being paid from other funds 1 month of pay = 10% of their academic year salary…2 months of pay = 20% of their academic year salary….3 months of pay = 30% of academic year salary Faculty Overload during summer….  Over 30%-33 1/3% will need memo from department head  Over 33 1/3 % will need memo from department head and overload form  NOTE: Faculty paid from Federal Award(s) cannot be paid overload. Staff cannot be paid overloads (extra compensation) Course releases for Faculty  How are course releases calculated: 1/8 of academic year salary = 1 course release  Remember to figure fringe benefits on course release

8 Key Points to Remember When Writing Your Budget Continued… Non Personal Services Travel:  KSU Employees Only  Travel should not include registration or memberships fees/dues  Travel for non KSU Employees should be budgeted under Per Diem and Reimbursable Expenses  Travel Stipends (a flat payment for estimated travel cost for non KSU Employees) to be budgeted as stipends. Consultants:  Non KSU Employees only  KSU Employees should be budgeted under Personal Services. KSU employees cannot be paid as consultants.  Budget narrative for consultants needs to include the person by name and detailed scope of work or detailed scope of work and qualifications of consultant required. Indirects:  Must be included on all grants and contracts.  Must be included in budget detail.

9 In Closing… The Office of Grants and Contracts (Pre-Award) assists faculty with identification of potential sponsors; offers technical proposal development; reviews proposals for compliance with agency, Regents and KSU policies. Additionally, the OSP facilitates the internal administrative review and approval of all contracts and grants. All contract and grant proposals must be routed thru the Pre-Award Office prior to submission to funding agency. The new award information will be forwarded to the Post Award Office of Grants and Contracts once Pre-Award receives the fully executed contract and all required documents are in place, The Post Award Office will then review the information for completeness, set up the account and coordinate a post award meeting with the Project Director and his/her support staff.


Download ppt "HOW TO WRITE A BUDGET…. The Importance of Your Budget Preparation of the budget is an important part of the proposal preparation process. Pre-Award and."

Similar presentations


Ads by Google