1. U N I V E R S I T Y OF F L O R I DA Building Realistic Budgets Judy Harris, Proposal Processing Division of Sponsored Research

2. U N I V E R S I T Y OF F L O R I DA Course Objectives Participants will be able to construct an effective budget using their knowledge of federal, state, and university requirements. Participants will become familiar with the University’s criteria for cost sharing. Participants will be able to use the web to maintain current regarding any sponsor changes that impact budget development.

3. U N I V E R S I T Y OF F L O R I DA Additional Course Objectives Become familiar with the steps that must be taken before you begin preparing a proposal budget. Be able to develop a proposal budget. Become familiar with the major cost categories.

4. U N I V E R S I T Y OF F L O R I DA What is a Budget?  An estimate of costs required to perform a statement of work with a specific start and end date.

5. U N I V E R S I T Y OF F L O R I DA Proposal Budgets  Made up of costs that can be explained or verified and are reality-based  No “Educated Guesses” or “Off The Wall” estimates  May require several drafts before it is finalized  May vary in structure and complexity

6. U N I V E R S I T Y OF F L O R I DA Why Is a Budget Important?  It is the second most scrutinized part of the proposal  A clear concise budget supported by a strong budget justification can increase the chances of a proposal being funded  The University is held to pricing information provided in proposal  The proposal budget can become the actual award budget

7. U N I V E R S I T Y OF F L O R I DA Budgets are the “reality check” for the project.

8. U N I V E R S I T Y OF F L O R I DA Pre-Preparation Steps  Locate and review agency guidelines  Identify budget ceiling and any budgetary limitations or restrictions  Identify the start date and/or period of performance (If none, establish one)  Identify differences between general agency and specific program announcement budget guidelines  Identify limitations on overhead (F&A costs) or administrative fees  Identify all special forms or formats, schedules, required cost breakdowns  Identify any other special conditions

9. U N I V E R S I T Y OF F L O R I DA Read the guidelines for budget preparation carefully…they’ll become the “rules” when the project is funded

10. U N I V E R S I T Y OF F L O R I DA Basic Proposal Budget Components 1.Direct Costs 2.Facilities and Administrative Costs, or F&A (a.k.a. Indirect Costs)

11. U N I V E R S I T Y OF F L O R I DA Direct Costs  Expenses identified specifically with a particular sponsored project, instructional activity, or other institutional activity  Must be allowable, allocable, reasonable & necessary for the program, given consistent treatment and conform to sponsor limitations

12. U N I V E R S I T Y OF F L O R I DA Facilities & Administrative Costs  Costs incurred for common or joint objectives which cannot be identified to a specific direct cost activity  Facilities and Utilities  Administrative and Clerical Salaries  DSR/Purchasing/HR/Controller  Postage  Local Telephone  Office Supplies  Data Processing/Computer Supplies  General Purpose Software  Memberships  Subscriptions

13. U N I V E R S I T Y OF F L O R I DA Major Budget Categories  Personnel Costs  Fringe Benefits  Travel  Research Supplies and Materials  Participant Support  Consultants  Tuition  Equipment  Subcontracts  Facilities and Administrative Costs (F&A)  Other Direct Costs

14. U N I V E R S I T Y OF F L O R I DA  Personnel Categories:  Academic Personnel (includes Faculty & Post Docs)  TEAMS/USPS  OPS (includes Graduate Research Assistants, Student Assistants & Other Temporary Employees) Personnel Costs

15. U N I V E R S I T Y OF F L O R I DA Domestic Travel  Airfare  Lodging  Car Rental  Per Diem  Mileage  Parking Fees  Registration Fees  Local Transportation (Taxi, Metro, Shuttle)  Includes travel to Canada

16. U N I V E R S I T Y OF F L O R I DA Foreign Travel (Generally subject to prior approval from sponsor).  Airfare  Apartment Rental  Car Rental  Local Transportation  Lodging  Per Diem (Federal travel subject to GSA Schedule)  Registration Fees  Includes travel to Mexico

17. U N I V E R S I T Y OF F L O R I DA  Should include detailed information in budget narrative: Budgeting Travel  Number of Travelers  Destination  Travel Fares  Length of Trip  Per Diem  Registration Fees/ Conference Costs

18. U N I V E R S I T Y OF F L O R I DA Equipment  Costs more than $1,000  Has a useful life of one year or more  Some sponsors may require supporting documentation/quote at proposal submission

19. U N I V E R S I T Y OF F L O R I DA Tuition  All new proposals, including resubmissions, competing renewals and supplements, that include salary/stipend for graduate assistants and where tuition is an allowable cost, must budget appropriate amounts for tuition.

20. U N I V E R S I T Y OF F L O R I DA Consultants  Non-UF Employees  Not a subcontractor – no substantial programmatic involvement  Normal daily rate  Supported by letter/quote from Consultant

21. U N I V E R S I T Y OF F L O R I DA Subcontractors  Can be:  Other Institutions  Commercial Companies  Subcontractor has substantive programmatic involvement and may be co-author on resulting publications

22. U N I V E R S I T Y OF F L O R I DA  Before submitting the proposal obtain:  Letter of Commitment from institutional authorized official.  Written Quotes/Budgets  Statement of work Subcontractors

23. U N I V E R S I T Y OF F L O R I DA Participant Support  Payments to individuals required on the project with no obligation to provide work or services  Typical costs − Stipends − Travel-related costs

24. U N I V E R S I T Y OF F L O R I DA  Student Support for Scholarships/Fellowships  Tuition, fees, stipends  Not providing ANY services Other Direct Costs

25. U N I V E R S I T Y OF F L O R I DA  Facilities  Rental Space  Renovation Other Direct Costs

26. U N I V E R S I T Y OF F L O R I DA Facilities & Administrative Costs (Indirect Costs)  Applied to ALL sponsored projects unless sponsor policy/program limits indirect recovery  Following sponsor types have specified F&A rates: State of Florida:25% Water Management Districts 25% TDC Other Florida Governmental Entities 25% TDC Clinical Trials25% TDC

27. U N I V E R S I T Y OF F L O R I DA Function/Purpose  Research  Instruction  Other  AREC Location of Project  On-Campus  Off-Campus University rates are based on the following factors: Facilities & Administrative Costs (Indirect Costs)

28. U N I V E R S I T Y OF F L O R I DA Facilities & Administrative Costs (Indirect Costs) FunctionLocation On CampusOff Campus Organized Research AREC Other Sponsored Acts 46.5% 46.4% 33.6% 26.0% 25.0% 26.0% Instruction50.0%26.0% Department of Defense 48.5% 28.0%

29. U N I V E R S I T Y OF F L O R I DA Calculating F&A Identify Exclusions Equipment Capital Expenditures (includes renovations) Patient care charges Tuition remission Rental costs of off-site facilities Scholarships Fellowships Subcontract amounts in excess of first $25,000 Modified Total Direct Cost Base (MTDC) = Total Direct Costs minus items not charged with F&A. Total Direct Cost Base (TDC) = Total Direct Costs x F&A rate without any exclusions.

30. U N I V E R S I T Y OF F L O R I DA Total Budget Total Direct Costs + F&A Costs = Total Budget

31. U N I V E R S I T Y OF F L O R I DA Cost Sharing in Budgets  Identifies necessary project costs not requested from sponsor  Should be a sponsor requirement  Should be referenced in budget as directed by sponsor  Shows UF’s/Third Party commitment to Project  Should follow UF Cost Sharing Policy

32. U N I V E R S I T Y OF F L O R I DA Charging Costs Directly or Indirectly to Sponsored Projects  In order to comply with (OMB) Circular A-21 and the Cost Accounting Standards Board’s cost accounting standards, UF’s policy for charging costs to federally sponsored projects is:  Clerical and administrative salaries will be charged indirectly unless direct charging can be justified in accordance with OMB Circular A-21.  Postage will generally be charged indirectly.  Basic telephone charges will generally be charged indirectly, including cell phones.  Lab supplies will generally be charged directly.  Office supplies will generally be charged indirectly.  General purpose software will generally be charged indirectly.  Technical software will generally be charged directly.  Subscriptions will generally be charged indirectly.  Institutional and individual memberships will generally be charged indirectly.  Repair and maintenance charges for equipment purchased on the award will generally be charged directly.  Other related costs (photocopies, travel, technical and scientific equipment, animal care and other services provided by specialized service facilities) will generally be charged directly.

33. U N I V E R S I T Y OF F L O R I DA Arithmetic – Double Check Budget!  Fringe Benefit Rates  GRA Tuition  F&A Rate  MTDC Exclusions  On & Off Campus  Budget Total  Correct?  Within Sponsor Limits?  For All Years?

34. U N I V E R S I T Y OF F L O R I DA Review and Finalize Budget  Review draft  ceiling price exceeded?  Revise  How much to cut? add?  Cut logical places  Should the technical proposal be revised due to budget changes?  Are Cost Share funds required?  Have cost-share commitments been secured?  Proposed effort documented?  Equipment match documented?

35. U N I V E R S I T Y OF F L O R I DA Final Budget Presentation  Prepare Sponsor budget forms  Accurate  Neat  Legible

36. U N I V E R S I T Y OF F L O R I DA  Prepare justification/budget narrative  Should be arranged in order of Sponsor’s budget form  Clear & Concise  Explanation of request Finalizing Budget