Budget Development “SPEAR” Workshop

Objectives Identify types of costs – both direct and indirect Calculate salaries and fringe benefits Identify the requirements for graduate students Identify the requirements for a collaborator Identify and calculate the indirect cost rates

Types of Costs Direct Costs (2 CFR 200.413) Identified specifically with a particular project Indirect Costs (2 CFR 200.414) Incurred for common objectives and can’t be identified specifically with a particular project aka “F&A” (Facilities and Administration) or “overhead” Costs incurred for the same purpose in like circumstances must be treated consistently as either direct or indirect (F&A) costs. Costs must be allowable according to the Cost Principles (2 CFR 200 Subpart E §200.4XX)

2 CFR 200.403 - Allowability of costs Costs must meet the following Be necessary and reasonable for the performance of the award Conform to any limitations or exclusions Be consistent with policies and procedures that apply uniformly to both federally-financed and other activities of the non-Federal entity Be accorded consistent treatment Be determined in accordance with generally accepted accounting principles Not be included as a cost or used to meet cost sharing or matching Be adequately documented

Salaries and Fringe Benefits Salary & Fringe Generally based on FTE, percent effort, person-months, etc. Do not use hourly rates, FSU does not maintain timesheets for salaried employees’ project activities 3% yearly cost of living increase allowed 9 mo. v. 12 mo. appointment and health insurance for summer appointment Refer to Facts Sheet for current fringe rates FTE=full time equivalent

Graduate Student Requirements Salary (up to .5 FTE – 20 hours/week) Fringe Benefits Workers Comp – 1.3 % Health Insurance Subsidy Tuition – FSU requirement for 9 hrs/semester

Other Direct Costs Equipment Travel >$5,000 with a useful life of ≥ 1 year Travel In accordance with FSU travel policies and FL Statute 112.061 Requires detailed justification Participant Support Costs (§200.75) Stipends Travel, etc. Participant support costs means direct costs for items such as stipends or subsistence allowances, travel allowances, and registration fees paid to or on behalf of participants or trainees (but not employees) in connection with conferences, or training projects. Not to be confused with participant incentives – items that are given to incentivize participants for research studies

Other Direct Costs OTHER Direct Costs Tuition Materials and Supplies – includes computers, laptops Publications Consultants Subawards/consortia Other (e.g. long distance phone, dedicated phone line, shipping, printing)

Collaborators Types of Collaborators Subrecipient Contractor Consultant Subrecipient v. contractor determination (§200.330) Subrecipient: >$25,000 excluded from F&A base Contractor: full amount subject to F&A Subrecipients must provide: Scope of work, budget and justification F&A Rate Agreement Letter of Commitment from Sponsored Project Office 200.330: a pass-through entity must make case-by-case determinations whether each agreement it makes for the disbursement of Federal program funds casts the party receiving the funds in the role of a subrecipient or a contractor. Certificate Series Workshop on Subawards

Indirect Costs Indirect Cost Rates: Two IDC bases: Based on sponsor, project location, and project purpose Two IDC bases: Modified Total Direct Costs (MTDC) Federal and federal flow-through Total Direct Costs (TDC) State of Florida

Indirect Cost Rates Variables: Sponsor: Federal, State, Local Government, Water Management District, etc. Purpose: Research, Other Sponsored Activity, Instruction Project Location: On-Campus, Off-Campus, NHMFL Sponsor IDC policy See Facts Sheet for current F&A agreement and rates

Exclusions from IDC Base MTDC rate excludes: Equipment Tuition Rent (Off-site facilities) Participant Support Costs Amount of subcontracts >$25,000 Scholarships and Fellowships TDC rate excludes: Tuition; per FSU policy

Indirect Cost Calculation MTDC (NSF) TDC (FDOT) On-campus research 52% On-campus research 10% Salary (plus FBs) 50,000 Equipment* 10,000 Supplies 3,000 Publications 2,000 Tuition* 11,004 TOTAL DIRECT COSTS 76,004 Indirect Cost BASE $55,000 (MTDC) $65,000 (TDC) Indirect costs (base x rate%) $28,600 (base x .52) $ 6,500 (base x .10) TOTAL REQUESTED $104,604 $82,504 *Items in black are excluded from the indirect cost base Using chart, explain the difference in real dollars to FSU.

Questions?