“Grants Boot Camp” Workshop Series January 9, 2014 Creighton University Sponsored Programs Administration 2500 California Plaza, Omaha, NE  Phone:

What is a Budget? A numerical translation of the project’s scope of work

Budget Cost Categories  Direct Costs  Indirect Costs (aka: Facilities and Administrative (F&A) Costs or Overhead)  Cost Sharing or Matching Costs

Allowable vs Unallowable Costs All costs directly charged to a project must be allowable. According to the Cost Principles for Educational Institutions (OMB A-21) a cost can be determined allowable if it meets the following three criteria: 1. Allocable 2. Necessary/Reasonable 3. Consistently Treated

Allowable vs Unallowable Costs Additional allowability criteria is determined by the Funding Opportunity Announcement/Program Announcement  Limits on the type of expenses  Spending caps on certain expenses  Overall funding limits  Cost sharing or matching requirements

Budget Justification A detailed written description of each element of your budget Organize justification in the same order as the detailed budget Provide sufficient explanation to justify why the expenditure item is needed to accomplish the proposed research

Personnel Costs Only Creighton employees should be listed in the Personnel section  Name  Role in project  Effort – some agencies require effort to be listed as calendar months, some as percentages (Example: 50% effort = 6.0 cal. mos.)  Base Salary  Salary Requested is calculated based on the base salary times effort  Some sponsors have a specified salary limitation (i.e. NIH=$179,700)  Calculate fringe benefits using appropriate fringe benefit rate based on the type of sponsor to which you are submitting  Personnel justification should list each individual separately and describe their role on the project

Consultant Costs  Consultants may provide advice, but should not make decisions about the direction of the research.  Consultants are individuals or entities that provide similar services within their normal business operations to many different customers.  Consultant justification should include: o Description of service provided by consultant o Consultant’s hourly rate o Number of hours estimated o Travel costs

Equipment  Equipment is defined as a single item or a multiple item “system” with a useful life of more than one year and a unit or “system” cost of at least $5,000.  Equipment costs must be well justified.  General purpose equipment generally is not allowed.  Excluded from the calculation of indirect costs.

Materials & Supplies  Materials and supplies are the disposable resources needed to carry out the project.  Small equipment items costing less than $5,000 per unit must be included and justified under materials and supplies.  Include sufficient justification of the costs in each category to support the need for the project.

Travel Costs  Whenever possible, list “who, what, where, when, and why” when justifying travel costs.  Airfare must be coach class, and if paid by a federal grant, booked on a US carrier whenever possible.  Mileage and per diem rates can be found on the Accounting Services website: sereimbursement/index.php

Participant/Trainee Support Costs  This budget category is only for training grants.  Includes the cost of stipends, transportation, per diem, and any other costs associated with participants or trainees.  Participant/Trainee Support costs are excluded from the calculation of indirect costs.

Sample Participant/Trainee Support Justification Participant/Trainee Support Twelve high school teachers will be convened in Omaha for three days each summer to be trained in overcoming pupil science misconceptions. Each teacher will receive a $200 stipend. Travel is estimated at $300 per teacher. The summer per diem is currently $250 per person. Conference costs are estimated at $500 for handouts and other materials.

Other Expenses  Generally includes services rather than items – miscellaneous project specific costs such as recharge center/core facility fees, express mail charges, animal care costs, tuition costs, payments to human subjects involved in the research, publication costs, and other costs that do not fit into any of the other sponsor-defined categories.  Some other expense items are excluded from the indirect cost calculation (i.e. tuition costs).

Consortium/Contractual Costs  A consortium/contractual agreement transfers a portion of the scope of work from Creighton to another organization.  Obtain the following documents from each consortium institution: o Statement of work o Detailed budget o Budget Justification o Negotiated fringe benefit and indirect rate agreement o Intent to form a consortium/contractual agreement with an authorized official signature  All consortium/contractual costs >$25,000 are excluded from the indirect cost calculation.

Indirect Costs  Real costs to the University incurred for common or joint objectives and, therefore, cannot be identified readily and specifically with a particular project. Indirect costs are also known as facilities and administrative costs or overhead costs. Examples of indirect costs include: o Building and equipment depreciation, utilities, administrative and clerical salaries, general office supplies, other support services such as the library, human resources, payroll, accounting services, purchasing, sponsored programs administration, etc.  Indirect costs are calculated using a federally negotiated rate (45.5%) x modified total direct costs (MTDC). o MTDC includes Total Direct Costs minus tuition, scholarships, consortium/contractual amounts over $25,000, participant/trainee support costs, and each equipment item $5,000 or more.  Indirect cost rate may be limited by the Sponsor.

Cost Share or Matching Funds  Costs of the project that are not paid by the sponsor. These costs are paid by the University or another third party. o Mandatory o Voluntary  All cost share must be approved by the appropriate dean before submission  Creighton does not encourage voluntary cost share!

Summary You have three opportunities to “sell” your project to the reviewers and the sponsor: 1. Project Narrative 2. Project Budget 3. Budget Justification Make sure they are consistent and tell the same story!

Budget Development Resources Available  Sponsored Programs Administration Staff o Beth Herr or  Budget Development Resources on the Sponsored Programs Administration Website o  Charging of Direct and Facilities and Administrative (Indirect) Costs located on the Accounting Services Website o eduresmanual/costaccounting/capl03/index.php eduresmanual/costaccounting/capl03/index.php