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

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.

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

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 proposal budget can become the actual award budget

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)

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

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

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  Patient Care  Consultants  Tuition  Equipment  Subcontracts  Facilities and Administrative Costs (F&A)  Other Direct Costs

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

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

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

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

U N I V E R S I T Y OF F L O R I DA Equipment  Costs more than $1,000 (State of FL, not Federal definition)  Has a useful life of one year or more  Some sponsors may require supporting documentation/quote at proposal submission

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.

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

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

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

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 (Generally workshops)  Typical costs − Stipends − Travel-related costs

U N I V E R S I T Y OF F L O R I DA  Tuition, fees, stipends Other Direct Costs

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

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:10%TDC/25%TDC Water Management Districts 25% TDC Other Florida Governmental Entities 25% TDC Clinical Trials25% TDC

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

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 (contracts) 48.5% 28.0%

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.

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

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

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.

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

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?

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

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