Proposal Budget Building Part II of II CALS Research Division Julene Gaspard Meredith Luschen Becky Bound September 16, 2008 Website:

Overview - Part II  Spreadsheets, Tools  Direct Costs  Indirect Costs – Rates and How to Calculate  Cost Share/Matching

Before You Get Started, Think About:  Rates: x.html#fb  Spreadsheets RSP website: tools.html tools.html Your own Cayuse (NIH Modular Budgets)

Direct Costs: The Rules We Live By  OMB Circular A-21: Cost Principles for Educational Institutions Defines Direct and Indirect Costs Necesssary, Reasonable, Allocable, Allowable,and Consistently Treated

Direct Costs, What Can You Budget?  Depends on the RFP  Anything that “…can be identified specifically with a particular sponsored project…or that can be directly assigned to such activities relatively easily with a high degree of accuracy.”

Direct Costs, What Can You Budget?  Personnel Based on effort $$ based on annual salary – the UW does not budget or report on the basis of daily or hourly rates  Fringe benefits  Tuition Remission  Supplies/Materials Must be directly required to carry out the proposed objectives

Direct Costs, What Can You Budget?  Publications  Equipment Permanent, $5,000 threshold  Travel  Subcontracts  Any other allowable and allocable expense directly related to the project

Direct Costs: What Can’t You Budget?  Office Supplies  Clerical Salaries  Desktop Computers, Laptops  Memberships  Meals and Entertainment  Anything incurred for “…common or joint objectives…cannot be identified readily and specifically with a particular sponsored project…” (A-21, E.1)

Indirect Costs: What Are They?  Also called Facilities and Administrative costs (sometimes called overhead)  Facilities and Administrative (F & A) costs are "those [costs] that are incurred for common or joint objectives and therefore cannot be identified readily and specifically with a particular sponsored project, an instructional activity, or any other institutional activity." OMB Circular A-21 Section E.1  Negotiated by the University with the Federal Government

Indirect Costs: May Be Calculated Based On:  Modified Total Direct Costs Base excludes Equipment, Tuition Remission, Subcontracts>$25k, Patient Care  Total Direct Costs Base = Direct Costs  Salaries and Wages We don’t use this  Other specified in the RFP

Budget Narrative  Justification of the budgeted expenses  Expenses must be allowable  Show as much detail as possible % of effort for each person (what you list here is a commitment!) % fringe for each person Travel information including where, how, length and how many people Specific supplies  If you’re not requesting funding for it, don’t talk about it

Cost Share Matching Commitments  Not Required When a matching commitment is not required we will not provide one. Why? Facilities Costs + Admin Costs ———————————— = F& A Rate Organized Research Base (matching funds included in this Org. Res. Base)

Cost Share Matching Commitments  Required RFP specifically and clearly states requirement There is clear evidence that proposals that proposal scoring is based on commitments

Cost Share Matching Commitments  If required, how do we do it? UW Personnel  % of their effort  Fringe benefits UW unrestricted funds (gifts, startup etc.) Indirect costs on proposed match Un-recovered indirect costs

Cost Share Matching Commitments  Third Party match commitments Try to avoid If necessary….  Get a signed letter of commitment by organization President, CEO or someone else in a position to commit facilities and resources. Letter must reference dollar amount commited.  Guarantee the commitment will be met in the same time period as the grant, tracked, reported and certified as accurate  If third party match does not come through, Department is responsible for this commitment

Questions?? CALS Research Division Contacts Becky Bound Meredith Luschen Julene Gaspard