1. Office of Sponsored Programs All rights reserved GTRC Budgeting, Budget Justification, & Templates Jonathon Jeffries Grants & Contracts Accounting Candice Ferguson Office of Sponsored Programs

2. All rights reserved GTRC Budgets, Budget Template & Budget Justification Goals To give an overview of the guidelines and fundamentals of a proposal budget Discussions will include 2 CFR 200 Cost Accounting Standards (CAS) Direct Cost Indirect Cost Project Budgeting Cost Sharing

3. Office of Sponsored Programs All rights reserved GTRC Budgets, Budget Template & Budget Justification Cost Principles 2 CFR 200 Establishes principles for determining costs applicable to grants, contracts, and other agreements with non-federal entities. Determines what costs can be included in the F&A calculation Remember: addresses both direct and F&A costs as well as specific allowable costs Electronic Code of Federal Regulations http://www.ecfr.gov/

4. Office of Sponsored Programs All rights reserved GTRC Budgets, Budget Template & Budget Justification Cost Principles – Cont’d 2 CFR 200 It incorporates four Cost Accounting Standards (CAS) Consistency in estimating, accumulating and reporting cost Consistency in allocating cost Accounting for unallowable cost Consistency in periods The intent of CAS Standardize university costing practices Standardize requirements for recipients Preclude a perceived over charge to the government Prevent charging unallowable costs to the federal award

5. Office of Sponsored Programs All rights reserved GTRC Budgets, Budget Template & Budget Justification The Budget Where to begin? Read the Program Announcement Write the research proposal Create the budget and budget justification Re-read the Program Announcement Make any changes to finalize the budget Initial Decisions How much should I request? What costs should I include? Function of the Budget?

6. Office of Sponsored Programs All rights reserved GTRC Budgets, Budget Template & Budget Justification Budget & Budget Justification Budget A competitive budget is one that will provide the sponsor with a complete financial picture of the proposed project. Budgets are reviewed by the sponsor to verify if the costs are reasonable and necessary to carry out the proposed project, and if it conforms to the sponsor's instructions. Budget Justification Provides further explanation of the direct costs involved with the project.

7. Office of Sponsored Programs All rights reserved GTRC Budgets, Budget Template & Budget Justification FY16 Provisional Rates Fiscal year: Begins on July 1st and ends on June 30th Fringe Benefits 30.0% Yes - Employees (includes Post Docs) No- Grad & Undergrad Students Limited Benefits (50-74% time) 21.3% Partial Benefits 1.5% Tech Temps Others Graduate Student Health Insurance 3.0%

8. Office of Sponsored Programs All rights reserved GTRC Budgets, Budget Template & Budget Justification Mock Budget Salaries (Faculty) $10,000 1 GRA $20,000 Fringe Benefits (FB) $3,600 Equipment (Radar) $10,000 Subaward $52,000 Tuition Remission $17,868 M&S $5,000 ___________________________ Total Direct (TD) Costs: $118,468 Do the proposed cost directly assist in the performance of the project during the award period? Will the service or materials comply with the sponsor ’ s rules for allowable expense? Do the proposed cost exceed any budget category limitations Do the proposed cost directly assist in the performance of the project during the award period? Will the service or materials comply with the sponsor ’ s rules for allowable expense? Do the proposed cost exceed any budget category limitations

9. Office of Sponsored Programs All rights reserved GTRC Budgets, Budget Template & Budget Justification Direct Costs Direct costs are those that can be specifically identified with a single sponsored project. Direct costs should be reflected by major budget categories with an attached narrative detailing how the costs were calculated. Salaries/wages Fringe benefits

10. Office of Sponsored Programs All rights reserved GTRC Budgets, Budget Template & Budget Justification Direct Costs Direct costs are those that can be specifically identified with a single sponsored project. Direct costs should be reflected by major budget categories with an attached narrative detailing how the costs were calculated. Equipment Travel Participant support costs.

11. Office of Sponsored Programs All rights reserved GTRC Budgets, Budget Template & Budget Justification Direct Costs Direct costs are those that can be specifically identified with a single sponsored project. Direct costs should be reflected by major budget categories with an attached narrative detailing how the costs were calculated. Contracted services Supplies Communication Awards (tuition remission)

12. Office of Sponsored Programs All rights reserved GTRC Budgets, Budget Template & Budget Justification F&A Facilities & Administrative (“Indirect Costs”) Costs incurred for common or joint objectives and, therefore, cannot be readily identified with a particular project or program. e.g., Utilities, Plant Maintenance

13. Office of Sponsored Programs All rights reserved GTRC Budgets, Budget Template & Budget Justification F&A Facilities: building depreciation equipment depreciation maintenance & repair utilities Administrative: Salaries, supplies, telecomm, etc. of admin depts : Purchasing Dept Payroll Dept Controller’s Office Deans’ Offices President’s Office

14. Office of Sponsored Programs All rights reserved GTRC Budgets, Budget Template & Budget Justification F&A Costs are Real Reimbursement of expenses from the past to cover future costs. Annual F&A rate proposal for negotiation with ONR Some sponsors do not pay the fully negotiated rate (e.g., Ed, NIH training grants) Negotiated rates may not cover our real costs 2 CFR 200 limits the recovery of certain costs (i.e., administrative capped @ 26%)

15. Office of Sponsored Programs All rights reserved GTRC Budgets, Budget Template & Budget Justification A Brief History of Indirect Cost Policy 1942 Green Book Navy Department 1947 Blue Book Navy Department (ONR) 1958 Budget Circular A-21Bureau of the Budget 1970s Fed Mgmt Dir 73-8 General Services Agency 1979Circular A-21Back to OMB 1990s #!%?*#&!!!! 20142 CFR 200Circular Reform

16. Office of Sponsored Programs All rights reserved GTRC Budgets, Budget Template & Budget Justification F&A Cost Calculation Facilities & Administrative Expense ----------------------------------------- MTDC Base F&A Rate

17. Office of Sponsored Programs All rights reserved GTRC Budgets, Budget Template & Budget Justification MTDC Modified Total Direct Cost F&A Rates are based on Modified Total Direct Costs which is the total direct cost (TDC) less equipment over $5,000, subcontract expenses in excess of $25,000, student tuition remission, participant support costs, and rental of off-campus space. i.e., Total Direct Cost minus Equipment Purchases > $ 5,000 Sub-Contract expenses > $ 25,000 Tuition Remission Participant Support Costs Rental of Off-Campus space = MTDC

18. Office of Sponsored Programs All rights reserved GTRC Budgets, Budget Template & Budget Justification Building and Equipment Depreciation Operations & Maintenance General Administration Department Administration Sponsored Project Administration Library Student Services Interest Allocation Base Instruction & Departmental Research Organized Research Other Sponsored Activities MTDC Instruction & Dept. Research MTDC Organized Research MTDC Other Sponsored Activities F&A Cost Allocated To Distribution Base F&A Cost Rate % % % Other Institutional Actives Space MTDC Space F&A Cost Pools MTDC

19. Office of Sponsored Programs All rights reserved GTRC Budgets, Budget Template & Budget Justification FY16 Facilities & Administrative Rates Research Capped 57.4% Off Campus 26.0% Research Uncapped (DoD Contracts only ) 61.4% Off Campus 30.0% Other Sponsored 34.82% Instruction 53.92% Industrial (Non-Government) 61.8%

20. Office of Sponsored Programs All rights reserved GTRC Budgets, Budget Template & Budget Justification FY17 Facilities & Administrative Rates Research Capped 57.8% Off Campus 26.0% Research Uncapped (DoD Contracts only ) 62.0% Off Campus 30.2% Other Sponsored 34.82% Instruction 53.92% Industrial (Non-Government) 63.8%

21. Office of Sponsored Programs All rights reserved GTRC Budgets, Budget Template & Budget Justification Mock Budget Salaries (Faculty) $10,000 1 GRA $20,000 Fringe Benefits (FB) $3,500 Equipment (Radar) $10,000 Subaward $52,000 Tuition Remission $17,868 M&S $5,000 ______________________________ Total Direct (TD)Costs: $118,468 1

22. Office of Sponsored Programs All rights reserved GTRC Budgets, Budget Template & Budget Justification Modified Total Direct Cost Items NOT included in MTDC Equipment Tuition Remission Participant Support Costs Rental of Off-Campus Space

23. Office of Sponsored Programs All rights reserved GTRC Budgets, Budget Template & Budget Justification SubAwards F&A charged on 1 st $25,000 I.E., $50,000 subaward still only $25,000 GTRI subawards = Interdivisional Transfers Budget Justification with GTRI include a few lines explaining what GTRI is, why they are using them to do some of the research effort and include a short summary budget with only major category lines (Personnel, M&S, travel, consultant, tuition remission, overhead-combined)

24. Office of Sponsored Programs All rights reserved GTRC Budgets, Budget Template & Budget Justification Calculating MTDC Total Direct (TD)Costs: $118,468 (Salaries, FB, Travel, M&S etc.) Equipment Costs -$10,000 SubAward -$27,000 ($52,000 - $25,000) Tuition Remission -$17,868 ------------------------------------------------ Modified Total Direct Costs $63,600 1 2

25. Office of Sponsored Programs All rights reserved GTRC Budgets, Budget Template & Budget Justification F&A (Indirect) Cost Calculation: $63,600 (MTDC Base)* 55.9% = $35,552 Project Total (Direct & F&A) $118,468 (TD) + 35,552 (F&A) = $154,020 Calculating F&A Costs 1 2 3 4 3

26. Office of Sponsored Programs All rights reserved GTRC Budgets, Budget Template & Budget Justification $118,468 (TD) + 35,552 (F&A) = $154,020 Project Total

27. Office of Sponsored Programs All rights reserved GTRC Budgets, Budget Template & Budget Justification GTRI GTRI recovers costs under the Federal Acquisition Regulations. FAR 31.2 – Contracts with Commercial Organizations Reg. Cost Categories: Lab Overhead General & Administration Rates Cost Of Money(2) Additional fees can be added Contact your “ SPA ” rep.

28. Office of Sponsored Programs All rights reserved GTRC Budgets, Budget Template & Budget Justification Cost Sharing Voluntary committed cost share is prohibited Cost Sharing is the difference between the effort expended on a project and the effort that is paid by a sponsor. Cost sharing must be written down (& authorized) by the department and the VP for Research. Cost sharing dollars can only be used once (can ’ t count the same effort on two grants!) and must be verifiable. Cost sharing cannot come from federal funds.

29. Office of Sponsored Programs All rights reserved GTRC Budgets, Budget Template & Budget Justification Types of Cost Sharing Cash Salaries & Fringes, Travel, Equipment, etc. VP Research, Dean, Chair, External Partners Non-cash (In-Kind) Volunteers, Materials, Facilities, etc.

30. Office of Sponsored Programs All rights reserved GTRC Budgets, Budget Template & Budget Justification Audits: Documentation is Key Defend the Debit! Why did you charge the award this expense? May be 4+ years before the award is audited. Document the file!

31. Office of Sponsored Programs All rights reserved GTRC Budgets, Budget Template & Budget Justification How Departments Influence Cost Recovery Correct coding of expenditures Correct assignment of expenditures Treatment of sponsored direct costs Treatment of “normally indirect costs” Identification of unallowable costs Understanding CAS Know the requirements associated with Cost Sharing

32. Office of Sponsored Programs All rights reserved GTRC Agency Specifics: NSF Senior/Key Personnel –If no person months and no salary requested, person cannot be listed in Section A of budget –Consistency with NSF’s Cost Sharing Policy –GT personnel listed in Section A of NSF proposed budget should adhere to the GT minimum effort policy –If no person months and no salary requested, remove from Section A. Their names will remain on Cover Sheet –Role should be described in Facilities, Equipment, and Other Resources section of the proposal

33. Office of Sponsored Programs All rights reserved GTRC Agency Specifics: NSF Facilities, Equipment, and Other Resources –New format in FastLane –Consistency with NSF’s Cost Sharing Policy –No reference to cost, date of acquisition, and whether the resources are currently available or would be provided upon receipt of the award –If no resources to describe, then a statement to that effect should be included in this section of the proposal and uploaded to FastLane

34. Office of Sponsored Programs All rights reserved GTRC Budgets, Budget Template & Budget Justification NIH Modular Grants Modular Grants Less then or = $250,000 per year in direct costs Individual Awards (R01, R03, R15, R21, R41, and R43) Proposals can be rejected without review if format not followed Key Features Direct costs will be in $25,000 modules Subawards are rounded to the nearest $1,000 Utilize salary cap ($185,100) Effective January 10, 2016 Typically modular grants request the same number of modules in each year. [Can be increased for one year if purchasing equipment]

35. Office of Sponsored Programs All rights reserved GTRC Budgets, Budget Template & Budget Justification National Institutes of Health NIH Information Georgia Tech still requires an internal budget! The university is required to adhere to many rules and regulations. Policy: Subawards F&A are not included in the capped amount (i.e., $250,000 does not include the subs F&A costs – separately accounted form) > $500,000 Need prior approval to send proposal Just In Time (JIT) NIH requires an itemization of all key personnel ’ s IRB training.

36. Office of Sponsored Programs All rights reserved GTRC Budgets, Budget Template & Budget Justification Mock Budget Remember to stick to your budget! (Grad Student vs. Post Doc!)

37. Office of Sponsored Programs All rights reserved GTRC Budgets, Budget Template & Budget Justification Review Fundamentals of a proposal budget Discussions will include 2 CFR 200 Cost Accounting Standards (CAS) Direct Cost Indirect Cost Project Budgeting Cost sharing

38. Office of Sponsored Programs All rights reserved GTRC Budgets, Budget Template & Budget Justification Any final questions? Thank you for attending the class. Remember we are here to help. Please ask questions!