1. Building A Budget Jenn Garye, Office of the VP for Research
Trey Bauer, Sponsored Research Administration JG

2. Objectives Understanding the concept of building a budget
Identify types of costs – direct & indirect
Calculating salaries & fringe benefit rates
Calculating indirect costs
Budget Exercises JG

3. The Concept of Building a Budget
WHO? PI
Co-PIs
Post Docs
Graduate Students
Subawards
WHAT?
Supplies
Auxiliary services
Publication Costs
Equipment JG

4. The Concept of Building a Budget
WHERE?
Travel to conferences to present research
Travel to field location to complete research
Work performed on-campus or off-campus
WHEN?
How long does the project period need to be?
WHY?
Justification for the costs JG

5. Direct Costs vs. Indirect Costs
Items that can be specifically identified for a particular project
Reasonable, allowable & allocable
Examples: Salaries, Supplies, Travel, Publication Costs
Indirect Costs
Also known as “Research Operating Costs” or “F&A Costs”
They can’t be identified with a particular project, but they are necessary to conduct research
Examples: Administrative Support, Office Supplies, Telecom, Utilities TB

6. Salaries & Fringe Benefits
Generally based on FTE, percent effort, person months, etc.
To calculate percent effort – Months on Project / Appointment Months = % Effort
2 months on project / 12 month appointment = 16.7% effort (Calendar Year)
2 months on project / 9 month appointment = 22.2% effort (Academic Year)
1 month on project / 3 month summer term = 33.3% effort (Summer Months)
Do not use hourly rates; FSU does not maintain timesheets for salaried employees
3% yearly cost of living increase is allowed
9 mo. vs. 12 mo. Appointment and health insurance
Refer to the Facts Sheet for current fringe rates TB

7. Graduate Students Considered salary employees Fringe Benefits Tuition
Allowed up to .50 FTE or 20 hours/week per the GAU
Minimum wage is $15.38/hour or $16, per year
Fringe Benefits
OPS Students Rate
Health Insurance Subsidy
Tuition
FSU requirement for 9/hours per semester
Proportionate to appointment
1% escalation per year TB

8. Other Direct Costs Equipment Travel
>$5,000 with a useful life of ≥ 1 year
Travel
Must be in accordance with FSU travel policies
Differentiate between Domestic & Foreign Travel
Needs detailed justification
Participant Support Costs vs. Participant Incentives
Support costs are stipends, allowances or fees paid to or on behalf of a participant or trainee, not an employee
Incentives are items (gift cards, etc.) or cash paid to an individual to participate in a study, such as completing a survey, etc. TB

9. Other Direct Costs Tuition
Materials & Supplies – includes computers or equipment <$5,000
Publications
Consultants
Subawards
Other items specifically needed for your project TB

10. Indirect Costs Federally negotiated rate
Based on the sponsor, project location, and project purpose
See the Facts Sheet for the current F&A rates
Two Bases
Modified Total Direct Costs (MTDC)
Federal & Federal Flow-through
Total Direct Costs (TDC)
State of Florida JG

11. Exclusions from IDC Base
MTDC rate excludes:
Equipment
Tuition
Rent (off-site facilities)
Participant Support Costs (not Participant Incentives)
Amount of Subcontracts >$25,000
Scholarships & Fellowships
TDC rate excludes: JG

12. Cost Share & Funding Caps
FSU policy only allows for cost sharing when it is required by the sponsor
Voluntary cost sharing is not a factor during the merit review process for Federal Awards (2 CFR )
Funding Caps
Some solicitations include caps on award amounts
Need to make sure you can realistically perform the work you are proposing
If Indirect Cost is included in the cap –
(Total Costs – Exclusions) / 1.52 = Direct Costs JG

13. Budget Exercise #1
“I want to submit a proposal for this solicitation.”
“I need some salary – probably about a month.”
Assumptions: 12mo faculty; $130,500 annual salary; ORP plan; Individual Health Ins.
“I need one grad student for a full year.”
Assumptions: $26,100 annual salary
“I need to go to a conference in California to present my findings.”
“I need to purchase some supplies.”
“I need to publish my findings.”
Indirect Cost
Assumptions: On-Campus, federal research project
Main Bullets –
1 intro & 2 PI – JG
3 GA– TB
4 Travel – JG
5 Supplies – TB
6 Publish – JG
7 IDC - TB

14. Budget Exercise #2
Budget Justification Handout
JG Intro