1. Budget Development
“SPEAR”
Workshop

2. Objectives Identify types of costs – both direct and indirect
Calculate salaries and fringe benefits
Identify the requirements for graduate students
Identify the requirements for a collaborator
Identify and calculate the indirect cost rates

3. Types of Costs Direct Costs (2 CFR 200.413)
Identified specifically with a particular project
Indirect Costs (2 CFR )
Incurred for common objectives and can’t be identified specifically with a particular project
aka “F&A” (Facilities and Administration) or “overhead”
Costs incurred for the same purpose in like circumstances must be treated consistently as either direct or indirect (F&A) costs.
Costs must be allowable according to the Cost Principles
(2 CFR 200 Subpart E §200.4XX)

4. 2 CFR 200.403 - Allowability of costs
Costs must meet the following
Be necessary and reasonable for the performance of the award
Conform to any limitations or exclusions
Be consistent with policies and procedures that apply uniformly to both federally-financed and other activities of the non-Federal entity
Be accorded consistent treatment
Be determined in accordance with generally accepted accounting principles
Not be included as a cost or used to meet cost sharing or matching
Be adequately documented

5. Salaries and Fringe Benefits
Salary & Fringe
Generally based on FTE, percent effort, person-months, etc.
Do not use hourly rates, FSU does not maintain timesheets for salaried employees’ project activities
3% yearly cost of living increase allowed
9 mo. v. 12 mo. appointment and health insurance for summer appointment
Refer to Facts Sheet for current fringe rates
FTE=full time equivalent

6. Graduate Student Requirements
Salary (up to .5 FTE – 20 hours/week)
Fringe Benefits
Workers Comp – 1.3 %
Health Insurance Subsidy
Tuition – FSU requirement for 9 hrs/semester

7. Other Direct Costs Equipment Travel
>$5,000 with a useful life of ≥ 1 year
Travel
In accordance with FSU travel policies and FL Statute
Requires detailed justification
Participant Support Costs (§200.75)
Stipends
Travel, etc.
Participant support costs means direct costs for items such as stipends or subsistence allowances, travel allowances, and registration fees paid to or on behalf of participants or trainees (but not employees) in connection with conferences, or training projects.
Not to be confused with participant incentives – items that are given to incentivize participants for research studies

8. Other Direct Costs OTHER Direct Costs Tuition
Materials and Supplies – includes computers, laptops
Publications
Consultants
Subawards/consortia
Other (e.g. long distance phone, dedicated phone line, shipping, printing)

9. Collaborators Types of Collaborators
Subrecipient
Contractor
Consultant
Subrecipient v. contractor determination (§ )
Subrecipient: >$25,000 excluded from F&A base
Contractor: full amount subject to F&A
Subrecipients must provide:
Scope of work, budget and justification
F&A Rate Agreement
Letter of Commitment from Sponsored Project Office
: a pass-through entity must make case-by-case determinations whether each agreement it makes for the disbursement of Federal program funds casts the party receiving the funds in the role of a subrecipient or a contractor.
Certificate Series Workshop on Subawards

10. Indirect Costs Indirect Cost Rates: Two IDC bases:
Based on sponsor, project location, and project purpose
Two IDC bases:
Modified Total Direct Costs (MTDC)
Federal and federal flow-through
Total Direct Costs (TDC)
State of Florida

11. Indirect Cost Rates Variables:
Sponsor:
Federal, State, Local Government, Water Management District, etc.
Purpose:
Research, Other Sponsored Activity, Instruction
Project Location:
On-Campus, Off-Campus, NHMFL
Sponsor IDC policy
See Facts Sheet for current F&A agreement and rates

12. Exclusions from IDC Base
MTDC rate excludes:
Equipment
Tuition
Rent (Off-site facilities)
Participant Support Costs
Amount of subcontracts >$25,000
Scholarships and Fellowships
TDC rate excludes:
Tuition; per FSU policy

13. Indirect Cost Calculation
MTDC (NSF)
TDC (FDOT)
On-campus research 52%
On-campus research 10%
Salary (plus FBs)
50,000
Equipment*
10,000
Supplies
3,000
Publications
2,000
Tuition*
11,004
TOTAL DIRECT COSTS
76,004
Indirect Cost BASE
$55,000 (MTDC)
$65,000 (TDC)
Indirect costs (base x rate%)
$28,600 (base x .52)
$ 6,500 (base x .10)
TOTAL REQUESTED
$104,604
$82,504
*Items in black are excluded from the indirect cost base
Using chart, explain the difference in real dollars to FSU.

14. Questions?