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How to Prepare a Grant Budget Presented by: The Office of Sponsored Programs.

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Presentation on theme: "How to Prepare a Grant Budget Presented by: The Office of Sponsored Programs."— Presentation transcript:

1 How to Prepare a Grant Budget Presented by: The Office of Sponsored Programs

2 The narrative/project description should drive the budget  There should be no surprises for the reviewer familiar with the narrative/project description  Cost estimates should be credible  The requested budget should be consistent with the typical award given by the sponsor

3 Questions to ask before preparing the budget  What is the typical size of awards from this sponsor?  What are the real costs associated with conducting this project?  What items will and will not the sponsor support?  Does the sponsor provide flexibility to re-budget between categories once funds are awarded?  Is cost sharing mandatory?


5 Cost of conducting the project The formula for calculating the “real” cost of conducting a research project is: Direct costs + indirect costs (F & A) +cost sharing Total costs

6 What are direct costs?  Salaries for personnel  Fringe benefits  Student stipends  Consulting  Travel  Equipment  Materials/supplies  Subawards/subcontracts  Other “Other” may include:  Student tuition & fees  Computers (less than the equipment threshold)  Publications  Dissemination material


8 What are indirect costs? Defined as overhead & administrative costs associated with operating a project  Universities must have a federally approved Indirect Cost/Facilities and Administration rate  Rowan’s current rate is 75% of salaries only

9 What is cost sharing? Defined as that portion of the project costs not borne by the sponsor  All of the direct cost categories  Cash donations  In some cases it can be:  Space  Cost of renovating the space  Indirect costs  Can be mandatory or voluntary

10 Budget Appearance Counts  Use the budget format requested  If no format is provided, start the budget on a new page if possible  Use columns that are aligned  Create column headings  Round figures to the nearest dollar  Include a 4-5% annual increase for multi- year budgets

11 BudgetTotal ProjectAmount RequestedDifference Costsfrom SponsorCost Share Salary Academic Year: Jane Doe, Principal Investigator (10% x $80,000 base)$8,000$0$8,000 Five undergraduate students ($7 per hr x 10 hrs per week x 10 weeks)$3,500 $0 Sub-Total Academic Year Salary$11,500$3,500$8,000 Summer Salary: Jane Doe, Principal Investigator (100% x $80,000/10 x 2)$16,000 $0 Seven undergraduate students ($7 per hr x 10 hrs per week x 5 weeks)$2,450 $0 Sub-Total Summer Salary$18,450 $0 Total Salary$29,950$21,950$8,000 Fringes: PI Fringes (36.05% academic year; 7.65% summer)$4,108$1,224$2,884 Student fringes (not applicable)$0 Sub-Total Fringes$4,108$1,224$2,884 Total Salaries and Fringes$34,058$23,174$10,884 Supplies/Materials$2,500 $0 Domestic Travel$2,000$1,500$500 Other: Publication costs$500 $0 Total Direct Costs$39,058$27,674$11,384 Indirect Costs (75% of Salaries)$22,463$16,463$6,000 Total Costs$61,521$44,137$17,384

12 Post Award Functions The Fruits of Victory

13 The Notice of Award  Is a legal document issued to notify the grantee that an award has been made and the terms and condition of the award. Typically includes information about: Relevant regulations Amount of funding Project and budget period Restrictions on the expenditure of the funds  Accepting the award Only the person authorized to legally represent Rowan may sign

14 Monitoring the Award Requires Everyone to Work Together

15 Monitoring Your Award  Grantees are responsible for managing the day-to-day operations of their grant and for periodically submitting technical and financial reports during the life of the grant  To ensure effective stewardship of the funds, a separate Banner FOAPAL will be assigned to your grant  Mandatory cost share will be tracked within the same FOAPAL under account 7864

16 Monitoring of Expenditures  Account budgets should follow the awarded categories  Rowan sets up the budget based on what the sponsor obligates (some obligate the entire project period, others only obligate the current project period)  Only allowable costs are charged to the account  Need to know whether budget transfers are permitted or whether prior approval is required from the sponsor  All direct costs (payroll, purchasing, etc) charged to the account should follow existing Rowan procedures

17 Payment System  Method of receiving funds varies depending upon the sponsor  Some require invoicing  Some will give you money up-front  Some will allow you to “electronically draw down funds” as expended  All checks received must be reconciled to account

18 Audit Requirements  All universities are subject to the federal requirements of OMB Circulars A-133 and A21 This means that all federal awards are subject to an audit All Recovery Act funded projects are not only subject to audit; but will be audited

19 Closeout and Record Retention  Sponsors close out a grant as soon as possible after expiration of the grant Typically within: 30-90 days  If the project has been delayed, you may request a: No Cost Extension (Extends time with no additional $) Cost Extension (Extends time and provides more $)  All state, federal, and private grant files must be retained seven years after the termination of the grant

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