Types of Sponsor Budgets
· Two types of budgets – itemized or modular
· Itemized budget
o Most sponsors require
o Specific amounts for each budget category, including indirect costs
o Sponsor approves the detailed budget which must be followed
· Modular budgets
o Required for some projects with the National Institutes of Health
o Usually in $25,000 increments
o Request the number of modules in the proposal
o Indirect cost is not included in the module amount – it is added to the module amount
o Sponsor approves the module number and indirect amount – PI must not spend more than the modular amount
o The Office of Research and Sponsored Programs requires detailed budget before approving the routing form
§ Shows the proper number of modules have been requested – thought about what was needed for the project to avoid overruns
§ Used to properly calculate the amount of indirect cost to request
§ Allows the department and college to properly review and authorize the project
o Sample detailed budget for one $25,000 module
|
Budget Category
|
Amount
|
|
Salary
|
$10,000
|
|
Fringe Benefits
|
3,200
|
|
Supplies
|
2,600
|
|
Equipment
|
9,200
|
|
Subtotal
|
$25,000
|
|
Indirect Cost
|
6,590
|
|
Total Budget
|
$31,950
|
General Budget Guidelines
· Factor in inflation
o Proposal may be submitted up to a year before the project is to begin
o If historical data is available, analyze price changes to determine inflation factor for some items
o Sponsor generally allow a 3% cost of living increase in salary
§ Difficult to cover a salary increase if the cost of living increase is not included
§ If funded and no salary increase, can request to move the budget to another category
· May need sponsor approval
o Include a 10% annual increase in tuition
o Increase the fringe benefit rate by 1 point each year of a multi-year proposal
o Include a nominal increase in other categories such as supplies or travel
o Do not include an increase in the indirect cost rate since the rate is set for multiple years
· Amounts must correlate to projects tasks
o Demonstrates PI’s full understanding of the project – what it takes to complete it
o Proposal may be discarded if budget is not proper
o Too low budget – UNO will have to cover the excess costs
o Too high budget – may be interpreted as intentionally excessive
· Sources to determine budget amounts
o Examine current actual cost of items
o Contact a vendor to receive a quote, look at a vendor website, or obtain vendor price sheets
§ Include shipping and handling in the quote
§ Keep any document from the vendor to show how the budget amount was established
§ Keep in mind inflation
o Investigator’s or a peer’s past experience
· Use recent awards from the sponsor to determine typical budget amounts – check sponsor websites
· Follow the general sponsor budget guidelines and any specific guidelines identified in the request for proposal (or other similar documents)
o Proposals may be discarded if guidelines are not followed
o Some budget items may not be allowed
§ Louisiana Board of Regents does not allow tuition in their portion of the budget (tuition is allowed as cost share)
o Restrictions on indirect cost rate and indirect cost base (indirect cost is discussed later)
· As per the Office of Management and Budget Circular A-21, costs need to be:
o Allowable – certain expenditures, such as alcohol, are never allowed to be paid with federal funds
o Allocable – expenditures can be clearly identified as benefiting the project
o Reasonable – incurred cost is what a prudent person in a similar situation would do
o Consistently applied – costs in like situations are treated the same (i.e. a cost cannot be part of indirect cost in one situation but directly charged to a grant in a similar situation)
· Amounts should be in whole dollars
o Unless otherwise specified by the sponsor
o If already know the award amount from the sponsor, the budget should match that amount
Budget Components
Overview
· Four parts:
o Direct costs – costs specifically identified as benefiting the project
o Indirect costs – costs that are generally shared among several projects and cannot be easily allocated to a particular project
o Cost sharing/matching – project costs not paid by the sponsor
o Budget justification – written explanation for each budget item
· Budget template
o One year, three year and five year project periods templates created by The Office of Research and Sponsored Programs
o Calculates fringe benefits and indirect costs automatically
o Formatted to match the UNO financial system
o Found on the Office of Research website (www.orsp.uno.edu) and SharePoint site (https://sharepoint.uno.edu/research) under the Proposal Development section
o May not match the sponsor format
§ If different, must complete the sponsor format
§ Complete the Office of Research template as well to minimize delays in entering the award in the UNO system and in approving purchases
o Screen shots and descriptions provided later in this document
Direct Costs
Salary
· Salary categories and budget number in UNO financial system
o Faculty and Non-Classified Employees, Regular Pay (UNO budget # 601000)
o * Faculty and Non-Classified Employees, Additional Compensation (UNO budget # 601300)
o * Classified, Wage Employees, Regular Pay (UNO budget # 602000)
o * Classified, Wage Employees, Overtime (UNO budget # 602500)
o * Transient/Intermittent Employees, Regular Pay (UNO budget # 603000)
o * Transient/Intermittent Employees, Overtime (UNO budget # 603500)
o Graduate Student Employees, Regular Pay (UNO budget # 604000)
o Student Employees, Regular Pay (UNO budget # 606000)
· Categories marked with an asterisk may not be allowed on federally funding projects either direct or passed through a state agency or private company
o Specific sponsor approval
· Additional compensation and overtime pay will need UNO approval if funding
o Academic Affairs – additional compensation
o Employee’s supervisor – overtime pay
· While writing the proposal, identify the type of personnel and an estimated time to complete the project tasks
· The U.S. Department of Health and Human Services (which includes the National Institutes of Health) has a salary cap
o Individual’s salary in budget cannot be over the cap
o If the individual’s effort is less than 100% and their salary is over the cap, the budget amount is calculated based on the cap:
|
Salary Amount
|
$200,000
|
|
Agency Salary Cap
|
$190,000
|
|
Effort % on project
|
50%
|
|
Salary amount in budget
|
$95,000 (50% of salary cap)
|
o If the individual’s effort is less than 100% and their salary is below the cap, the individual’s budget amount is calculated using the actual salary:
|
Salary Amount
|
$150,000
|
|
Agency Salary Cap
|
$190,000
|
|
Effort % on project
|
50%
|
|
Salary amount in budget
|
$75,000 (50% of salary)
|
o Based on the current Federal Executive Pay Scale – check the website for current rate: http://grants.nih.gov/grants/policy/salcap_summary.htm
· Graduate students can either be budgeted in Graduate Assistant (GA) or Student Employee category
o GA Employees (hired via the Personnel Action Form – 101) are paid a set amount and are required to work 20 hours per work
§ Tuition also needs to paid, see the discussion under tuition for more information
o Student Employees (hired via the Student Employment Form) are paid a set rate per hour worked
o Choose the best option for the project and the students involved
· Most sponsors allow or even encourage a cost of living adjustment in yearly salaries
o Include a 3% increase in salaries – may not have enough budget in other categories to cover an unplanned salary increase
o Excess budget can be moved to another category if no raise was received
§ May need approval from the sponsor – check award document
Fringe Benefits
· Budget category and budget number in UNO financial system
o Fringe benefits (UNO budget # 619000)
· Federally negotiated rate based on actual payments the university makes for employees’ retirement, insurance, etc.
o Two approved rates based on type of salary payment:
§ Faculty and non-classified employees’ regular pay & additional compensation, and the classified, wage employees’ regular pay
§ Transient or intermittent employee’s regular pay
o Rates change periodically
§ Current rate on the Office of Research website (orsp.uno.edu ) or SharePoint site (https://sharepoint.uno.edu/research )
§ Look under Proposal Development on both locations
§ Current rate is on the Office of Research budget template
o If the rate changes after the proposal was submitted or during the award period, the new rate will be used
· Calculate by multiplying the rate by the salary budget amount for the appropriate salary categories – automatically done by the Office of Research budget template
Travel
· Two categories to remain compliant with federal regulations on international travel
o Domestic (UNO budget # 620100)
o International (UNO budget # 627000)
§ Needs prior sponsor approval on federally funded projects
· Must follow state travel regulations
o UNO follows PM-13, University Travel Regulations as published by the LSU System Office
o Restrictions related to hotel rates, meal reimbursement, rental car, and others
o Consult the UNO travel website: http://financialservices.uno.edu/travel
· Include expenses for airfare, lodging, food, car rental, and other allowable incidental expenses as applicable
Operating Services
· Budget category and budget number in UNO financial system
o Operating Services (UNO budget # 630100)
· Includes such expenses as copying, binding, postage, advertising, equipment leases, and telephone lines
· Most need prior written approval from the sponsor especially if there are federal funds involved
o Some items, such as telephone lines and leases, usually can’t be easily allocated to a particular project – would be considered an indirect cost instead
o Allowed if can show the particular expense is only used for that particular project
Supplies
· Budget category and budget number in UNO financial system
o Supplies (UNO budget # 640100)
· Includes:
o Material needed in the laboratory or the field
o Equipment less than $1,000
o Software and licensing less than $1,000
o Sometimes general office supplies if allocable and approved by the sponsor
· Equipment issues
o Federal sponsors consider equipment purchases less than $5,000 as supplies
o Louisiana guidelines consider equipment purchases less than $1,000 as supplies
o Causes problems with indirect cost calculation – equipment budget amounts are not included in indirect cost calculation
o Contact the Office of Research for assistance if needed
Professional Services
· Budget categories and budget number in UNO financial system
o Professional Services (UNO budget # 650100)
o Professional Services budget and Subcon > 25,000 (UNO budget # 650200)
· Professional Services, #650100 includes:
o Professional service agreements
o Honorariums
o First $25,000 of each subcontract
· Professional Services, #650200 used for subcontract amount over $25,000
o Allow the financial system to properly assess indirect cost
o Indirect cost is only allowed on the first $25,000 of each individual subcontract
o The Office of Research budget template includes a worksheet to calculate the amount in each category
Other
· Budget category and budget number in UNO financial system
o Other Charges (UNO budget # 660100
· Includes:
o Stipend and tuition amounts for fellowships
o Participant stipends (participant expenses will be discussed later in this document and more in depth in the Participant Cost document)
o Registration fees for local conferences or seminars
· May not be assessed indirect cost
o Participant costs usually not assessed indirect cost or has reduced rate
o Fellowship amounts are never assessed indirect cost
o Label any item that is excluded from calculation
o Review sponsor guidelines for restrictions
Scholarships and Awards
· Budget category and budget number in UNO financial system
o Scholarships and Awards (UNO budget # 668000)
· Used when UNO students receive a stipend for participation in a project
o If based on or includes the actual tuition amount, include an annual 10% increase
· Indirect cost may not be assessed
o Review the sponsor’s guidelines
o If classified as a scholarship, always excluded from the indirect cost calculation
Graduate Assistant Tuition
· Budget category and budget number in UNO financial system
o Graduate Assistant Tuition (UNO budget # 668010)
· Used when Graduate Assistants/students are included in the budget, if the student does not have a scholarship
o UNO policy
o Can be part of the sponsor budget or cost share (by the department, college, or the Office of Research)
o Will be checked by the Office of Research when the proposal is reviewed
· The Office of Research budget template includes a tab with the tuition amounts for the next several years
o Includes an annual 10% increase in tuition
· Not included in the indirect cost calculation
Equipment
· Budget category and budget number in UNO financial system
o Equipment (UNO budget # 670100)
· Includes any piece of equipment or software that costs more than $1,000
o Federal sponsors have a $5,000 threshold
o See the discussion under supplies for more details
· Indirect cost is not assessed
· Include the cost of component parts, installation, and shipping & handling
o Use vendor’s quote sheet, especially if the piece of equipment is large
o If a quote sheet is not available, determine best estimate based on prior experience or speaking with colleagues
Participant Costs
· Participants - trainees, interns, study/research subjects, or event attendees for UNO project
· Allowed on some proposals – refer to proposal or sponsor guidelines
· Specifically identified on sponsor budget
· Must identify specific UNO budget categories for all participant expenses
o The Office of Research budget template has a separate column for participant expenses
o Refer to the Participant Cost document for more details on the expense categories
· Will be issued a speed key number for the participant cost portion and for the non-participant cost portion
· May have special treatment for indirect costs
o Not assessed at all
o Assessed at a lower rate
Indirect Costs
· Budget category and budget number in UNO financial system
o Indirect Cost (UNO budget # 690100)
· Office of Management and Budget Circular A-21 indirect cost definition:
o “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.”
· Typically include:
o General department staff or supplies
o Office/lab electricity
o Building maintenance and depreciation
o Basic telephone services
o Etc.
· Not directly budgeted in a proposal
o Calculated by multiplying the indirect cost base amount by UNO’s approved rate
· Indirect cost base is all budget items except:
o Graduate assistant tuition
o Scholarships
o Fellowships
o Equipment
o Individual subcontract amounts over $25,000
o Student awards, usually
o Participant costs, usually
o Other categories as dictated by the sponsor
· Two approved rates – on-campus and off-campus
o Off-campus rate used when more than fifty percent of the UNO employee’s work is done off-campus
o Must provide justification for using the off-campus
o Approved by the U.S. Department of Health and Human Services (HHS)
§ Based on completed space survey and expenditure calculations
o Rates change periodically
§ Current rate on the Office of Research website (orsp.uno.edu ) or SharePoint site (https://sharepoint.uno.edu/research )
§ Look under Proposal Development on both locations
§ Current rate is on the Office of Research budget template
o If the rate changes after the proposal was submitted or during the award period, the new rate will NOT be used
· Sponsor may cap the indirect cost rate/amount or not allow indirect cost
o Must be approved by the Vice President of Research
o Must provide proper justification for the reduction
o UNO is paying for part of the project in the form of administrative costs
· Review award documentation to make sure the indirect cost is calculated correctly
· The Office of Research will perform the indirect calculation based on information in the budget
o If your budget has unusual issues, contact the Office of Research for assistance.
Cost Sharing/Matching
· Portion of the project’s expenses not paid by the sponsor
o Paid by UNO or a third party
o Must have approval from appropriate department
o Third party must provide a letter of commitment
· Some sponsors require mandatory cost share
o Set percent of the total or a set amount
· May also be voluntary cost share
o Include in budget by PI
o The Office of Research generally does not approve
o The National Science Foundation prohibits, see their policy guide for details
· Can be cash, in-kind (volunteers, donate space, etc.), or waived indirect cost (lower indirect rate or no indirect cost allowed on sponsor budget)
· Cash cost share is treated the same as the regular budget:
o Meet the same the requirements (allowable, allocable, reasonable, and consistently applied)
o Use the same budget categories
o Same start and end date as the sponsor’s budget
o If funded, assigned a separate speed key
· Separate column on the Office of Research budget template
· More details on cost sharing is provided on the Cost Share document
Budget Justification
· Written explanation for each of the budget amounts, including participant costs and cost share
· Must match the budget and written proposal
· Should be clear and concise
o Easier for the Office of Research and the sponsor to review the budget
· Include known details, such as:
o Type of supply items
o Number of copies to be made
o Specific pieces of equipment to purchase
o Names of individuals working on project
§ If they don’t work on the project, may need to obtain sponsor approval for change in personnel
o Travel length, destination, purpose, and timeframe of the trip as well as the number of travelers
o Consulting and/or subcontracting description of duties
§ Include names if known – would need sponsor approval if do not utilize them for the award
§ Include procedure for selecting the consultant or subcontractor
· May need to go through the bid process
· Describe how the indirect cost amount was calculated
o Include the rate and the base amount used in the calculation
· Include participant details
o Number expected to take part in the project
o Expected cost per participant
· Explain cost share, if applicable, in the same manner
Final Points
· Follow sponsor guidelines
o Stay within any budget restrictions
§ Salary cap
§ Overall dollar amount
§ Indirect cost rate or amount
o Use the proper format
· Make sure the numbers add up
· Make sure amounts correspond to the proposal narrative and budget justification
· Submit a budget to the Office of Research for review as soon as possible
Budget Template
· The Office of Research has three budget templates available for use based on the number of years of the project:
o One year
o Up to three years
o Up to five years
· The three and five year templates include a summary budget spreadsheet
· Several tabs on template:
Budget Year Tab
· Enter the budget amounts in the appropriate locations and column(s):
Subcontract Tab
· Calculates the amounts to include in the two subcontract budget categories for each year based on the values entered above – these amounts will automatically populate the correct year’s budget
Tuition Tab
· Second table gives the tuition amount with the extra graduate enhancement fee
· Amounts include a 10% increase
Salary Rates Tab
· Calculates daily, weekly and monthly rates
· Use the appropriate table based on the type of appointment
Justification Tab
· Use this format if desired and the sponsor does not dictate a certain format
Responsibilities
Principal Investigator
· Properly identify and budget project expenses
· Prepare a budget justification
The Office of Research and Sponsored Programs
· Review proposal budget and justification
· Provide assistance to the investigator as needed
Sponsored Programs Accounting
· Ensure budget is properly setup in financial system if proposal is awarded