how to prepare a grant budget presented by: the office of sponsored programs
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How to Prepare a Grant Budget
Presented by:
The Office of Sponsored Programs
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 credibleThe requested budget should be consistent
with the typical award given by the sponsor
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?
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
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
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
What is cost sharing?Defined as that portion of the project costs not borne
by the sponsor
All of the direct cost categories Cash donationsIn some cases it can be:
Space Cost of renovating the space Indirect costs
Can be mandatory or voluntary
Budget Appearance Counts
Use the budget format requestedIf no format is provided, start the budget on
a new page if possibleUse columns that are alignedCreate column headingsRound figures to the nearest dollarInclude a 4-5% annual increase for multi-
year budgets
Budget Total Project Amount Requested Difference
Costs from Sponsor Cost 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 $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 $16,000 $0
Seven undergraduate students ($7 per hr x 10 hrs per week x 5 weeks) $2,450 $2,450 $0
Sub-Total Summer Salary $18,450 $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 $0 $0
Sub-Total Fringes $4,108 $1,224 $2,884
Total Salaries and Fringes $34,058 $23,174 $10,884
Supplies/Materials $2,500 $2,500 $0
Domestic Travel $2,000 $1,500 $500
Other: Publication costs $500 $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
Post Award Functions The Fruits of Victory
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
Monitoring the Award Requires Everyone to Work Together
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
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
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
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
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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