1 / 39

Budget Preparation

Budget Preparation. Office of Sponsored Programs. Points of Contact. Loretta Derrick Grant Development Specialist Roberta Hohmann Administrative Secretary Dr. Paul E. Meyers Executive Director . Budget Topics . Defining the budget Getting started Budget sections University guidelines.

edith
Download Presentation

Budget Preparation

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Budget Preparation Office of Sponsored Programs

  2. Points of Contact • Loretta Derrick • Grant Development Specialist • Roberta Hohmann • Administrative Secretary • Dr. Paul E. Meyers • Executive Director University of Houston-Clear Lake

  3. Budget Topics • Defining the budget • Getting started • Budget sections • University guidelines University of Houston-Clear Lake

  4. What is the Project Budget? • Reflects costs of items and activities described in the project • Defines the project narrative with costs • Justifies the project narrative with costs • Puts all costs in one place to facilitate review University of Houston-Clear Lake

  5. Why is the Budget So Important? • Generally reviewed before any other part of the proposal • Summarizes the proposal • Discloses the consistency of the proposal • A quick way for reviewers to tell if guidelines have been followed • Defines costs for each year of the project University of Houston-Clear Lake

  6. Getting Started:Funds Available on Campus • What do you already have on hand to support the project? • personnel • facilities space • supplies • equipment • travel funds • external support University of Houston-Clear Lake

  7. Getting Started:External Funds Needed • Personnel • Space • Supplies • Equipment • Travel funds • Other Hint -- Look to the Project Narrative for project needs University of Houston-Clear Lake

  8. Getting Started • Funds Needed - Funds Available = Budget Proposal • Create a reasonable budget based on the funding you would need to complete the project if awarded by the sponsoring agency University of Houston-Clear Lake

  9. Estimate Total Costs • Give a “best estimate” of your needs • The Grant Budget helps you determine what you want the sponsor to fund and what part of the project, if any, UHCL or other agencies need to fund • A fine line between “asking for too much” and “asking for too little” University of Houston-Clear Lake

  10. Budget Principles • Think about the budget when searching for a sponsor • Think about the budget early in the proposal development University of Houston-Clear Lake

  11. Budget Principles • Refer to budget lines frequently in the proposal, especially in: • Need Statement • Objectives • Management Plan (especially here) • Evaluation Plan • Dissemination Plan • Continuation Plan University of Houston-Clear Lake

  12. Sections of the Budget • Direct Costs • Personnel (Generally 70%-80% of total) • salaries • fringe benefits • Maintenance and Operation Costs • Facilities and Administrative Costs (Indirect Costs) • Total Costs • Total Matching Costs • Total Cash + Matching Costs = Total Project Costs University of Houston-Clear Lake

  13. What are F & A (Indirect) Costs? • General Costs that cannot be attributed to any one project -- for campus up-keep • Are negotiated with the Federal Agency DHHS • UHCL’s current rate: • 40% of Modified Total Direct Costs on campus • 17% of Modified Total Direct Costs off campus University of Houston-Clear Lake

  14. Sponsor’s Maximum Award Limit • When the sponsoring agency states it will award no more than $300,000, what does that mean? • $300,000 including F&A costs? • $300,000 plus F&A costs? • Review guidelines for maximum award limit prior to completing the budget University of Houston-Clear Lake

  15. What is Cost Sharing? • “. . . that portion of the project or program cost not borne by the sponsor . . .” OMB Circular A-110 University of Houston-Clear Lake

  16. To Qualify as Cost Sharing, A Cost Must Be . . . (A-110) • Verifiable from the recipient’s records • Necessary and Reasonable for accomplishment of project objectives • Allowable under OMB Circular A-21 (Section 23) • Un-recovered indirect costs may be included only with prior approval of sponsor (usually stated in guidelines) University of Houston-Clear Lake

  17. What About A-21? • A-21 does not mention cost sharing • may use same allowable items as funded by sponsor (e.g., personnel, fringes, materials, travel, equipment, space, etc.) • Same rules apply to verifying use of cash from the sponsor: • “separately budgeted and accounted for” • “internal application of institutional funds” • “consistent cost accounting standards are applied” University of Houston-Clear Lake

  18. Reporting Cost Sharing • A-21 Requirements: All costs must be classified consistently regardless of the funding source • A-110 Requirements: Actual expenditures must be verifiable from the recipient’s records • Sponsor Requirements: Commitments are a condition of the award and must be met University of Houston-Clear Lake

  19. Most CommonCost Sharing Problems? • Tendency to over commit • PIs generate many proposals, receive fewer awards • Offering cost sharing when not required • Proposals which include no cost sharing • Does sponsor expect some institutional cost sharing from PI? • What do we accumulate and report; how do we capture project-related effort? University of Houston-Clear Lake

  20. The Facts on Cost Sharing • Look for sponsors that do not require cost sharing first • FYI--Two kinds of cost sharing: • Cash • In-Kind (also know as “non-cash”) • Use only if sponsor requires • Meet the minimum required • Think of in-kind sources first University of Houston-Clear Lake

  21. UHCL Cost Sharing Sources • Departmental salaries and fringes • Dean or VP • Materials and supplies • Travel • Equipment • Internal Grants (during the same award period) • Other External Grants (not federally funded) University of Houston-Clear Lake

  22. Sources of Cash Cost Sharing • Your department--discuss with Department Chair • Your Dean’s Office • External partners • Cannot use an existing external federal award to cash cost share in a new federal proposal • Cannot use money from an award you anticipate receiving University of Houston-Clear Lake

  23. RecappingCost Sharing • See Dept. Chair, Dean, and OSP early in proposal development if you need cost sharing • Think of value of non-cash direct and indirect infrastructure (UHCL & partners) that can be applied first • Then think of UHCL cash sources • All sources used must be reasonable and certifiable for audit and sponsor University of Houston-Clear Lake

  24. In-Kind (Non-Cash)Cost Sharing Sources** • Volunteers • calculate salaries and fringes • Space • Materials • Travel • Equipment • Facilities **(i.e, outside of UHS) University of Houston-Clear Lake

  25. In-Kind Cost Sharing • Certifiable non-cash costs not drawn from any UHCL account • Examples: • facility space totally dedicated to the project • equipment depreciation for items over $500 totally dedicated to the project • volunteer salaries and fringes • Add an itemized in-kind cost section immediately below the cash cost section University of Houston-Clear Lake

  26. Calculating Salaries • Determine personnel needed to accomplish project objectives and activities • Obtain current salaries for all personnel from the school business coordinator • Determine the amount of time each person will dedicate to the project • Determine if there are cash or in-kind cost sharing requirements from the sponsor’s guidelines University of Houston-Clear Lake

  27. Calculating Salaries • Determine how much personnel time you want the sponsor to fund and how much you want to cost share • Calculate salaries using % release time, or by number of estimated days on the project • Tie the method to project objectives • Don’t forget about in-kind volunteer help Calculate their salaries and put in the in-kind section of the project budget University of Houston-Clear Lake

  28. Release Time • The part of an employee’s contract dedicated to the project • May be funded by • Sponsor • UHCL • Sponsor and UHCL University of Houston-Clear Lake

  29. Calculating Salaries • For multiple-year projects, figure a 3% Cost of Living Allowance increase for each consecutive year of the project. UHCL fiscal year is September 1 through August 31 • Disclaimer: 3% increase for each year of grant budget is only an estimate • This standard is university-approved for planning grant and contract budgets • Sponsors award this amount University of Houston-Clear Lake

  30. Fringe Benefits • Fringes include: • Retirement • FICA • Unemployment • Workers’ compensation • Disability • Life Insurance • Health Insurance • The OSP can calculate current rates for UHCL employees University of Houston-Clear Lake

  31. Fringe Benefits • Fringe rates are based on actuals and change periodically • Check with the Office of Sponsored Programs for current fringe benefit rates. University of Houston-Clear Lake

  32. Maintenance and Operations Costs • Operating costs known as M & O are the second part of the budget • Operating costs consist of the costs of the materials, travel, equipment, and other costs that enable accomplishment of objectives to solve the problem • Operating costs need to be defined in the itemized budget and budget justification University of Houston-Clear Lake

  33. The Proposal Signoff Sheet • Project Budget Summary • UHCL Cash Cost Sharing Commitments • Indicate In-Kind cost sharing • Supplemental Pay and/or Summer Pay University of Houston-Clear Lake

  34. The Budget Narrative • Is a narrative justification of your costs • Follow the format of your budget • Describe all costs in terms of UHCL and/or standards of the sponsor • Must be familiar with sponsor’s guidelines • This is where you “show your work” University of Houston-Clear Lake

  35. Organizing the Proposal • Need Statement • Goals/Objectives • Project Plan • Management Plan & Key Personnel • Evaluation Plan • Dissemination Plan • Continuation Plan University of Houston-Clear Lake

  36. Organizing the Proposal (cont.) • Facilities and Equipment • Budget and Budget Explanation • and • Abstract • Table of Contents • Appendices University of Houston-Clear Lake

  37. Review Guidelines for Submission • The number of copies that should be submitted • How the proposal should be submitted • Some proposals are submitted via U.S. mail • Some proposals require electronic submission • When the proposal should be submitted • Target date vs. deadline • Postmark date • Receipt date University of Houston-Clear Lake

  38. Pre-submission Check Off • Proposal packet has been reviewed for: • Content • Grammar/Spelling • Page numbering/order • Submit to OSP for review • Executive Director for OSP approves proposal • Proposal sent to Provost for signature University of Houston-Clear Lake

  39. Proposal Process Completed • Next Step? • Breath a sigh of relief! University of Houston-Clear Lake

More Related