How to Prepare a Proposal Budget

1. How to Prepare a Proposal Budget CReATE CReATE ver. 09/09 © 2009 Florida State University. All rights reserved

2. Areas to Consider • Direct Costs • Indirect/F&A Costs or “overhead” • Equipment • Supplies • Cost-sharing • C.A.S. exemption items • ????

3. Direct Costs • Direct costs are those costs that can be identified specifically with a particular sponsored project, an instructional activity, or any other institutional activity, or that can be directly assigned to such activities relatively easily with a high degree of accuracy.

4. F&A Costs • Indirect costs are those that are 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.

5. F&A - MTDC • Modified Total Direct Cost (MTDC) Base includes all direct costs except: • equipment, • tuition remission, • rental costs of off-site facilities, • scholarships, fellowships, • and the portion of each subcontract in excess of $25,000 • Primarily used for Federally-funded projects

6. F&A - TDC • Total Direct Cost (TDC) Base – includes all direct costs except tuition • FSU’s policy is to exclude tuition from all indirect costs • TDC Base primarily used for State of Florida agencies, local governments, and water managementt districts

7. F&A Rates Proposal Rates set by the following: • Type of Agency • Location of Project • (on/off campus/Mag Lab) • Type of Project • Solicitation

8. Types of Projects • Research: A systematic study directed toward fuller scientific knowledge and understanding gained of the subject studied • Instruction: The teaching and training activities of an institution • Other Sponsored Activity: This includes programs and projects which involve the performance of work other than instruction or organized research

9. MTDC (NSF) TDC (FDEP) OnRes –47% OnRes – 10% Salaries $50,000 $50,000 Equipment $10,000 $10,000 Supplies $3,000 $3,000 Publications $2,000 $2,000 Tuition $10,895$10,895 Total Direct $75,895 $75,895 MTDC Base $55,000 TDC $65,000 Indirect Costs $25,850 $6,500 Total Requested $101,745 $82,395

10. Cost Sharing Costing sharing or matching is that portion of project costs not borne by the sponsor. • A cost sharing commitmentmeans any cost sharing included and quantified (e.g., % of effort and/or dollar amount) in the proposal budget, proposal narrative or award document. • Project enhancementmeans describing "resources that are available" for the project but are not quantified in the proposal budget, narrative or other documents.

11. FSU Cost Sharing Policy • Make a cost sharing commitment only when required by the sponsor or by the competitive nature of the award and then to cost share only to the extent necessary to meet the specific requirements of the sponsored project. • If the PI requests an exception to this policy, his or she must get the Chair, Dean and VPR approval. • Cost sharing is approved at the proposal stage.

12. Personnel • Salaries & Wages • Include faculty, technicians, post-docs, graduate students, & other personnel who are required to work on the project • We recommend that you include a 3% salary increase every year NOTE: For Federal projects, administrative & clerical personnel normally are treated as indirect costs

13. Personnel • Salary • Annual Salary X %FTE • Bi-weekly salary X %FTE X No. of pay periods • OPS (Temporary employees, i.e., graduate students, student aides, post-docs, other staff) • Bi-weekly salary X % FTE X No. of pay periods • Pay Periods • 9 mo faculty – Academic Yr 19.5 Summer 6.5 • 12 mo faculty & all other classifications 26.1

14. Personnel Salary Calculation • PI 9 month salary = $75,000 • 19.5 pay periods in academic year • 6.5 pay periods in Summer Semester • $75,000 ÷ 19.5 = $3,846.15 b/w rate • PI plans to work 15% FTE on project during summer semester • $3,846.15 X 15% X 6.5 = $3,750.00

15. Fringe Benefit Rates • Retirement • FRS Pension Plan 4.91% • FRS Investment Plan 4.91% • ORP 7.92% • DROP 4.42% • Social Security 6.20% • Medicare 1.45% • Worker’s Comp & Unemployment 0.7% • Terminal Leave Pool 1.3% • Graduate Assistant’s Health Insurance Subsidy • .50 FTE & above = $700; .25-.49 FTE = $375

16. FB Composite Rates* • Faculty/A&P/USPS under FRS Pension Plan 14.56% • Faculty/A&P/USPS under FRS Investment Plan 14.56% • Faculty/A&P under ORP 17.57% • Faculty/A&P/USPS under DROP 14.07% • OPS Students 0.70% • OPS Non-students & Post-Docs 2.15% *Effective 7/01/2011

17. Health Insurance* • IndividualFamily Spouse • $250/bw** $532/bw** $303/bw** • $5,998/yr $12,760/yr $7,280/yr *Rates Effective 7/01/2011 **Calculated on 24 pay periods Note: 9 month faculty deductions for health insurance are made during regular academic year

18. FB Calculation • Same PI - $75K Academic Yr / $3,846.15 b/w • Salary calculated for budget = $3,750.00 • PI has ORP retirement and family health ins • $3,750.00 X 17.57% = $658.88 • Total FB’s & Health = $658.88 • No health deductions during summer for faculty

19. Consultants • Outside individuals with expertise and skills that will add value to project • Normally, faculty & other FSU staff should not be paid as consultants • Costs are usually listed in terms of daily rate • Certain sponsors may limit the daily rate • Consultants are never listed in the salaries & wages section

20. Equipment* • Items costing $1,000 or more with a useful life of 1 year or more • Equipment should be detailed in the budget • Requests should only include those items of equipment needed to complete the project * Effective 7/1/2011 – FSU’s property inventory threshold increased from $1000 to $5000 * For 2011-12 - $1,000 will remain as the capitalization level for equipment for grant proposals

21. Equipment – A-21 (2) "Equipment" means an article of nonexpendable, tangible personal property having a useful life of more than one year and an acquisition cost which equals or exceeds the lesser of the capitalization level established by the institution for financial statement purposes, or $5000.

22. Equipment – A-21 (3) "Special purpose equipment“ means equipment which is used only for research, medical, scientific, or other technical activities. Examples of special purpose equipment include microscopes, x-ray machines, surgical instruments, and spectrometers. *Can be charged as a direct cost

23. Equipment – A-21 (4) "General purpose equipment“ means equipment, which is not limited to research, medical, scientific or other technical activities. • Examples include office equipment and furnishings, modular offices, telephone networks, information technology equipment and systems, air conditioning equipment, reproduction and printing equipment, and motor vehicles. • Cannot be charged as a direct cost

24. Supplies Supplies and materials related to the project • Can be listed in budget as broad categories such as glassware, chemicals or art supplies Minor equipment costing < $5,000 • If the item is equipment costing $1,000 to $4,999 and has a useful life of a year or more, then it is excluded from the indirect cost base when calculating indirect costs from Federal sponsors NOTE: For Federal projects, routine office supplies are normally treated as an indirect costs (paper, pencils, post-it notes, etc.)

25. C.A.S. Exemptions • In exceptional circumstances it may be appropriate to charge F&A costs directly to a sponsored project. • If the nature of a sponsored project requires an extensive amount of administrative and/or clerical support or goods/services significantly greater than the routine level provided by an academic department, then the effort is deemed an exceptional circumstance and such costs can be accounted for as direct costs. • An Exemption is REQUIRED to direct charge administrative and clerical salaries and other administrative-type expenses. • In addition to meeting definition of exceptional circumstances, costs must be specifically identifiable to a particular sponsored project, be reasonable, allowable and allocable.

26. C.A.S. Exemptions • CAS exemption must be approved in advance of charges normally classified as F&A being charged directly to a project – at the proposal stage • Complete CAS form • http://www.research.fsu.edu/contractsgrants/forms.html • Submit to Director, Sponsored Research Services NOTE: FSU (SRS) needs to approve the C.A.S. exemption; agency approval is not adequate because FSU is audited on these items

27. Travel • Project-related travel may include trips necessary to collect data, to present findings at professional meetings, for meetings with program officers or collaborators, etc. • Agencies require details on the funds requested, such as airfare, hotels, car rental, etc. • Reimbursement of costs should be consistent with FSU’s travel policy

28. FSU Travel Rates • Per diem is $80 per day or • Breakfast = $6 • Lunch = $11 • Dinner = $19 • Mileage = $.445 per mile • Allowable room rates, incidental expenses, etc.

29. Subawards/Subcontracts • Represents a collaboration of work by one or more other institutions • Contractual agreements for services or goods with an outside party are not included in this category • Costs for subawardee is presented in a separate line item and should include both the subawardee’s direct and F&A costs • A subaward detailed budget should be included as part of budget justification • Subawardee’s F&A costs are calculated in accordance with subawardee’s negotiated F&A rate agreement

30. Subcontracts If a collaboration is proposed we will need the following from each collaborator • Letter of commitment from the Sponsored Program Office (not PI) • Scope of work for their activities • Budget • Budget Justification

31. Other Direct Costs • This category contains all other proposal costs, i.e., animal per diems, publication charges, graphic fees, matriculation, communications, shipping, etc. • Postage, local telephone, and memberships are normally treated as F&A costs (for Federal projects)

32. Matriculation • Matriculation costs (minimum of 9 hrs) should be included for graduate assistants supported by the project • Graduate Matriculation Rate for FY12-13 is $403.51/hr or $10,895 for 27 hours (in-state) • If matriculation costs are not included in budget, an alternate source for paying must be identified (Waiver 2 or 3 on transmittal form) • FSU excludes matriculation from F&A calculations in all proposals

33. Matriculation • Multiyear proposals should include a 15% increase in matriculation costs annually • Out of state matriculation is not an allowable cost in most circumstances • College of Engineering may apply out of state rates to their proposals • Certain training grants allow out of state matriculation. Check the sponsor guidelines • Fees are not an allowable cost unless applying for a training grant

34. F&A Calculation • Total Direct Costs = $170,895 • Salaries/FBs $97,000.00 • Equipment $10,000.00 • Supplies $ 3,000.00 • Tuition $10,895.00 • Subgrant $50,000.00 • Sponsor is NIH and work will be done on campus • Base $97K + 3K +25K = $125,000 • F&A $125,000 X 47% = $58,750 • Total request from sponsor = $229,645

35. MTDC (NSF) TDC (FDEP)OnRes – 47% OnRes – 10% Salaries $97,000 $97,000 Equipment $10,000 $10,000 Supplies $3,000 $3,000 Subcontract $50,000 $50,000 Tuition $10,895$10,895 Total Direct $170,895 $170,895 MTDC Base $125,000 TDC $160,000 Indirect Costs $ 58,750 $16,000 Total Requested $229,645 $186,895

36. Policies • 3 Day Rule • The Vice President for Research instituted a policy effective on February 1, 2006 that states that a proposal must be submitted to SRS by 9am three working days prior to the Agency deadline • You may work on the technical narrative only until 9am on the day of submission http://www.research.fsu.edu/contractsgrants/documents/submissionpolicy.pdf

37. Policies • Limited Submissions • SRS maintains a list of limited submissions https://submissions.research.fsu.edu/limited/limitedProgram.php • An internal deadline at FSU has been established on the website • You must select the limited submission and email the 2 page white paper to srs@mailer.fsu.edu by the internal deadline

38. Policies • Limited Submissions continued • White paper must include • Abstract • Any cost-sharing commitments • NOTE: Must be submitted by 5pm on due date • Council on Research and Creativity (CRC) will determine which PI may apply • Chosen PI(s) will be listed on the limited submission website • Any unauthorized submission will be withdrawn

39. Questions