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Similar a Budget Prepation Powerpoint - 020717.ppt(20)



Budget Prepation Powerpoint - 020717.ppt

  1. What is a Budget? • Best estimate of financial resources needed to accomplish a project • Includes a Budget Justification which provides an explanation of included costs Allowable means the costs are: • Reasonable* • Allocable* • Consistently applied* • Agreeable with Sponsor specifications Allowable Direct Costs + Allowable Indirect Costs (F&A) = Total Project Costs *These terms are taken from the Uniform Guidance 2
  2. Creating a Budget Review solicitation and guidelines from the Sponsor Determine and compute the allowable direct costs Calculate the allowable indirect costs Develop and format the budget Create a Budget Justification 1 2 3 4 5 3
  3. Review Solicitation and Guidelines Review: • Sponsor Guidelines • The Solicitation • Request for Proposal (RFP) Look for: • Min./Max. Duration of the project • Floor/Ceiling for budget • Budget limitations and restrictions Specific Sponsor/application questions? Utilize the appropriate DSP contact It is helpful to note the specific proposal you are applying for in the internal budget 4
  4. Review Solicitation and Guidelines • You will need to create and submit any budget that is necessary for the Sponsor (formats/specifications vary from Sponsor to Sponsor) • A budget justification will most likely need to be included with the budget. • Check to see if the solicitation requires mandatory cost share; if not do not include cost sharing as part of the budget 5 Keep in Mind: An internal budget may also need to be prepared alongside the Sponsor budget An internal budget provides an opportunity to include more details that a Sponsor budget may not require Why?
  5. • Determine and specify what direct expenses fit within the Sponsor guidelines and are necessary to complete the project 6 Common Direct Costs • Salary/wages and fringe benefits for all personnel (including students) • Travel costs (both domestic and foreign) • Equipment ( ≥ $5,000) • Materials and supplies • Subawards (direct and indirect costs) Other Direct Costs • Tuition • Participant support costs • Research Subject Compensation • Publication costs • Consultant services • Patient care costs • Computer service center charges Direct Costs This list is not all-inclusive
  6. Direct Costs • Seek assistance from your HR rep. in determining salary base 7 Sponsors may impose a salary cap An effort to months conversion table is available here Personnel Costs – Salary/Wage Expenses • Salary is calculated using 3 basic salary/wage bases: • Calendar Year (CY) – 12 months • Academic Year (AY) – 9 months • Summer Term – 1-3 months
  7. Direct Costs 8 Personnel Costs – Effort Calculations (2) Principal Investigator (PI) • CY appointment, Salary of $72,000 • Monthly salary of $6,000 (one- twelfth of total CY salary) • 25% of the CY effort would equate to 3 CY months (12x.25=3) • The budget figure for that effort would be $18,000 (6,000 multiplied by 3 CY months) (1) Principal Investigator (PI) • AY appointment, Salary of $63,000 • Monthly salary of $7,000 (one-ninth of the AY) • 25% of the AY effort would equate to 2.25 AY person months (9x.25=2.25) • The budget figure for that effort would be $15,750 (7,000 multiplied by 2.25 AY months)
  8. Direct Costs Personnel Costs – Salary Cap 9 • Specific Sponsors or awards may limit personnel salaries • It is recommended that salaries be increased at a rate of 3% per year when making future year budget estimates Example PI salary: $200,000/year Salary Cap =$185,100 (subject to change) If the effort on the project is 25%, determine the amount of salary based on the Salary Cap, not the actual salary of the PI $185,100 x 25% = $46,275 $200,000 x 25% = $50,000  The difference of $3,725 would need to be covered by the individual’s UI Department NIH Salary Cap Information can be found here. ($185,100 in FY2016)**
  9. Direct Costs Personnel Costs – Fringe Benefits 10 Current/Projected Fringe Benefit Rates can be found here Fringe benefits include: • Social Security • University Retirement Programs • Life Insurance • Health Insurance • Disability Insurance • Etc. Contact your HR representative for help with determining appropriate fringe “rate pools” Rate Pools FY 2017 FY 2018 Projected FY 2019 Projected FY 2020 Projected Clinical Faculty 23.02% 23.70% 23.40% 24.00% Graduate Assistants 19.63% 23.00% 24.00% 25.00% Post Docs 19.63% 23.00% 24.00% 25.00% Example of some rate pools and rates
  10. Direct Costs The budget should specify the: • # of trips/days/people • per diem rates for food and hotel • transportation costs • destination(s) More information about specific costs, rates, etc. can be found directly from the Sponsor or at Travel – Domestic and Foreign Keep in Mind: • Allowances for air travel should not exceed round trip coach accommodations • Generally, only persons participating directly in the research may travel on grant funds • Sponsors require adequate justification on requested travel expenses – foreign travel, especially • Sponsor guidelines may establish rates for specific costs. Use the more restrictive rate when UIowa rate differs Note: Specifics may be unknown at time of proposal 11
  11. Direct Costs Equipment costs include expenses for equipment items (useful year: 2 years) that individually cost $5,000 or more. Only allowable if it will be dedicated solely to the project. (Not intended for general office equipment, copiers, office furniture, etc.) Equipment – $5,000 or more More information on Equipment can be found on the Capital Asset Management (CAM) website or the DSP website: UI policy prohibits the recovery of indirect costs (F&A) on direct costs classified as equipment Materials and Supplies • The expendable equipment (equipment costing less than $5,000) and supplies required for the project should be indicated with estimated costs • There should be a breakdown of these items by general classification • Sponsor guidelines usually indicate what needs to be itemized and justified 12
  12. Direct Costs Subawards: A subaward is needed when the UI Department or Principal Investigator would like to collaborate with a colleague at a different entity to complete the goals of the project • See Sponsor Guidelines or policy for any restrictions on F&A • The UI is allowed to recover indirect costs (F&A) on the first $25,000 of each individual subaward for new or competitive proposals • Once the subaward’s total costs (which includes direct and indirect costs) reaches $25,000 the remaining subaward costs will be removed from the modified total direct costs bases (MTDC) in subsequent years for the UI 13 Subaward Direct Costs + Subaward Indirect Costs = Total Subaward The total subaward costs are included in the UI Direct Costs Indirect costs recovered against first $25,000 of each new/competitive subaward
  13. Direct Costs Subaward Example: A subaward has the following amounts in the first 3 years of a Sponsored Project: Year 1: $12,000 Year 2: $15,000 Year 3: $17,000 What amounts would be included in the UI MTDC? 14 In year 1 the full $12,000 is included in the UI MTDC, but in year 2 only the first $13,000 is included in the UI MTDC, and none of year 3 subaward costs would be included in the UI MTDC More information regarding subawards can be found here:
  14. Consultants • Compensation for a Consultant on a project may or may not be budgeted • If the Consultant is a University of Iowa employee they usually will not receive any additional funding for this role • If payment is necessary, if the UI employee is integral to the research, or if they would like publication recognition then the employee should be included in the Personnel section where the appropriate salary and fringe rates apply • External consultants are allowable under most circumstances • For more information on how to determine if a person should be paid through a Professional Services Agreement (PSA) or a subaward please see the link below: 15
  15. Direct Costs Participant Support Costs • Includes costs for non-UI participants to attend a sponsored training, symposium, meeting, or workshop • Costs may include stipends or subsistence allowances, travel allowances, and registration fees paid to or on behalf of the participants such as for a NSF Research Experiences for Undergraduates (REU) program • Participant Support Costs are not to be included as part of the MTDC base for calculating F&A 16 Participant support costs do not include patient care costs or research subject compensation
  16. Direct Costs Patient Care Costs These are costs of routine and ancillary hospital services provided to individuals participating in research programs •These are not costs of care that are specifically requested for the project (e.g. lab fees for special screenings) •Patient Care Costs are not to be included as part of the MTDC base for calculating F&A Note: Research scans performed at the MR Research Facility are not considered patient care costs and are subject to F&A. (Clinical scans are considered patient care costs) 17 Patient care costs are separate from research subject compensation
  17. Direct Costs Subject Compensation These are reimbursements given to human subjects for participating in a research project/study. Human Subjects are defined as living individuals about whom an Investigator conducting research obtains data or identifiable private information through an intervention or interaction with the individual.  Payments may be made via check, cash, gift cards or any other item of value.  Reimbursements for travel or other costs are not considered compensation and are not covered under the GAO policy for Subject Compensation. administration/research-subject-compensation-policy-procedures 18 Note: These costs are included in the MTDC.
  18. UI policy prohibits the recovery of indirect costs (F&A) on tuition- Direct Costs • Tuition costs for most Sponsors can be charged to a funding source up to 100% of the full amount of graduate tuition (this includes both grants and contracts) • For Graduate Students, UI departments are required to budget at least the minimum levels for stipend and tuition costs established by departments. • Tuition costs are excluded from the MTDC Tuition 19 More information regarding tuition: • • Registrar office schedule with fees • COGS Agreement
  19. Indirect Costs • Indirect costs are those costs that cannot be directly traced to a part of the project. These costs are also known as Facilities & Administrative (F&A) costs or overhead • F&A or Indirect costs are REAL costs that The University of Iowa incurs in order to operate Allowable Direct Costs + Allowable Indirect Costs (F&A) = Total Project Costs Indirect Costs = Modified Total Direct Costs (MTDC) x Appropriate F&A Rate 20
  20. Indirect Costs • The first step in calculating total indirect costs (F&A) is to determine the Modified Total Direct Cost base (MTDC) Determining the MTDC MTDC = Total Direct Costs - Exclusions Indirect Costs = Modified Total Direct Costs (MTDC) x Appropriate F&A Rate Exclusions x • Equipment ( ≥ 5,000) • Student tuition remission • Subcontract costs above $25,000 • Participant support costs • Scholarships and fellowships • Patient care costs • Rental costs of off-site facilities • Capital expenditures 21
  21. 22 Indirect Costs MTDC Example Personnel $37,000 Travel $3,000 Equipment $10,000 Research Subject Compensation $750 Materials/Supplies $5,000 Tuition $8,500 $45,750 Answer: a) $64,250 b) $45,750 c) $54,250 d) $55,750 Remember: tuition, equipment, participant support costs, patient care costs, and subawards greater than $25,000 of each subaward are excluded from MTDC, subject compensation is included. A budget is broken down as follows for a one year project. What is the MTDC (Modified Total Direct Cost) base?
  22. Indirect Costs • Facilities and Administrative (F&A) rates are established for reimbursing institutional overhead and other expenses associated with Sponsored Projects F&A Rates Indirect Costs = Modified Total Direct Costs (MTDC) x Appropriate F&A Rate Check to see if the Sponsor limits or restricts indirect costs from anything other than the UI Federally negotiated rates You can fill out a F&A reduction request form, but there is no guarantee it will be accepted. For questions call or email DSP. PROJECT CATEGORY F&A RATE BASIS Organized Research* 52.5% MTDC Instruction 45% MTDC Other Sponsored Activities 28.5% MTDC Off-Campus – All Programs 26% MTDC Corporate Funded Clinical Trials 26% TDC Federally Negotiated F&A Rates as of 1/1/17 23
  23. Format the Budget • Different Sponsors require different formats for budgets • Check the solicitation and general guidelines to determine if a specific program, form, or system is required for submission 24 Internal Budget Remember: • Apply correct fringe and F&A rates to both the Sponsor and internal budgets • The internal budget must match Sponsor budget categories • The DSP website has several budget templates for your convenience • An internal budget should also be prepared if the Sponsor’s budget is not detailed • The internal budget is extremely helpful for DSP and Grant Accounting in their review/post-award management
  24. Format the Budget Cayuse 25 Common Program Applications DHHS agencies and other federal agencies (NIH, CDC, AHRQ, etc.) NSF NASA Foundations/Private Funding NSPIRES Various forms and systems Fastlane Modular budget R&R budget
  25. Budget Justification A Budget Justification template is available here Budget Justification writing tips: • Follow the Sponsor proposal instructions closely • Organize and align budget items for ease of review • Provide adequate detail for items on the budget • Explain why every cost/cost category on the budget is needed to accomplish the proposed project • Make it clear that all budget requests are reasonable and consistent with Sponsor and University guidelines Budgets usually require justification that is a narrative explanation designed to help the Sponsor evaluate the expenses proposed for the project 26
  26. NIH Modular Budgets 27 When can you use the NIH Modular budget format? • R01, R03, R15, R21, and R34 programs allow modular budgets (however, AHRQ does not accept modular budgets) • Project direct costs must be $250,000/year or less How to budget? 1. Request DIRECT costs in $25,000 increments a) Subaward/Consortium direct costs are included in these increments b) Subaward/Consortium indirect costs are added on a separate line on the modular budget 2. INDIRECT costs are calculated based off the MTDC If the budget is less than $250,000 per year and using R&R, check the solicitation/FOA to make sure R&R may be used.
  27. NIH Modular Budgets 28
  28. Budget Justification 29 Modular Budget Justification • Personnel Justification is required for ALL modular budgets. This includes listing all personnel (names, person months, and roles). Salary information should not be included • An additional narrative should mention any MTDC exclusions • Subaward/consortium (if applicable) The justification for modular budgets with subawards should include an estimate of total costs (direct and F&A), list of individuals and organizations, and the personnel justification for that institution
  29. Routing Form 30 Initial Year ALL costs for ALL budget years
  30. Cost Share 31 * Sponsors may require cost share
  31. 32 Indirect Costs = Modified Total Direct Costs (MTDC) x Appropriate F&A Rate Summary Allowable Direct Costs + Allowable Indirect Costs (F&A) = Total Project Costs 5 Steps for Creating a Budget 1. Review solicitation and guidelines from the Sponsor 2. Determine and compute the allowable direct costs 3. Calculate the allowable indirect costs 4. Develop and format the budget 5. Create a Budget Justification Information regarding the MTDC basis and the F&A Rate Agreement can be found here.
  32. Resources • Fringe Rates • F&A Rate Decision Tool • F&A Rates • UIRIS (University of Iowa Research Information System) • SPRIE (Sponsored Projects Research Information Electronically) • DSP Policies and Procedures • Cayuse • Fastlane • NSPIRES • • Other e-Systems • Budget Templates • Budget Justification Template 33
  33. Resources • Further questions? Start at the DSP website: DSP Office Phone #: 319-335-2123 DSP email: DSP Staff Contact List (specific agency questions) DSP Frequently Needed Information DSP Budget Preparation Information Grant Accounting Office Staff Contact List Grant Accounting Office Phone #: (319) 335-0062 34 DSP is located in: 2 Gilmore Hall 112 N. Capitol St. Main Office Hours: Monday through Friday 8:00 a.m. - 5:00 p.m. Gilmore Hall
  34. Thank You 35

Notas do Editor

  1. This rate is consistent with the rate established by NIH and is considered an acceptable rate to most federal agencies. When dealing with the NIH salary cap in particular, DSP will accept budgets that abide by the salary cap as well as those that choose to escalate the salary cap over the project period. Be aware that if the proposal is funded, NIH will look at the current salary cap and fund no more than the effort needed for the current salary cap.
  2. Refrain from mentioning consultant compensation as an “honorarium”