Preparing Your Budget Request

1
Preparing Your Budget Request

• Victoria Rivera
• Office of Sponsored Programs
• Victoria.Rivera_at_ttuhsc.edu
• www.ttuhsc.edu/sponsoredprograms

2
What is a grant budget?

• It is the Principal Investigator/Project
  Directors best estimate of the expenses that
  will be incurred during the course of the
  project.

3
General guidelines

• Your budget
• Should accurately reflect the work proposed in
  the narrative
• Is a firm offer on the part of the institution
• Should carefully follow the sponsors
  instructions and format requirements

4
Budget Detail

• Major categories
• Salaries and Wages
• Fringe Benefits
• Travel
• Equipment
• Supplies
• Subcontracts and Consultants
• Other Direct Costs
• Facilities Administrative (FA) Costs

5
Salaries and Wages

• Anticipated of time each position will work
  directly on grant project (Effort)
• in relation to total time spent on TTUHSC
  duties
• Use current or anticipated salary
• 3 increase for subsequent years
• Graduate Assistants 50 FTE 21,000

6
Salaries and Wages

• Federal grants Calendar Month calculation
• 50 time on project 12 month appointment
• .50 X 12 6 calendar months devoted to project

7
Fringe Benefits

• No flat fringe rate
• Varies according to pay grade, full/part time
  status

• Consists of
• Social Security
• Workers Compensation
• Health Insurance
• Vacation
• Retirement plan payments

• Use calculator at
• www.ttuhsc.edu/sponsoredprograms/benefitcalc.aspx

8
Travel

• Refer to State travel policy
• Registration fees usually allowable
• Check sponsor guidelines for international travel
• Current travel and per diem rates
• www.fiscal.ttuhsc.edu/busserv/travel

9
Equipment

• An article of nonexpendable, tangible property
  having a useful life of more than 1 year and a
  cost of at least 5,000
• Base estimates on catalogue, telephone or written
  quote
• See sponsor guidelines for equipment ownership
  after grant ends

10
Supplies

• Includes
• Expendable equipment
• Lab supplies
• Instructional materials
• Office supplies and computers generally not
  charged directly to Federal grants

11
Subcontracts and Consultants

• Subcontracts transfer a portion of the research
  or work of the prime award to another institution
• For the grant application include
• Subcontractor name(s)
• Detailed budget
• Statement of work
• Consultants
• List by name
• Hourly rate, number of hours, other expenses

12
Other Direct Costs

• Includes
• Duplication costs
• Long-distance telephone charges
• Books and reference materials
• Examples of unallowable costs on federal grants
• (OMB Circular A-21)
• Membership dues (unless specified)
• Entertainment costs (including alcohol)
• Refer to grant guidelines for specific
  unallowable costs.

13
Facilities Administration FA (Indirect Costs)

• Real costs incurred by the institution in support
  of sponsored projects but that cannot be directly
  tied to a specific grant or contract.
• Federally negotiated rate through DHHS
• Research 48.5
• Instruction 35
• Off-campus 26
• Other institutional rates
• Private foundations 25
• Industry sponsors 25
• State agencies 15

14
Facilities Administration FA (Indirect Costs)

• Federal grants use Modified Total Direct Costs
  (MTDC) to calculate FA
• All direct project costs excluding
• Equipment (over 5,000)
• Subcontracts in excess of first 25,000
• Capital expenditures
• Rental and lease costs
• Patient care
• Tuition remission
• Scholarships and fellowships

15
Cost Sharing

• A commitment made by the institution to fund a
  portion of the total cost of a sponsored project
• Mandatory cost sharing required by sponsor
• Voluntary cost sharing not required by sponsor
• Committed cost sharing amount is specified
• Example Dr. Green 10 effort no funds
  requested
• Uncommitted cost sharing amount is not
  specified
• Example Dr. Green will provide scientific
  direction related to certain (specify) aspects of
  the project no funds requested
• Mandatory and voluntary committed cost sharing
  must be documented (effort reporting)

16
Budget Justification

• Detailed justification of budgeted line items
• Follow the grant guidelines and formatting
  requirements carefully