Budget Preparation

1
Budget Preparation

• Maja Podboj, Sponsored Programs Manager

2
Proposal Budget

• Economic Feasibility of the Project
• Monitor Financial Activities

3
Compliance

• OMB Circulars A-21 A-110
• Purdue University Budgeting Standards
• Agency Guidelines (RFP)

4
Before starting

• Task Timeline

5
Categories of Expenses

• Total Project Costs
• Direct Costs Indirect Costs

6
Direct Cost Elements

• Salaries
• Principal Investigator - 5 increments
• Other Key Personnel
• Students
• Graduate 25 increments
• Fee Remits
• Fringe Benefits (University Rates)
• Supplies
• Equipment 2,500 vs. 5,000
• Subcontracts vs. Consultants
• Travel (Domestic Vs. International)
• Other Costs

7
Indirect Costs

• Negotiated by DHHS
• 45 MTDC
• Excluded
• Stipends (fellowships)
• Tuition and fees
• Overseas allowances
• Capital Equipment
• Subcontract costs over 25k
• Rental of capitalized equipment
• Space Rental
• Capitalized Alternation and Renovations

8
Sample Budget
9
Budget Form

• http//www.calumet.purdue.edu/ord/Budget.xls

10
Cost Sharing

• Portion of the program costs that are not borne
  by the sponsor
• Has to be mandatory
• Cost sharing budgets are same as sponsor budgets
• Charge fringe benefits and indirect costs

11
Budget Justification

• DETAILSDETAILSDETAILSDETAILS

• Explain how all costs were determined
• Explain why equipment is needed and how it will
  be used in the project
• Provide written price quotations for expensive
  items of
• equipment
• To make your proposal more attractive, identify
  existing special equipment or unique facilities
  that your institution owns that will be used in
  the project

12
Tips

• Do not inflate the budgets significant over-or
  under estimating suggests you dont understand
  the scope of the work.
• Budgets are often negotiated as a proposal is
  being considered but a clear, realistic budget
  request strengthens a proposal.

13
Still Lost???

• Visit us CLO 176
• E-mail us research_at_calumet.purdue.edu
• Call us 219-989-2925