Sponsored Programs How to Budget

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Sponsored ProgramsHow to Budget

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BUDGETING BASIC CONSIDERATIONS

• Benefit the Project
• Allowable Costs
• Total Cost Concept
• Direct Costs
• Indirect Costs (F A)

The Total Cost Concept Also Relates to Cost
Sharing Cost Accounting Standards Policies
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• BUDGET DEVELOPMENT CONCEPTS
• WHAT ARE DIRECT COSTS?
• Needed to Perform Advance the Scope of Work
• Can Be Accounted for With a High Degree of
  Accuracy
• Easily Identified Allocable to a Specific
  Project

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• BUDGET DEVELOPMENT CONCEPTS
• WHAT ARE INDIRECT COSTS?
• Not Easily Identifiable As a Specific Expense
• Not Easily Allocable to the Sponsored Project

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• BASIC BUDGETING
• MAJOR BUDGET CATEGORIES
• Personnel ( Salary, Fringe, Health)
• Equipment
• Tuition
• Travel
• Project Supplies
• Patient Care Costs
• Other Categories (Subcontracts, Consultants)

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COST SHARING
A Term Describing Any Circumstance Whereby the
University Is Not Reimbursed for Allowable Costs
of Performing a Project Because the Requested or
Approved Budget Does Not Cover the Full Costs
Associated With the Specific Project
Total Cost Concept
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COST SHARING
Cost Shared Expenses in a Proposal Must Meet the
Following Criteria

• Identifiable and Authorized
• Verifiable in the Universitys Accounting Records
• Not Included as Cost Sharing on Another Project
• Necessary and Reasonable for the Project
• Allowable and Allocable Under OMB-A21 (Federal)
• Generally Provided for in the Approved Budget
• Cannot Use Fed Funds to Cost Share On Fed Awards
• Conform to OMB A-110, A21

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COST SHARING

• Any Portion of Project Costs Not Paid by the
  Sponsor
• Matching- for Cash Match (NEH Challenge
  Grants)
• In-kind-Third Party Contributions

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COST SHARING

• Mandatory Cost Sharing
• Required By Law or Regulation
• RFP, RFA, Sponsor Guidelines
• Program Announcement
• Must Be Identified
• Accounted For
• Auditable Accounting System
• Reported to the Sponsor in Fiscal Reports

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COST SHARING

• VOLUNTARY COST SHARING
• Offered by the University
• Not Required By Sponsor or Regulation
• Must Be Identified Authorized By College Dean
• Accounted for in an Auditable System
• May/May Not Have to Be Reported to Sponsor
• Subject to Verification Audit
• Voluntary Cost Sharing Becomes Mandatory Cost
  Sharing When It Appears in the Award Documentation

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COST SHARING
WHY IS COST SHARING IMPORTANT TO YOU?

• Must Be Identified Authorized Before the
  Proposal Is Submitted to the Sponsor
• DSR Requires Copy of Sponsor Guidelines Letter
  From Individual Authorized to Commit Cost Sharing
  for Mandatory CS
• Policy States Letter With Deans Authorization
  for Voluntary CS
• Must Have an After the Fact CS Tracking System to
  Account for CS
• Aggregate CS Has a Negative Impact on the
  Universitys Facilities Administration Rate

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COST SHARING
HOW DOES COST SHARING IMPACT IDC?

• The Aggregate Dollars for CS Are Added Together
• Included in the Base Number (The Denominator)
  Used to Calculate the Universitys F A Rate
• As Denominator (the Base) Increases, the Rate
  Is Reduced (Numerator Generally Remains in the
  Same Range)

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COST ACCOUNTING STANDARDS

• WHAT ARE THE COST ACCOUNTING STANDARDS (CAS)?
• CAS Are Regulations in OMB A21
• OMB A21 States That Direct Costs
• Are Specifically Identifiable on a Particular
  Project
• With A Relative High Degree of Accuracy
• Incurred for Same Purposes, Under Like
  Circumstances
• Treated Consistently As Either a Direct or an
  Indirect Cost

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COST ACCOUNTING STANDARDS
WHY IS THIS IMPORTANT TO YOU? It Is Important
Because Costs You Think Should Be Charged As a
Direct Cost to a Federal Project May Not Be
Allowed to Be Charged to That Project, Even If
They Are in the Approved Budget
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COST ACCOUNTING STANDARDS

• WHAT DOES UF POLICY SAY?
• We Will Charge Project Expenses in Like
  Circumstances the Same Way, Either as Direct or
  Indirect Costs (F A)
• OMB A 21 Identifies Which Expenses Will Be
  Charged Directly Indirectly

Total Cost Concept
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COST ACCOUNTING STANDARDS

• WHAT DOES UF POLICY SAY CAN NOT BE CHARGED
  DIRECTLY?
• Clerical, Administrative, or Secretarial
  Positions
• Postage
• General Office Supplies
• General Computer Supplies or General Software
• Memberships or Subscriptions
• Local Telephone

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• An Example of Like Unlike Circumstances
• THE PENCIL
• When a pencil is a writing tool we use it to
  write with everyday in the course of doing
  business. Is it a direct or indirect cost?
• However, a pencil might be a direct charge if it
  is an item in a training packet being distributed
  with other training materials to participants
  attending a training program. The UF Accounting
  System does not know the difference. What can
  you do?
• A pencil might become a lab supply when a
  scientist is studying the lead composition
  qualities of number 1, 2 3 pencils and
  performing research activities on the pencil to
  demonstrate scientific attributes or prove
  technical theories. The UF accounting system
  does not know the difference. What should be
  done in this case?

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CAS PRACTICAL ADVICE
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BUSINESS ASPECTS
ALERT

• Budgets
• Indirect Cost, Cost Sharing, CAS
• Insurance/Indemnification
• Intellectual Property
• Authorized University Official (Who Signs)
• Compliance, Certifications, Assurances

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ALERT
BUSINESS ASPECTS
COMPLIANCE, CERTIFICATIONS, ASSURANCES

• Human Subjects Protection (IRB)
• Institutional Animal Use Care Committee
• Recombinant DNA/RNA
• Hazardous Waste
• Responsible Conduct in Research (Misconduct)

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COMPLIANCE
CONFLICT OF INTEREST

• Federal Regulations
• PHS/NSF Disclosure of Significant Financial COI
• State Regulations
• Section 112.313(12)(h) FS
• Monitoring Plan
• University Regulations
• Disclosure of Outside Activities

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AWARD ADMINISTRATION OFFICE

• Post Award Business Transactions
• Compliance
• Subcontracts Issuance
• Close-out Termination

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AWARD ADMINISTRATION

• Receives Reviews Funding Documents
• Generates a Notice of Acceptance (NOA)
• Contracts Grants Assigns Account Number
• Engineering Sets up Its Own Accounts
• IFAS Sets up Its Own Accounts (IFAS C G)
• PI Gets Funds Released in C G Using a TR 20

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POST AWARD
THE AWARD ADMINISTRATION OFFICE ASSISTS WITH ALL
POST AWARD BUSINESS FUNCTIONS

• Budget Transfers
• No Cost Extension
• Compliance With Sponsor University Policies
• IRB IACUC Follow-up
• Transfer of Grants to From University
• Subcontracts Sub-accounts
• Close-out

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ELECTRONIC RESEARCH ADMINISTRATION (ERA)

• Federal Commons
• NSF FastLane
• ERA/NIH Commons
• EDISON
• ONR
• American Heart Association
• Grants Electronic Application Proposal Process
  (GEPPS)
• Grants Electronic Proposal Processing
• DOD Central Contractor Registration
• IBM Forms (Purchasing system)
• Others