Preparing Proposal Budgets

1. Preparing Proposal Budgets Office of Research Services The University of Oklahoma

2. Types of Proposals • Federal • Non-Federal • State or local government • Foundation/Non-Profit • Industry • International • Subcontract/Subaward

3. Budget Components • Direct Costs • Indirect Costs (IDC) – hereinafter referred to as Facilities and Administrative Costs (F&A)

4. Direct Costs • Expenses identified specifically with a particular sponsored project, instructional activity, creative or artistic pursuit, or other institutional activity • Expenses that can be assigned to a particular sponsored project with a high degree of accuracy • Must be allowable, allocable, reasonable & necessary for the program, given consistent treatment and conform to sponsor limitations

5. Typical Direct Costs • Include: • Compensation of employees for work under a sponsored agreement • Related fringe benefit costs • Materials consumed or expended in the performance of the work • Other items of expense incurred for the sponsored agreement provided such costs are consistently treated (e.g., travel, equipment)

6. Facilities & Administrative Costs • Costs incurred for common or joint objectives which cannot be allocated to a specific direct cost activity • Facilities • Salaries of administrative and clerical staff • Office supplies (May be allowable if attributed directly and specifically to the project) • Postage (May be allowable if attributed directly and specifically to the project-no stamps!)

7. Personnel Costs Fringe Benefits Equipment Travel Participant Support Costs Other Direct Costs Research Materials and Supplies Publication costs Consultants Computer/ADPE Services Subcontracts Tuition Other Budget Categories • Facilities & Administrative Costs (F&A) • Cost Sharing Note the following slides are formatted to follow the ORS generic budget spreadsheet which is recommended for all budgets.

8. Faculty – Academic Year Faculty - Summer Professional Staff Post Docs Professional Staff – Limited (temporary) Classified Staff (hourly) Graduate Students (GRA/GTA) Undergraduate Students Other Types of Personnel Costs

9. Fringe Benefits Rates - FY 08

10. Equipment • Items costing over $5,000 and having a useful life of one year or more • Includes freight and shipping costs • May include training and installation • Fabricated Equipment • Exempt from F&A • Raises a red flag

11. Domestic Travel • Airfare, Lodging • Car Rental (Not in Oklahoma) • Per Diem, Mileage • Parking Fees/Pike Pass • Registration Fees • Local Transportation (Taxi, Metro, Shuttle) • Travel to Canada or Mexico is agency specific • GSA Rates (http://www.gsa.gov) • OU Travel Policy link: • http://www.ou.edu/aa/travel.htm

12. Foreign Travel • Airfare • Lodging/Apartment Rental • Car Rental • Local Transportation • Per Diem • Registration Fees • Safety and security costs may also be included dependent on location • Travel to Canada or Mexico is agency specific • May raise a red flag

13. Participant Support Costs • Agency specific (only applicable in limited circumstances) • Intended for conferences, meetings, symposia, training activities, and workshops • Participants or trainees may not be employees • Stipends • Cost of transportation • Subsistence • Other related costs • Raises a red flag

14. Research Materials & Supplies Publication Costs Consultant Services Computer Services Subcontracts Tuition Other Other Direct Costs

15. Chemicals Expendable Equipment Computer Software Computer Supplies Lab Supplies (Gases and Fuels) Cartridges for Copiers/Printers/Faxes Research Supplies (allocable to the project) Reference Materials Other Direct Costs Research Materials & Supplies

16. Other Direct Costs • Publication Costs • Consultant Services • Raises a red flag • Letter of commitment • Computer Services • Subcontracts • Raises a red flag • Entire sub-proposal • Institutional letter of commitment

17. Other Direct Costs - Tuition • Graduate Research Assistant (GRA) labor budgeted on sponsored programs determines the amount of tuition to be budgeted • GRA labor budgeted is multiplied by a percentage to arrive at the tuition amounts requested from sponsor and provided by the Graduate College • Tuition is excluded from F&A FY 09 Cost of Tuition Remission is 34%

18. Other Direct Costs - Other Communication Costs: • Express Mail Charges • Fax Charges • Mobile Phone Services/Pager Fees • Postage (No stamps!) • Telecommunication • Long Distance phone calls • All charges must be directly attributable to project

19. Other Direct Costs - Other • Copying • Animal care costs • Human subject care costs • Maintenance agreements • Audio/visual services • Construction/renovation/remodeling costs • Costs for workshops/conferences/technical meetings (if including food costs, state such in budget & justification) • Contractual/vendor expenses/services/fees • Space Rental

20. Facilities & Administrative (F&A) Cost Rates – FY 10 *Executive Director of ORS decides if the Off Campus rate can be used after review of the statement of work, budget, and budget justification

21. Facilities & Administrative (F&A) Cost Rates • OU’s rate is set by negotiation with Department of Health and Human Services • PI’s cannot negotiate F&A with sponsor • If a sponsor has a rate set that is less than our negotiated rate then we use their rate (however, it must be formally established) • PI may ask VPR to cost share IDC (may not be approved as OU volunteering not to collect our F&A may increase our rate in the future) • The VPR allows use of 26% for most state agencies unless the source of the funds is providing full F&A.

22. Calculating F&A • Identify Exclusions • Equipment • Capital Expenditures • Tuition remission • Rental costs of off-site facilities • Scholarships/Fellowships • Subcontract amounts in excess of first $25,000 (for each subcontract) • Patient Care Costs • Modified Total Direct Base (MTDC) = Total Direct Costs minus exclusions listed above

23. Common Budget Dilemmas • Subcontractor versus Consultant or Vendor • Consultants on Oklahoma Teachers Retirement • Fellowship versus Stipends for Students (Is the student an employee?)

24. Cost Sharing - Sources • PI Contributions • Departmental Contributions • University Contributions • Vice President for Research • Third Party Contributions (Subcontractors, Industry, etc.) • Oklahoma Regents for Higher Education • Contributed and Unrecovered F&A

25. Sponsor-Required Cost Sharing • Equipment • Contributed F&A • Unrecovered F&A (F&A not allowed or F&A associated with Cost Sharing; not in all cases-check guidelines) • Regents Matching Funds

26. Cost Sharing - Issues • May be tracked internally but not reported to sponsor • OU policy on 1% time commitment • If in budget, budget justification, or body of proposal the sponsor may require tracking and documentation to prove it occurred

27. Requesting Cost Sharing from the Vice President for Research • http://research.ou.edu/about/cost_share_req.asp

28. Arithmetic • Fringe Benefit Rate • GRA Tuition Rate • F&A Rate • MTDC Exclusions • Budget Total • Correct? • Within Sponsor Limits? • For All Years?

29. Perform budget review Ensure calculations, fringe and F&A rates are correct Ensure budget conforms to sponsor requirements or limitations Assist with sponsor forms and certifications Ensure that subagreement documents are in line with budgeted amounts Ensure that any cost sharing is approved and documented prior to submission How ORS can help you

30. Useful Link for Proposal Preparation: • http://research.ou.edu/proposal/generic_budget.html Site with downloadable budget templates. Note: If you contact your PDS for a budget template they can ensure you are using the correct rate for the proposal. • http://research.ou.edu/about/rateagr.html Site with downloadable F&A and fringe benefit rate agreements.

31. Preparing Proposal Budgets Proposal Development Specialists Tena Smith (A – D, CAPS & CIMMS): tena@ou.edu or 405.325.6140 Tonya Easley (E – L): teasley@ou.edu or 405.325.3903 Fran Stephens (M – R): fran@ou.edu or 405.325.3904 Matt Berry (S – Z): mberry@ou.edu or 405.325.6131 Tarah Hayes (Tulsa): thayes@ou.edu or 918.660.3382 Proposal Services Main Line 405.325.3901