KUMC Research Institute

1. KUMC Research Institute How to Think Through a Grant Budget Sponsored Programs Administration (SPA) http://www2.kumc.edu/researchinstitute/ Presented by Vickie Eaton

2. Sponsored Programs Administration (SPA) • Assist faculty and staff in acquiring extramural support for research, education and service projects. • Ensure that these projects are conducted in compliance with federal and state regulations, university policies and commitments specified in grants, contracts and other agreements with external sponsors.

3. Sponsored Programs Administration (SPA) • Pre Award – Assist PI with grant proposal development, review and submission • Post Award – New account set up, grants monitoring, and financial reporting

4. How to think through a grant budget • Budget initiation and preparation • Cost Sharing • Multiple projects/Multiple PIs • Subcontracts and subawards • Budget negotiation • Basic science research vs. clinical research vs. educational grants

5. Budget Initiation and Preparation • Develop a budget (financial plan) after the Research Plan is drafted • Estimate project costs based on Aims and Methods proposed in the Research Plan • Make sure all costs are covered, do not over or under estimate the costs needed • Budget Type -Modular budget -Non-Modular budget

6. Budget Initiation and Preparation Total Costs consist of: • Direct Costs Costs that can be specifically identified with a particular project or activity. • Facilities and Administrative Costs (F&A) Costs that are incurred by a grantee for common or joint objectives and cannot be identified specifically with a particular project or program. These costs are also known as "indirect costs."

7. Budget Initiation and Preparation Budget Types: • Modular Format – used for NIH applications that request $250,000 or less per year in direct costs. • Non-Modular Format (see attachment) – used for NIH applications that request more than $250,000 per year in direct costs.

8. Budget – Modular Grant • Request funds in modules of $25,000. There will be no future year escalations. • List all personnel, including names, percent of effort and roles on the project • List the individuals/organizations with whom consortium or contractual arrangements have been made • List equipment item(s) needed for the project • Make sure you have enough funds needed for supplies and other project costs after personnel costs are determined

9. Budget – Non-Modular • Permission is required from NIH at least 6 weeks prior to the anticipated submission of any application requesting $500,000 or more in direct costs for any year. • Investigators submitting an NIH application seeking $500,000 or more in direct costs in any single year are expected to include a plan for data sharing or state why data sharing is not possible. • Costs requested must be allocable, reasonable and allowable under OMB Circular A21.

10. Budget – Non-Modular, cont. Budget Categories: • Personnel • Consultants • Equipment • Supplies • Travel • Consortium/Contractual Costs • Other Expenses • Unallowable Costs

11. Budget – Non-Modular, cont. Personnel • Provide brief descriptions of duties for all positions listed in the budget, with the percent of effort requested (in calendar month) each year and any anticipated fluctuations. • “To be named” personnel are often deleted by reviewers. • List Institutional Base Salary (all sources including teaching, research and clinical) for each individual. • Current salary limitation on NIH proposal is $191,300. • KUMC Fringe Benefits - Faculty and Staff: 28%, Students: 2%. • Use inflationary or escalation factors as appropriate.

12. Budget – Non-Modular, cont. Consultant • Whether or not costs are involved, provide the names and organizational affiliations of all consultants. • Describe the services to be performed include the number of days of anticipated consultation, the expected rate of compensation, travel, per diem, and other related costs.

13. Budget – Non-Modular, cont. Equipment • List each item with acquisition cost of $5,000 or more. - Estimate the cost of equipment using an appropriate cost estimation method such as vendor quotes or catalog prices. Make sure that sales tax, duty, transit insurance, freight, and installation charges are included in the estimated cost.

14. Budget – Non-Modular, cont. Supplies • Itemize supplies in separate categories, such as glassware, chemicals, radioisotopes, • Animal purchase needs to be specified with the species and the number to be used. • Office supplies are normally treated as F&A costs, NOT direct costs, on NIH research grant.

15. Budget – Non-Modular, cont. Travel • List domestic travel and foreign travel separately. Foreign travel is defined as any travel outside of Canada and the United States and its territories and possessions. • Estimate airfare, hotel and ground transportation (e.g., rental car) costs.

16. Budget – Non-Modular, cont. Other Expenses • Itemize any other expenses by category and unit cost, such as animal maintenance, publication costs, computer charges, service contracts, equipment maintenance, rentals and leases. • Postage, local phone charges & memberships shall be treated as F&A costs on NIH research grants.

17. Budget – Non-Modular, cont. Unallowable Costs: • Food • Alcoholic beverages • Employee parking fees • Entertainment charges • Cell phone • Any other unallowable costs specified by sponsor (i.e. books, PI salary, membership….)

18. Budget – Non-Modular, cont. Consortium/Contractual Costs Collaborative arrangement in support of a research project in which part of an activity is carried out through a formal agreement between a grantee and one or more other organizations.

19. Budget – Non-Modular, cont. Patient Care Costs • Provide the names of any hospitals and/or clinics and the amounts requested. • List the number of patient days, estimated cost per day, and cost per test or treatment. • Provide inpatient and outpatient costs separately. • If multiple sites are to be used, provide detailed information by site.

20. Budget – Modular/Non-Modular F&A Costs (Indirect Costs) • KUMC F&A rates: On campus – 50% of MTDC* Off campus –26% of MTDC* Training/Instruction – 41% of MTDC Other Sponsored Activities – 33% of MTDC (Clinical trials should use this rate for budget calculation) * The basis for F&A costs calculation. The basic indirect costs are calculated on a subset of direct costs, normally excluding equipment, patient care, tuition, scholarship, space rental, alterations and renovations, and subcontract costs in excess of the first $25,000.

21. Cost Sharing Cost sharing is the portion of project or program costs not borne by the Federal Government. • Mandatory Cost Sharing - required by the funding source. • Voluntary Cost Sharing- committed but not required by the funding source. • Please remember that all cost share is AUDITABLE. PI and Department/Center must be accountable for cost share that is committed. *Do not propose more than what is required!

22. Multiple projects/Multiple PIs • Detailed budgets by project/core are required for Program Project grants (P01), Research Center Grants (P20,P30,P50..) and Multiple PIs grant

23. Subcontracts and Subawards • F&A costs shall not be applied to the subcontract amount in excess of $25,000 • If proposal involves personnel from KU and no other costs, KU personnel should be listed in the personnel category. When grant is awarded the associated F&A for KU personnel will be reallocated from our F&A budget to KU.

24. Budget negotiation What to cut when your grant is funded for less than you requested? -Aims may need to be revised -Revise key personnel effort -Seeking institutional support -Do not let sponsor make the decision for you

25. Basic Research vs. clinical research vs. educational grants • Budget items unallowable on research grant may be allowable on educational grants. e.g. office supplies & membership • Budget for clinical research (per patient costs) shall have full F&A rate included unless it’s capped by the sponsor

26. SPA Pre- Award Contacts Mei-Shya Chen, Director mchen-su@kumc.edu8-1259 • Pre-Award Services 8-1251 spa@kumc.edu Vickie Eaton 8-1239– Funding opportunities, PI last name beginning with A thru G Anca Geana 8-5717 – H thru Q Elena Reyes 8-5361– R thru Z