Grants Landscape III: Grant Budget Development

1. Grants Landscape III:Grant Budget Development Office of Sponsored Programs Raubinger Hall, Room 107 William Paterson University 973-720-2852 November 2008

2. Contact Information: • Staff: • Martin Williams, Director • TBH, Assistant Director for Pre-Award Services • Beth Ann Bates, Program Assistant • Graduate & Undergraduate Assistants • Nina Jemmott, Associate Vice President and Dean, Graduate Studies and Research • Office: • Raubinger Hall 107 • Phone: 973-720-2852, fax: 973-720-3573 • Email: williamsm@wpunj.edu • Webpage: • www.wpunj.edu/osp

3. Agenda • Grants Landscape I • The Office of Sponsored Programs • Resources available to search for grants at WPUNJ • WPUNJ Process, Policies and Procedures regarding grants • Grants Landscape II • Guidelines and proposal evaluation criteria • Project and proposal development • Grants Landscape III† • developing a budget for a proposal • types of expenses • research plan and potential expenses †open to those who are in the process of completing a proposal or have completed Grants Landscape II.

4. Budget Basics • Budget Summary • Total expenses by category • Budget Detail or Narrative • Present as narrative or spreadsheet (or both) • Provides details on expenses by category • Provides fiscal perspective on the project and narrative • No expenses included in the budget that are not identified in the narrative • No expenses in narrative that are not in the budget

5. Terminology • Direct Costs • Indirect Costs (Facilities and Administrative ~ F&A) • Administrative Costs • Overhead or Facilities Costs • Cost Sharing

6. Direct Costs • Costs that can be identified specifically with a particular sponsored project • Personnel (people) • Salary and Wages • Consultant fees and subcontracts • Fringe benefits • Non-personnel (things) • Equipment • Supplies • Travel • Publication charges

7. Direct Costs • Salary and Wages • Undergraduate and Graduate Students (salaries or stipends?) • Post-Docs, Fellows or Research Associates • Part time or Full time personnel • Months and/or Percent of time or effort • Calendar or summer salary

8. Salaries • How to estimate your future salary! • Increases of 4.0% per year • How to estimate a colleague’s salary? • Freedom of information (or just ask) • Sponsored Programs can find out • Summer Salary ~ Faculty • Two months over the summer doing research • Two tenths of your annual salary • 100% of your effort during July and August

9. Salaries • Undergraduate Students • Typical rates $10.00/hour • For 10~12 weeks (summer) • Hours (summer up to 35 hours) • Graduate Students • Typical rates $15.00/hour • For 8 - 9 weeks (summer) • Hours (summer up to 35 hours)

10. Direct Costs ~ Fringe • Salary • Other costs (FICA, Disabilility, Medicare…) are included in the salary • 33.15% Faculty during the academic year and for 12 month employees. • 8.9% Faculty during the summer and part time employees.

11. Direct Costs • Fringe Example • The granting agency will only support summer research salary of $7500.00 over the summer. • These funds must cover your salary and fringe during the summer. What number plus 8.9% of that number yields 7500? • 6887.05+(6887.05*0.089)=7500 • So your salary would be $6887.05 and the fringe based on that value would be $612.95.

12. Indirect Cost • Indirect Cost at WPUNJ • Calculated/negotiated through the Department of Health and Human Services • Based on a percentage of Salary and Wages • 68.8% • Department of Education • 8% for projects they fund (classroom ~ offsite) • Modified Total Direct Costs (MTDC)

13. Indirect Costs • Indirect Costs ~ Costs that are incurred for common or joint objectives: Cannot be identified specifically with a particular sponsored project. • Personnel (people) • Payroll • Accounting • Things • Electricity • Heat

14. Indirect Costs Calculation • Example • A proposal includes 50,000 in salary and fringe and 50,000 in equipment. • The indirect cost is based on the salary portion of the request or ($50,000) and is determined by the indirect rate x salaries • 50,000 x 0.688 = 34,400 • The total request would then be • 50,000 (salary and fringe)+50,000 (equipment)+ 34,400 (indirect) = 134,400

15. Indirect Costs • How indirect is indicated on some proposals • If in the previous example the total request can be listed as 50,000 (salary and fringe)+50,000 (equipment)+ 34,400 (indirect) = 134,400 • Example ~ NSF (and most agencies) • If in the previous example the total request can be listed as 50,000 (salary and fringe)+50,000 (equipment) = 100,000 and the indirect is not listed as part of the grant request • NIH (some cases)

16. Shared Costs • Project funds listed on the proposal that don’t come from the funding agency. • Soft Cost • Funds that the institution already disperses • Hard Cost • Additional or new funds that the institution will disperse • External Matching • Funds that are being applied to the project from other grants or private funds.

17. Difference Between Hard and Soft Cost Sharing Hard Costs Soft Costs Examples Time contributed by volunteers Travel Salary Phone (if the proposal entails a lot of phone usage) • Examples • Dollar for Dollar match • Equipment purchases • Provides the funding agency an idea of the level of commitment to the project • Hidden costs, e.g. Service contracts for equipment

18. Hard Cost Sharing • Expenses that the institution will cover. • Who pays? • Department (Chair’s approval) • College (Dean’s approval) • Provost’s Office • Work up the ladder • Other Funding (Internal/External)

19. Sample Budget

20. Using Excel • Excel is a spreadsheet that is relatively straightforward to use • Quick demonstration of Excel! • Tracks Various costs • Tracks year to year costs • Tracks total cost • Spend some time to learn the program • On campus workshops to learn the basics

21. Budget Categories Summary • Multiple Year Budget? • Adjust for • salary increments • variable expenses • non-repeating expenses • Typical Budget Categories • Salaries • Fringe Benefits • Supplies • Consultants • Travel & Conferences • Equipment (agency defined) • Participant Costs (tuition/stipends, other) • Indirect/Overhead Costs

22. Budget Justification • The budget represents the financial aspect of what you are doing • The budget justification should clearly detail the costs proposed and, in some instances, explain how the cost was determined, i.e., salaries, animals etc.

23. Budget Justification • Compare the budget justification to the budget and make sure all costs are justified. That is if the budget mentions an item the item should be listed in the justification. • Conversely, if the justification mentions an item then the item should be listed in the budget.

24. Workshop Evaluation All responses are completely anonymous. Data will not be reported in a way that could divulge the identity of any respondents. Grants Landscape III: Grant Budget Development November 19, 2008

25. Contact Information Staff: • Martin Williams, Director EXT 3263 • TBH, Ass’t Director, Pre-Award EXT 3794 • Beth Ann Bates, Program Assistant EXT 2852 • Nina Jemmott, Associate VP & Dean, Graduate Studies and Research EXT 3093 Office: • Raubinger Hall 107 • Fax: 973-720-3573 Webpage: • www.wpunj.edu/osp