Sponsored Programs How to Budget

1. Sponsored ProgramsHow to Budget

2. 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

3. 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

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

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

6. 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

7. COST SHARING Cost Shared Expenses in a Proposal Must Meet the Following Criteria • Identifiable and Authorized • Verifiable in the University’s 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

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

9. 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

10. 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

11. 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 Dean’s 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 University’s Facilities & Administration Rate

12. 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 University’s F & A Rate • As Denominator (the Base) Increases, the % Rate Is Reduced (Numerator Generally Remains in the Same Range)

13. 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

14. 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

15. 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

16. 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

17. 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?

18. Tools to Help With CAS • Review C & G Monthly Reports • Cost Transfer Expenses to Non-Federal Projects • Process a Request To Allow a Direct Charge • Diligence in the Academic Units • Email or Call C & G or DSR With Questions • Use the Right Codes CAS PRACTICAL ADVICE

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

20. 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)

21. COMPLIANCE CONFLICT OF INTEREST • Federal Regulations • PHS/NSFDisclosure of Significant Financial COI • State Regulations • Section 112.313(12)(h) FS • Monitoring Plan • University Regulations • Disclosure of Outside Activities

22. AWARD ADMINISTRATION OFFICE • Post Award Business Transactions • Compliance • Subcontracts Issuance • Close-out & Termination

23. 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

24. 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

25. 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