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Budget Management

Budget Management. Introduction. All sponsored projects require a budget Including modular awards (for Institutional use only) Budgets help ensure that all costs toward completing the project have been anticipated. OMB Circular A-110. Subpart C – Post-Award Requirements

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Budget Management

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  1. Budget Management

  2. Introduction • All sponsored projects require a budget • Including modular awards (for Institutional use only) • Budgets help ensure that all costs toward completing the project have been anticipated

  3. OMB Circular A-110 • Subpart C – Post-Award Requirements • .25 Revision of budget and program plans • Outlines the requirements for grants and agreements with Institutions of Higher Education

  4. Basic Grant Budgeting • Follow the RFP guidelines • Know the terms and conditions of your award

  5. Basic Grant Budgeting • Total Cost = Direct cost + Indirect Cost (F&A) • Direct costs are those costs that can be directly attributed to a specific project • Indirect Costs are those costs that cannot be directly attributed to a specific project

  6. F&A Costs Base X Rate = Indirect Costs (F&A)

  7. NIH Requirements • Prior Approval by agency required when: • Change in Scope • Transferring amounts from trainee costs • Capital expenditures (construction, land or building acquisition) • Need for additional NIH funding • Transfer of funds between construction and non-construction work

  8. No Cost Extensions • Request must be generated by the PI and go through ORSP • Provide written justification • ORSP will authorize the No Cost Extension when applicable or contact agency for approval

  9. Budget Revision Request • Budget revisions must be allowed under the terms and conditions of the award document. • Any prior approvals must be obtained by the department through the ORSP office prior to submitting the budget revision.

  10. Budget Revision • Be sure to recalculate the F&A rate when transferring funds to and from exempt categories. • Transferring funds from an exempt category to a non-exempt category will effect the direct costs available for the project.

  11. Effects of Rebudgets on F&A Expenses • Scenario 1 $50,000 budgeted in equipment is to be transferred to supplies. How much can be rebudgeted to supplies and how much is to be rebudgeted to F&A?

  12. Effects of Rebudgets on F&A Expenses • Answer: The amount being transferred from an exempt category (equipment) should be divided by (1.00 + F&A rate). This quotient can be moved into other direct non-exempt categories. The balance will be added to the F&A budget.

  13. Effects of Rebudgets on F&A Expenses • Example: • $50,000 decrease in equipment • At a 46% F&A rate • 50,000/1.46 = 34,246.57 • 34,246.57 is added to supplies • 15,753.42 is added to F&A

  14. Effects of Rebudgets on F&A Expenses • Scenario 2 • The PI needs to purchase an unbudgeted piece of equipment from the grant and wants to use funds from the supply line. How does this rebudget affect the F&A budget line?

  15. Effects of Rebudgets on F&A Expenses • Answer: • The amount being rebudgeted to an exempt line (equipment) should be divided by (1.00+ F&A rate). This quotient is the amount to be reduced in the supplies category. The difference is the amount to be reduced in the F&A category.

  16. Effects of Rebudgets on F&A Expenses • Example: • $50,000 increase in equipment • At a 46% F&A rate • 50,000/1.46 = 34,246.57 • $34,246.57 reduction to supplies • $15,753.43 reduction to F&A

  17. Questions?

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