200 likes | 325 Views
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
E N D
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 • .25 Revision of budget and program plans • Outlines the requirements for grants and agreements with Institutions of Higher Education
Basic Grant Budgeting • Follow the RFP guidelines • Know the terms and conditions of your award
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
F&A Costs Base X Rate = Indirect Costs (F&A)
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
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
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.
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.
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?
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.
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
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?
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.
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