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How to Prepare a Grant Budget

How to Prepare a Grant Budget. Presented by: The Office of Sponsored Programs. The narrative/project description should drive the budget. There should be no surprises for the reviewer familiar with the narrative/project description Cost estimates should be credible

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How to Prepare a Grant Budget

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  1. How to Prepare a Grant Budget Presented by: The Office of Sponsored Programs

  2. The narrative/project description should drive the budget • There should be no surprises for the reviewer familiar with the narrative/project description • Cost estimates should be credible • The requested budget should be consistent with the typical award given by the sponsor

  3. Questions to ask before preparing the budget • What is the typical size of awards from this sponsor? • What are the real costs associated with conducting this project? • What items will and will not the sponsor support? • Does the sponsor provide flexibility to re-budget between categories once funds are awarded? • Is cost sharing mandatory?

  4. Cost of conducting the project The formula for calculating the “real” cost of conducting a research project is: Direct costs + indirect costs (F & A) + cost sharing Total costs

  5. Salaries for personnel Fringe benefits Student stipends Consulting Travel Equipment Materials/supplies Subawards/subcontracts Other “Other” may include: Student tuition & fees Computers (less than the equipment threshold) Publications Dissemination material What are direct costs?

  6. What are indirect costs? Defined as overhead & administrative costs associated with operating a project • Universities must have a federally approved Indirect Cost/Facilities and Administration rate • Rowan’s current rate is 75% of salaries only

  7. What is cost sharing? Defined as that portion of the project costs not borne by the sponsor • All of the direct cost categories • Cash donations • In some cases it can be: • Space • Cost of renovating the space • Indirect costs • Can be mandatory or voluntary

  8. Budget Appearance Counts • Use the budget format requested • If no format is provided, start the budget on a new page if possible • Use columns that are aligned • Create column headings • Round figures to the nearest dollar • Include a 4-5% annual increase for multi-year budgets

  9. Post Award Functions The Fruits of Victory

  10. The Notice of Award • Is a legal document issued to notify the grantee that an award has been made and the terms and condition of the award. Typically includes information about: • Relevant regulations • Amount of funding • Project and budget period • Restrictions on the expenditure of the funds • Accepting the award • Only the person authorized to legally represent Rowan may sign

  11. Monitoring the Award Requires Everyone to Work Together

  12. Monitoring Your Award • Grantees are responsible for managing the day-to-day operations of their grant and for periodically submitting technical and financial reports during the life of the grant • To ensure effective stewardship of the funds, a separate Banner FOAPAL will be assigned to your grant • Mandatory cost share will be tracked within the same FOAPAL under account 7864

  13. Monitoring of Expenditures • Account budgets should follow the awarded categories • Rowan sets up the budget based on what the sponsor obligates (some obligate the entire project period, others only obligate the current project period) • Only allowable costs are charged to the account • Need to know whether budget transfers are permitted or whether prior approval is required from the sponsor • All direct costs (payroll, purchasing, etc) charged to the account should follow existing Rowan procedures

  14. Payment System • Method of receiving funds varies depending upon the sponsor • Some require invoicing • Some will give you money up-front • Some will allow you to “electronically draw down funds” as expended • All checks received must be reconciled to account

  15. Audit Requirements • All universities are subject to the federal requirements of OMB Circulars A-133 and A21 • This means that all federal awards are subject to an audit • All Recovery Act funded projects are not only subject to audit; but will be audited

  16. Closeout and Record Retention • Sponsors close out a grant as soon as possible after expiration of the grant • Typically within: 30-90 days • If the project has been delayed, you may request a: • No Cost Extension (Extends time with no additional $) • Cost Extension (Extends time and provides more $) • All state, federal, and private grant files must be retained seven years after the termination of the grant

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