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Building A Budget

Building A Budget. Jenn Garye, Office of the VP for Research Laura Schaecher, Sponsored Research Administration. Objectives. Understand the concept of building a budget Identify types of costs – direct & indirect Calculating salaries & fringe benefit rates Calculating indirect costs

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Building A Budget

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  1. Building A Budget Jenn Garye, Office of the VP for Research Laura Schaecher, Sponsored Research Administration

  2. Objectives • Understand the concept of building a budget • Identify types of costs – direct & indirect • Calculating salaries & fringe benefit rates • Calculating indirect costs • Budget Exercises • Demo Budget Workbook

  3. The Concept of Building a Budget • WHO? • PI • Co-PIs • Post Docs • Graduate Students • Subawards • WHAT? • Supplies • Auxiliary services • Publication Costs • Equipment

  4. The Concept of Building a Budget • WHERE? • Travel to conferences to present research • Travel to field location to complete research • Work performed on-campus or off-campus • WHEN? • How long does the project period need to be? • WHY? • Justification for the costs

  5. Direct Costs vs. Indirect Costs • Direct Costs • Items that can be specifically identified for a particular project • Reasonable, allowable & allocable • Examples: Salaries, Supplies, Travel, Publication Costs • Indirect Costs • Also known as “Overhead,” “Research Operating Costs,” or “F&A” • Can’t be identified with a particular project, but they are necessary to conduct research • Examples: Administrative Support, Office Supplies, Utilities

  6. Salaries & Fringe Benefits • Generally based on FTE, percent effort, person months • To calculate percent effort – Months on Project / Appointment Months = % Effort • 2 months on project / 12 month appointment = 16.7% effort (Calendar Year) • 2 months on project / 9 month appointment = 22.2% effort (Academic Year) • 1 month on project / 3 month summer term = 33.3% effort (Summer Months) • Do not use hourly rates; FSU does not maintain timesheets for salaried employees • 3% yearly cost of living increase is allowed • 9 mo. vs. 12 mo. Appointment and health insurance • Refer to the Facts Sheet for current fringe rates

  7. Graduate Students • Considered salaried employees • Allowed up to .50 FTE or 20 hours/week per the GAU • Minimum stipend for GA on 0.50 FTE for academic year is $15,000 or if less than 0.50 FTE $19.23/hour • Fringe Benefits • OPS Students Rate • Health Insurance Subsidy • Tuition • FSU requirement for 9/hours per semester • Proportionate to appointment • 1% escalation per year

  8. Other Direct Costs • Equipment • >$5,000 per unit with a useful life of ≥ 1 year • Travel • Must be in accordance with FSU travel policies • Differentiate between Domestic & Foreign Travel • Needs detailed justification • Participant Support Costs vs. Participant Incentives • Support costs are stipends, allowances or fees paid to or on behalf of a participant or trainee, not an employee, who is attending a conference or training • Incentives are items (gift cards, etc.) or cash paid to an individual to participate in a study, such as completing a survey, etc.

  9. Other Direct Costs • Tuition • Materials & Supplies – includes computers or equipment <$5,000 • Publications • Consultants • Subawards • Other items specifically needed for your project

  10. Indirect Costs • Federally negotiated rate • Based on the sponsor, project location, and project purpose • See the Facts Sheet for the current F&A rates • Two Bases • Modified Total Direct Costs (MTDC) • Federal & Federal Flow-through • Total Direct Costs (TDC) • State of Florida • Private

  11. Exclusions from IDC Base • MTDC base excludes: • Equipment • Tuition • Rent (off-site facilities) • Participant Support Costs (not Participant Incentives) • Amount of Subcontracts >$25,000 • Scholarships & Fellowships • TDC base excludes: • Tuition

  12. Cost Share & Funding Caps • Cost Share • FSU policy only allows for cost sharing to the extent required by the sponsor • Voluntary cost sharing is not a factor during the merit review process for Federal Awards (2 CFR 200.306) • Funding Caps • Some solicitations include caps on award amounts • Make sure you can realistically perform the work you are proposing • If Indirect Cost is included in the cap – • (Total Costs – Exclusions) / 1.54 = Direct Costs

  13. Budget Exercise #1 • “I want to submit a proposal for this solicitation.” • “I need some salary – probably about a month.” • Assumptions: 12mo faculty; $130,500 annual salary; ORP plan; Individual Health Ins. • “I need one grad student for a full year.” • Assumptions: $26,100 annual salary • “I need to go to a conference to present my findings and my GA is coming with me.” • “I need to purchase some supplies.” • “I need to publish my findings.” • Indirect Cost • Assumptions: On-Campus, federal research project

  14. Budget Exercise #2 • Budget Justification Handout

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