Developing a Grant Budget

1. Developing a Grant Budget College of Arts & Humanities University of Central Florida March 1, 2010

2. Budget

3. Your Goal • To develop a budget that is • Reasonable • Appropriate • Allowable • Draft a rough budget FIRST before writing the proposal • Your time, other faculty, students, etc. • Expenses (travel, materials, consultants, equipment) • Indirect

4. Budgeting Basics • Getting Started – Resources needed • Types of Costs • Personnel • Expenses • Equipment/Capital Outlay • Participants • Subcontracts • Cost Share or Match • Indirect Costs • Budget Narrative

5. Have Source - Getting Started • Find the budget section in the RFP • Work from the RFP budget format (form) • Read the full RFP for more guidance • Always budget whole dollars • Beware that expenses are allowed unless the RFP specifically prohibits* • *Must align with OMB A-21 see handout http://www.research.ucf.edu/sponsoredprograms/Proposal/budget/allowablecosts.htm

6. Resources You Will Need • Kristin Wetherbee- kristin@mail.ucf.edu • Ext. 3-0908 • Salary schedules • CAH process • UCF Rates: Fringe, Travel, & Indirect Cost (F&A) http://www.research.ucf.edu/SponsoredPrograms/Proposal/factsheets.html

7. Types of Costs • Personnel • Expenses • Equipment/Capital Outlay • Participants • Subcontracts • Match or Cost Share • Indirect Cost

8. Personnel Costs • Personnel may be the largest part of your budget • So estimate these costs early (after indirect)! • Salaries and fringe benefits are calculated as separate costs on the forms.

9. Salaries • Follow UCF’s salary schedules (see Kristin) • The project year may not be the same as your salary year • Add in any special payments or stipends. • Factor in a 3% salary increase for multi-year grants (and consider step increases) • Full-time employees typically work 2080 hours per year (40 hours/week x 52 weeks/year)

10. Graduate Research Assistant • New UCF policies on hiring GRAs and tuition waivers available at: http://www.research.ucf.edu/SponsoredPrograms/Proposal/forms/GraduateTuitionRegulations.pdf

11. Fringe Benefits • 32.11% of full-time salaries (see Kristin) • 1.46% of OPS salaries & Adjuncts • .01% of student salaries • 11.66% Post Doc • UCF schedule of fringe benefits http://www.research.ucf.edu/SponsoredPrograms/Proposal/forms/Fringe_Rates.pdf

12. Personnel Considerations • Have you included all required personnel? • Two part-time positions may be less expensive than one full-time position. • Consider the use of internal staff vs. external staff. • Provide (course) release time for project personnel. • Make sure the salary classification is appropriate to the job. • Supplementing vs. supplanting • What happens when the funding ends?

13. Equipment or Capital Outlay • Typically refers to equipment, but may include • Some library costs • Construction • Equipment • nonexpendable property over $1,000 • useful life of more than one year • This includes software purchase with the same dollar value.

14. Equipment • Equipment below $1,000 threshold should be placed in the supplies or other direct cost budget line item ($5,000 federal) • Bidding or estimating costs. • Capital equipment purchases from any source of funds over $10,000, which must have CAH approval http://www.research.ucf.edu/SponsoredPrograms/Contracts_Grants/projmmgt/expenditures.htm

15. Equipment Considerations • Limits on equipment • You must provide a list with descriptions and per item costs • Include costs for shipping, installation, training, maintenance, additional supplies • Purchase early and must be tracked • Transfer of ownership

16. Participant Costs • Typical costs include: • Training (tuition, books, materials, fees) • Stipends or honoraria • Meals • Lodging • Travel • Miscellaneous (art materials & supplies, insurance, training materials, etc.)

17. Participant Cost Considerations • Calculate the cost per participant • There may be a limit on this cost • Some costs may be disallowed • T-shirts • Food

18. Expenses • Typically includes: • Materials & supplies • Travel (must indicate international) • Contractual services (consultants, other) • Tuition • Other • Optional to factor in increase- • Tuition - 5% • Travel - 10%

19. Travel • Often treated separately • Provide detailed calculation

20. Other Expenses • Publications/Printing • Postage • Maintenance agreements • Telephone • Special fees • Honoraria

21. Expense Considerations • Think about hidden costs to the organization • Make sure it’s allowable (ask Kristin or ORC) • OMB circular A-21 • Other guidelines • RFP

22. Contract Services • Employee or contractor? • Special Consultants • Maximum day rate? Ask ORC • Vendor Contracts • Negotiated by procurement, not faculty…

23. Agency Max. Rate No Specific Limit except $513/day for U.S. Dept. of Education Rehabilitation Training Program grants National Endowment of the Humanities None Specified National Endowment of the Arts None Specified National Aeronautics & Space Up to Level IV of the Executive Schedule Administration (NASA) (exclusive of expenses and indirect costs ) None Specified National Institute of Health (NIH) Note: The NIH salary cap does not apply to payments made to consultants. National Science Foundation (NSF) $537/day Maximum Salary Rates

25. Subcontracts or Sub-awards You will must obtain 3 items: • 1. Letter of Commitment – with authorized signature • 2. Detailed Statement of Work • Deliverables • Timeline (consider your start/end dates) • 3. Detailed Itemized Budget & Narrative • (call me if you need examples)

26. Subcontracts • Subcontracts in excess of $1,000,000 must receive approval from UCF President • Subcontracts in excess of $50,000 require bid process • Over 50% of total $ - ORC approval • UCF charges facilities and administrative costs (F&A) on the first $25,000 of each subcontract through the life of the project period.

27. Subcontract Considerations • Recommend discussing with OOR Contracts Manager (terms & conditions) • UCF has a standard contract form • If you name a contractor in a proposal, it may be binding. • “the disclosure should include a clear description of the work to be performed, and the basis for selection of the subawardee (except for collaborative/joint arrangements)”

28. Cost Share or Match • Is it required? • Cash match • In-Kind Contributions • Calculate as if in the budget • How much MORE will the program cost? • What have you not included?

29. Cost Share or Match • Reasonable, justifiable, and verifiable • Cash or in-kind • Can’t match federal grants with other federal funds • Don’t use the same match twice. • Third party in-kind must be tracked just like UCF cost share • http://www.research.ucf.edu/SponsoredPrograms/Contracts_Grants/projmmgt/ucf_costshare.htm

30. Cost Share or Match Sources • UCF Federal Match Program • Faculty FTE (.05 -.10 FTE) • Always requires department/CAH approval • New equipment purchases • Service Learning – volunteer (tracking) • Building space (off campus – not UCF) • Must document

31. Cost Share Considerations • Must fund and track (must be allocable) • Legal commitment • Subject to audit • Make sure costs aren’t part of the indirect calculation • Match account handled by CAH • Watch grant budget dates and fiscal year budget dates

32. Indirect Costs • Also called Facilities & Administrative costs (F&A) or overhead • Costs borne by UCF to support sponsored projects that cannot be clearly identified with a specific project • Includes: • Infrastructure • Facilities • Administration (26% maximum)

33. Indirect Costs • Federally approved indirect cost rate http://www.research.ucf.edu/SponsoredPrograms/Proposal/F_A_Summary_of_Rates.html • Recovering indirect costs can be significant Estimate these costs first! • $250,000 / 1.44 = $173,611 Total Cost available • = $76,389 Indirect Costs • Sometimes limited or disallowed by funders

34. Distribution of Indirect • 55% Office of Research & Commercialization • 45% College of Arts & Humanities • 10% Department • 10% Principal Investigator • The departmental and PI portions will be deposited into to separate accounts. • Each department or program must keep accurate records on indirect dollars.

35. Indirect Cost Considerations • Understand the costs that have been included in UCF’s calculation of the indirect cost rate • These costs CANNOT be budgeted as direct costs • Understand your policy about indirect • UCF requires a written statement from the funder to disallow indirect • How is indirect used?

36. Budget Narrative • Make your case that the budget is reasonable, appropriate, and adequate. • Describe the policies that govern your budgetary decisions. • Provide detail about items to be purchased. • Indicate how costs were calculated. • Insert parts of the spreadsheet as tables. • Make sure the budget narrative is consistent with the grant narrative.

37. Thank you! Any questions: College of Arts & Humanities Kristin Wetherbee, kristin@mail.ucf.edu x3-0908, Office of Research & Commercialization Celeste Rivera-Nuñez, Paula Seigler crivera@mail.ucf.edu, pseigler@mail.ucf.edu x2-1155, x2-1129 Jo Ann Smith 407-823-2223 joasmith@mail.ucf.edu