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Budgeting 101

Budgeting 101. Presented by: The Office of Sponsored Programs and the Office of University Advancement. 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?

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Budgeting 101

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  1. Budgeting 101 Presented by: The Office of Sponsored Programs and the Office of University Advancement

  2. 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 the sponsor support/not support? • Does the sponsor provide flexibility to re-budget between categories once funds are awarded? • Is cost sharing mandatory/disallowed? • What can I do with a reduced award amount?

  3. 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 • Divide the projected costs by the number of participants to determine if your price per participant is reasonable

  4. An example of a recent grant awarded through the Walmart Foundation’s State Giving Program: The Foundation, based on a recommendation from the Virginia Advisory Council (Walmart State Giving Program), awarded a $40,000 grant to the Virginia Association of Free Clinics (VAFC). VAFC operates 33 clinics throughout Virginia and offers free dental care to qualifying individuals without healthcare coverage. This grant funded the cost of the equipment needed to cover three dental exams for 600 patients.

  5. An example of a recent grant awarded through the Andrew W. Mellon’s Higher Education and Scholarship Program: Franklin & Marshall College, Lancaster, Pennsylvania received a grant of $500,000 to support integration of the Phillips Museum of Art and the Franklin & Marshall curriculum.

  6. An example of a recent grant awarded from the Geraldine R. Dodge Foundation: The Rutgers-Camden Center for the Arts received $40,000 for general operating support of educational and community outreach programs in Camden including Pre/K-12 Arts-in-Education Programs, Arts Integrated Curriculum & Teacher Development Programs and Community Arts Programs.

  7. Cost of conducting the project: The formula for calculating the cost of conducting a project is: direct costs + indirect costs (F & A) + cost sharing total costs

  8. What are direct costs? • Salaries and wages • Fringe benefits • Consulting/stipends • Travel • Equipment • Materials/supplies • Subawards/subcontracts • Publication • Dissemination • Participant support costs • Other • “Other” may include: • Student tuition & fees • Advertising fees • Rental fees • Current fringe rates: • 37.95% full-time new employees • 7.65% overload, summer, course release, or part-time • No fringe on student wages

  9. Fringe costs Rates are set by the State and change every year, usually around December-January. A copy of the current fringe rate agreement can be found linked to our home page: www.rowan.edu/grants Hidden costs to be a university employee

  10. What fringe rate do I use? Use 37.95% when you are budgeting for: A new, full-time employee or post-doc Use 7.65% when you are budgeting for: Summer hours (10 month contracts) Any part-time non student employee Overload compensation/course release/buyout No fringe on: undergrad or grad students

  11. What are indirect costs? Also referred to as overheadorFacilities & Administrative costs (F&A). These are costs associated with operating a project • Universities have a federally approved rate • Rowan’s current rate is 42% of Modified Total Direct Costs (MTDC) for on-campus projects. The off-campus rate (i.e. pay rent) is 17% MTDC. Industry-sponsored projects are 21% MTDC. • Most foundation/corporations do not allow indirect costs

  12. Current rate agreement covers period July 1, 2012-June 30, 2016. Notice the gradual rate increase in 2014. A copy can be found linked to our homepage: www.rowan.edu/grants

  13. “This is the easy part. The challenge will be figuring out the indirect costs for the grant proposal.”

  14. MTDC MTDC include all direct costs EXCEPT: Equipment over $5000/unit (anything under this value is considered “supplies”) Charges for patient care Student tuition remission Rental costs of off-site facilities Scholarships and fellowships The portion of each subaward in excess of $25,000

  15. Determining MTDC Supplies $2000 Travel $1500 Graduate Assistant $15,000 Tuition remission $30,000 Subcontract $30,000 Giant calculator $6000 Total direct costs: $84,500 Which of these are included in the MTDC base? Supplies $2000 Travel $1500 Graduate Assistant $15,000 Subcontract $25,000 MTDC (42%) $43,500 Indirect $18,270 Other costs: Giant calculator $6,000 Tuition remission $30,000 Remainder of subcontract $5,000 TOTAL COSTS: $107,770

  16. What is cost sharing? Defined as that portion of the project costs not borne by the sponsor and borne by the university or third-party • Can include: • Cash, supplies, or equipment donations • Use of space/facilities • Cost of renovating the space • Indirect costs (if sponsor has rate restriction) • Salaries/fringe • Volunteered time/services • Can be mandatory, voluntary, or disallowed • Must be approved by chair and dean • Must be verifiable

  17. Budget Appearance Counts • Use the budget format requested • If no format is provided, we can provide a template • Round figures to the nearest dollar • Consider including an annual increase for multi-year budgets

  18. Don’t forget to include a budget justification!

  19. I received an award …. Now what?

  20. The Notice of Award: • Is a legal document issued to notify the grantee that an award has been made and details 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 • Reporting requirements • Accepting the award- must be facilitated by OSP/CFR • Only the person authorized to legally represent Rowan may sign for an award

  21. Things to Remember: • Awardees are responsible for managing the day-to-day operations of their award and for submitting required narrative/technical and financial reports during the life of the award • OSP/CFR will work with you to submit proposals and reports • To ensure effective stewardship of the funds, a Banner FOAPAL will be assigned to your award • Need to know whether budget transfers/extensions permitted or whether prior approval is required from the sponsor • Any deviation of contract/work/timeline must be approved by OSP/CFR

  22. Questions? • Office of University Advancement • Deanne Farrell, Director of Corporate and Foundation Relations (256-5418) farrelld@rowan.edu • Office of Sponsored Programs • Stephanie Lezotte, Assistant Director (256-4124) lezotte@rowan.edu Mark your calendar: October 11 12-1 p.m. How to Write a Winning Grant Proposal

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