GRANT BUDGETING II Present by Josephine Wong / Marta Cenac Office of Research and Grants, APU April 23, 2014
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GRANT BUDGETING II
Present byJosephine Wong / Marta Cenac
Office of Research and Grants, APUApril 23, 2014
OBJECTIVES
7 grant budgeting tips 6 grant budgeting FAQ answers A brief introduction to Federal grants budgeting Discussion A glance of ORG budget template (if time allows)
BUDGETING
Is a part of project _____ process
_________ all “Needed” resources
Is an _________ Is the , if
awarded.
DESIGN
QUANTIFY
ESTIMATE
SPENDING PLAN
GRANT BUDGETING TIP # 1START WITH STEP ONE
1st question – Why am I doing this? 2nd question – How much do I need? 3rd question – How much can the funder provide? 4th question – What kind of expenses are allowed or
disallowed? 5th question – How can I present the need in a smart
way?
THE FOUNDATION OF A GRANT BUDGET - 5 WS
WHY
WHAT
HOW
WHO
WHEN
OBJECT-IVE
TEAM
TIME-LINE DESIGNGOAL
1. WHY - _________2. WHAT - ___________3. HOW - __________4. WHEN - ___________5. WHO - __________
6 BUDGET STEPS
1. 2. 3. 5.4. 6.
Write down the
NEED
Des-cribethe
budget
List in a form
Know the
limit
Know the Re-
quire-ment
Put a cost to each
NEED
-Needed Resource-Be Real-istic
List by categoryDescribe the benefit
Use Funders’ provided template
Need > Max allow-Minimize-Cut-Re-design
-Funders CFP- APU- School / Dept
- Unit price- # of unit
GRANT BUDGETING TIP # 2PERSONNEL
Read the CFP/RFP – Is it allowed? Is there a max?
Estimate the time/effort you/your team need for the project
Know APU’s policies: Max work load, buy-out policies, Employee handbook, Conflict of Interest…
Budget Employee Related Expenses with Payroll
GRANT BUDGETING TIP # 3INDEPENDENT CONSULTANTS/CONTRACTORS ORSUB-AWARDEES?
Independent Contractors and Consultants provide SERVICE to your project. It is a “JOB” for them.
Sub-awardees involve in the design and collaborate with PI together towards the goal of the project.
Treatment is different, if awarded. Independent Contractor - APU →An individual Sub-awardee - APU ↔ Another Institution
GRANT BUDGETING TIP # 4PERSONNEL AND CONTRACTORS
Try to avoid TBN (To-be Named, To-be Determined)
Team members’ qualification and bio are very important to the proposal evaluation
Hard to estimate the right money figure for the work
GRANT BUDGETING TIP # 5AVOID LUMP SUM REQUEST
help justify a request clearly show your “thoughtfulness”
GRANT BUDGETING TIP # 6ALLOW FOR INFLATION
Cost often increases each year Yearly escalator factor is appropriate to be
included ORG grant template use 3% as the salary
escalator rate per year
GRANT BUDGETING TIP # 7ESTIMATE
Rule of thumb: as close to the real spending as possible
Equipment budgeting - include a printed quote.
GRANT BUDGETING FAQ # 1- WHY I CAN’T INCLUDE THIS ITEM?
Know the limit and requirement (Both Funders’ and APU’s)
Read the Call for Proposal and guideline in detail OMB Circular A-21 offers four tests :
Be reasonable Be allocable Be consistent Be conformable to the sponsored agreement
GRANT BUDGETING FAQ # 2MATCHING FUNDS
Voluntary matching and required (Involuntary) matching
Matching need to be documentable and measurable
Match can be a combination of Cash (direct cost) in-kind contribution Facilities and Administrative costs (F&A)
GRANT BUDGETING FAQ # 3IN-KIND CONTRIBUTION
Non-cash donation of materials, property, facilities, and / or services
List or Not to list? It depends. Some funders “REQUIRE” Some funders “ENCOURAGE” in-kind. Some funders “DISCOURAGE” voluntary in-kind and
“NOT-ALLOW” to ask any involuntary in-kind All have different and good reasons.
READ the Call for Proposal carefully
GRANT BUDGETING FAQ # 4FACILITIES AND ADMINISTRATIVE COSTS (F&A COST / INDIRECT COST) 1
Is a legitimate budget item APU has the negotiated rate 35% of Payroll +
Employee related Expenses For organizations have the max F&A allowance,
we can charge the max allowed. The difference can be used as matching funds. If there is no specific limitation, need to use
Federal negotiated rate.
APU general fund50%
ORG 15%
Project Investigator15%
Dept/School/College
20%
GRANT BUDGETING FAQ # 5WHERE DOES THE INDIRECT COST RECOVERYGO?
GRANT BUDGETING FAQ # 6AS A SUBAWARDEE, HOW SHOULD I DOTHE BUDGET?
It is basically same as the other budgets Need to know the prime sponsor – Funding may
be passed through Usually, prime awardee will request Scope of
Work, Budget and Budget justification from subawardee.
FEDERAL AGENCIES GRANT BUDGET (1)
Program Regulations
Statute
AdministrativeRegulations (OMB Circ.)
Special Terms and Conditions of Award
FEDERAL AGENCIES GRANT BUDGET (2)
The OMB Circulars A21 – Cost Principles for Educational Institutes A110 – Uniform Administrative requirements for
grants A133 – Audit Requirement A122 – Cost Principles for Non-Profit Organization
The new Uniform Guidance – announced 12/26/2013 and will be effective after 12/26/2014
FEDERAL AGENCIES GRANT BUDGET (3)
Most federal agencies (NIH, NSF, DoE, EPA……) require applicants to complete SF-424 + SF-424A Budget Information Form.
Modular Budget (PH S398)– For NIH R01, R03, R15, R21 or R34 grant and less than $250K a year. The request will round up to the nearest $25K. – It is a simplifier budget but the expense plan is still the same
Personnel Salary Cap
FEDERAL AGENCIES GRANT BUDGET (4)
ORG has subscribed CAYUSE, a 3rd party submission application to double check the adequacy of SF424 before submission.
NIH budget guidance –https://grants.nih.gov/grants/developing_budget.
htm#modbud NSF budget guidance -
http://www.nsf.gov/pubs/policydocs/pappguide/nsf14001/gpgprint.pdf
DoE budget guidance –http://www2.ed.gov/fund/grant/apply/appforms/sf
424instruct.pdf NEH budget guidance –
http://www.neh.gov/files/grants/budget_information_and_instructions_march_2014.pdf
DISCUSSION
ORG INTERNAL BUDGET TEMPLATE
A 5 year budget template to fit most of the budget requirement.
All calculation built-in to eliminate calculation error
If Funders have their own forms, use ORG internal form to draft the budget and then copy over.
ORG INTERNAL BUDGET TEMPLATE SAMPLE
ORG INTERNAL BUDGET TEMPLATE SAMPLE
ORG INTERNAL BUDGET TEMPLATE SAMPLE
ORG INTERNAL BUDGET TEMPLATE SAMPLE
ORG INTERNAL BUDGET TEMPLATE SAMPLE
ORG INTERNAL BUDGET TEMPLATE SAMPLE
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