OFFICE OF SPONSORED PROGRAMS AND UNIVERSITY ADVANCEMENT Introduction to Grant Budgeting.

OFFICE OF SPONSORED PROGRAMS AND

UNIVERSITY ADVANCEMENT

Introduction to Grant Budgeting

Questions to ask before preparing the budget:

o What is the typical size of awards from this sponsor?

o What are the real costs associated with conducting this project?

o What items will the sponsor support/not support?o Does the sponsor provide flexibility to re-budget

between categories once funds are awarded?o Is cost sharing mandatory/disallowed?o What can I do with a reduced award amount?

The narrative/project description should drive the budget:

o There should be no surprises for the reviewer familiar with the narrative/project description

o Cost estimates should be credibleo The requested budget should be consistent

with the typical award given by the sponsoro Divide the projected costs by the number of

participants to determine if your price per participant is reasonable

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.

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.

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.

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

What are direct costs?

o Salaries and wageso Fringe benefitso Consulting/stipendso Travelo Equipment o Materials/supplieso Subawards/subcontractso Publicationo Disseminationo Participant support costso Other

“Other” may include:

o Student tuition & feeso Advertising feeso Rental fees

FY13 fringe rates:•43.45% full-time new employees •7.65% overload, summer, course release, or part-timeNo fringe on student wages

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

Pension 7.71%

Health Benefits 28.10%

Workers Comp 1.25%

Unemployment Insurance

.19%

Temporary Disability Ins

.26%

Unused Sick Leave .19%

FICA 6.20%

Medicare 1.45%

Hidden costs to be a university employee

FY14 estimate: 50.5%

What fringe rate do I use?

Use 45.43% when you are budgeting for:A new, full-time employee or post-doc

Use 7.65% when you are budgeting for:Existing, non grant funded employeesAny part-time non student employeeOverload/course release/buyout/summer

No fringe on: undergrad or grad students

What are indirect costs?

Also referred to as overhead or Facilities & Administrative costs (F&A). These are costs associated with operating a project

o Universities have a federally approved rateo Rowan’s current rate is 42% of Modified Total

Direct Costs (MTDC) for on-campus projects (45% for projects that begin July 1, 2014 or after). The off-campus rate (i.e. pay rent) is 17% MTDC. Industry-sponsored projects are 21% MTDC.

o Many foundation/corporations do not allow indirect costs

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

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

MTDC

MTDC include all direct costs EXCEPT:

Equipment over $5000/unit (anything under this value is considered “supplies”)

Charges for patient careStudent tuition remissionRental costs of off-site facilitiesScholarships and fellowshipsThe portion of each subaward in excess of

$25,000

Determining MTDC

Supplies $2000Travel $1500Graduate Assistant $15,000Tuition remission $30,000Subcontract $30,000Giant calculator $6000Total direct costs: $84,500

Which of these are included in the MTDC base?

Supplies $2000Travel $1500Graduate Assistant $15,000Subcontract $25,000MTDC (42%) $43,500Indirect $18,270

Other costs:Giant calculator $6,000Tuition remission $30,000Remainder of subcontract $5,000

TOTAL COSTS: $102,770

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

o Can include:o Cash, supplies, or equipment donationso Use of space/facilitieso Cost of renovating the spaceo Indirect costs (if sponsor has rate restriction)o Salaries/fringe o Volunteered time/services

o Can be mandatory, voluntary, or disallowedo Must be approved by chair and deano Must be verifiable

Budget Appearance Counts

o Use the budget format requestedo If no format is provided, we can provide a

templateo Round figures to the nearest dollaro Consider including an annual increase for

multi-year budgets

Budget Draft Total Project Amount Requested Other Funding

  Costs from Sponsor Cost Share

Personnel:      

Super Principal Investigator (base $80,000/10 x 1 summer month) $8,000 $0 $8,000

Lab technician ($15/hr x 20 hrs x 15 weeks) $4,500 $4,500 $0

Five undergraduate students ($7/hr x 10 hrs x 5 weeks) $1,750 $1,750 $0

Sub-Total Personnel $14,250 $6,250 $8,000

Fringes:      

PI, Lab Technician Fringes (7.65%) $956 $344 $612

Sub-Total Fringes $956 $344 $612

Other Direct Costs:

Supplies/Materials $2,500 $2,500 $0

Domestic Travel $2,000 $2,000 $0

Publication costs $500 $500 $0

Server $5,000 $5,000  $0 

MTDC $20,206 $11,594 $8,612

Indirect Costs (42% MTDC) $8,486 $4,869 $3,617

Total Costs $33,692 $21,463 $12,229

Don’t forget to include a budget justification!

I received an award …. Now what?

The Notice of Award:

o 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:

o Relevant regulations o Amount of funding o Project and budget periodo Restrictions on the expenditure of the fundso Reporting requirements

o Accepting the award- must be facilitated by OSP/CFRo Only the person authorized to legally represent Rowan may

sign for an award

Things to Remember:

o Awardees are responsible for managing the day-to-day operations of their award and for submitting required narrative/technical reports during the life of the award

o OSP/CFR will work with you to submit proposals and reports

o A Banner fund number will be assigned to your awardo Need to know whether budget transfers/time

extensions permitted or whether prior approval is required

o Any deviation of contract/work/timeline must be approved by OSP/CFR and the sponsor

Questions?

Office of University Advancement Deanne Farrell, Director of Corporate and Foundation

Relations (x5418) [email protected]

Office of Sponsored Programs Stephanie Lezotte, Acting Director (x4124)

[email protected]

Next Workshop: Oct. 29, 12:15-1:15 p.m.Compliance and Beyond