U N I V E R S I T Y OF F L O R I DA

Building Realistic Budgets

Judy Harris, Proposal Processing

Division of Sponsored Research

U N I V E R S I T Y OF F L O R I DA

What is a Budget?

An estimate of costs required to perform a statement of work with a specific start and end date.

U N I V E R S I T Y OF F L O R I DA

Proposal Budgets

Made up of costs that can be explained or verified and are reality-based

No “Educated Guesses” or “Off The Wall” estimates

May require several drafts before it is finalized

May vary in structure and complexity

U N I V E R S I T Y OF F L O R I DA

Why Is a Budget Important?

It is the second most scrutinized part of the proposal

A clear concise budget supported by a strong budget justification can increase the chances of a proposal being funded

The proposal budget can become the actual award budget

U N I V E R S I T Y OF F L O R I DA

Basic Proposal Budget Components

1.Direct Costs

2.Facilities and Administrative Costs, or F&A (a.k.a. Indirect Costs)

U N I V E R S I T Y OF F L O R I DA

Direct Costs

Expenses identified specifically with a particular sponsored project, instructional activity, or other institutional activity

Must be allowable, allocable, reasonable & necessary for the program, given consistent treatment and conform to sponsor limitations

U N I V E R S I T Y OF F L O R I DA

Facilities & Administrative Costs Costs incurred for common or joint

objectives which cannot be identified to a specific direct cost activity Facilities and Utilities Administrative and Clerical Salaries DSR/Purchasing/HR/Controller Postage Local Telephone Office Supplies Data Processing/Computer Supplies General Purpose Software Memberships Subscriptions

U N I V E R S I T Y OF F L O R I DA

Major Budget Categories

Personnel Costs Fringe Benefits Travel Research Supplies

and Materials Participant

Support Patient Care Consultants Tuition

Equipment Subcontracts Facilities and

Administrative Costs (F&A)

Other Direct Costs

U N I V E R S I T Y OF F L O R I DA

Personnel Categories:Academic Personnel (includes Faculty & Post Docs)

TEAMS/USPSOPS (includes Graduate Research Assistants, Student Assistants & Other Temporary Employees)

Personnel Costs

U N I V E R S I T Y OF F L O R I DA

Domestic Travel

Airfare Lodging Car Rental Per Diem Mileage Parking Fees Registration Fees Local Transportation (Taxi, Metro, Shuttle) Includes travel to Canada

U N I V E R S I T Y OF F L O R I DA

Foreign Travel

(Generally subject to prior approval from sponsor).

Airfare Apartment Rental Car Rental Local Transportation Lodging Per Diem (Federal travel subject to GSA

Schedule) Registration Fees Includes travel to Mexico

U N I V E R S I T Y OF F L O R I DA

Should include detailed information in budget narrative:

Budgeting Travel

Number of Travelers

Destination

Travel Fares

Length of Trip

Per Diem

Registration Fees/ Conference Costs

U N I V E R S I T Y OF F L O R I DA

Equipment

Costs more than $1,000 (State of FL, not Federal definition)

Has a useful life of one year or more Some sponsors may require

supporting documentation/quote at proposal submission

U N I V E R S I T Y OF F L O R I DA

Tuition

All new proposals, including resubmissions, competing renewals and supplements, that include salary/stipend for graduate assistants and where tuition is an allowable cost, must budget appropriate amounts for tuition.

U N I V E R S I T Y OF F L O R I DA

Consultants

Non-UF Employees Not a subcontractor – no substantial

programmatic involvement Normal daily rate Supported by letter/quote from

Consultant

U N I V E R S I T Y OF F L O R I DA

Subcontractors

Can be: Other Institutions Commercial Companies

Subcontractor has substantive programmatic involvement and may be co-author on resulting publications

U N I V E R S I T Y OF F L O R I DA

Before submitting the proposal obtain: Letter of Commitment from institutional

authorized official.

Written Quotes/Budgets

Statement of work

Subcontractors

U N I V E R S I T Y OF F L O R I DA

Participant Support

Payments to individuals required on the project with no obligation to provide work or services (Generally workshops)

Typical costs− Stipends− Travel-related costs

U N I V E R S I T Y OF F L O R I DA

Tuition, fees, stipends

Other Direct Costs

U N I V E R S I T Y OF F L O R I DA

Facilities

Rental Space

Renovation

Other Direct Costs

U N I V E R S I T Y OF F L O R I DA

Facilities & Administrative Costs (Indirect Costs)

Applied to ALL sponsored projects unless

sponsor policy/program limits indirect recovery

Following sponsor types have specified

F&A rates:State of Florida: 10%TDC/25%TDCWater Management Districts 25% TDCOther Florida Governmental Entities 25% TDCClinical Trials 25% TDC

U N I V E R S I T Y OF F L O R I DA

Function/PurposeResearchInstructionOther

Location of ProjectOn-CampusOff-Campus

University rates are based on the following factors:

Facilities & Administrative Costs (Indirect Costs)

U N I V E R S I T Y OF F L O R I DA

Facilities & Administrative Costs (Indirect Costs)

Function Location

On Campus Off Campus

Organized ResearchARECOther Sponsored Acts

46.5%46.4%33.6%

26.0%25.0%26.0%

Instruction 50.0% 26.0%

Department of Defense (contracts) 48.5% 28.0%

U N I V E R S I T Y OF F L O R I DA

Calculating F&A• Identify Exclusions

• Equipment• Capital Expenditures (includes renovations)• Patient care charges• Tuition remission• Rental costs of off-site facilities• Scholarships• Fellowships• Subcontract amounts in excess of first $25,000

• Modified Total Direct Cost Base (MTDC) =Total Direct Costs minus items not charged with F&A.

• Total Direct Cost Base (TDC) =Total Direct Costs x F&A rate without any exclusions.

U N I V E R S I T Y OF F L O R I DA

Total Budget

Total Direct Costs

+ F&A Costs

= Total Budget

U N I V E R S I T Y OF F L O R I DA

Cost Sharing in Budgets

Identifies necessary project costs not requested from sponsor

Should be a sponsor requirement

Should be referenced in budget as directed by sponsor

Shows UF’s/Third Party commitment to Project

Should follow UF Cost Sharing Policy

U N I V E R S I T Y OF F L O R I DA

Charging Costs Directly or Indirectly to Sponsored Projects

In order to comply with (OMB) Circular A-21 and the Cost Accounting Standards Board’s cost accounting standards, UF’s policy for charging costs to federally sponsored projects is: Clerical and administrative salaries will be charged indirectly unless direct charging can be justified in accordance

with OMB Circular A-21. Postage will generally be charged indirectly. Basic telephone charges will generally be charged indirectly, including cell phones. Lab supplies will generally be charged directly. Office supplies will generally be charged indirectly. General purpose software will generally be charged indirectly. Technical software will generally be charged directly. Subscriptions will generally be charged indirectly. Institutional and individual memberships will generally be charged indirectly. Repair and maintenance charges for equipment purchased on the award will generally be charged directly. Other related costs (photocopies, travel, technical and scientific equipment, animal care and other services provided

by specialized service facilities) will generally be charged directly.

U N I V E R S I T Y OF F L O R I DA

Arithmetic – Double Check Budget!

Fringe Benefit Rates GRA Tuition F&A Rate MTDC Exclusions On & Off Campus Budget Total

U N I V E R S I T Y OF F L O R I DA

Review and Finalize Budget

Review draft ceiling price exceeded?

Revise How much to cut? add? Cut logical places Should the technical proposal be revised due to

budget changes? Are Cost Share funds required?

Have cost-share commitments been secured? Proposed effort documented? Equipment match documented?

U N I V E R S I T Y OF F L O R I DA

Final Budget Presentation

Prepare Sponsor budget formsAccurateNeatLegible

U N I V E R S I T Y OF F L O R I DA

Prepare justification/budget narrative (Follow agency guidelines)Should be arranged in order of Sponsor’s budget form

Clear & Concise

Explanation of request

Finalizing Budget