Budget Creation Kristin Wetherbee CAH Research Office March 2, 2011 March 3, 2011

AGENDA Background Budget Categories F&A Rate Cost Share Budget Narrative Red Flags Budget Sample

What is a Budget? An estimated project financial plan listing: - anticipated expenses - earned income A budget may be: - a simple one-page statement of projected expenses - a detailed spreadsheet and a thorough narrative

RULES ALLOWABLE Federal – OMB A-21 Agency – RFP, guidelines UCF Policy ALLOCABLE CONSISTENT REASONABLE

Personnel Equipment Travel Participant Support Costs Materials & Supplies Publication Consultants Subcontracts Tuition F&A Rate Cost Share Budget Categories

Personnel Salary Academic year course buyout.22 FTE Summer salary 3% escalation annually Include tenure raises, TIPs, RIAs, SoTLs, etc. OPS Non-students Hourly undergrads and grads Graduate Research Assistants (GRAs) Dual compensation Fringe Benefits – all payroll expense has fringe charges

Equipment UCF taggable property Non-consumable item $1,000+ Useful life of more than one year Software, furniture, computers Library books $250+ Construction costs Other capital outlay (OCO) Federal awards – equipment $5,000+ Document need Purchase early

Travel Participant Support List each trip separately with dates, locations Fly America Act Estimate expense: hotel, airfare, registration, meals, parking, etc. Participant/trainee (not employees) expense to attend conference, meetings, training, etc. Travel, registration, stipend Agencies often have a maximum allowable per person

Materials & Supplies For technical work, not admin Justify in budget narrative CAS exemption for “major” projects Publication/Dissemination Disseminate research findings Publication restrictions?

Consultants Subcontractors IRS 20 question rule Sponsor limits on daily maximum allowable Intellectual property issues Quote needed and formal contract through ORC and Legal Project partner Performs programmatic or technical work off-site Statement of work, budget, and sponsored project office approval needed Intellectual property issues Formal contract to pass through agency requirements

Tuition UCF policy on hiring GRAs and tuition waivers: forms/GraduateTuitionRegulations.pdf Contracted GRAs must have tuition paid.50 FTE = Full tuition.25 FTE = Half tuition

What is F&A? Common operational costs that cannot be readily and specifically identified with a particular sponsored project, instructional activity, or other institutional activity. Also called: Facilities and Administrative rate (F&A) Indirect Costs (IDC) Overhead

Use UCF’s negotiated rate unless limited by the agency Apply negotiated rate on modified total direct cost MTDC - Total direct costs minus: Equipment Student tuition Participant support costs Subcontract costs in excess of the first $25,000 Capital expenditures Patient care costs Rental/maintenance of off-site activities Applying F&A

ORC - admin support, in-house awards, and matching funds 45% of earned overhead (pending special conditions) is returned to CAH CAH uses of overhead: Portion to department Portion to PI Fund in-house and internal awards Match commitments Travel and training support OPS support FY2010 OH returned to UCF colleges/centers: $8 million Why Care About F&A?

Cost Share Is it required? - Rarely for NSF; ambiguous for NEH; often for state - Must track in a separate account - Must be an allowable direct cost to use as match Types of cost share - Cash – donation or UCF funding - In-kind – donation for time, services, materials - Forgone overhead Need proposal documentation of commitment Need letter at close out detailing cost share provided

Budget Narrative Make case for budget – items are reasonable, appropriate, and adequate Provide detail about items to be purchased Tell how costs were calculated Discuss how university policy impacts charges Consistent with budget and grant narrative

Red Flags Entertainment, alcohol, meals without travel Partners with the same last name Postage, phones, copying expense Administrative salaries Rental of UCF property GRA without tuition Dual compensation

Contact Information CAH Research Office Dr. Nancy Stanlick CAH Research Coordinator Kristin Wetherbee Patricia Tierney