1. Budgeting for Sponsored Projects
Presented by:
Matt Michener Grant and Contract Coordinator Lead
Office of Research Support and Operations
Erin-Kae Rice Director of Operations
International Programs
Kim Akin Fiscal Analyst
Sponsored Programs Services
MATT - Introductions
Updated Sept 2017

2. February 23, 2018 Recording date of this workshop is
9/20/2018
Recording date of this workshop is
February 23, 2018
Some of the rules and procedures discussed in this workshop are subject to change.
Please check university resources
before relying exclusively
on this recorded presentation.
MATT
Template L white fuz

3. Two main Goals
Be able to prepare proposal budget using the ORSO recommended budget template
Understand background behind proposal budget preparation for Sponsored Projects, including federal, sate and university guidelines and/or regulations
MATT - Goals, Be able to prepare budgets for proposals using OGRD recommended budget template and understand a bit about the regulations and guidelines

4. What are Sponsored Projects?
University projects funded or ‘sponsored’ by an outside agency
Projects designed to accomplish a public good versus furthering a commercial gain
Examples of ‘sponsors’: Federal and state governments, foundations and private industry
BRANDI -
Question: What are sponsored Projects?
Answers: university projects funded by outside agencies
Designed to accomplish a public good not furthering commercial gain
Question: Give some examples of types of sponsors:
Answers: federal, state, foundations and private industries BRANDI

5. What you need to know to create a Budget for grant proposals
Request for Proposal (RFP) or Guidelines for preparing the application and budget
OMB Circulars/ Uniform Guidelines (UG)
ORSO Guideline 2 and University regulations
Cost accounting standards
Direct Costs (DC)
Facilities & Administrative Costs (F&A, IDC)
ORSO Budget Template
ERIN -
Question: what do you need to know, understand or be able to locate before putting a budget together?
Answers: RFP, GPG, guidelines
Uniform guideline/ omb circulars
OGRD guideline 2
Understand Cost accounting standards (omb circular A21)
*Reasonable, allocable, consistent and allowable
Direct cost: What are they?
Indirect cost: what is included in an indirect cost? Why are they important to the University?
OGRD recommended budget template

6. Types of Budgets and Budget Justifications
Broad Categories: Personnel, Supplies, Travel, Indirect Costs
Detailed: Itemize each individual component of the budget
Modular: Total request for direct costs and indirect costs
ERIN –
Question: Name three types of budgets?
Answers: Broad categories, detailed/itemized, modular

7. Where to begin? Be familiar with the rules and regulations and
where to find them
Review the Request for Proposal (RFP)
Determine if there are funding limits
Determine if F&A is allowable and what rate
Determine if there are unallowable items
Determine broad budget categories and
overall project goals
ERIN –
so now if you know the governing rules from the circulars and guidelines, you have read the RFP, you know if there are funding limits, you know what the F&A rate is and what is/isn’t allowable and you know what budget categories are needed to accomplish the project goals

8. Where to begin? Work with the Principal Investigator (PI)
Identify what personnel will be working on the project
Is travel necessary
Is it allowable by the agency
Is it foreign or domestic
Determine if equipment and supplies are necessary and allowable for the project
Are there subcontracts
Will funding meet subcontractors needs for their portion of project
ERIN –
now what? Work with the PI
Determine who will be working on this project
Is there travel? Where are they going?
What supplies and equipment will be needed to meet the needs of the project
Are there going to be subcontracts
Will they be able to meet their goals with the funding allocate for them.

9. but do not Pad the budget
Where to begin?
How do I know if costs are allowable?
Would they be considered REASONABLE by a financially prudent person
Are the costs ALLOCABLE: beneficial to both parties and advance the work under the sponsored project
Are the costs TREATED CONSISTENTLY: are estimates for like items similar, are they normally treated as direct or indirect costs
Are the costs ACCEPTABLE to funding agency: RFP and Agency guidelines will dictate this. READ THEM CAREFULLY
*Make sure budget allows for enough funds to cover all expenses,
but do not Pad the budget
ERIN –
Now you know what the PI thinks they need to complete their project, as a ‘gate keeper’ you need to determine if the cost are Allowable.
Question: How do you know and how is it determined?
Answer: Reasonable, Allocable, Consistent, and Acceptable/allowable

10. Understand the typical budget categories
Salaries (00)
Wages (01)
Benefits (07)
Goods & Services (03)
Travel (04)
Capital Equipment (06)
Stipends, Fellowships, Participant Support Costs (08)
Subcontracts (sub-account created at account set up) (14)
Facilities & Administrative Costs – F&A (13)
BRANDI –
In case you weren’t aware of the broad categories these are the ones that are most used in the order that they appear on the OGRD budget spreadsheet.

11. Salaries, and wages Who can be paid on a grant
Principal Investigators (PI and CO-PI’S)
Professional Associates
Graduate Research Associates
Time Slip Employees
* Administrative Staff are not typically allowed to be paid on a grant UNLESS they work for a Major Project or deemed allowable under the RFP. Page 5 of the Guideline 2 addresses this in more detail, also see CFR
ERIN - Who can’t be paid on a grant? Why?
Then who can be paid on a grant?

12. Benefits (Plus QTR & Health for students)
Annual Benefits Calculations by Employee Type, given that FTE >= 0.50
(OASI%+Medcr%+Retrmt%+Unempl%)*Salary) + (Med Aid $* FTE*Term) + (Health Ins. rate x 12)
Classified Benefits = (0.191 x Salary) + (36.31 x FTE x Term)
Exempt Benefits = ( x Salary) + (36.31 x FTE x Term)
Faculty Benefits = ( x Salary) + (36.31 x FTE x Term)
Graduate Benefits = (36.31 x FTE x Term) ( if QTR)
Estimated Benefit Percentages by Employee Type
FY FY FY 16
Civil Service % % %
Bargaining Units % % %
Exempt % % %
Faculty % % %
Weighted Average CS/BU/EX/FAC 34.4% % %
MATT - There are different benefit rates for each employee type including grad- students which can change annually. Please make sure you are using the correct rates and know where to find them.
*This information can be found in the ORSO budget workbook and the WSU Benefits website

13. Benefits (Plus QTR & Health for students)
Grad-student salaries will Vary from college to college. Please make sure you use the correct step for your grad as well as your area
MATT - on the OGRD budget spreadsheet the steps and calculation for appointment length have been provided.
Question: if a masters’ student starts next month (November) on an academic year appointment plus one summer month, what would their starting pay be?
Answer: 15014

14. Benefits (Plus QTR & Health for students)
QTR will vary from college to college, please make sure you are using the correct matrix for your area
MATT - Question: what would their Resident QTR be?
Answer: 12299
Question: what would their health care be?
Answer: 2054
Question: What happens if they are only working one month in the summer?
Answer: this is something to think through. Are they an GA only working one summer month with no academic year appointment? Is it truly a GA appointment then?

15. Calculating salaries and benefits
Salaries inflated 4% each July 1
QTR inflated 7% per year (until further notice)
Health insurance inflated 4% per year
It is suggested that all other costs (examples: Goods and Service, Consultant fees, etc.) be inflated at 4% per year
MATT - The spread sheet will assist in most calculations for wages and benefits
Base Salary PI = $10,833.33
Agency: National Science Foundation (NSF)
Location: On-Campus
Type: Instruction
Project Period: 11/01/14 – 11/30/16
PI: 2 50% FTE per year, Faculty
Grad Student(s): 1 Student, 9 mo. AY plus 1 summer 50% FTE, Masters level, General GRA Matrices

16. Goods and Services
Only goods and services that directly relate to the project
Remember that it needs to be reasonable, allocable, consistent and acceptable to the agency
Avoid ‘suspicious’ items such as:
General Office Supplies
Lunch for lab meeting
Gifts
* This is the area to budget for research/survey incentives
BRANDI - Question: what types of things are considered goods and services?
Question: what about paper? What if it is for a survey project?
You must consider how the item is related to the project.
Question: what items are not allowable? How do you know?
Question: What about gift cards and research incentives? Where do they go on a budget? Why?

17. Goods and Services
How do I know if I am estimating costs in a reasonable, allocable, consistent manner
Internet searches ‘Google it!’
Vendor catalogs
Service center price lists
Colleagues, collaborators and others with experience developing budgets
ERIN - Question: how do you know if items are being estimated correctly?
Sometimes this is common sense, a muffin that cost $32 is obviously not reasonable and maybe the number was missing a decimal point and should be $.32. People get in a hurry typos can be made.
Scenario: What about if a PI says I will need these items to do this project hands you a list that consists of a BALZERS PRISMA QME-200 (mass spectrometer gas analyzer) for $1,100 and a lignin test kit for $141
Question: how would you determine if these are reasonable, allocable, and consistent?
Answer: first do a Google search/internet searches. Find out what the item is, look at different prices. Read the descriptions. Example the balzer prisma QME 200 is a mass spectrometer the cost is too low. An actual Balzer Prisma QME 200 cost around $10,000-11,000 in which case it should go under capital outlay of over 5K. It doesn’t hurt to double check. Again mistakes can be made. You can help the PI out by verifying items. Also, check with service centers to see if there may be the same piece of equipment on campus which may be less expensive to rent. Before any changes are made talk with the PI.
Although it is still under review, the uniform guidance may require all equipment over 3,000 to have 3 quotes or price comparisons. It is easier to have those quotes up front than to have to try to find them in 5 years during an audit. This would be another reason to double check pricing and print off documentation.

18. Travel Only charge for travel that is directly related to the project
Must be reasonable, allocable, consistent and acceptable by the agency
First/Business class is usually prohibited
Must follow the ‘Fly America’ Act
Required by all federal agencies regardless of cost
Whenever possible use state or federal government contract rates for airfare, hotels, auto rentals, etc.
MATT - Travel follows the same cost accounting principles as everything else of being directly related to the project, is it reasonable, allocable consistent and acceptable.
In addition, unless it is expressly allowed by the agency first and business class is prohibited
Question: who is familiar with the fly America act? To make it simple it is a requirement that only American owned airlines be used for travel on federal grants regardless of cost, and it is best practice for any travel conducted by the university. There are a few exceptions:
1. Increase the number of aircraft changes you must make outside the U.S. by 2 or more; or
2. Extend your travel time by at least 6 hours or more; or
3. Require a connecting time of 4 hours or more at an overseas interchange point.
What happens if the fly America act isn’t followed? The PI will have to bear the cost

19. What costs are included in travel?
Mileage reimbursement for personal vehicle
Per Diem
Air Fare
Hotel
Rental Car Cost
Fuel charges maybe included for rental car only
MATT - cost to include in travel:
Mileage reimbursement for personal vehicles. Does anyone know the current rate? .56 where can you find the rate? WSU travel services or IRS webpage you can also find a mileage calculator on the WSU travel web page
Per diem rates are based on federal rates which can be found on the GSA (general services administration) website
Air fare, make sure to get comparison costs for trips if a PI is driving instead of flying or provide justification.
Rental car cost, charge fuel but not mileage
question: Where does registration for a conference go? it is goods and services

20. Travel Resources
WSU BPPM/WSU Travel Website for domestic & foreign per diem rates, mileage rates, etc.
Internet sites (such as or )
Travel agencies
Use state or federal government rates for hotels, airfare, and auto rental whenever possible
MATT - some helpful sites which can also be found in hand out, remember to always inquire about government rates when making travel arrangements. You should do a quick search for travel cost just to make sure the estimates are reasonable if travel is in two years obviously the prices will probably go up. Calculating and additional 4% for inflation will help insure that the cost are close.

21. What is Capital Equipment?
Any one piece of equipment which initial cost is $5,000 or greater
Fabricated equipment which all parts and pieces equal over $5,000 (check with department equipment coordinator to determine if fabricated equipment meets requirements for capital outlay >5K)
Has a life span of at least one year
Identity does not change with use
These items need tracked and inventoried
See ORSO Guideline 2, BPPM and BPPM for reference
The new uniform guidance (UG) will ask for screen shots or documentation for three
venders on all items over $3K. At this time it does not appear to effect budgeting practices.
BRANDI - so we know that a mass spectrometer for 11K would go under capital equipment over 5k, what about if the PI was building a computer mainframe for the campus infrastructure? Does that go in capital equipment? It depends, you would need to know what bits and pieces are being purchased, estimate the cost of all of it. Does it meet or go over the 5K threshold? If it does then all of the pieces should be budgeted in capital outlay. Other things to consider when making equipment purchases is if they are going to have a life span of one year or more and if the item has an identity which will not change with use.
Can anyone think of an item which would cost more than 5K have a life span of a year or more but who identity would change with use?
Live stalk? Maybe?
As a side note object 16 is for non-capital equipment between $500 and $4999 with a life expectancy of one year or more and an identity which does not change with use. This is for small and attractive items which you can find some examples of in bppm such as laptop computers, weapons or licensed vehicles. The department has discretion in this area…would you want to keep track of a $3000 piece of equipment?

22. CFR 200.306: Cost sharing or matching
Under Federal research proposals, voluntary committed cost sharing is not expected;
Unrecovered indirect costs, including indirect costs on cost sharing or matching may be included as part of cost sharing or matching only with the prior approval of the Federal awarding agency;
Values for non-Federal entity contributions of services and property must be established in accordance with the cost principles.
BRANDI – ER and MM add

23. CFR 200.306: Cost sharing or matching
Cost Sharing or Matching (portion of project or program costs not borne by the Federal Government) must be:
Are verifiable from the non-Federal entity's records;
Are necessary and reasonable for accomplishment of project or program objectives;
Determined to be Necessary and Reasonable;
Are allowable;
Are not paid by the Federal Government under another Federal award, except where the Federal statute authorizing a program specifically provides that Federal funds made available for such program can be applied to matching or cost sharing requirements of other Federal programs;
Are provided for in the approved budget when required by the Federal awarding agency;
Conform to other provisions of this part, as applicable.
BRANDI – ER and MM add

24. Accounting for Facilities and Administrative Costs (F&A)
A percentage of direct costs, that are real costs indirectly associated with doing research, but not specific to any one research project.
Determining whether project will be facilitated ON or OFF Campus.
Exceptions to using the Federally Negotiated rates.
Noting F&A percentage at the bottom of your summary budget with consideration to MTDC (B40) or TDC (B02).
Sps.wsu.edu > F&A Documents > F&A Rate Agreement
ERIN

25. F&A Calculations Continued
Total costs [TC or total award (TA)] : F&A is calculated on the sum of total direct costs and F&A altogether.
How to convert TC to TDC: TDC = TC / (1- TC)
TC rate is 30%: .30/.70 = %
TC rate is 10%: .10/.90 = 11.11%
$150,000 awarded, what are directs and indirect at 15%TC?
- .15/.85 = % for TDC
- 150,000 / = $127, ,500* = 22,500
- Check it: 150,000*.15 = 22,500
Keeping F&A in mind for your subcontracts.
- We have to calculate F&A on the first $25K of the subcontract. If our prime agreement allows for F&A on direct charges.
ERIN

26. Subcontract Budgeting
A collaborative agreement where there are substantive programmatic efforts and may include publication rights.
A line item in your prime budget should include a subcontract allocation (restricted object 14).
Make sure all the appropriate materials are submitted to OGRD:
Scope of work;
Budget, including their appropriate institutional F&A rate;
Letter of Support or Intent.
Term date for subcontractor is prior to prime term date.
Distinguishing between a subcontract and a consultant.
MATT

27. Consultants (Personal Services) vs. Subcontracts:
Consultant - Specific needs of the SOW that cannot be completed by personnel within the institution, IF allowable by the agency/organization’s RFP
Subcontract - A collaborative arrangement in support of a research project in which some portion of the programmatic activity is carried out through a formalized agreement between the grantee and one or more other organizations.
Must be appropriate for the project and scope of work, in collaboration or cooperation with a peer at another organization/institution/agency
MATT

28. Useful links: ORSO: http://www.orso.wsu.edu/ SPS: http://sps.wsu.edu/
Guidelines:
F&A Documents:
Benefits Models:
ORSO Quickguide:
MATT

29. This has been a WSU Training Videoconference
9/20/2018
This has been a WSU Training Videoconference
If you attended this live training session and wish to have your attendance documented in your training history, please notify Human Resource Services within 24 hours of today's date:
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