1. Managing a Scientific Laboratory Financial Management and Budgeting

2. Budgeting for Proposals Kathleen Speer Associate Dean for Faculty and Research USC Dana and David Dornsife College of Letters, Arts and Sciences

3. BUDGET | 3 Agenda Why prepare a budget? Budget Elements Fringe Benefit and Indirect Costs Budget Justification Compliance

4. BUDGET | 4 Why prepare a budget? Required by Most Agencies Costs of meeting the Project Goals Ensure the Request is Sufficient/ Realistic Expedite Award Setup

5. BUDGET | 5 Function of a Budget The budget estimates, as realistically as possible, the cost of completing the objectives identified in the proposal. The sponsor will use the budget details to determine whether the proposal is economically feasible and realistic. The budget provides a means to monitor the project's financial activities over the life of the project. Many sponsors (especially government agencies) provide either a form or a format for the budget. It is imperative to follow the agency's instructions explicitly.

6. BUDGET | 6 Impacts on Budget Planning Sponsor’s Budgetary Restrictions Type of Sponsor (federal, non-federal, international) Project Period Types of personnel appointments (faculty, staff, postdoc, student) Fringe Benefit Costs Sub Awardees and Collaborators Location of Project (on or off campus) Facilities and Administration Costs Primarily …

7. BUDGET | 7 Impacts on Budget Planning … Your project narrative Go through your project narrative and make a list of everything that will have to be paid for. People, consumables, publications, equipment, conference travel, collaborators…

8. BUDGET | 8 Budget Elements Salary and Wages Fringe Benefits Materials and Supplies Equipment Travel Publication Sub Award Other Direct Costs Indirect Costs (or Facilities and Administration Costs)

9. BUDGET | 9 Various Budget Periods to Consider Calendar Year (Jan – Dec) Fiscal Year (Jul – Jun) Academic Year (Aug 16 – May 15) Summer (May 16 – Aug 15) Government Fiscal Year (Oct – Sept) Phases as defined by sponsor

10. BUDGET | 10 Fringe Benefit and Indirect Costs Fringe Benefits Assessed on salary and wages Federal & non-Federal Rates Postdoctoral Scholar rate (new Aug 2012) Facilities and Administration Costs aka Indirects On-Campus or Off-Campus Other Sponsored Activities Limited by sponsor USC Research - Current rate Agreement July 9, 2012 http://research.usc.edu/dcg/proposal-development/rates-at-a-glance/

11. BUDGET | 11 Budget Justification Budget narrative should answer the questions a skeptical reviewer would ask. Make a persuasive case for investing in you and your team Explain: how all costs are determined what each person will contribute to project equipment needs – include quotes

12. BUDGET | 12 Compliance Federal cost accounting standards, are a series of federal regulations, detailed in OMB Circular A-21, which stipulate how educational institutions administer the financial aspects of grant management. Costs must be allowable and allocable. Administrative and clerical salaries should normally be treated as indirect costs and not included a direct costs.

13. BUDGET | 13 Wrap-up Read the solicitation, RFP or guidelines List what needs to be paid for Determine cost of each Read the solicitation, RFP or guidelines (again) Review proposal -Does the budget reflect reasonable costs for the project? -Is the budget justification in line with the project narrative? -Are there unallowable costs in the budget? -Can you complete the scope of work on this budget?

14. BUDGET | 14 Questions? Kathleen Speer Associate Dean for Faculty and Research USC Dana and David Dornsife College of Letters, Arts and Sciences kspeer@dornsife.usc.edu