1. Developing a Grant Budget College of Arts & Humanities University of Central Florida March 1, 2010

2. Budget

3. Your Goal To develop a budget that is Reasonable Appropriate Allowable Draft a rough budget FIRST before writing the proposal Your time, other faculty, students, etc. Expenses (travel, materials, consultants, equipment) Indirect

4. Budgeting Basics Getting Started – Resources needed Types of Costs Personnel Expenses Equipment/Capital Outlay Participants Subcontracts Cost Share or Match Indirect Costs Budget Narrative

5. Have Source - Getting Started Find the budget section in the RFP Work from the RFP budget format (form) Read the full RFP for more guidance Always budget whole dollars Beware that expenses are allowed unless the RFP specifically prohibits* *Must align with OMB A-21 see handout http://www.research.ucf.edu/sponsoredprograms /Proposal/budget/allowablecosts.htm

6. Resources You Will Need Kristin Wetherbee- kristin@mail.ucf.edukristin@mail.ucf.edu Ext. 3-0908 Salary schedules CAH process UCF Rates: Fringe, Travel, & Indirect Cost (F&A) http://www.research.ucf.edu/SponsoredProgra ms/Proposal/factsheets.html

7. Types of Costs Personnel Expenses Equipment/Capital Outlay Participants Subcontracts Match or Cost Share Indirect Cost

8. Personnel Costs Personnel may be the largest part of your budget So estimate these costs early (after indirect)! Salaries and fringe benefits are calculated as separate costs on the forms.

9. Salaries Follow UCF’s salary schedules (see Kristin) The project year may not be the same as your salary year Add in any special payments or stipends. Factor in a 3% salary increase for multi-year grants (and consider step increases) Full-time employees typically work 2080 hours per year (40 hours/week x 52 weeks/year)

10. Graduate Research Assistant New UCF policies on hiring GRAs and tuition waivers available at: http://www.research.ucf.edu/SponsoredProgra ms/Proposal/forms/GraduateTuitionRegulatio ns.pdf

11. Fringe Benefits 32.11% of full-time salaries (see Kristin) 1.46% of OPS salaries & Adjuncts.01% of student salaries 11.66% Post Doc UCF schedule of fringe benefits http://www.research.ucf.edu/SponsoredProgra ms/Proposal/forms/Fringe_Rates.pdf

12. Personnel Considerations Have you included all required personnel? Two part-time positions may be less expensive than one full-time position. Consider the use of internal staff vs. external staff. Provide (course) release time for project personnel. Make sure the salary classification is appropriate to the job. Supplementing vs. supplanting What happens when the funding ends?

13. Equipment or Capital Outlay Typically refers to equipment, but may include Some library costs Construction Equipment nonexpendable property over $1,000 useful life of more than one year This includes software purchase with the same dollar value.

14. Equipment Equipment below $1,000 threshold should be placed in the supplies or other direct cost budget line item ($5,000 federal) Bidding or estimating costs. Capital equipment purchases from any source of funds over $10,000, which must have CAH approval http://www.research.ucf.edu/SponsoredProgra ms/Contracts_Grants/projmmgt/expenditures. htm

15. Equipment Considerations Limits on equipment You must provide a list with descriptions and per item costs Include costs for shipping, installation, training, maintenance, additional supplies Purchase early and must be tracked Transfer of ownership

16. Participant Costs Typical costs include: Training (tuition, books, materials, fees) Stipends or honoraria Meals Lodging Travel Miscellaneous (art materials & supplies, insurance, training materials, etc.)

17. Participant Cost Considerations Calculate the cost per participant There may be a limit on this cost Some costs may be disallowed T-shirts Food

18. Expenses Typically includes: Materials & supplies Travel (must indicate international) Contractual services (consultants, other) Tuition Other Optional to factor in increase- Tuition - 5% Travel - 10%

19. Travel Often treated separately Provide detailed calculation Airfare (domestic carrier) Mileage to/from the airport Tolls Airport parking Airport transfer Lodging (including taxes) Meal allowance Local transportation Baggage handling (misc) Conference registration

20. Other Expenses Publications/Printing Postage Maintenance agreements Telephone Special fees Honoraria

21. Expense Considerations Think about hidden costs to the organization Make sure it’s allowable (ask Kristin or ORC) OMB circular A-21 Other guidelines RFP

22. Contract Services Employee or contractor? Special Consultants Maximum day rate? Ask ORC Vendor Contracts Negotiated by procurement, not faculty…

23. Maximum Salary Rates Agency Max. Rate U.S. Dept. of Education No Specific Limit except $513/day for Rehabilitation Training Program grants National Endowment of the Humanities None Specified National Endowment of the Arts None Specified National Aeronautics & Space Administration (NASA) Up to Level IV of the Executive Schedule (exclusive of expenses and indirect costs ) National Institute of Health (NIH) None Specified Note: The NIH salary cap does not apply to payments made to consultants. National Science Foundation (NSF) $537/day

25. Subcontracts or Sub-awards You will must obtain 3 items: 1. Letter of Commitment – with authorized signature 2. Detailed Statement of Work Deliverables Timeline (consider your start/end dates) 3. Detailed Itemized Budget & Narrative (call me if you need examples)

26. Subcontracts Subcontracts in excess of $1,000,000 must receive approval from UCF President Subcontracts in excess of $50,000 require bid process Over 50% of total $ - ORC approval UCF charges facilities and administrative costs (F&A) on the first $25,000 of each subcontract through the life of the project period.

27. Subcontract Considerations Recommend discussing with OOR Contracts Manager (terms & conditions) UCF has a standard contract form If you name a contractor in a proposal, it may be binding. “the disclosure should include a clear description of the work to be performed, and the basis for selection of the subawardee (except for collaborative/joint arrangements)”

28. Cost Share or Match Is it required? Cash match In-Kind Contributions Calculate as if in the budget How much MORE will the program cost? What have you not included?

29. Cost Share or Match Reasonable, justifiable, and verifiable Cash or in-kind Can’t match federal grants with other federal funds Don’t use the same match twice. Third party in-kind must be tracked just like UCF cost share http://www.research.ucf.edu/SponsoredProgr ams/Contracts_Grants/projmmgt/ucf_costsha re.htm http://www.research.ucf.edu/SponsoredProgr ams/Contracts_Grants/projmmgt/ucf_costsha re.htm

30. Cost Share or Match Sources UCF Federal Match Program Faculty FTE (.05 -.10 FTE) Always requires department/CAH approval New equipment purchases Service Learning – volunteer (tracking) Building space (off campus – not UCF) Must document

31. Cost Share Considerations Must fund and track (must be allocable) Legal commitment Subject to audit Make sure costs aren’t part of the indirect calculation Match account handled by CAH Watch grant budget dates and fiscal year budget dates

32. Indirect Costs Also called Facilities & Administrative costs (F&A) or overhead Costs borne by UCF to support sponsored projects that cannot be clearly identified with a specific project Includes: Infrastructure Facilities Administration (26% maximum)

33. Federally approved indirect cost rate http://www.research.ucf.edu/SponsoredProgra ms/Proposal/F_A_Summary_of_Rates.html Recovering indirect costs can be significant Estimate these costs first! $250,000 / 1.44 = $173,611 Total Cost available = $76,389 Indirect Costs Sometimes limited or disallowed by funders Indirect Costs

34. Distribution of Indirect 55% Office of Research & Commercialization 45% College of Arts & Humanities 10% Department 10% Principal Investigator The departmental and PI portions will be deposited into to separate accounts. Each department or program must keep accurate records on indirect dollars.

35. Indirect Cost Considerations Understand the costs that have been included in UCF’s calculation of the indirect cost rate These costs CANNOT be budgeted as direct costs Understand your policy about indirect UCF requires a written statement from the funder to disallow indirect How is indirect used?

36. Budget Narrative Make your case that the budget is reasonable, appropriate, and adequate. Describe the policies that govern your budgetary decisions. Provide detail about items to be purchased. Indicate how costs were calculated. Insert parts of the spreadsheet as tables. Make sure the budget narrative is consistent with the grant narrative.

37. Thank you! Any questions: College of Arts & Humanities Kristin Wetherbee, kristin@mail.ucf.edu x3-0908, Office of Research & Commercialization Celeste Rivera-Nuñez, Paula Seigler crivera@mail.ucf.educrivera@mail.ucf.edu, pseigler@mail.ucf.edu x2-1155, x2-1129 Jo Ann Smith 407-823-2223 joasmith@mail.ucf.edu