1. How to Prepare a Proposal Budget CReATE CReATE ver. 5/13 © 2013 Florida State University. All rights reserved

2. Areas to Consider Direct Costs Indirect/F&A Costs or “overhead” Defining the Base for F&A costs Hot Topics: Cost Sharing Equipment/Supplies C.A.S. exemption items

3. Direct Costs Direct costs are those costs that can be identified specifically with a particular sponsored project, an instructional activity, or any other institutional activity, or that can be directly assigned to such activities relatively easily with a high degree of accuracy.

4. F&A Costs Indirect costs are those that are incurred for common or joint objectives and, therefore, cannot be identified readily and specifically with a particular sponsored project, an instructional activity, or any other institutional activity.

5. F&A - MTDC Modified Total Direct Cost (MTDC) Base includes all direct costs except: equipment, capital expenditures, charges for patient care, tuition remission, rental costs of off-site facilities, scholarships, fellowships, and the portion of each subcontract in excess of $25,000. Primarily used for Federally-funded projects

6. F&A - TDC Total Direct Cost (TDC) Base – includes all direct costs except tuition FSU’s policy is to exclude tuition from all indirect costs TDC Base primarily used for State of Florida agencies Also used for Local Florida Governments and Florida Water Management Districts

7. F&A Rates Set by: Type of Agency Location of Project (on/off campus/Mag Lab) Type of Project Solicitation Current Policy - Use FSU negotiated rate - http://www.research.fsu.edu/contractsgrants/ documents/rateagreement.pdfttp://www.research.fsu.edu/contractsgrants/ documents/rateagreement.pdf

8. Types of Projects Research: A systematic study directed toward fuller scientific knowledge and understanding gained of the subject studied Instruction: The teaching and training activities of an institution Other Sponsored Activity: This includes programs and projects which involve the performance of work other than instruction or organized research

9. MTDC (federal) TDC (State FL) * OnRes –51.3% OnRes – 10% Salaries $50,000$50,000 Equipment $10,000$10,000 Supplies $3,000 $3,000 Publications $2,000 $2,000 Tuition $12,529 $12,529 Total Direct $77,529$77,529 MTDC Base $55,000 TDC$65,000 Indirect Costs $28,215 $6,500 Total Requested $105,744$84,029 9

10. Cost Sharing Costing sharing or matching is that portion of project costs not borne by the sponsor.  A cost sharing commitment means any cost sharing included and quantified (e.g., % of effort and/or dollar amount) in the proposal budget, proposal narrative or award document.  Project enhancement means describing "resources that are available" for the project but are not quantified in the proposal budget, narrative or other documents. 10

11. FSU Cost Sharing Policy Make a cost sharing commitment only when required by the sponsor or by the competitive nature of the award. Cost share only to the extent necessary to meet the specific requirements of the sponsored project. If the PI requests an exception to this policy, s/he must get the Chair, Dean and VPR approval. Cost sharing is approved at the proposal stage. 11

12. Personnel Salaries & Wages Include faculty, technicians, post-docs, graduate students, & other personnel who are required to work on the project We recommend that you include a 3% salary escalation factor each year NOTE: On federal projects, administrative & clerical personnel are normally treated as indirect costs and cannot be direct charged.

13. Personnel Salary Annual Salary X %FTE Bi-weekly salary X %FTE X No. of pay periods OPS (Temporary employees, i.e., graduate students*, student aides, post-docs, other staff) Bi-weekly salary X % FTE X No. of pay periods Pay Periods 9 mo faculty – Academic Yr 19.5 Summer 6.5 12 mo faculty & all other classifications 26.1 GA’s Health Insurance Subsidy is considered as Salary Supplement.50 FTE & above = $900;.25-.49 FTE = $450

14. Personnel Salary Calculation PI 9 month salary = $75,000 19.5 pay periods in academic year 6.5 pay periods in Summer Semester $75,000 ÷ 19.5 = $3,846.15 b/w rate PI plans to work 15% FTE on project during summer semester $3,846.15 X 6.5 X 15% = $3,750.00

15. Fringe Benefit Rates Retirement FRS Pension Plan 5.18% FRS Investment Plan 5.18% ORP 5.64% DROP 5.44% Social Security 6.20% Medicare 1.45% Workers’ Comp & Unemployment 0.7% Terminal Leave Pool 1.3%

16. FB Composite Rates* Faculty/A&P/USPS under FRS Pension/Investment Plan 14.83% Faculty/A&P under ORP 15.29% Faculty/A&P/USPS under DROP 15.09% OPS Students 0.70% OPS Non-students & Post-Docs 2.15% *Effective 7/01/2012

17. Health Insurance* Individual Family Spouse $250/bw** $532/bw** $303/bw** $5,998/yr $12,760/yr $7,280/yr *Rates Effective 7/01/2012 **Calculated on 24 pay periods Note: 9 month faculty deductions for health insurance are made during regular academic year

18. FB Calculation Same PI - $75K Academic Yr / $3,846.15 b/w Salary calculated for budget = $3,750.00 PI has ORP retirement plan and family health ins $3,750.00 X 15.29% = $573.38 Total FBs & Health = $573.38 No health deductions during summer for 9-month faculty

19. Consultants Outside individuals with expertise and skills that will add value to project Normally, faculty & other FSU staff should not be paid as consultants Costs are usually calculated in terms of daily rate Certain sponsors may limit the daily rate Consultant costs should be listed in ‘Other’ category

20. Equipment – A-21 (2) "Equipment" means an article of nonexpendable, tangible personal property having a useful life of more than one year and an acquisition cost which equals or exceeds the lesser of the capitalization level established by the institution for financial statement purposes, or $5,000.

21. Equipment Items costing $5,000 or more with a useful life of 1 year or more Equipment should be detailed in the budget Requests should only include those items of equipment required to complete the project

22. Equipment IT Equipment Purchases – Memorandum from VPR – July 2012 http://www.research.fsu.edu/contractsgrants/d ocuments/ITguide.pdf *Federal/Federal flow-through: equipment threshold is $5,000 All other funding sources: equipment threshold remains at $1,000.00 per piece of equipment

23. Equipment – A-21 (4) "General purpose equipment” means equipment, which is not limited to research, medical, scientific or other technical activities. Examples include office equipment and furnishings, modular offices, telephone networks, information technology equipment and systems, air conditioning equipment, reproduction and printing equipment, and motor vehicles. Cannot be charged as a direct cost unless approved in advance by awarding agency

24. Supplies Supplies and materials related to the project Can be listed in budget as broad categories such as glassware, chemicals or art supplies Minor equipment costing < $5,000 If the equipment item costs $1,000 to $4,999 and has a useful life of a year or more, then it is excluded from the indirect cost base when calculating indirect costs from non-Federal sponsors NOTE: On Federal projects, routine office supplies are normally treated as indirect costs and cannot be direct charged (paper, pencils, post-it notes, etc.) 24

25. C.A.S. Exemptions In exceptional circumstances it may be appropriate to charge F&A costs directly to a sponsored project. If the nature of a sponsored project requires an extensive amount of administrative and/or clerical support or goods/services significantly greater than the routine level provided by an academic department, then the effort is deemed an exceptional circumstance and such costs can be accounted for as direct costs. An Exemption is REQUIRED to direct charge administrative and clerical salaries and other administrative-type expenses. In addition to meeting definition of exceptional circumstances, costs must be specifically identifiable to a particular sponsored project, be reasonable, allowable and allocable. 25

26. C.A.S. Exemptions CAS exemption must be approved at the proposal stage. Approval allows for charges normally classified as F&A to be charged directly to a project Complete CAS form w/PI, Chair & Dean signatures http://www.research.fsu.edu/contractsgrants/forms.html Submit to Sponsored Research Office NOTE: FSU (SR) approves the C.A.S. exemption; agency approval is not adequate - FSU is audited on these items 26

27. Travel Project-related travel may include trips necessary to collect data, to present findings at professional meetings, for meetings with program officers or collaborators, etc. Agencies require detailed estimates for the funds requested such as airfare, hotels, car rental, etc. Reimbursement of costs should be consistent with FSU’s travel policies

28. FSU Travel Rates Per diem is $80 per day or Breakfast = $6 Lunch = $11 Dinner = $19 Mileage = $.445 per mile Allowable room rates, incidental expenses, etc.

29. Subawards/Subcontracts Represents a collaboration of work by one or more other institutions Contractual agreements for services or goods with an outside party are not included in this category Costs for subawardee is presented in a separate line item and should include both the subawardee’s direct and F&A costs A subaward detailed budget should be included as part of budget justification Subawardee’s F&A costs are calculated in accordance with subawardee’s negotiated F&A rate agreement

30. Subcontracts If a collaboration is proposed, the following is required: Letter of commitment from the institution’s Sponsored Program Office (not PI) Scope of work for their activities Budget Budget Justification 30

31. Other Direct Costs This category contains all other proposal costs, i.e., animal per diems, publication charges, graphic fees, matriculation, communications, shipping, consultants, etc. Postage, local telephone, and memberships are normally considered F&A costs and cannot be direct charged (for Federal projects)

32. Matriculation Matriculation costs (minimum of 9 hrs/semester) should be included for graduate assistants supported by the project Graduate Matriculation Rate for FY13-14 is $464.04/cr hr or $12,529 for 27 hours (in-state) If matriculation costs are not included in budget, an alternate source of payment must be identified (Waiver 2 or 3 on transmittal form) FSU excludes matriculation from F&A calculations in all proposals 32

33. Matriculation Multiyear proposals should include an annual 15% escalation factor in matriculation costs Out of state matriculation is not an allowable cost in most circumstances College of Engineering may apply out of state rates to their proposals Certain training grants allow out of state matriculation. Review sponsor guidelines Fees are not an allowable cost unless applying for a training grant

34. Recap - Budget Calculation Federal Sponsor - NIH Modified Total Direct Cost Base Research will be conducted on campus On-campus Research negotiated F&A rate – 51.3%

35. F&A Calculation Total Direct Costs = $172,529 Salaries/FBs$97,000.00 Equipment$10,000.00 Supplies$ 3,000.00 Tuition$12,529.00 Subcontract$50,000.00 Base $97K + 3K +25K = $125,000 F&A $125,000 X 51.3% = $64,125 Total request from sponsor = $236,654

36. Questions