grant budgeting ii final - azusa pacific university...grant budgeting faq # 3 in-kind contribution...

GRANT BUDGETING II

Present byJosephine Wong / Marta Cenac

Office of Research and Grants, APUApril 23, 2014

OBJECTIVES

7 grant budgeting tips 6 grant budgeting FAQ answers A brief introduction to Federal grants budgeting Discussion A glance of ORG budget template (if time allows)

BUDGETING

Is a part of project _____ process

_________ all “Needed” resources

Is an _________ Is the , if

awarded.

DESIGN

QUANTIFY

ESTIMATE

SPENDING PLAN

GRANT BUDGETING TIP # 1START WITH STEP ONE

1st question – Why am I doing this? 2nd question – How much do I need? 3rd question – How much can the funder provide? 4th question – What kind of expenses are allowed or

disallowed? 5th question – How can I present the need in a smart

way?

THE FOUNDATION OF A GRANT BUDGET - 5 WS

WHY

WHAT

HOW

WHO

WHEN

OBJECT-IVE

TEAM

TIME-LINE DESIGNGOAL

1. WHY - _________2. WHAT - ___________3. HOW - __________4. WHEN - ___________5. WHO - __________

6 BUDGET STEPS

1. 2. 3. 5.4. 6.

Write down the

NEED

Des-cribethe

budget

List in a form

Know the

limit

Know the Re-

quire-ment

Put a cost to each

NEED

-Needed Resource-Be Real-istic

List by categoryDescribe the benefit

Use Funders’ provided template

Need > Max allow-Minimize-Cut-Re-design

-Funders CFP- APU- School / Dept

- Unit price- # of unit

GRANT BUDGETING TIP # 2PERSONNEL

Read the CFP/RFP – Is it allowed? Is there a max?

Estimate the time/effort you/your team need for the project

Know APU’s policies: Max work load, buy-out policies, Employee handbook, Conflict of Interest…

Budget Employee Related Expenses with Payroll

GRANT BUDGETING TIP # 3INDEPENDENT CONSULTANTS/CONTRACTORS ORSUB-AWARDEES?

Independent Contractors and Consultants provide SERVICE to your project. It is a “JOB” for them.

Sub-awardees involve in the design and collaborate with PI together towards the goal of the project.

Treatment is different, if awarded. Independent Contractor - APU →An individual Sub-awardee - APU ↔ Another Institution

GRANT BUDGETING TIP # 4PERSONNEL AND CONTRACTORS

Try to avoid TBN (To-be Named, To-be Determined)

Team members’ qualification and bio are very important to the proposal evaluation

Hard to estimate the right money figure for the work

GRANT BUDGETING TIP # 5AVOID LUMP SUM REQUEST

help justify a request clearly show your “thoughtfulness”

GRANT BUDGETING TIP # 6ALLOW FOR INFLATION

Cost often increases each year Yearly escalator factor is appropriate to be

included ORG grant template use 3% as the salary

escalator rate per year

GRANT BUDGETING TIP # 7ESTIMATE

Rule of thumb: as close to the real spending as possible

Equipment budgeting - include a printed quote.

GRANT BUDGETING FAQ # 1- WHY I CAN’T INCLUDE THIS ITEM?

Know the limit and requirement (Both Funders’ and APU’s)

Read the Call for Proposal and guideline in detail OMB Circular A-21 offers four tests :

Be reasonable Be allocable Be consistent Be conformable to the sponsored agreement

GRANT BUDGETING FAQ # 2MATCHING FUNDS

Voluntary matching and required (Involuntary) matching

Matching need to be documentable and measurable

Match can be a combination of Cash (direct cost) in-kind contribution Facilities and Administrative costs (F&A)

GRANT BUDGETING FAQ # 3IN-KIND CONTRIBUTION

Non-cash donation of materials, property, facilities, and / or services

List or Not to list? It depends. Some funders “REQUIRE” Some funders “ENCOURAGE” in-kind. Some funders “DISCOURAGE” voluntary in-kind and

“NOT-ALLOW” to ask any involuntary in-kind All have different and good reasons.

READ the Call for Proposal carefully

GRANT BUDGETING FAQ # 4FACILITIES AND ADMINISTRATIVE COSTS (F&A COST / INDIRECT COST) 1

Is a legitimate budget item APU has the negotiated rate 35% of Payroll +

Employee related Expenses For organizations have the max F&A allowance,

we can charge the max allowed. The difference can be used as matching funds. If there is no specific limitation, need to use

Federal negotiated rate.

APU general fund50%

ORG 15%

Project Investigator15%

Dept/School/College

20%

GRANT BUDGETING FAQ # 5WHERE DOES THE INDIRECT COST RECOVERYGO?

GRANT BUDGETING FAQ # 6AS A SUBAWARDEE, HOW SHOULD I DOTHE BUDGET?

It is basically same as the other budgets Need to know the prime sponsor – Funding may

be passed through Usually, prime awardee will request Scope of

Work, Budget and Budget justification from subawardee.

FEDERAL AGENCIES GRANT BUDGET (1)

Program Regulations

Statute

AdministrativeRegulations (OMB Circ.)

Special Terms and Conditions of Award

FEDERAL AGENCIES GRANT BUDGET (2)

The OMB Circulars A21 – Cost Principles for Educational Institutes A110 – Uniform Administrative requirements for

grants A133 – Audit Requirement A122 – Cost Principles for Non-Profit Organization

The new Uniform Guidance – announced 12/26/2013 and will be effective after 12/26/2014

FEDERAL AGENCIES GRANT BUDGET (3)

Most federal agencies (NIH, NSF, DoE, EPA……) require applicants to complete SF-424 + SF-424A Budget Information Form.

Modular Budget (PH S398)– For NIH R01, R03, R15, R21 or R34 grant and less than $250K a year. The request will round up to the nearest $25K. – It is a simplifier budget but the expense plan is still the same

Personnel Salary Cap

FEDERAL AGENCIES GRANT BUDGET (4)

ORG has subscribed CAYUSE, a 3rd party submission application to double check the adequacy of SF424 before submission.

NIH budget guidance –https://grants.nih.gov/grants/developing_budget.

htm#modbud NSF budget guidance -

http://www.nsf.gov/pubs/policydocs/pappguide/nsf14001/gpgprint.pdf

DoE budget guidance –http://www2.ed.gov/fund/grant/apply/appforms/sf

424instruct.pdf NEH budget guidance –

http://www.neh.gov/files/grants/budget_information_and_instructions_march_2014.pdf

DISCUSSION

ORG INTERNAL BUDGET TEMPLATE

A 5 year budget template to fit most of the budget requirement.

All calculation built-in to eliminate calculation error

If Funders have their own forms, use ORG internal form to draft the budget and then copy over.

ORG INTERNAL BUDGET TEMPLATE SAMPLE

ORG INTERNAL BUDGET TEMPLATE SAMPLE

ORG INTERNAL BUDGET TEMPLATE SAMPLE

ORG INTERNAL BUDGET TEMPLATE SAMPLE

ORG INTERNAL BUDGET TEMPLATE SAMPLE

ORG INTERNAL BUDGET TEMPLATE SAMPLE