1. The University of Texas at Arlington Office of Research and Office of Accountingand Business Services Brown Bag Training Session Three: The 1,2,3s of Budget Preparation

2. The 1,2,3s of Budget Preparation and Management Presenters: Preparation: Rae Schofield Management: Brent Norman 3. Goals and Objectives

1 ~ Read the Proposal/Agency Guidelines and Evaluate your Budget Needs

2 ~ Elements of the Budget

3 ~ Special Requirements and Restrictions

4. 1 ~ The Guidelines and Budget Needs

The guidelines tell you:

Your dollar limit, if any

Which costs are allowable

Evaluating your budget needs:

Does the scope of your project fit the solicitation?

Will cost needs exceed the allowable dollar limits?

5. 2 ~ Elements of the Budget

Types of Costs:

• Direct

• • e.g. salary, fringe benefits, travel, equipment, lab supplies

• • Are easily associated with a specific project

• Facilities & Administration (F&A)

• • Also known as Indirect Costs (IDC)

• • e.g. utilities, admin support, general office supplies

• • Can be associated with many other sponsored projects or cannot be easily associated with a specific project

6. 2 ~ Elements of the Budget

Types of Direct Costs

• Salaries:

• • UTA Employees who will direct effort to the grant, e.g. PIs, Post Docs, Students

• • Should reflect the amount of time that person will spend on the project

• Fringe Benefits:

• • Should reflect UTAs approved rates for the associated position

• • Includes: Health Insurance, Social Security, Retirement, Vacation/Sick Leave, FICA, OASI

7. 2 ~ Elements of the Budget

Types of Direct Costs

• Equipment

• • Must be identified and justified in proposal

• • Costs $5,000 or more and has a lifetime of 1 year or more, including fabricated equipment

• Consultants

• • Used to pay experts outside UTA who provide professional advice or service

• Publications

• • e.g. manuscript illustration, reprints, page charges

8. 2 ~ Elements of the Budget

Types of Direct Costs

• Research and Expendable Supplies

• • Identified and justified in the proposal

• • Must be clearly associated with, and necessary to, that particular project

• • Must be expended only for the associated project

• • Examples are:chemicals/glassware, small electronics, software, animals, ect.

9. 2 ~ Elements of the Budget

Types of Direct Costs

• Travel

• • Identified and justified

• • Includes: transportation, room and board

• • Must be directly related to the project

• Subcontracts

• • Must provide a substantial programmatic contribution

• • At a minimum require a detailed budget, budget justification, work statement, and institutional endorsement

• Tuition

• • Not permitted on federal awards

10. 2 ~ Elements of the Budget

Types of Direct Costs

• Copying & Duplication

• • Only allowable for unusual costs such as: large survey instruments, test, questionnaires, work shop procedures, program brochures

• • Identified and justified

• Other Direct Costs

• • e.g. renovation of space, off campus facility rentals, long distance charges, participant support costs

11. 2 ~ Elements of the Budget

F&A Costs

• Expressed as a percentage of S&W, MTDC, TDC

• The rate is negotiated with the federal government

• • MTDC excludes:

• • • Equipment over $5,000

• • • Portion of each subaward in excess of $25,000

• • • Tuition remission

• • • Off campus facility rental

• • • Alteration and renovation

• • • Participant support costs

12. 2 ~ Elements of the Budget

F&A Costs

• On-Campus vs. Off-Campus

• • To be considered off-campus you must be paying rent for the facilities out of the program budget

• • The budget must be divided between on-campus and off-campus activities

• • You must specify where the work will be done and how long it will last

13. 2 ~ Elements of the Budget

The Budget Justification

• Identifies your costs and explains the need for them

• Answer any questions a reviewer may have about how you calculated your costs

• Indicates the basis salaries and for any yearly increases

• Should reflect the objectives of the project

14. 3 ~ Special Requirements and Restrictions

• Does the agency require cost share?

• Do they require special travel considerations?

• Do they limit F&A?

• Do they prohibit certain cost categories?

• Specific forms or format?

• Remember that the budget can be reduced upon award leading to a reduction in scope as well.

15. Budget Preparation

Start early

Contact your OR representative and let them help you

Ask questions

Construct your budget

Incorporate it into your proposal

16. Other Resources

OR Website:

http://www.uta.edu/research/

NSF GPG:

http://www.nsf.gov/pubsys/ods/getpub.cfm?gpg

NIH Forms and Applications:

http://grants1.nih.gov/grants/forms.htm

OMB Circulars:

http://www.whitehouse.gov/omb/circulars/index-education.html

17. Budget Management

Establishing Budgets

Grant Expenditures

Explanation of Receivables Categories

Budget Modifications

18. 1. Establishing Budgets

Budgets are entered upon receipt of a written, approved authorization from an outside agency.

Grant

Contract

Modification to an existing account

19. 2. Grant Expenditures

All allowable, allocable direct charges should be applied to the grant as they are incurred.

All requests to transfer expenditures to a grant should be in writing (email) with justification to the Grant Accountant and include the following:

Document number or voucher number

Dollar amount

Account number where expense was charged

A copy of the invoice or receipt to support the request

20. 3. Receivables Categories

Budget Categories 91 and 92 reflect the receivables for the account.

91 Commitment Receivable Begins as the total amount of the awarded budget and is reduced as billings are recorded

92 Billings Receivable Begins as zero and increases to reflect the total amount billed

21. 4. Budget Modifications

Budget Transfers:

All budget transfer requests should be written (email) and submitted to the Office of Research for approval.

A transfer involving a category subject to F&A and one not subject to F&A will have an impact on the F&A budget.

• Example: 50% F&A rate, transfer $100 from 50 to 80, must also transfer $50 from 90 to 80.

22. 4. Budget Modifications

Modified By Sponsor:

Modification letter from the sponsor through the Office of Research

Budget revision by the Office of Research

23. Brown Bag Training Session Four

Wednesday January 22, 2003

Gifts vs. Grants