Budget Categories and Cost Calculations for Grants

 
R01 Budgets
 
Stephanie Bair
And
Julia Bellafiore
 
Agenda
 
Types of Cost
Budget Categories and Calculations
Justifications
Budget exercise
Use of Grants Office
Processes for Submissions
Helpful Hints
 
Types of Cost
Budget Categories and Calculations
Justifications
Budget exercise
Use of Grants Office
Processes for Submissions
Helpful Hints
 
Direct
 
Indirect
 
Types of Cost
Budget Categories and Calculations
Justifications
Budget exercise
Use of Grants Office
Processes for Submissions
Helpful Hints
 
DIRECT COST
 
Can be identified specifically and/or
directly assigned to a sponsored project,
instructional activity, and/or an
institutional activity with a high degree of
accuracy
 
Criteria to be a direct cost:
Allowable
Allocable
Reasonable
 
Types of Cost
Budget Categories and Calculations
Justifications
Budget exercise
Use of Grants Office
Processes for Submissions
Helpful Hints
 
INDIRECT COST
 
“Costs…that are incurred for common or joint
objectives and therefore cannot be identified
readily and specifically with a particular
sponsored project, instructional activity, and/or
any institutional activity
 
AKA:
Facilities & Administration (F&A) costs
Overhead
 
T
ypes of Cost
Budget Categories and Calculations
Justifications
Budget exercise
Use of Grants Office
Processes for Submissions
Helpful Hints
 
Budget Categories:
Personnel
Consultants
Equipment
Supplies
Travel
Patient Care*
Alterations & Renovations*
Other Expenses
 
*not discussed in this session
 
T
ypes of Cost
Budget Categories and Calculations
Justifications
Budget exercise
Use of Grants Office
Processes for Submissions
Helpful Hints
 
Budget Categories >> Personnel
Two main categories of Personnel:
 
Senior/Key: 
The PD/PI and other individuals who contribute to the
scientific development or execution of a project in a substantive,
measurable way, whether or not they receive salaries or
compensation under the grant. ”
 
Non-Key: does not contribute to the scientific development or
execution of a project in a substantive, measurable way
 
T
ypes of Cost
Budget Categories and Calculations
Justifications
Budget exercise
Use of Grants Office
Processes for Submissions
Helpful Hints
 
Budget Categories >> Personnel >> calculation
 
Start with the salary of each individual or position valued at
a 1.0 FTE
If the person is above the PHS salary cap, use the cap
instead of the actual salary in the calculation
Multiply the salary times the effort (as a percentage) that
each person will spend working on the award. This is the
“salary requested”
Multiply the salary requested by the institution’s fringe
benefits rate to get the fringe requested
Add the salary request and fringe for each person to get
the total for each person/position
 
T
ypes of Cost
Budget Categories and Calculations
Justifications
Budget exercise
Use of Grants Office
Processes for Submissions
Helpful Hints
 
Budget Categories >> Personnel >> calculation
 
The current salary cap is $203,700
Fringe for Children’s: 17%
Fringe for George Washington:
                                                          23.14% - reg. employees
  
              7.95% - temps & students
                                                          11.50% - Postdocs
 
 
T
ypes of Cost
Budget Categories and Calculations
Justifications
Budget exercise
Use of Grants Office
Processes for Submissions
Helpful Hints
 
Budget Categories >> Personnel >> calculation
 
NIH requirements include listing efforts as months rather
than as a percentage
All efforts should be based on 12 months
12 calendar months
Combination of academic and summer months that totals 12
E.g. 9 academic months plus 3 summer months
This is done by many universities when faculty have different salary levels and
responsibilities during the school year versus the summer months
 
T
ypes of Cost
Budget Categories and Calculations
Justifications
Budget exercise
Use of Grants Office
Processes for Submissions
Helpful Hints
 
Budget Categories >> Consultant
 
“An individual who provides professional advice or services for a fee,
but normally not as an employee of the engaging party…Consultants
also include firms that provide professional advice or services.”
 
At Children’s, current employees may not act as consultants and
former employees may not act as consultants on a grant owned by
Children’s without approval of Human Resources
 
T
ypes of Cost
Budget Categories and Calculations
Justifications
Budget exercise
Use of Grants Office
Processes for Submissions
Helpful Hints
 
Budget Categories >> Equipment
Tangible 
property that h
as a useful life of 1+ years and acquisition
price is $5,000 or greater.
 
 
 
Budget Categories >> Supplies
Tangible 
property that is not equipment.
 
 
 
 
T
ypes of Cost
Budget Categories and Calculations
Justifications
Budget exercise
Use of Grants Office
Processes for Submissions
Helpful Hints
 
 
Budget Categories >> Travel
Expenses associated with a study member going outside the
organization for study related events.
 
Budget Categories >> Other Expenses
Expenses which fall under the direct cost criteria for a study but that
do not fall within the other categories.
 
 
 
T
ypes of Cost
Budget Categories and Calculations
Justifications
Budget exercise
Use of Grants Office
Processes for Submissions
Helpful Hints
 
 
Budget Categories
 
*Federal regulations require that you use the
lowest price item (among 3 different vendors).
 
**You must always use products from an
American based company unless an American
company does not make a comparable
product for what is needed.
 
T
ypes of Cost
Budget Categories and Calculations
Justifications
Budget exercise
Use of Grants Office
Processes for Submissions
Helpful Hints
 
 
Budget Categories: Collaborators
 
In which category do I classify my
collaborator?
 
Consultant
Vendor
Subcontractor
 
 
 
 
 
Types of Collaborators
 
Subaward
 
Collaborator
engages in
substantive
work, moving
the scientific
progression of
the study
forward.
 
Vendor
 
Collaborator
provides goods
and/or services
which are readily
available for
purchase. Knowledge
and/or work not
unique to a specific
study.
 
Consultant
 
Collaborator has
expertise and will
provide guidance
during your study.
 
T
ypes of Cost
Budget Categories and Calculations
Justifications
Budget exercise
Use of Grants Office
Processes for Submissions
Helpful Hints
 
 
Budget Calculations: modular vs detail budget
 
Add up all the direct costs of the prime institution
plus the direct costs of all the subcontractor
institutions.
 
*If this amount is $250,00 or less, submit a modular budget.
If this amount is $250,001 - $499,999, submit a detailed budget.
If your budget is $500,000 + for each year, you need to request
approval ahead of time. It will be a detailed budget.
 
*Best practice is to always complete a detailed budget to determine if you
will submit a modular budget, not the other way around.
 
T
ypes of Cost
Budget Categories and Calculations
Justifications
Budget exercise
Use of Grants Office
Processes for Submissions
Helpful Hints
 
 
Budget Calculations: escalations
NIH permits you to increase costs 3% each
year unless otherwise stated in your Funding
Opportunity Announcement (FOA).
If escalating costs, you must still remain
within the budget limitations set forth by
NIH for your FOA
 
T
ypes of Cost
Budget Categories and Calculations
Justifications
Budget exercise
Use of Grants Office
Processes for Submissions
Helpful Hints
 
 
Budget Calculations: MTDC and F&A
 
The NIH permits different cost bases to be
used when calculating indirect costs.
Both GW and Children’s utilize the Modified
Total Direct Cost (MTDC) base.
This base excludes 
equipment, patient care,
alterations & renovations as well as the part
of each subcontract in excess of $25,000 per
competitive segment of the award.
 
 
 
 
T
ypes of Cost
Budget Categories and Calculations
Justifications
Budget exercise
Use of Grants Office
Processes for Submissions
Helpful Hints
 
Budget Calculations: MTDC
Example:
 
Your budget categories are:
Personnel:
  
$150,000
Supplies:
  
$ 25,000
1 Subcontract:
  
$100,000
 
 
 
The MTDC would be 150,000 + 25,000 +25,000 =
$200,000
 
 
 
 
T
ypes of Cost
Budget Categories and Calculations
Justifications
Budget exercise
Use of Grants Office
Processes for Submissions
Helpful Hints
 
 
Budget Calculations: MTDC and F&A
 
The F&A is calculated by taking the MTDC and multiplying by the rate
agreed upon between the federal government and your institution.
 
For Children’s, the rate is 78.5%
For GWU, the rate is 61.5%
 
 
T
ypes of Cost
Budget Categories and Calculations
Justifications
Budget exercise
Use of Grants Office
Processes for Submissions
Helpful Hints
 
Budget Calculations: F&A
From Previous Example:
 
The MTDC is $200,000
 
Children’s F&A = 200,000 * 0.785 = $157,000
 
GWU F&A = 200,000 * 0.615 = $123,000
 
 
T
ypes of Cost
Budget Categories and Calculations
Justifications
Budget exercise
Use of Grants Office
Processes for Submissions
Helpful Hints
 
 
Calculation Comparisons
 
 
 
T
ypes of Cost
Budget Categories and Calculations
Justifications
Budget exercise
Use of Grants Office
Processes for Submissions
Helpful Hints
 
 
Budget Justifications
 
A good budget justification should reiterate everything that is
included in the actual budget and should be able to stand
alone so that the reviewer would know what is in the budget
even if he/she were not looking at it.
 
It should be a clear, concise write up of what items are
included, why they are necessary, and how they will be used.
The budget justification should cover the entire time span of
your project.
 
 
 
T
ypes of Cost
Budget Categories and Calculations
Justifications
Budget exercise
Use of Grants Office
Processes for Submissions
Helpful Hints
 
 
Budget Justifications
 
If you submit a 
detailed budget
, you need to
submit a detailed justification (e.g. detail all
categories).
 
If you submit a 
modular budget
, you only
need to justify personnel and categories that
are excluded from MTDC (equipment, patient
care, alterations and renovations,
subcontracts).
 
 
T
ypes of Cost
Budget Categories and Calculations
Justifications
Budget exercise
Use of Grants Office
Processes for Submissions
Helpful Hints
 
Budget exercise:
Please see the provided template (via email
for practice)
 
 
 
T
ypes of Cost
Budget Categories and Calculations
Justifications
Budget exercise
Use of Grants Office
Processes for Submissions
Helpful Hints
 
Use of Grants Office:
for Children's
PI works with the Grants & Finance Administrator
(GFA) to build their proposal in Children's internal
system, Bear Grants
Everything must be final and routed for approval
on or before 9 am on the 7th business day prior to
the sponsor's deadline. NOTE: if we are a sub, then
the date that the prime requests it from us is used
in lieu of the sponsor deadline.
The application must be approved by both the PI
and his/her center director before being routed to
the grants office.
 
 
 
T
ypes of Cost
Budget Categories and Calculations
Justifications
Budget exercise
Use of Grants Office
Processes for Submissions
Helpful Hints
 
Use of Grants Office:
for GWU:
PI works with the POD or SRA(School Research
Administrator (SRA) to build their proposal in GW's
internal system, MyResearch;
Budget and Budget Justification must be final and
routed for approval on or before COB day on the
5th business day prior to the sponsor's deadline.
NOTE: if we are a sub, then the date that the
prime requests it from us is used in lieu of the
sponsor deadline.
The application must be approved by going
through the routing chain 3-4 approval steps
 
 
T
ypes of Cost
Budget Categories and Calculations
Justifications
Budget exercise
Use of Grants Office
Processes for Submissions
Helpful Hints
 
Processes for Submissions
:
Assuming that the PI was on time, the grants office
will review the application within 48 hours of
receipt.
If it is ok to submit, the grants office will submit
If changes are required, they will be requested and
must be returned prior to the sponsor's due date
for submission.
If applications and/or revisions are not submitted
on time and cannot be completely reviewed OR if
the PI chooses not make recommended changes,
then the grants office is not responsible of the
sponsor does not accept, review, or fund the
application for administrative reasons.
 
T
ypes of Cost
Budget Categories and Calculations
Justifications
Budget exercise
Use of Grants Office
Processes for Submissions
Helpful Hints
 
Helpful Hints
:
Notify your GFA/ SRA at least 4-6 weeks prior
to the proposal due date
Stay in touch with assigned GFA/SRA and keep
them posted on all related communications
Be nice to your grant administrator!
 
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Explore the different types of cost budget categories, including direct and indirect costs, personnel, consultants, equipment, supplies, and more. Learn about justifications, budget exercises, grant office processes, and helpful hints for submissions. Understand the criteria for direct and indirect costs and how they contribute to sponsored projects or institutional activities.

  • Budgeting
  • Grants
  • Cost Categories
  • Direct Costs
  • Indirect Costs

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  1. R01 Budgets Stephanie Bair And Julia Bellafiore

  2. Agenda Types of Cost Budget Categories and Calculations Justifications Budget exercise Use of Grants Office Processes for Submissions Helpful Hints

  3. Types of Cost Budget Categories and Calculations Justifications Budget exercise Use of Grants Office Processes for Submissions Helpful Hints Direct Indirect

  4. DIRECT COST Can be identified specifically and/or directly assigned to a sponsored project, instructional activity, and/or an institutional activity with a high degree of accuracy Types of Cost Budget Categories and Calculations Justifications Budget exercise Use of Grants Office Processes for Submissions Helpful Hints Criteria to be a direct cost: Allowable Allocable Reasonable

  5. INDIRECT COST Types of Cost Budget Categories and Calculations Justifications Budget exercise Use of Grants Office Processes for Submissions Helpful Hints Costs that are incurred for common or joint objectives and therefore cannot be identified readily and specifically with a particular sponsored project, instructional activity, and/or any institutional activity AKA: Facilities & Administration (F&A) costs Overhead

  6. Budget Categories: Personnel Types of Cost Budget Categories and Calculations Justifications Budget exercise Use of Grants Office Processes for Submissions Helpful Hints Consultants Equipment Supplies Travel Patient Care* Alterations & Renovations* Other Expenses *not discussed in this session

  7. Budget Categories >> Personnel Types of Cost Budget Categories and Calculations Justifications Budget exercise Use of Grants Office Processes for Submissions Helpful Hints Two main categories of Personnel: Senior/Key: The PD/PI and other individuals who contribute to the scientific development or execution of a project in a substantive, measurable way, whether or not they receive salaries or compensation under the grant. Non-Key: does not contribute to the scientific development or execution of a project in a substantive, measurable way

  8. Budget Categories >> Personnel >> calculation Start with the salary of each individual or position valued at a 1.0 FTE If the person is above the PHS salary cap, use the cap instead of the actual salary in the calculation Multiply the salary times the effort (as a percentage) that each person will spend working on the award. This is the salary requested Multiply the salary requested by the institution s fringe benefits rate to get the fringe requested Add the salary request and fringe for each person to get the total for each person/position Types of Cost Budget Categories and Calculations Justifications Budget exercise Use of Grants Office Processes for Submissions Helpful Hints

  9. Budget Categories >> Personnel >> calculation Types of Cost Budget Categories and Calculations Justifications Budget exercise Use of Grants Office Processes for Submissions Helpful Hints The current salary cap is $203,700 Fringe for Children s: 17% Fringe for George Washington: 23.14% - reg. employees 7.95% - temps & students 11.50% - Postdocs

  10. Budget Categories >> Personnel >> calculation Types of Cost Budget Categories and Calculations Justifications Budget exercise Use of Grants Office Processes for Submissions Helpful Hints NIH requirements include listing efforts as months rather than as a percentage All efforts should be based on 12 months 12 calendar months Combination of academic and summer months that totals 12 E.g. 9 academic months plus 3 summer months This is done by many universities when faculty have different salary levels and responsibilities during the school year versus the summer months

  11. Types of Cost Budget Categories and Calculations Justifications Budget exercise Use of Grants Office Processes for Submissions Helpful Hints Budget Categories >> Consultant An individual who provides professional advice or services for a fee, but normally not as an employee of the engaging party Consultants also include firms that provide professional advice or services. At Children s, current employees may not act as consultants and former employees may not act as consultants on a grant owned by Children s without approval of Human Resources

  12. Budget Categories >> Equipment Tangible property that has a useful life of 1+ years and acquisition price is $5,000 or greater. Types of Cost Budget Categories and Calculations Justifications Budget exercise Use of Grants Office Processes for Submissions Helpful Hints Budget Categories >> Supplies Tangible property that is not equipment.

  13. Budget Categories >> Travel Types of Cost Budget Categories and Calculations Justifications Budget exercise Use of Grants Office Processes for Submissions Helpful Hints Expenses associated with a study member going outside the organization for study related events. Budget Categories >> Other Expenses Expenses which fall under the direct cost criteria for a study but that do not fall within the other categories.

  14. Budget Categories Types of Cost Budget Categories and Calculations Justifications Budget exercise Use of Grants Office Processes for Submissions Helpful Hints *Federal regulations require that you use the lowest price item (among 3 different vendors). **You must always use products from an American based company unless an American company does not make a comparable product for what is needed.

  15. Budget Categories: Collaborators In which category do I classify my collaborator? Types of Cost Budget Categories and Calculations Justifications Budget exercise Use of Grants Office Processes for Submissions Helpful Hints Consultant Vendor Subcontractor

  16. Types of Collaborators Consultant Collaborator has expertise and will provide guidance during your study. Subaward Collaborator engages in substantive work, moving the scientific progression of the study forward. Vendor Collaborator provides goods and/or services which are readily available for purchase. Knowledge and/or work not unique to a specific study.

  17. Budget Calculations: modular vs detail budget Types of Cost Budget Categories and Calculations Justifications Budget exercise Use of Grants Office Processes for Submissions Helpful Hints Add up all the direct costs of the prime institution plus the direct costs of all the subcontractor institutions. *If this amount is $250,00 or less, submit a modular budget. If this amount is $250,001 - $499,999, submit a detailed budget. If your budget is $500,000 + for each year, you need to request approval ahead of time. It will be a detailed budget. *Best practice is to always complete a detailed budget to determine if you will submit a modular budget, not the other way around.

  18. Types of Cost Budget Categories and Calculations Justifications Budget exercise Use of Grants Office Processes for Submissions Helpful Hints Budget Calculations: escalations NIH permits you to increase costs 3% each year unless otherwise stated in your Funding Opportunity Announcement (FOA). If escalating costs, you must still remain within the budget limitations set forth by NIH for your FOA

  19. Budget Calculations: MTDC and F&A The NIH permits different cost bases to be used when calculating indirect costs. Both GW and Children s utilize the Modified Total Direct Cost (MTDC) base. This base excludes equipment, patient care, alterations & renovations as well as the part of each subcontract in excess of $25,000 per competitive segment of the award. Types of Cost Budget Categories and Calculations Justifications Budget exercise Use of Grants Office Processes for Submissions Helpful Hints

  20. Budget Calculations: MTDC Example: Types of Cost Budget Categories and Calculations Justifications Budget exercise Use of Grants Office Processes for Submissions Helpful Hints Your budget categories are: Personnel: Supplies: 1 Subcontract: $150,000 $ 25,000 $100,000 The MTDC would be 150,000 + 25,000 +25,000 = $200,000

  21. Types of Cost Budget Categories and Calculations Justifications Budget exercise Use of Grants Office Processes for Submissions Helpful Hints Budget Calculations: MTDC and F&A The F&A is calculated by taking the MTDC and multiplying by the rate agreed upon between the federal government and your institution. For Children s, the rate is 78.5% For GWU, the rate is 61.5%

  22. Budget Calculations: F&A From Previous Example: Types of Cost Budget Categories and Calculations Justifications Budget exercise Use of Grants Office Processes for Submissions Helpful Hints The MTDC is $200,000 Children s F&A = 200,000 * 0.785 = $157,000 GWU F&A = 200,000 * 0.615 = $123,000

  23. Types of Cost Budget Categories and Calculations Justifications Budget exercise Use of Grants Office Processes for Submissions Helpful Hints Calculation Comparisons Item GWU Children s Fringe 23.14% 17% F&A 61.50% 78.5%

  24. Budget Justifications Types of Cost Budget Categories and Calculations Justifications Budget exercise Use of Grants Office Processes for Submissions Helpful Hints A good budget justification should reiterate everything that is included in the actual budget and should be able to stand alone so that the reviewer would know what is in the budget even if he/she were not looking at it. It should be a clear, concise write up of what items are included, why they are necessary, and how they will be used. The budget justification should cover the entire time span of your project.

  25. Budget Justifications Types of Cost Budget Categories and Calculations Justifications Budget exercise Use of Grants Office Processes for Submissions Helpful Hints If you submit a detailed budget, you need to submit a detailed justification (e.g. detail all categories). If you submit a modular budget, you only need to justify personnel and categories that are excluded from MTDC (equipment, patient care, alterations and renovations, subcontracts).

  26. Types of Cost Budget Categories and Calculations Justifications Budget exercise Use of Grants Office Processes for Submissions Helpful Hints Budget exercise: Please see the provided template (via email for practice)

  27. Use of Grants Office: for Children's PI works with the Grants & Finance Administrator (GFA) to build their proposal in Children's internal system, Bear Grants Everything must be final and routed for approval on or before 9 am on the 7th business day prior to the sponsor's deadline. NOTE: if we are a sub, then the date that the prime requests it from us is used in lieu of the sponsor deadline. The application must be approved by both the PI and his/her center director before being routed to the grants office. Types of Cost Budget Categories and Calculations Justifications Budget exercise Use of Grants Office Processes for Submissions Helpful Hints

  28. Use of Grants Office: for GWU: PI works with the POD or SRA(School Research Administrator (SRA) to build their proposal in GW's internal system, MyResearch; Budget and Budget Justification must be final and routed for approval on or before COB day on the 5th business day prior to the sponsor's deadline. NOTE: if we are a sub, then the date that the prime requests it from us is used in lieu of the sponsor deadline. The application must be approved by going through the routing chain 3-4 approval steps Types of Cost Budget Categories and Calculations Justifications Budget exercise Use of Grants Office Processes for Submissions Helpful Hints

  29. Processes for Submissions: Assuming that the PI was on time, the grants office will review the application within 48 hours of receipt. If it is ok to submit, the grants office will submit If changes are required, they will be requested and must be returned prior to the sponsor's due date for submission. If applications and/or revisions are not submitted on time and cannot be completely reviewed OR if the PI chooses not make recommended changes, then the grants office is not responsible of the sponsor does not accept, review, or fund the application for administrative reasons. Types of Cost Budget Categories and Calculations Justifications Budget exercise Use of Grants Office Processes for Submissions Helpful Hints

  30. Helpful Hints: Types of Cost Budget Categories and Calculations Justifications Budget exercise Use of Grants Office Processes for Submissions Helpful Hints Notify your GFA/ SRA at least 4-6 weeks prior to the proposal due date Stay in touch with assigned GFA/SRA and keep them posted on all related communications Be nice to your grant administrator!

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