Updated Regulations for Federal Grant Proposals
Major changes in OMB Circulars by the Federal Government will impact allowable expenses for administrative salaries and computers in upcoming awards to UNMHSC. Proper budget justification is key for successful proposals post-December 26, 2014. Direct charging for clerical staff and computing devices will be allowed under specific conditions. Examples provided for correct budget justifications.
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Updated Rules for Proposals Due to Upcoming Changes in OMB Circular Who Federal Government is making major changes to the OMB Circulars (More on that next month) What Among other things, will allow more give in Admin Salaries and Computers Where With the right wording, will be allowable in upcoming awards to UNMHSC When Awards Received after 12-26-14 (New & Non-Competing) How By writing your Budget Justification correctly!
Significant Changes COMPUTERS Computing Devices A computing device is a supply if it does not meet the equipment capitalization threshold of $5,000. This Definition Affects Part E: Cost Principles Materials and Supplies For computing devices, charging as a direct cost is allowable for devices that are essential and allocable, but not solely dedicated, to the performance of a Federal Award.
Significant Changes Admin Salaries Clerical and Admin Salaries The salaries of administrative and clerical staff should normally be treated as indirect (F&A) costs. Direct charging of these costs may be appropriate only if all of the following conditions are met: o Administrative or clerical services are integral to a project or activity; Individuals involved can be specifically identified with the project or activity; Such costs are explicitly included in the budget or have the prior written approval of the Federal awarding agency; and The costs are not also recovered as indirect costs. o o o Removal of major project requirement Recognition of administrative workload NOTE: Include specific budget lines in proposals for projects that would be funded after December 26, 2014.
Show Me the Money $ Budget Justification Example - COMPUTER: $2000 will be needed for a desk top computer, monitor and printer, which will be essential for the new Program Manager to perform key grant functions, including scheduling, data management and project tracking for this grant. The desk top printer is essential, to ensure confidentiality of printed core statistics on subjects. (Key: Essential & Allocable)
Show Me the Money $ Budget Justification Example Admin Salaries: Barney Fife, Admin Assistant II, 3 CM. Mr. Fife is responsible for the monthly mailing of survey cards to the study subjects, following up, then entering the data into the master database. This is an essential & integral task under this study, and it is a time consuming task, but accumulation of 500 New Mexico participant opinions is critical to Aim 2. This portion of Mr. Fife s effort is not part of general administrative costs in UNM s F&A Rate Agreement. (Key: Integral, Specific, Explicit in Budget, Not F&A)
