Understanding Budget Categories and Cost Calculations for Grants
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.
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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
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
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
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
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
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
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
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
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
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.
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.
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.
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
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.
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.
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
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
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
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%
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
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%
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.
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).
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)
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
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
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
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!
