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Budgeting Basics 101

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Title: Budgeting Basics 101


1
Budgeting Basics 101
  • David S. Wilkes M.D.
  • Division of Pulmonary and Critical Care Medicine
  • Indiana University School of Medicine

2
Show Me the Money
3
General Considerations
  • The budget is not a last minute item.
  • It is best to develop budget once you have a
    solid idea of the experimental plan.
  • Make sure the budget is reasonable.
  • The budget should never drive the purpose of the
    application!

4
In other words Do Not Let the Tail Wag the Dog
5
Budget Types
  • Modular
  • K series
  • Non-Modular

6
Modular Budgets
  • Based on the premise that detailed budgets are,
    at best, estimates.
  • Most detailed budgets are not accurate as such,
    NIH uses Modular budgets for grants with total
    Direct costs lt 250,000 annually.
  • Only total figures are presented on the budget
    pages.

7
Types of Budgets - Modular
  • Each Module is 25,000.
  • Modular maximum of average of 250,000/year in
    direct costs on average 10 modules annually.
  • The direct costs do not have to equal 250K each
    year but need to average to this amount for the
    life of the grant.

8
Modular Budgets
  • Must check with your institution as to the
    requirements for an Internal Budget.
  • Your institution may require a detailed budget,
    BUT
  • NIH does not require these forms for submission
    to NIH
  • Detailed Budget for the Initial Budget Period
    (Form Page 4)
  • Categorical Budget for the Entire Period of
    Support (Form Page 5)

9
Items Included in Modular Budget
  • Personnel within the primary institution
  • Supplies
  • Equipment
  • Travel
  • If a contract or consortium is planned with
    another institution then TOTAL cost of the
    relationship must be included in Direct costs.

10
Contracts or Consortia in Modular Budgets
  • Involves the inclusion of other personnel from
    another institution.
  • Expenses in your application must include direct
    costs any facilities or administrative costs
    (indirects) of the other institution.
  • Simply total cost figure must be integrated in
    one of the 25,000 modules.

11
Modular Budgets
  • YOU MUST BE IN THE CORRECT MODULE
  • Even if a reviewer interprets that your proposed
    budget is generous by a few thousand dollars,
    the smallest budget adjustment is 25,000!!!
  • Avoid this by doing a detailed internal budget
    for your own use make sure what you budget is
    reasonable!
  • Your institution may require a detailed internal
    budget

12
Modular Budgets
  • Once first year costs are determined then that
    total dollar figure should be inflated by 3 4
    each year for each year proposed.
  • Allows you to select the correct number of
    modules requested for each year.
  • Also allows you to average the correct number of
    modules yearly.
  • Your local grant specialist should do this
    likely required by your institution before the
    application is processed.

13
Narrative Justification for Modular Budgets
  • Very simple!
  • Include maintenance fees for equipment.
  • At a minimum consists of name of personnel,
    percent efforts, and role on project
  • Who is included in narrative must be credible in
    terms of expertise provided.
  • If a person does not have a clear role then do
    NOT include in budget.

14
Persons to Include in Narrative Justification
  • Co-principal investigators are not allowed.
  • Categories that are helpful
  • Co-investigator essential in expertise and
    hands on input.
  • Collaborator provides essential service but not
    involved conceptually in research.
  • Consultant provides critical but limited input.

15
Other Personnel in Budget
  • Research Techs participation must be relevant
    but are usually not key personnel.
  • Post doctoral fellows and graduate students
  • Include for funding but not as key personnel.
  • Never critical to project.
  • Able to be replaced
  • Make sure that these personnel will be involved
    in the project not simply asking for money to
    support a stipend.

16
Final List of Personnel on Budget
  • List their expertise and reason for inclusion.
  • Be SPECIFIC and avoid generalities.
  • Include a biosketch for everyone!

17
Deciding Percent Efforts
  • Too little or too much effort can result in loss
    of credibility for a person.
  • Senior PI as low as 10 but only if a
    Co-Investigator or a post doc will do most of the
    work as shown by high effort.
  • Best to propose gt 20 effort - even for senior
    P.I.s, at least 30 50 for new or junior
    investigators.
  • Be very careful with effort requested for
    collaborators/consultants must provide evidence
    for what they will do.

18
Budgets for KO8 Awards
  • Basic science oriented.
  • Must list 75 effort 75,000 maximum requested
    salary (despite the figure of your current
    salary).
  • May obtain additional salary from non-federal
    sources. No salary support allowed from RO1 if
    awarded until K expired.
  • 25,000 supply line may be supplemented from
    additional sources usually needed explain
    the source of additional support.

19
Budgets for K23 Awards
  • Patient oriented research.
  • Must list 75 effort 75,000 maximum requested
    salary (despite figure of your current salary).
  • May obtain additional salary from non-federal
    sources salary from an RO1 can not be used
    until career award expired.
  • 25,000 allowed for supplies but 50,000
    allowed for exceptional instances.

20
Non-Modular Budgets
  • Detailed budgets required for applications
    exceeding 250,000 annually.
  • Must request sufficient funds to do the work
  • Each item is under great scrutiny must justify
    all figures.
  • Non-modular budgets required commonly for
    clinical research and not basic science studies.

21
Non-Modular Budgets
  • Discuss needs with program officer before
    submission.
  • Need prior approval before submission if
    gt500k/year requested.
  • Request what you need and not what someone thinks
    you need!
  • Let the research dictate the amount requested.
  • Full disclosure is best policy.

22
Non-Modular Budgets
  • Credibility factor
  • Will lose credibility if you ask for too much or
    too little.
  • If any figure is suspect then the entire budget
    is under greater scrutiny.
  • Plan, plan, plan!!!!!!!

23
Non-Modular Budgets - Personnel
  • Usually the most expensive part of the proposal
    (similar to modular types), BUT.
  • All salaries, etc. are exposed so these figures
    and the number of personnel requested are closely
    scrutinized.
  • Use the same guidelines in Modular budgets for
    including personnel
  • Know the safe categories of personnel!

24
Non-Modular Budgets - Personnel
  • TBA categories To be announced Be very
    careful! What will this TBA technician, post
    doc, etc. do?
  • If this TBA has not been identified already
    then do you really need them?
  • Avoid listing TBA if possible.

25
Non-Modular Budgets - Personnel
  • Consultants
  • List names and affiliations whether paid or
    unpaid.
  • If paid list all related expenses, fees,
    travel, per diems, etc.
  • If multiple consultants then create a table
    summarizing expense items.
  • Internal consultants do not get paid (in general).

26
Non-Modular Budgets - Equipment
  • Very vulnerable section, and a section where
    credibility is lost easily!
  • Chance for success increased if you anticipate
    reviewers concerns.
  • Make sure these items do not overlap with core
    equipment already available pay close attention
    to any overlap with Resources page.
  • Remember that if you used similar equipment to
    generate preliminary data then do you need the
    equipment that you request?

27
Non-Modular Budgets - Supplies
  • A common mistake is not to edit these requests
    after multiple edits are made in the Research
    Plan.
  • Supplies Research Plan then OK.
  • Supplies ? Research Plan then credibility drops.

28
Non-Modular Budgets - Supplies
  • Avoid simply dividing the total supply budget by
    categories of supplies. This always leads to
    round numbers - not good.
  • Better approach is to do cost accounting just
    as you would in managing purchases in your lab.
    After all this is really a business plan. State
    why you did this!!!

29
Non-Modular Budgets - Travel
  • Very easily adjusted downward by reviewers.
  • Must justify even then likely to be revised
    downward.
  • Who will travel and why be explicit!

30
Non-Modular Budgets Other Expenses
  • Animal care project increases in future costs
    should discuss in detail with you animal
    facility.
  • Publication costs include but be reasonable
    base figure on prior productivity.
  • Service contracts key element the equipment
    purchased/utilized may be useless if you can not
    repair it.

31
Non-Modular Budgets Consortium/Contracts
  • Make sure that you really need that investigator
    at another institution this is expensive.
  • Justification must be sound and detailed. Prior
    co-authored papers are good evidence.
  • Must work very closely with you Research and
    Sponsored Programs Office to provide exact
    documentation.

32
Non-Modular Budgets
  • Plan very early this is not a last minute item.
  • Resources at NIH website very useful.
  • http//deainfo.nci.nih.gov/extra/extdocs/apprep.ht
    m

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Good Luck!!
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