The Nitty Gritty or The Things No One Wants to Think about

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The Nitty Gritty orThe Things No One Wants to
Think about
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Goals

• Stay out of jail Compliance
• Prepare realistic budget request
• Use funds efficiently
• Complete the project with the funds provided

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Funding Sources

• Federal Government
• State Government/Agencies
• Corporations
• Foundations
• Non Profits and NGOs

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Types of Funding

• Grants
• Contracts Fixed Price and Cost Reimbursable
• Cooperative Agreements (CAN)
• Fellowships Graduate Student, Post Doc, Young
  Career and Mid-Career (NSF,NASA, foundations)

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Grants

• Research based
• Usually open ended as to results
• Little project oversight by sponsor

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Contracts

• Have stated expectations for deliverables
• Agreement has binding clauses which must be
  adhered to or in violation of contract

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Types of Contracts

• Cost Reimbursable you are paid for actual
  expenses incurred
• Fixed Price Agreed upon to be paid if
  deliverables acceptable
• If costs more you pay extra
• If costs less you keep balance

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Cooperative Agreements

• Collaborative effort between sponsor and
  researcher
• May involve more or less direction from sponsor
• Looks similar to grant at times - other times
  like a contract

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Hot on the trail

• Review the specific guidelines of the RFP or
  solicitation document
• In your institution/organization eligible?
• What is the funding level, i.e., is it worth your
  effort?
• Review as soon as announcement is made
• Begin planning your research strategy

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Hot on the Trail - continued

• Determine specific procedures at your
  institution/organization to get appropriate
  authorization to submit proposal to the sponsor
• Who signs?
• What documents? (routing form, sub award
  information, human subjects review, etc.)
• How long does the process take?

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Types of Expenses

• Direct Costs
• Salaries
• Fringe Benefits
• Travel
• Research Materials
• Subcontracts
• Equipment

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Types of Expenses - continued

• FA (Facilities Administration)
• set percentage applied to appropriate direct
  expenses
• If Federal award cant usually charge
• general office costs phone, copier, b/w
  toner
• general administrative costs
• secretarial assistance
• Considered part of FA

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Things to Consider

• What and whose salaries would you like to
  include?
• PIs and Co-Is
• Junior Research Staff
• Graduate Students
• Are Non US Citizens acceptable?
• Collaborators at other institutions/
• corporations/agencies

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Fringe Benefits

• What fringe benefits are offered by your
  institution/organization and to whom?
• Health Care
• Pension Contribution
• Tuition for Staff
• Tuition for Graduate Students
• etc
• How are they calculated i.e., what will it cost?

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Other Items of Cost

• Necessary Equipment do survey of possible
  costs, etc.
• Travel Costs contact travel agencies, websites,
  etc.
• Subcontracts ask for budget, budget
  justification, scope of work letter of support
  from possible institutions/companies, etc.

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Other Items of Cost

• Communication Costs phone, fax, mail, fed ex
  consider expected amount of contact with distant
  collaborators
• Costs assessed by your institution or
  organization i.e., computer support
• If applicable to project, better to include even
  if small s so have approved line item
  reallocation easier as project progresses

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Rebudgeting Guidelines

• 10 of budgeted amount for an expense item can be
  reallocated between approved line items w/o prior
  approval
• Cannot add these line items w/o prior sponsor
  approval
• Equipment, subcontracting, rent, foreign travel
  or substantial reduction in PI effort

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Other Items of Cost

• FA (Facilities Administration) Indirect
  Costs, Over-head
• Each organization/institution has standard method
  for calculating (what is included omitted
  before assessment)
• If organization has Federal agreements has a
  negotiated agreement

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Allowable Costs

• Read RFP or solicitation document closely.
  Equipment? Foreign nationals?
• If institution of higher learning review OMB
  A-21
• If Non Profit review OMB A-110

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Allowable Costs

• If proposing federal project Check the Federal
  Acquisition Regulations (FAR)
• General regs for all government agencies
• Also agency specific regs
• http//www.arnet.gov/far/

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Prepare Budget

• Use institutional and/or sponsor forms to outline
  the budget
• Prepare justification for each line item of
  expense

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Budget Justification

• Explain the basis for the various amounts
  requested (salary base in given FY with
  increase each year)
• Explain importance of the expense to the goals of
  the proposed project
• Include institutional/organizational language for
  standard charges, inc FA

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Budget Justification

• Explain why subcontractors are important to the
  project goals
• Include as backup from subcontractors
• Budget for their portion of the project
• Budget justification
• Vitae for senior persons
• Scope of Work
• Signed letter of endorsement from official able
  to make commitment for the organization/institutio
  n

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You Win an Award! Now what?

• Review awarded budget revise plans if necessary
• Revise budget within guidelines to match plans
  (need to get sponsor approval?)
• Prepare method for tracking expenses

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Now What? - continued

• Plan one year at a time if funding is allocated
  one year at a time
• Use project year, not calendar year
• Encumber all expenses you can foresee into
  shadow system

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Tracking Expenses

• Reconcile monthly expenses in shadow system with
  institution/organizations reports
• Calculate monthly burn rate project costs for
  year and/or project duration
• Spending considerably different within
  categories? rebudget? Reallocate?
• Adjust spending commitments?

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You dont project the budget well?

• You place the project at risk
• You place your institution/organization at risk
• You place your reputation at risk
• You may not get another award

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If you dont spend properly?

• (If you violate regulations)
• You could go to jail
• You and/or institution might lose all possibility
  of new awards
• You could lose your job

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GOOD LUCK!
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Questions?