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Basic Budget Building

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Title: Basic Budget Building


1
Basic Budget Building
  • Research Executive Area

2
Please Note
  • Rates used in this Tutorial are for example
    purposes only and may not be up to date.
  • For current rates, please see our
  • Proposal Fact Sheet

3
Basic Budget Building
  • This presentation is available on the www under
    Basic Budget Building Tutorial at
    http//www.umass.edu/research/ogca/proceds.htm
  • All underlined entries herein are hyperlinks to
    other resources. You are invited to use and
    share this presentation and to follow the links
    for additional important information

4
First Steps
  • Contact OGCA by sending an email to the pre-award
    research administrator responsible for reviewing
    your proposal. Let them know the deadline and
    provide the URL for program guidelines.
  • Review Sponsor guidelines for any costing rules
    that could include
  • Ceilings on requested amount
  • Indirect cost limits
  • Cost-share requirements
  • Direct cost restrictions (no equipment for
    example)
  • Consult OGCA Fact Sheet for current rates
  • Identify sponsor forms
  • Build your budget using this basic budget
    building tutorial as a starting point. Contact
    OGCA with any questions.

5
Two Major Budget Components
  • Direct Costs
  • The costs that are directly attributed to the
    project. Examples include salary, supplies,
    equipment, etc.
  • Facilities and Administrative Costs (FA).
  • (Indirect Costs or Overhead)
  • Pooled costs UMass incurs in support of Sponsored
    Activities not directly attributable to any one
    sponsored project. FA is assessed as a
    percentage of direct costs.

6
Two Types of Direct Costs
  • Personnel (Salaries and Fringe Benefits)
  • Non-Personnel

7
Personnel
  • Faculty Salaries
  • Academic
  • Summer
  • Calendar

8
Academic Year (AY) Salary
  • Consult with your department head to determine
    how much time you are allowed to dedicate to
    research projects. Personnel effort on all ACTIVE
    awards plus teaching load cannot exceed 100 .
    In other words, 100 summer salary (14 weeks)
    committed academic year research effort (up to
    the maximum percentage allotted for research by
    your department during the academic year)
    Teaching load other obligations 100
  • Academic Year (AY) salary is based on a 9 month
    appointment
  • AY salary charged to the sponsor is assessed the
    full fringe benefits package. The exception to
    this is the non-tenure track research professor
    -- this can be non-benefited

9
Academic Year Salary (Contd)
  • Some sponsors (e.g. NSF) do not allow payment of
    academic year salary without strong justification
    (strictly research appointments, etc.)

10
Academic Year Salary Sample Calculation
  • To charge 11 (1 month) of an academic salary of
    65,000
  • 11 X 65,000 7,150
  • Show basis of effort according to sponsor
    preference, usually represented as either of
    effort or monthly. NSF requires by month, NIH by

11
Personnel Budget Detail Academic Salary
Cost Type Cost Fringe
Personnel
Principal Investigator (1 month or 11 academic year) 7,150
Total 7,150
12
Fringe on Academic Year Salary
  • Group Insurance Retirement 27.00
  • Workers Comp., Unemp., Univ. Health .91
  • FICA (Medicare) 1.45
  • (applicable only if hired after 4/86)
  • Health Welfare 11 per week

13
Academic Year Salary Sample Fringe Calculation
  • Group Insurance 27.00 X 7,150 1,931
  • Workers Comp, etc. .91 X 7,150 65
  • FICA (Medicare) 1.45 X 7,150 104
  • 38 weeks (AY) X 11/wk X 11 46
  • Total Fringe 2,146

14
Fringe Budget Detail Academic Year Fringe
Cost Type Cost Fringe
Personnel
Principal Investigator 11 academic year 7,150 2,146
Total 7,150 2,146
15
Personnel
  • Faculty Salaries
  • Academic
  • Summer
  • Calendar

16
Faculty Summer Salary
  • Federal
  • Those faculty with Academic Year (AY)
    appointments can receive an additional 33 as
    summer salary. For example if AY pay is
    100,000, then an addition 33,000 can be charged
    as summer salary.
  • The summer pay rate is based on the 9 month
    academic year salary.
  • NSF permits only 2/9s, the equivalent of 2
    months salary.
  • Industrial and Foundation
  • Pay rate unrestricted negotiated with sponsor
  • Personnel effort on all ACTIVE awards plus
    teaching load cannot exceed 100 . In other
    words, 100 summer salary (14 weeks) committed
    academic year research effort (up to the maximum
    percentage allotted for research by your
    department during the academic year) Teaching
    load other obligations 100

17
Faculty Summer Salary Sample Calculation
  • Annual salary 54,000
  • Monthly salary 54,000/9 6,000/mo
  • 2 months of summer salary 12,000 charged to
    the project
  • Show basis of effort according to sponsor
    preference, usually represented as either of
    effort or monthly. NSF requires by month, NIH by

18
Personnel Budget Detail Summer Salary
Cost Type Cost Fringe
Personnel
Principal Investigator 11 academic year 7,150 2,146
Principal Investigator 2 months summer salary (67 summer) 12,000
Total 19,150 2,146
19
Faculty Summer Salary Sample Fringe Calculation
  • If PI hired before April 1, 1986
  • Workers Comp. .91(Summer Salary)
  • If PI hired after April 1, 1986
  • FICA 1.45
  • Workers Comp. .91
  • 2.36
  • For the sample budget, assume the latter
  • 2.36 X 12,000 283

20
Personnel Budget Detail Summer Salary Fringe
Cost Type Cost Fringe
Personnel
PI academic, 11 (1 month) 7,150 2,146
PI summer, 2 mos (67 summer) 12,000 283
Total 19,150 2,429
21
Personnel
  • Faculty Salaries
  • Academic
  • Summer
  • Calendar

22
Faculty Calendar Year Appointment
  • Some faculty have calendar year appointments 12
    months
  • Full fringe is assessed same as academic
    appointments
  • Additional compensation can only be charged to
    Non-Federal sources and with Dean and Provost
    written approval - only FICA Workers Comp. are
    charged for fringe

23
Personnel
  • Faculty Salaries
  • Summer
  • Academic
  • Calendar
  • Other Professional (Programmer, Technician, etc.)

24
Other Professional Sample Calculation
  • Calendar year employees
  • Sample annual salary 30,000
  • Calculating effort on a basis
  • 30 X 30,000 9,000
  • Calculating effort on a monthly basis
  • 30,000/12 months 2,500/month
  • 9,000/2,500 3.6 months
  • Additional compensation professional and
    classified staff can be budgeted up to an
    additional 12 salary from Non-Federal sources on
    top of their base annual with Dept. Head and Dean
    approval. Must be clearly noted in the budget as
    Add comp consult with Human Resources for
    allowability.

25
Personnel Budget Detail Other Professional Salary
Cost Type Cost Fringe
Personnel
PI academic, 11 (1 month) 7,150 2,146
PI summer, 2 mos (67 summer) 12,000 283
Other Professional, 30 (3.6 mos) 9,000
Total 28,150 2,429
26
Other Professional Sample Fringe Calculation
  • Assessed at full fringe rates
  • Fringe (27) Workers Comp (.91) 27.91
  • 9,000 x .2791 2,512
  • Health Welfare 11/week or 572 annually
  • 30 effort x 572 172
  • FICA (if hired after 4/1/86) 1.45
  • 9,000 x .0145 131
  • Total Fringe 2,512 172 131
  • 2,815 for this example

27
Personnel Budget Detail Other Professional Fringe
Cost Type Cost Fringe
Personnel
PI academic, 11 (1 month) 7,150 2,146
PI summer, 2 mos (67 summer) 12,000 283
Other Professional, 30 (3.6 mos) 9,000 2,815
Total 28,150 5,244
28
Personnel
  • Faculty Salaries
  • Summer
  • Academic
  • Calendar
  • Other Professional (Programmer, Technician, etc.)
  • Graduate Student

29
Graduate Student Stipend
  • Stipend - Minimum Graduate Stipends are set by
    academic areas, per student contracts.  For a
    memo regarding specific minimum student stipends
    click here
  • New Recalculated Minimum Graduate Student
    Employee Stipends
  • Example for a graduate student hired in 2003 for
    20 hrs per week both academic and summer
  • 20 hours per week X 52 weeks 1040 hours
  • 1040 X 14.12 14,685

30
Personnel Budget Detail Graduate Student Stipend
Cost Type Cost Fringe
Personnel
PI academic, 11 (1 month) 7,150 2,146
PI summer, 2 mos (67 summer) 12,000 283
Other Professional, 30 (3.6 mos) 9,000 2,815
Graduate Student (1040 hours or 50) 14,685
Total 42,835 5,244
31
Graduate Student Sample Fringe Calculation
  • GEO Health Fee assessed at 2.57 per hour
  • The following examples reflect typical
    appointments
  • 1,950 20 hours/wk X 38 weeks academic 760
    hrs X 2.57/hr
  • 2,673 20 hours/wk X 52 weeks 1,040 hrs x
    2.57/hr
  • 3, 392 20 hours/wk X 38 weeks academic 40
    hours/wk X 14 weeks 1,320 hours x 2.57/hr

32
Graduate Student Fringe Sample Fringe
Calculation (contd)
  • Health Welfare
  • 11/wk per student
  • 572 for 52 week year
  • 418 for 38 week academic year
  • 154 for 14 week summer
  • 572 this example

33
Graduate Student Sample Fringe Calculation
(contd)
  • Summer Student Payroll FICA
  • If not enrolled in classes 1.45 summer payroll
    (14 weeks)
  • 14,685/52 wks 282/wk
  • 282 X 14 wks 3,954/summer
  • 1.45 X 3,954 57
  • 57 for this example

34
Graduate Student Sample Fringe Total
  • GEO Health Fee 2,673
  • Health Welfare 572
  • Summer Student FICA 57
  • Total 3,302
  • NOTE Curriculum fee is assessed on all academic
    year grad student appointments but not budgeted
    as fringe -- see Other for more info

35
Graduate Student Fringe Calculation
  • It is important to understand how the fringe
    calculation is done, however we have constructed
    a Graduate Student Fringe Calculator to make it
    easier. It also calculates the Curriculum fee.

36
Personnel Budget Detail Graduate Student Fringe
Cost Type Cost Fringe
Personnel
PI academic, 11 (1 month) 7,150 2,146
PI summer, 2 mos (67 summer) 12,000 283
Other Professional, 30 (3.6 mos) 9,000 2,815
Graduate Student (1040 hours or 50) 14,685 3,302
Total 42,835 8,546
37
Personnel
  • Faculty Salaries
  • Summer
  • Academic
  • Calendar
  • Other Professional (Programmer, Technician, etc.)
  • Graduate Student
  • Postdoctoral Fellow

38
Postdoctoral Fellow
  • Salary is determined by what the market will bear
    in a particular field and is usually figured on
    an annual basis. Check with Department Head for
    prevailing rates
  • 35,000 per year this example

39
Personnel Budget Detail Postdoctoral Fellow Salary
Cost Type Cost Fringe
Personnel
PI academic, 11 (1 month) 7,150 2,146
PI summer, 2 mos (67 summer) 12,000 283
Other Professional, 30 (3.6 mos) 9,000 2,815
Graduate Student (1040 hours) 14,685 3,302
Postdoc (12 mos) 35,000
Total 42,835 8,546
40
Postdoctoral Fringe
  • UMass requires the budgeting of health insurance
    for postdocs by either providing
  • 1) The full benefits package includes group
    insurance and retirement
  • 2) Budgeting for the postdoc health plan no
    retirement

41
Post Doc Fringe (contd)
  • 1) Full benefits
  • Group Insurance Retirement 27
  • Workers Comp., Unemployment, Univ. Health
    .91
  • FICA (Medicare) 1.45 (applicable if hired
    after 4/86)
  • Health Welfare 11 per week
  • 27 X 35,000 9,450
  • .91 X 35,000 319
  • 1.45 X 35,000 508
  • 52 weeks X 11/wk 572
  • Total Fringe 10,849

42
Postdoctoral Sample Fringe Calculation (contd)
  • 2) Postdoc Health Insurance plan
  • Fellow only 232/mo
  • Fellow and child(ren) 615/mo
  • Fellow and spouse 728/mo
  • Fellow, spouse child(ren) 1,111/mo
  • 12 months X 232/mo 2,784
  • Workers Comp and FICA are assessed as well
  • .91 X 35,000 319
  • 1.45 X 35,000 508

43
Postdoctoral Sample Fringe Total
  • Postdoc with health (no-retirement)
  • Workers Comp 319
  • FICA 508
  • Health Insurance 2,784
  • Total 3,611

44
Personnel Budget Detail Postdoctoral Fellow
Fringe
Cost Type Cost Fringe
Personnel
PI academic, 11 (1 month) 7,150 2,146
PI summer, 2 mos (67 summer) 12,000 283
Other Professional, 30 (3.6 mos) 9000 2,815
Graduate Student (1040 hours) 14,685 3,302
Postdoc (12 mos) 35,000 3,611
Total 77,835 12,157
45
Personnel
  • Faculty Salaries
  • Summer
  • Academic
  • Calendar
  • Other Professional (Programmer, Technician, etc.)
  • Graduate Student
  • Postdoctoral Fellow
  • Secretarial

46
Secretarial
  • Secretarial salary can be charged to non-federal
    projects without any restrictions. The direct
    charging of secretarial services on federally
    supported projects is allowed only under a
    limited number of scenarios. See the policy
    statement and consult with OGCA proposal staff
    for guidance.

47
Personnel
  • Faculty Salaries
  • Summer
  • Academic
  • Calendar
  • Other Professional (Programmer, Technician, etc.)
  • Graduate Student
  • Post Doctoral Fellow
  • Secretarial
  • Undergraduate Student

48
Undergraduate Student
  • Undergraduate Students are hired for varying
    numbers of hours per week
  • The pay scale for undergraduates is determined by
    the job description and Human Resources
    guidelines
  • 10 hrs/wk X 38 wks X 10/hr 3,800

49
Personnel Budget Detail Undergraduate Student Pay
Cost Type Cost Fringe
Personnel
PI academic, 11 (1 month) 7,150 2,146
PI summer, 2 mos (67 summer) 12,000 283
Other Professional, 30 (3.6 mos) 9000 2,815
Postdoc (12 mos) 35,000 3,611
Graduate Student (1040 hours) 14,685 3,302
Undergraduate (10 hrs/wk academic) 3,800
Total 77,835 12.157
50
Undergraduate Fringe
  • Undergraduate salary is not charged fringe.
    However, FICA is charged during summer employment
    if the student is not enrolled in summer
    classes.
  • Fringe 0 for this example since the student
    is working during the academic year.

51
Personnel Budget Detail Undergraduate Student
Fringe
Cost Type Cost Fringe
Personnel
PI academic, 11 (1 month) 7,150 2,146
PI summer, 2 mos (67 summer) 12,000 283
Other Professional, 30 (3.6 mos) 9000 2,815
Postdoc (12 mos) 35,000 3,611
Graduate Student (1040 hours) 14,685 3,302
Undergraduate (10 hrs/wk academic) 3,800 0
Total 81,635 12,157
52
Non-personnel
  • Consultants

53
Non-personnel Costs Consultants
  • A consultant lends their expertise and advice in
    their given field without actually working on
    the project
  • UMass personnel cannot be paid as consultants on
    UMass grants contracts
  • NSF limits consultant daily rate to max of 498
    per day. This rate can be used for guidance on
    other federal projects but is not a requirement.
    Basis for costing on non-federal grants is market
    driven
  • Provide daily rate of pay in the budget obtain
    from consultant do not guesstimate, get exact
    rate

54
Non-personnel Budget Detail Consultants

Cost Type Cost
Consultant ABC Advice, Inc. (498/day, 10 days) 4,980
55
Non-personnel
  • Consultant
  • Equipment

56
Equipment
  • Definition
  • 1,000 unit cost or more
  • Non-expendable tangible property
  • Useful life of 2 years or more
  • Budgeting
  • List pieces of equipment separately showing unit
    cost
  • Basis for costing costing can easily be done
    on-line for items from laptops to centrifuges, or
    with familiar vendors. Avoid guesstimates

57
Non-personnel Budget Detail Equipment
Cost Type Cost
Consultant ABC Advice, Inc. (498/day, 10 days) 4,980
Equipment Mac Power Book G4, 17 super drive 3,299
58
Non-personnel
  • Consultant
  • Equipment
  • Administrative

59
Non-personnel
  • Consultant
  • Equipment
  • Administrative
  • Administrative and Office Supplies

60
Administrative Office Administrative Supplies
  • Definition
  • Pens, pencils, file folders, paper products,
    including photocopy paper, film, tape, etc., and
    small office machines under 100
  • Budgeting
  • Federal strict limitations placed on ability to
    budget. NOT ALLOWABLE consult with OGCA. Not
    included in sample budget for this reason
  • Non-federal no limits - budget as needed
  • Basis of costing experience
  • Range 25 - 100, depending on size of project

61
Non-personnel
  • Consultant
  • Equipment
  • Administrative
  • Administrative and Office Supplies
  • Postage and Telephone

62
Administrative Postage Telephone
  • Definition
  • Overnight courier services, regular postage,
    telephone
  • Budgeting
  • Allowable on federal projects but only with
    thorough explanation and justification. Must
    detail project related need and state ability to
    separately track these expenses from routine
    non-project expenses for auditing purposes
  • Federal telephone only for long-distance or for
    phone line entirely dedicated to the project

63
Administrative Postage Telephone (contd)
  • Limitations on costing are not typically placed
    by non-federal sponsors
  • Basis for costing experience in related
    projects with costing scaled up or down depending
    on relative size of project. Check your records
    and/or bookkeepers for prior accounting on
    project of a similar size and type
  • Typical range 50 to 500 amounts vary
    depending on nature of the project

64
Administrative Postage Telephone Sample
calculation/justification
  • Postage for mailing brochures
  • 200 X .25 50
  • Justification
  • Mailing of brochures to candidates for
    participation in the study. Brochures explain
    guidelines and criteria. They are required to
    properly educate possible participants prior to
    screening. These costs are auditable and
    accounted for separately from non-project costs

65
Administrative Costs Postage Telephone Calculati
on/Justification (contd)
  • Telephone (long-distance)
  • 200
  • Justification
  • Long distance phone calls required for follow-up
    with accepted participants to run initial
    interviews and to schedule and confirm
    appointments for participation. These costs are
    auditable and accounted for separately from
    non-project costs

66
Non-personnel Budget Detail Administrative
(contd)
Direct Cost Type Cost
Consultant ABC Advice, Inc. (498/day, 10 days) 4,980
Equipment Mac Power Book G4, 17 super drive 3,299
Administrative Postage for mailing brochures Telephone (long-distance) 50 200
Direct Cost Type Cost
Consultant ABC Advice, Inc. (498/day, 10 days) 4,980
Equipment Mac Power Book G4, 17 super drive 3,299
Administrative Postage for mailing brochures Telephone (long-distance) 50 200
67
Non-personnel
  • Consultant
  • Equipment
  • Administrative
  • Administrative and Office Supplies
  • Postage and Telephone
  • Subscriptions, Membership Dues

68
Administrative Subscriptions, Membership Dues
  • Definition
  • Self-explanatory costs must be allocable to a
    specific project and allowed by the sponsor
  • Budgeting
  • Federal strict limitations placed on ability to
    budget. NOT ALLOWABLE consult with OGCA. Not
    included in sample budget for this reason
  • Non-federal no limits - budget as needed.
    Should be explained/justified
  • Basis of costing current vendor rates
  • Range variable

69
Non-personnel
  • Consultant
  • Equipment
  • Administrative
  • Administrative and Office Supplies
  • Postage and Telephone
  • Subscriptions, Membership Dues
  • Photocopying

70
Administrative Photocopying
  • Definition
  • Both on and off-campus project-related
    photocopying services
  • Budgeting
  • Federal Allowable on federal projects but only
    with thorough explanation and justification.
    Must detail project related need and state
    ability to separately track these expenses from
    routine non-project expenses for auditing
    purposes
  • Non-Federal no limits - budget as needed

71
Administrative Photocopying (contd)
  • Budgeting (contd)
  • Basis of costing experience in related projects
    with costing scaled up or down depending on
    relative size of project. Check your records
    and/or bookkeepers for prior accounting on
    project of a similar size and type
  • Range variable

72
Administrative Photocopying justification
  • Sample explanation/justification
  • Funds are budgeted for project-related copying
    expenses incurred in the dissemination of paper
    submissions, documents/reports, and
    meetings/presentations required by the sponsor.
    These costs are auditable and separately tracked
    from routine non-project expenses

73
Non-personnel Costs
  • Consultant
  • Equipment
  • Administrative
  • Supplies

74
Non-personnel Costs Supplies
  • Consultant
  • Equipment
  • Administrative
  • Supplies
  • Laboratory supplies, chemicals

75
Supplies Laboratory supplies, chemicals
  • Definition
  • Laboratory supplies and chemicals allocable to
    proposed project
  • Budgeting
  • List types and give subtotals for major items in
    the budget explanation as applicable
  • Basis for costing check with vendors or
    accounting records for prior costing on similar
    projects. If new to budget building, confer with
    more experienced colleagues. Avoid
    over-inflating costs
  • Range variable, 100 - 25,000 based on project
    size/type

76
Supplies Lab supplies/chemicals Calculation
  • Lab supplies/chemicals
  • Chemicals 5,000
  • Reagents 1,000
  • Antibodies 2,000
  • Enzymes 500
  • Disposable lab supplies
  • (pipettes, media agents,
  • syringes, etc.) 300
  • Total 8,800

77
Non-personnel Budget Detail Supplies
Direct Cost Type Cost
Consultant ABC Advice, Inc. (498/day, 10 days) 4,980
Equipment Mac Power Book G4, 17 super drive 3,299
Administrative Postage for mailing brochures Telephone (long distance) 50 200
Supplies Lab/chemical supplies 8,800
78
Non-personnel Costs Supplies (contd)
  • Consultant
  • Equipment
  • Administrative
  • Supplies
  • Laboratory supplies, chemicals
  • Computer supplies

79
Supplies -- Computer supplies
  • Definition
  • Computer paper, diskettes, zip disks, toner, etc
  • Budgeting
  • Federal
  • Allowable with proper explanation and
    justification
  • Must detail project related need and state that
    these expenses are separately auditable from
    non-project costs
  • Non-federal no restrictions
  • Basis for costing
  • Check with vendors, accounting records, or
    colleagues for prior costing on similar projects
  • Avoid over-inflating costs
  • Range variable, 50 - 250 based on project
    size/type

80
Supplies Computer supplies Calculation/Justificati
on
  • Computer supplies
  • Cost 200
  • Justification
  • Computer supplies are required for project
    related sponsor mandated reports. These costs
    are separately auditable from non-project costs

81
Non-personnel Budget Detail Supplies
Direct Cost Type Cost
Consultant ABC Advice, Inc. (498/day, 10 days) 4,980
Equipment Mac Power Book G4, 17 super drive 3,299
Administrative Postage for mailing brochures Telephone (long-distance) 50 200
Supplies Lab/chemical supplies Computer supplies 8,800 200
82
Non-personnel Costs Supplies
  • The list of items in this sample budget under
    Supplies are not exhaustive but provided for
    illustrative purposes. Other costs that might
    arise are listed below for convenience. Click
    item for more information if hyperlinked
  • Research animals
  • Software, Software Upgrades, Software Licenses

83
Non-personnel Costs
  • Consultant
  • Equipment
  • Administrative
  • Supplies
  • Travel

84
Non-personnel Costs Travel
  • Definition
  • Airfare (domestic foreign), per diem, hotel,
    conference registration, ground transportation
    (taxi/limo), car rental, mileage tolls
  • Budgeting
  • Federal
  • Cannot charge business class or first class air
    travel
  • Must utilize U.S. flag carriers at the lowest
    available rates
  • Non-federal No airfare limitations

85
Non-personnel Costs Travel (contd)
  • Budgeting contd.
  • Basis for costing
  • Airfare check with travel agent or on-line
    service.
  • Domestic per diem and hotel UMass limits per
    diem (food) charge on domestic travel at 30.00
    per day (35 for MA, NYC, DC). See federal per
    diem site for suggested domestic hotel costs or
    call your travel agent.
  • Foreign Use foreign per diem and hotel rates,
    actual expenses based on prior travel or check
    with travel agent and/or bookkeeper.
  • Mileage set at the IRS rate, currently (FY 03)
    set at .375 per mile.

86
Non-personnel Costs Travel (contd)
  • Range
  • 1,200 to 1,600 per domestic conference
  • 1,500 to 3,000 per foreign conference
    depending on location/duration
  • Non-conference travel costs vary significantly
  • Do not guesstimate
  • Build budget with information suggested under
    Basis for costing and provide explanation

87
Travel Calculation
  • Domestic
  • Conferences in DC (two each for PI RA)
  • Airfare 550 X 2 (PI RA) X 2 trips 2,200
  • Hotel 110 X 3 days X 2 X 2 1,320
  • Per diem 3 days X 35/day X 2 X 2 420
  • Registration 400 X 2 X 2
    1,600
  • Mileage (to/from Bradley) .375 X 70 miles X 2
    53
  • Ground transportation (to/from Dulles) 35 X 4
    140
  • Total 5,733

88
Travel Calculation (contd)
  • Foreign
  • Conference in Moscow (PI)
  • Airfare 950
  • Hotel 5 days X 191 955
  • Per diem 5 X 103 515
  • Registration 400
  • Mileage (to/from Bradley) 53
  • Ground transportation 150
  • Total 3,023

89
Non-personnel Budget Detail Travel
Direct Cost Type Cost
Consultant ABC Advice, Inc. (498/day, 10 days) 4,980
Equipment Mac Power Book G4, 17 super drive 3,299
Administrative Postage for mailing brochures Telephone (long-distance) 250
Supplies Lab/chemical supplies Computer supplies 10,050
Travel Domestic 5,733 Foreign 3,023 8,756
90
Non-personnel Costs
  • Consultant
  • Equipment
  • Administrative
  • Supplies
  • Travel
  • Subcontracts

91
Non-personnel Costs Subcontracts
  • Definition
  • Generally, a subcontractor is defined as an
    organization, often another university, who helps
    carry out the activities of the proposed project
    by performing a portion of the research using
    their own facilities. They receive a
    proportional share of funding from the sponsor
    via UMass and will often charge their own
    indirect costs

92
Non-personnel Costs Subcontracts (contd)
  • Procedures
  • The following items must be provided to OGCA
  • A letter signed by the subcontractors authorized
    signatory (OGCA equivalent)
  • Statement of work (subcontractor specific does
    not include UMass effort)
  • Subcontractor budget
  • Indirect Cost Rate Agreement (if subcontractor is
    budgeting indirects in their own budget)
  • Sole source justification

93
Non-personnel Costs Subcontracts (contd)
  • Procedures (contd)
  • The first four items should be handled by the
    subcontractor and forwarded to OGCA
  • The sole source justification is completed by the
    UMass Principal Investigator. It explains why the
    subcontractor is uniquely qualified to carry out
    the work. Sole source justifications can be
    forwarded to OGCA via email
  • Subcontractors should use all sponsor forms,
    including any required certifications/assurances

94
Non-personnel Costs Subcontracts (contd)
  • Budgeting
  • The subcontractor typically budgets for both
    Direct Costs (DC) and Indirect Costs (IC). Take
    the total of the DC and IC provided in the
    subcontractor budget and roll that total into
    your budget creating a line item called
    Subcontracts see next slide for sample
    subcontractor budget. The subcontractors total
    costs are then rolled into the UMass budget under
    the Subcontract line item

95
Subcontractor Budget Sample
Wassamatta U. subcontract Cost
1. Salaries 10,500
2. Fringe 2,625
3. Equipment 2,500
4. Administrative 100
5. Supplies 500
6. Travel 2,500
Total Direct Cost 18,725
Total Indirect Cost (67 MTDC) 12,546
Total Cost 31,271

96
Non-personnel Budget Detail Subcontracts
Direct Cost Type Cost
Consultant ABC Advice, Inc. (498/day, 10 days) 4,980
Equipment Mac Power Book G4, 17 super drive 3,299
Administrative Postage for mailing brochures Telephone (long-distance) 250
Supplies Lab/chemical supplies Computer supplies 10,050
Travel domestic foreign 8,756
Subcontract Wassamata U. 31,271
97
Non-personnel Costs
  • Consultant
  • Equipment
  • Administrative
  • Supplies
  • Travel
  • Subcontracts
  • Other Direct

98
Non-personnel Costs Other Direct
  • Definition the following items are often
    budgeted under Other but for the sample budget,
    only curriculum fee appears.
  • Curriculum fee
  • Equipment rentals, maintenance repair
  • Human subject payment
  • Publication costs
  • Participant support costs
  • Do not use Miscellaneous as a line item
  • Above items not intended to be exhaustive but are
    illustrative of common items budgeted in the
    Other category.

99
Other Direct Calculation
  • Curriculum Fee
  • The rate is 6.31/hr. per Graduate Student (GS)
  • 1 GS X 20 hrs/wk X 38 wks X 6.31 4,796
  • Note
  • No more than 760 hrs or 4,796 per GS will be
    charged in an academic year
  • Summer effort is not charged CF
  • Curriculum Fee is exempt from FA

100
Non-personnel Budget Detail Other Direct
Direct Cost Type Cost
Consultant ABC Advice, Inc. (498/day, 10 days) 4,980
Equipment Mac Power Book G4, 17 super drive 3,299
Administrative Postage for mailing brochures Telephone (long-distance) 250
Supplies Lab/chemical supplies Computer supplies 10,050
Travel domestic foreign 8,756
Subcontracts Wassamata U. 31,271
Other Direct Curriculum fee on graduate student 4,796
101
Total Direct Cost
Cost type Cost
Salaries 81,635
Fringe 12,157
Consultant 4,980
Equipment 3,299
Administrative 250
Supplies 10,050
Travel 8,756
Subcontracts 31,271
Other 4,796
Total Direct Cost 157,194
102
Two Major Budget Components
  • Direct Costs
  • Facilities and Administrative Costs

103
Facilities and Administrative Costs (FA,
overhead, indirect costs)
  • Definition
  • FA is calculated as a percentage of Direct Costs
  • Rates vary depending on type of project, sponsor
    type, and project location (on-campus,
    off-campus) see fact sheet for specific rates.
    Consult with OGCA before budgeting either the
    Off-campus or Other Sponsored Activities or
    Instruction rates
  • If the sponsors FA rate differs from the
    Universitys, defer to sponsor mandated rates but
    provide OGCA with a copy of the sponsors
    guidelines supporting this restriction

104
Facilities and Administrative Costs (contd)
  • Definition (contd)
  • FA is assessed either on a Modified Total Direct
    Cost basis (MTDC) or a Total Direct Cost (TDC)
    basis. MTDC simply means -- do not assess FA
    (back them out of total before calculating FA)
    on the following costs
  • Equipment (1,000 or more unit cost)
  • Tuition (for cost-sharing purposes)
  • Curriculum fee
  • Rental costs of off-site facilities
  • Fellowships
  • Subcontractor costs in excess of 25,000

105
Facilities and Administrative Costs (contd)
  • Definition (contd)
  • Total Direct Cost (TDC) means that the applicable
    FA rate is assessed on the direct cost total.
    Every rule has an exception of course never
    assess FA on the curriculum fee
  • Budgeting
  • Review sponsor guidelines and assess FA costs as
    instructed. Confer with OGCA if unclear

106
Facilities and Administrative Calculation
  • Assume an on-campus research project for our
    sample budget with a 55 MTDC FA rate. 55 is
    therefore assessed on the total direct direct
    costs less equipment, curriculum fee, and
    subcontractor costs in excess of 25K. Thus the
    MTDC base
  • 157,194 - 3,299 - (31,271- 25K) - 4,796
    142,828 multiply this by 55
  • 142,828 X 55 78,555

Cost type Cost
Salaries 81,635
Fringe 12,157
Consultant 4,980
Equipment 3,299
Administrative 250
Supplies 10,050
Travel 8,756
Subcontracts 31,271
Other 4,796
Total Direct Cost 157,194
107
FA Budget Detail
Cost type Cost
Salaries 81,635
Fringe 12,157
Consultant 4,980
Equipment 3,299
Administrative 250
Supplies 10,050
Travel 8,756
Subcontracts 31,271
Other 4,796
Total Direct Cost 157,194
Total Indirect Costs 78,555
Total Cost 235,749
108
Cost-sharing Definition
  • Definition
  • Cost-share is that part of the projects costs
    borne by the University rather than the sponsor.
    Many sponsors require cost-sharing, often
    specific matching (such as 11 or 12) is
    required and other times agencies simply indicate
    that cost- sharing is recommended and will be a
    factor in the review and scoring of a proposal

109
Cost-sharing When allowable
  • When to cost-share
  • To include cost-share in your proposal, sponsors
    written guidelines must either require it, or
    strongly suggest its inclusion.
  • UMass policy does not allow for voluntary
    cost-sharing. If the sponsor doesnt require it,
    cost-share must not appear in your budget.
  • Do not provide shared costs from third party
    sources (Non-UMass, non-subcontractor). Confer
    with OGCA if third party share is required by
    sponsor.

110
Cost-sharing Allowable costs
  • What to cost-share
  • If established that the sponsor requires or
    recommends cost share, only the following costs
    may be shared regardless of whether sponsoring
    agency is federal or non-federal
  • Salaries
  • Fringe
  • Equipment
  • Subcontractor
  • Tuition waivers
  • Indirect costs
  • NOTE Cost share must be from UMass accounts,
    not from other grants or contracts, federal or
    non-federal

111
Cost-sharing Process
  • All cost-shared amounts and their associated
    state ledger account numbers must be listed on
    the second page of the Internal Processing Form
    (IPF). This cost-share must also be authorized
    with a signature in the far right column, by the
    individual authorized to commit the shared funds,
    usually the Department Head

112
Cost-share Budgeting
  • Salaries

113
Cost-share Budgeting
  • Salaries
  • Shared salary must derive from UMass funds, not
    matched from other federal or non-federal grants
  • Shared salary can be budgeted for UMass personnel
    with paid appointments. Exceptions to this rule
  • Faculty summer salary emeritus faculty salary
  • Salary is shared only for time specifically
    dedicated to the project during the proposed
    project period

114
Cost-share Salaries (contd)
  • Cost-shared salary is typically shown as a
    percentage of the employees base appointment but
    can also be budgeted in weeks or months following
    the same rules of effort reporting as required
    for reporting time charged to the sponsor
  • Keep in mind that personnel effort on all ACTIVE
    awards plus teaching load cannot exceed 100 .
    In other words, 100 summer salary (14 weeks)
    committed (charged and cost-shared) academic
    year research effort (up to the maximum
    percentage allotted for research by your
    department during the academic year) Teaching
    load other obligations 100

115
Cost-share, salaries Sample calculation
  • Prof. Grant wants to cost-share 1 month (11 AY)
    of his academic salary. Prof. Grant makes
    65,000 per academic year
  • 11 X 65,000 7,150
  • Show basis of effort according to sponsor
    preference, usually represented as either of
    effort or monthly. NSF requires by month, NIH by

Cost Type UM cost-share
PI (11 AY) 7,150
Total Direct Cost 7,150
116
Cost-share, salaries Sample Calculation (contd)
  • Regardless of whether funding is federal or
    non-federal, secretarial salary can be
    cost-shared
  • Secretarys salary is 30,000/calendar year and
    will devote 10 to the project
  • 30,000 X 10 3,000

Cost Type UM cost-share
PI (11 AY) 7,150
Secretary (10) 3,000
Total Direct Cost 10,150
117
Cost-share Fringe
  • Salaries
  • Fringe

118
Cost-share, Fringe Sample Calculation on PI
Academic
  • Same rules apply for budgeting shared fringe as
    for charging to the sponsor
  • Group Insurance
  • 27 X 7,150 1,931
  • Workers Comp, etc.
  • .91 X 7,150 65
  • FICA (Medicare)
  • 1.45 X 7,150 104
  • Health Welfare
  • 38 weeks (AY) X 11/wk X 11 46
  • Total Fringe 2,146

Cost Type UM cost-share
PI (11 AY) 7,150
Secretary (10) 3,000
Fringe PI 2,146
Total Direct Cost 12,296
119
Cost-share, Fringe Sample Calculation on
Secretarial
  • Same rules apply for budgeting shared fringe as
    for charging to the sponsor. If secretary
    benefited
  • Group Insurance
  • 27 X 3,000 810
  • Workers Comp, etc.
  • .91 X 3,000 27
  • FICA (Medicare)
  • 1.45 X 3,000 44
  • Health Welfare
  • 11 week X 52 weeks X 10 57
  • Total Fringe 938

Cost Type UM cost-share
PI (11 AY) 7,150
Secretary (10) 3,000
Fringe PI 2,146
Fringe Secretary 938
Total Direct Cost 13,234
120
Cost-share Equipment
  • Salaries
  • Fringe
  • Equipment

121
Cost-share - Equipment Sample Calculation
  • Criteria
  • Must be purchased exclusively for use on the
    project from UMass funds
  • Must be purchased during the projects
    anticipated period of performance
  • Sample budget
  • Eye Tracker 7,995

Cost Type UM cost-share
PI (11 AY) 7,150
Secretary (10) 3,000
Fringe PI 2,146
Fringe Secretary 938
Equipment 7,995
Total Direct Cost 21,229
122
Cost-share Subcontract
  • Salaries
  • Fringe
  • Equipment
  • Subcontract

123
Cost-share, Subcontract Sample Calculation
  • Subcontractor cost-share must be signed off by
    the subs OGCA. Shared items must be auditable.
  • When applying UMass FA on UMass shared direct
    costs, the subcontractors total shared cost,
    like equipment, is exempt. See slide on sharing
    FA costs for further explanation.
  • Sample budget Sub contributes salary, fringe,
    and associated FA costs 4,175

Cost Type UM cost-share
PI (11 AY) 7,150
Secretary (10) 3,000
Fringe PI 2,146
Fringe Secretary 938
Equipment 7,995
Subcontract 4,175
Total Direct Cost 25,404
124
Cost-share Tuition waiver
  • Salaries
  • Fringe
  • Equipment
  • Subcontract
  • Tuition waivers

125
Cost-share, Tuition Waivers Sample Calculation
  • Tuition waivers are budgeted for graduate
    students whose salary is being charged or
    cost-shared to the grant
  • Student stipends must be budgeted at a minimum of
    2,682 per semester to receive a waiver
  • Tuition waivers 2,705.50 per semester
  • Calculation for sample budget
  • 1 student X 2 semesters X 2,705.50 5,411

Cost Type UM cost-share
PI (11 AY) 7,150
Secretary (10) 3,000
Fringe PI 2,146
Fringe Secretary 938
Equipment 7,995
Subcontract 4,175
Tuition waiver 5,411
Total Direct Cost 30,815
126
Cost-share Facilities and Administrative Costs
(FA, overhead, indirect costs)
  • Salaries
  • Fringe
  • Equipment
  • Subcontract
  • Tuition waivers
  • Facilities and Administrative Costs

127
Cost-share, FA Sample calculation
  • Assess FA on shared direct costs using same rate
    charged to sponsor. However, always use MTDC
    basis for sharing of FA equipment and tuition
    waivers are exempt from FA assessment. In
    addition, do not assess FA on subcontractors
    total shared costs.
  • Sample calculation 30,815 (7,995 4,175
    5,411) 13,234 X 55 7,279

Cost Type UM cost-share
PI (11 AY) 7,150
Secretary (10) 3,000
Fringe PI 2,146
Fringe Secretary 938
Equipment 7,995
Subcontract 4,175
Tuition waiver 5,411
Total Direct Cost 30,815
Total Indirect Cost 7,279
Total Cost Share 38,094
128
Total Budget Sponsor UMass cost-share
Cost type Sponsor UMass Total
Salaries 81,635 10,150 91,785
Fringe 12,157 3,084 15,241
Consultant 4,980 4,980
Equipment 3,299 7,995 11,294
Administrative 250 250
Supplies 10,050 10,050
Travel 8,756 8,756
Subcontracts 31,271 4,175 35,446
Other 4,796 5,411 10,207
Total Direct Cost 157,194 30,815 188,009
Total Indirect Costs 78,555 7,279 85,834
Total Cost 235,749 38,094 273,843
129
Budget Explanation and Justification
  • A well developed budget is accompanied by a
    budget explanation.
  • A complete and realistic budget justification
    demonstrates that your project is well conceived.
    It also tends to minimize the chances that
    sponsors will arbitrarily reduce or eliminate
    budget categories. Sponsors have a good idea of
    what a project should cost, and generally know
    when you are over or under budgeting. Follow
    sponsor guidelines on minimum items required.
  • Explanation and justification are synonymous
    terms except with federal grants where
    Explanation merely details what the cost item
    is while Justification conveys why a cost item
    particularly Administrative costs are
    allocable and necessary for the successful
    completion of the project.
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