The University of Texas at Arlington

Office of Research and Office of Accounting and Business Services

Brown Bag Training Session Three:

The 1,2,3s of Budget Preparation

The 1,2,3s of Budget Preparation and Management

Presenters: Preparation: Rae Schofield Management: Brent Norman

Goals and Objectives

1 ~ Read the Proposal/Agency Guidelines and Evaluate your Budget Needs 2 ~ Elements of the Budget 3 ~ Special Requirements and Restrictions

1 ~ The Guidelines and Budget Needs

The guidelines tell you: Your dollar limit, if any Which costs are allowable Evaluating your budget needs: Does the scope of your project fit the solicitation? Will cost needs exceed the allowable dollar limits?

2 ~ Elements of the Budget

Types

of Costs:

Direct

e.g. salary, fringe benefits, travel, equipment, lab supplies Are easily associated with a specific project Also known as Indirect Costs (IDC) e.g. utilities, admin support, general office supplies Can be associated with many other sponsored projects or cannot be easily associated with a specific project

Facilities & Administration (F&A)

2 ~ Elements of the Budget

Types

of Direct Costs

Salaries:
UTA Employees who will direct effort to the grant, e.g. PIs, Post Docs, Students Should reflect the amount of time that person will spend on the project

Fringe Benefits:
Should reflect UTAs approved rates for the associated position Includes: Health Insurance, Social Security, Retirement, Vacation/Sick Leave, FICA, OASI

2 ~ Elements of the Budget

Types

of Direct Costs

Equipment
Must be identified and justified in proposal Costs $5,000 or more and has a lifetime of 1 year or more, including fabricated equipment

Consultants

Used to pay experts outside UTA who provide professional advice or service e.g. manuscript illustration, reprints, page charges

Publications

2 ~ Elements of the Budget

Types

of Direct Costs

Research and Expendable Supplies

Identified and justified in the proposal Must be clearly associated with, and necessary to, that particular project Must be expended only for the associated project Examples are: chemicals/glassware, small electronics, software, animals, ect.

2 ~ Elements of the Budget

Types of Direct Costs

Travel

Identified and justified Includes: transportation, room and board Must be directly related to the project Must provide a substantial programmatic contribution At a minimum require a detailed budget, budget justification, work statement, and institutional endorsement

Subcontracts

Tuition

Not permitted on federal awards

2 ~ Elements of the Budget

Types

of Direct Costs

Copying & Duplication

Only allowable for unusual costs such as: large survey instruments, test, questionnaires, work shop procedures, program brochures Identified and justified

Other Direct Costs

e.g. renovation of space, off campus facility rentals, long distance charges, participant support costs

2 ~ Elements of the Budget

F&A

Costs
MTDC excludes:
Equipment over $5,000 Portion of each subaward in excess of $25,000 Tuition remission Off campus facility rental Alteration and renovation Participant support costs

Expressed as a percentage of S&W, MTDC, TDC The rate is negotiated with the federal government

2 ~ Elements of the Budget

F&A

Costs

On-Campus vs. Off-Campus

To be considered off-campus you must be paying rent for the facilities out of the program budget The budget must be divided between oncampus and off-campus activities You must specify where the work will be done and how long it will last

2 ~ Elements of the Budget

The

Budget Justification

Identifies your costs and explains the need for them Answer any questions a reviewer may have about how you calculated your costs Indicates the basis salaries and for any yearly increases Should reflect the objectives of the project

3 ~ Special Requirements and Restrictions

Does the agency require cost share? Do they require special travel considerations? Do they limit F&A? Do they prohibit certain cost categories? Specific forms or format? Remember that the budget can be reduced upon award leading to a reduction in scope as well.

Budget Preparation
Start

early Contact your OR representative and let them help you Ask questions Construct your budget Incorporate it into your proposal

Other Resources

OR Website: http://www.uta.edu/research/
NSF GPG: http://www.nsf.gov/pubsys/ods/getpub.cfm?gpg NIH Forms and Applications: http://grants1.nih.gov/grants/forms.htm OMB Circulars:

http://www.whitehouse.gov/omb/circulars/index-education.h

Budget Management
1. 2. 3. 4.

Establishing Budgets Grant Expenditures Explanation of Receivables Categories Budget Modifications

1. Establishing Budgets
Budgets are entered upon receipt of a written, approved authorization from an outside agency. Grant Contract Modification to an existing account

2. Grant Expenditures
All allowable, allocable direct charges should be applied to the grant as they are incurred. All requests to transfer expenditures to a grant should be in writing (email) with justification to the Grant Accountant and include the following: Document number or voucher number Dollar amount Account number where expense was charged A copy of the invoice or receipt to support the request

3. Receivables Categories
Budget Categories 91 and 92 reflect the receivables for the account. 91 Commitment Receivable Begins as the total amount of the awarded budget and is reduced as billings are recorded 92 Billings Receivable Begins as zero and increases to reflect the total amount billed

4. Budget Modifications
Budget Transfers: All budget transfer requests should be written (email) and submitted to the Office of Research for approval. A transfer involving a category subject to F&A and one not subject to F&A will have an impact on the F&A budget.

Example: 50% F&A rate, transfer $100 from 50 to 80, must also transfer $50 from 90 to 80.

4. Budget Modifications
Modified By Sponsor: Modification letter from the sponsor through the Office of Research Budget revision by the Office of Research

Brown Bag Training Session Four

Wednesday January 22, 2003 Gifts vs. Grants