Grants Landscape III:Grant Budget Development

Office of Sponsored ProgramsRaubinger Hall, Room 107William Paterson University973-720-2852 November 2008

Contact Information:

Staff:Martin Williams, DirectorTBH, Assistant Director for Pre-Award ServicesBeth Ann Bates, Program AssistantGraduate & Undergraduate AssistantsNina Jemmott, Associate Vice President and Dean,

Graduate Studies and ResearchOffice:

Raubinger Hall 107Phone: 973-720-2852, fax: 973-720-3573Email: williamsm@wpunj.edu

Webpage:www.wpunj.edu/osp

Agenda

I. Grants Landscape Ia) The Office of Sponsored Programsb) Resources available to search for grants at WPUNJc) WPUNJ Process, Policies and Procedures regarding grants

II. Grants Landscape IIa) Guidelines and proposal evaluation criteriab) Project and proposal development

III. Grants Landscape III†

a) developing a budget for a proposalb) types of expensesc) research plan and potential expenses

† open to those who are in the process of completing a proposal or have completed Grants Landscape II.

Budget Basics

Budget SummaryTotal expenses by category

Budget Detail or NarrativePresent as narrative or spreadsheet (or both) Provides details on expenses by categoryProvides fiscal perspective on the project and narrativeNo expenses included in the budget that are not identified

in the narrativeNo expenses in narrative that are not in the budget

Terminology

• Direct Costs• Indirect Costs (Facilities and Administrative ~ F&A)

– Administrative Costs– Overhead or Facilities Costs

• Cost Sharing

Direct Costs

• Costs that can be identified specifically with a particular sponsored project

• Personnel (people)– Salary and Wages– Consultant fees and subcontracts– Fringe benefits

• Non-personnel (things)– Equipment– Supplies– Travel– Publication charges

Direct Costs

• Salary and Wages– Undergraduate and Graduate Students (salaries or

stipends?)– Post-Docs, Fellows or Research Associates– Part time or Full time personnel– Months and/or Percent of time or effort– Calendar or summer salary

Salaries

• How to estimate your future salary!– Increases of 4.0% per year

• How to estimate a colleague’s salary?– Freedom of information (or just ask)– Sponsored Programs can find out

• Summer Salary ~ Faculty– Two months over the summer doing research

• Two tenths of your annual salary• 100% of your effort during July and August

Salaries

• Undergraduate Students– Typical rates $10.00/hour– For 10~12 weeks (summer)– Hours (summer up to 35 hours)

• Graduate Students– Typical rates $15.00/hour– For 8 - 9 weeks (summer)– Hours (summer up to 35 hours)

Direct Costs ~ Fringe

• Salary– Other costs (FICA, Disabilility, Medicare…) are

included in the salary• 33.15% Faculty during the academic year and for 12

month employees.• 8.9% Faculty during the summer and part time

employees.

Direct Costs

• Fringe Example– The granting agency will only support summer

research salary of $7500.00 over the summer.– These funds must cover your salary and fringe

during the summer. What number plus 8.9% of that number yields 7500?

• 6887.05+(6887.05*0.089)=7500

– So your salary would be $6887.05 and the fringe based on that value would be $612.95.

Indirect Cost

• Indirect Cost at WPUNJ– Calculated/negotiated through the Department of

Health and Human Services– Based on a percentage of Salary and Wages

• 68.8%

– Department of Education• 8% for projects they fund (classroom ~ offsite)

– Modified Total Direct Costs (MTDC)

Indirect Costs

• Indirect Costs ~ Costs that are incurred for common or joint objectives: Cannot be identified specifically with a particular sponsored project.– Personnel (people)

• Payroll• Accounting

– Things• Electricity• Heat

Indirect Costs Calculation

• Example – A proposal includes 50,000 in salary and fringe

and 50,000 in equipment. – The indirect cost is based on the salary portion of

the request or ($50,000) and is determined by the indirect rate x salaries

• 50,000 x 0.688 = 34,400

– The total request would then be • 50,000 (salary and fringe)+50,000 (equipment)+ 34,400

(indirect) = 134,400

Indirect Costs

• How indirect is indicated on some proposals– If in the previous example the total request can be

listed as 50,000 (salary and fringe)+50,000 (equipment)+ 34,400 (indirect) = 134,400

• Example ~ NSF (and most agencies)

– If in the previous example the total request can be listed as 50,000 (salary and fringe)+50,000 (equipment) = 100,000 and the indirect is not listed as part of the grant request

• NIH (some cases)

Shared Costs

• Project funds listed on the proposal that don’t come from the funding agency.– Soft Cost

• Funds that the institution already disperses

– Hard Cost• Additional or new funds that the institution will

disperse

– External Matching• Funds that are being applied to the project from other

grants or private funds.

Difference Between Hard and Soft Cost Sharing

Hard Costs• Examples

– Dollar for Dollar match– Equipment purchases

• Provides the funding agency an idea of the level of commitment to the project

• Hidden costs, e.g. Service contracts for equipment

Soft Costs• Examples

– Time contributed by volunteers

– Travel– Salary– Phone (if the proposal entails

a lot of phone usage)

Hard Cost Sharing

• Expenses that the institution will cover.– Who pays?

• Department (Chair’s approval)• College (Dean’s approval)• Provost’s Office

– Work up the ladder

• Other Funding (Internal/External)

Sample Budget

Category Item Cost Detail Funder Matching TotalPersonnel Proj. Dir. $150,000 x 15% 15,000 7,500 22,500Fringe $22,500 x 33.15% 4,973 2,486 7,459Supplies Ed. Materials 2000 @ $5 avg cost 10,000 10,000Consultants Evaluation 5 days @ $500/day 2,500 2,500Travel To conf. In

WashingtonProj Dir, round trip train @ $250 + hotel

250 250500

32,723 10,236 42,959Indirect 10,320 5,160 15,480

43,043 15,396 58,439

68.8% Salary + Wages

Total Project Expenses

Total Direct Expense

Using Excel

• Excel is a spreadsheet that is relatively straightforward to use– Quick demonstration of Excel!– Tracks Various costs– Tracks year to year costs– Tracks total cost

• Spend some time to learn the program– On campus workshops to learn the basics

Budget Categories Summary

Typical Budget Categories Salaries Fringe Benefits SuppliesConsultantsTravel & ConferencesEquipment (agency defined)Participant Costs (tuition/stipends, other) Indirect/Overhead Costs

Multiple Year Budget?

Adjust for

• salary increments

• variable expenses

• non-repeating expenses

Budget Justification

• The budget represents the financial aspect of what you are doing

• The budget justification should clearly detail the costs proposed and, in some instances, explain how the cost was determined, i.e., salaries, animals etc.

Budget Justification

• Compare the budget justification to the budget and make sure all costs are justified. That is if the budget mentions an item the item should be listed in the justification.– Conversely, if the justification mentions an item

then the item should be listed in the budget.

Workshop Evaluation

All responses are completely anonymous. Data will not be reported in a way that could divulge the identity of any respondents.

Grants Landscape III: Grant Budget Development

November 19, 2008

Contact Information

Staff:Martin Williams, Director EXT 3263TBH, Ass’t Director, Pre-Award EXT 3794Beth Ann Bates, Program Assistant EXT 2852Nina Jemmott, Associate VP & Dean,

Graduate Studies and Research EXT 3093Office:

Raubinger Hall 107Fax: 973-720-3573Webpage:www.wpunj.edu/osp