tips and tricks of budget developmentcerd.tamu.edu/wp-content/uploads/2016/11/tipsandtricks...tips...
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Tips and Tricks of Budget
Development
Jesús Palomo and Sharmila Pathikonda
May 4th and May 8th 2017339 Blocker and 801 Harrington
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Budget
• An “estimate” of expenditures for each project year
• Provides organized and easily understood breakdown of funds
• A detailed budget helps youo Identify spending priorities
o Identify start date that works for you
o Determine spending priorities beyond payroll
o Execute the project with fewer “snafu’s”
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Budget = Key Part of your Proposal Package
All federal, state, and private agencies require “A
specific” budget form with varying levels of detail₸
o US DOE (lot of details and detailed
justifications)
o NSF (good amount, limited pages for
justifications)
o NIH (can be very simple or complex;
depends whether the budget is
modular or not)
o USDA (more detail, the better)
o Foundations (depends on specific RFP)
₸Tip1: Budget and budget justification must be perfectly matched
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Main Parts of the Budget
IDC-Bearing Items
• Payroll/Personnel
• Travel
• Supplies
• Publication
• Rental Fees
• Subcontracts
IDC-Exempt Items
• Participant support
• Student tuition
• Equipment greater
than $5,000
IDC or indirect costs are also called F&A
(facilities and administration) costs
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Personnel₸
1. PI, Co-PI’s, Co-I’s
– Who can be PI’s?
– Co-PI’s/Co-I’s versus
consultants
2. Technical, non-technical staff
3. Students (GAR’s or hourly)
4. Post-doctoral trainee
5. No administrative
1. ≥1% minimum effort and/or effort
based on the scope of the project
1. % FTE depends on their role
2. GAR’s at 25 or 50% (Monthly or
Hourly: Masters student min =
$1,100 and PhD = $1,750/mo)
3. % FTE depends on their role
4. Exception: can include if IDC rate
is restricted by the sponsor
Type Percent Effort
₸Tip 2: Don’t forget extras on top of salary: fringe benefits and GAR tuition
Trick 1: Consultants are cheaper than subcontracts to Co-I
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Travel
• Most sponsors allow thiso Some need a total cost as a one line item
o Some need more details
o Some travel may be mandatory per RFP
• Internationalo Check off “export control” on compliance list (Maestro)
• Domestico Conferences, investigator meetings
o Field visits – to collect data
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Materials and Supplies
• Lab supplieso Chemicals, glassware, etc.
o Research animals purchase
o Animal Purchase
• Curriculum materialso Newsletters, related materials
o Books
o iPads
• No office supplies allowed (paper, pens, e.g.)
• Consultant or professional service fees
• Facility rentalo For example – mini conferences,
seminars, office space
• Single piece of equipment less than $5,000
• Conference registration
• Computer serviceso Licensing
o Software
o Warranties
o Database and data storage space costs
“Other” Costs
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Other Categories• Publication costs
– Not widely used
– If you have RFP-specified publication needs
– Some journals are very expensive to publish in, so do allocate money under this section
• Equipment– Any single item/equipment more than $5,000
– Exempt from IDC’s
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Other Items Exempt from IDC
• Tuitiono For graduate students assistants (FTE-based)
o Tuition is matched on the amount of effort allocated o E.g. 25% GAR allocated ½ of tuition
• Participant Support Costs
– Stipendso Don’t call them honorariums – leave them as stipends
o Incentives (gift cards)
– Travelo Participants travel to project site
o Per diem and lodging
– Subsistenceo Food and drinks (no alcohol)
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Sub-recipient Costs
• Sub-recipients on your proposal– A formal written agreement₸ is made between TAMU
and other organization to perform a significant portion
of the proposed work
– Charge IDC on the first $25,000
– No IDC charged on “Internal subs”
(e.g., TAMUS campuses)
Trick 2: Work on these as early as
possible!! the main budget cannot be finalized until all sub-
recipient budgets are in final form
₸ Tip 3: We can help fill the sub-recipient commitment form.
Please direct the sub-recipients’ info to our office.
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Indirect Costs
• IDC’s charged on all IDC bearing items
• Types of IDC rates
– On campus = 48.5%
– Off campus = 26%
– Other activities = 28%
(e.g.: clinical research, study abroad programs)
• If deviations from the above are proposed, then a
waiver must be processed; common situations:
o International sponsor not allowing IDC
o Private sponsor not allowing IDC
₸ Tip 4: Voluntary reduction in IDC rate below level sponsor
allows is highly discouraged
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Cost Share/Matching FundsSource of matching funds required per the RFP need to be finalized before submission. Trick 3: some ideas for generating matching funds
1. TAMU
• Department commitment
– Cash (graduate students) or in-kind (space, equipment, facilities)
– Letter/account numbers
• College
• Provost
• Center
• PI (e.g., salary savings for GAR support)
2. Third party cost share
• Cash (support letter committing to the amount)
• In-kind (support letter committing to either space, software, equipment, etc. –have to show the monetary value of this type of support in the letter)
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Example Budget Template
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Budget Justification
• Explain the need for your budget line
itemso We can draft a budget justification
o You will be adding details about the roles for
personnel, explaining how their expertise fits
project needs
Trick 4: This is a good place to showcase the expertise of the personnel, in case you are limited on space under facilities, biosketches, or main body of text
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Thank You
Questions?
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