Tips and Tricks of Budget Development
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- Elfrieda Little
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1 Tips and Tricks f Budget Develpment Jesús Palm and Sharmila Pathiknda May 4 th and May 8 th Blcker and 801 Harringtn
2 Budget An estimate f expenditures fr each prject year Prvides rganized and easily understd breakdwn f funds A detailed budget helps yu Identify spending pririties Identify start date that wrks fr yu Determine spending pririties beynd payrll Execute the prject with fewer snafu s
3 Budget = Key Part f yur Prpsal Package All federal, state, and private agencies require A specific budget frm with varying levels f detail US DOE (lt f details and detailed justificatins) NSF (gd amunt, limited pages fr justificatins) NIH (can be very simple r cmplex; depends whether the budget is mdular r nt) USDA (mre detail, the better) Fundatins (depends n specific RFP) Tip1: Budget and budget justificatin must be perfectly matched
4 Main Parts f the Budget IDC-Bearing Items Payrll/Persnnel Travel Supplies Publicatin Rental Fees Subcntracts IDC-Exempt Items Participant supprt Student tuitin Equipment greater than $5,000 IDC r indirect csts are als called F&A (facilities and administratin) csts
5 Type Persnnel Percent Effrt 1. PI, C-PI s, C-I s Wh can be PI s? C-PI s/c-i s versus cnsultants 1. 1% minimum effrt and/r effrt based n the scpe f the prject 2. Technical, nn-technical staff 3. Students (GAR s r hurly) 1. % FTE depends n their rle 2. GAR s at 25 r 50% (Mnthly r Hurly: Masters student min = $1,100 and PhD = $1,750/m) 4. Pst-dctral trainee 5. N administrative 3. % FTE depends n their rle 4. Exceptin: can include if IDC rate is restricted by the spnsr Tip 2: Dn t frget extras n tp f salary: fringe benefits and GAR tuitin Trick 1: Cnsultants are cheaper than subcntracts t C-I
6 Travel Mst spnsrs allw this Sme need a ttal cst as a ne line item Sme need mre details Sme travel may be mandatry per RFP Internatinal Check ff exprt cntrl n cmpliance list (Maestr) Dmestic Cnferences, investigatr meetings Field visits t cllect data
7 Materials and Supplies Lab supplies Chemicals, glassware, etc. Research animals purchase Animal Purchase Curriculum materials Newsletters, related materials Bks ipads N ffice supplies allwed (paper, pens, e.g.) Cnsultant r prfessinal service fees Facility rental Fr example mini cnferences, seminars, ffice space Single piece f equipment less than $5,000 Cnference registratin Cmputer services Other Csts Licensing Sftware Warranties Database and data strage space csts
8 Other Categries Publicatin csts Nt widely used If yu have RFP-specified publicatin needs Sme jurnals are very expensive t publish in, s d allcate mney under this sectin Equipment Any single item/equipment mre than $5,000 Exempt frm IDC s
9 Other Items Exempt frm IDC Tuitin Fr graduate students assistants (FTE-based) Tuitin is matched n the amunt f effrt allcated E.g. 25% GAR allcated ½ f tuitin Participant Supprt Csts Stipends Dn t call them hnrariums leave them as stipends Incentives (gift cards) Travel Participants travel t prject site Per diem and ldging Subsistence Fd and drinks (n alchl)
10 Sub-recipient Csts Sub-recipients n yur prpsal A frmal written agreement is made between TAMU and ther rganizatin t perfrm a significant prtin f the prpsed wrk Charge IDC n the first $25,000 N IDC charged n Internal subs (e.g., TAMUS campuses) Trick 2: Wrk n these as early as pssible!! the main budget cannt be finalized until all subrecipient budgets are in final frm Tip 3: We can help fill the sub-recipient cmmitment frm. Please direct the sub-recipients inf t ur ffice.
11 Indirect Csts IDC s charged n all IDC bearing items Types f IDC rates On campus = 48.5% Off campus = 26% Other activities = 28% (e.g.: clinical research, study abrad prgrams) If deviatins frm the abve are prpsed, then a waiver must be prcessed; cmmn situatins: Internatinal spnsr nt allwing IDC Private spnsr nt allwing IDC Tip 4: Vluntary reductin in IDC rate belw level spnsr allws is highly discuraged
12 Cst Share/Matching Funds Surce f matching funds required per the RFP need t be finalized befre submissin. Trick 3: sme ideas fr generating matching funds 1. TAMU Department cmmitment Cash (graduate students) r in-kind (space, equipment, facilities) Letter/accunt numbers Cllege Prvst Center PI (e.g., salary savings fr GAR supprt) 2. Third party cst share Cash (supprt letter cmmitting t the amunt) In-kind (supprt letter cmmitting t either space, sftware, equipment, etc. have t shw the mnetary value f this type f supprt in the letter)
13 Example Budget Template
14 Budget Justificatin Explain the need fr yur budget line items We can draft a budget justificatin Yu will be adding details abut the rles fr persnnel, explaining hw their expertise fits prject needs Trick 4: This is a gd place t shwcase the expertise f the persnnel, in case yu are limited n space under facilities, bisketches, r main bdy f text
15 Thank Yu Questins?
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