Budgeting 101 - Rowan University

Report
Budgeting 101
PRESENTED BY: THE OFFICE OF
SPONSORED PROGRAMS AND
THE OFFICE OF UNIVERSITY
ADVANCEMENT
Questions to ask before
preparing the budget:
o What is the typical size of awards from this sponsor?
o What are the real costs associated with conducting this
project?
o What items will and will not the sponsor support?
o Does the sponsor provide flexibility to re-budget between
categories once funds are awarded?
o Is cost sharing mandatory?
o What can I do with a reduced award amount?
The narrative/project description should drive
the budget:
o There should be no surprises for the reviewer
familiar with the narrative/project description
o Cost estimates should be credible
o The requested budget should be consistent with the
typical award given by the sponsor
o Divide the projected costs by the number of
participants to determine if your price per
participant is reasonable
An example of a recent grant awarded through the
Walmart Foundation’s State Giving Program:
The Foundation, based on a recommendation from
the Virginia Advisory Council (Walmart State
Giving Program), awarded a $40,000 grant to the
Virginia Association of Free Clinics (VAFC). VAFC
operates 33 clinics throughout Virginia and offers
free dental care to qualifying individuals without
healthcare coverage. This grant funded the cost of
the equipment needed to cover three dental exams
for 600 patients.
An example of a recent grant awarded through the
Andrew W. Mellon’s Higher Education and
Scholarship Program:
Franklin & Marshall College, Lancaster,
Pennsylvania received a grant of $500,000 to
support integration of the Phillips Museum of Art
and the Franklin & Marshall curriculum.
An example of a recent grant awarded from the
Geraldine R. Dodge Foundation:
The Rutgers-Camden Center for the Arts received
$40,000 for general operating support of
educational and community outreach programs in
Camden including Pre/K-12 Arts-in-Education
Programs, Arts Integrated Curriculum & Teacher
Development Programs and Community Arts
Programs.
Cost of conducting the project:
The formula for calculating the cost of conducting a
project is:
+
+
Direct costs
indirect costs (F & A)
cost sharing
Total costs
What are direct costs?
o
o
o
o
o
o
o
o
o
o
o
Salaries and wages
Fringe benefits
Consulting/stipends
Travel
Equipment
Materials/supplies
Subawards/subcontracts
Publication
Dissemination
Participant support costs
Other
“Other” may include:
o Student tuition & fees
o Advertising fees
o Rental fees
Current fringe rates:
•35.15% academic year
•7.65% summer or part-time
No fringe on student wages
What are indirect costs?
Also referred to as overhead or Facilities &
Administrative costs (F&A). These are costs
associated with operating a project
o Universities have a federally approved rate
o Rowan’s current rate is 75% of all salaries/wages
o Most foundation/corporations do not allow indirect
costs
What is cost sharing?
Defined as that portion of the project costs not borne by the
sponsor and borne by the university or third-party
o Can include:
o Cash, supplies, or equipment donations
o Use of space/facilities
o Cost of renovating the space
o Indirect costs (if sponsor has rate restriction)
o Salaries/fringe
o Volunteered time/services
o Can be mandatory, voluntary, or disallowed
o Must be approved by chair and dean
o Must be verifiable
Budget Appearance Counts
o Use the budget format requested
o If no format is provided, we can provide a template
o Round figures to the nearest dollar
o Consider including an annual increase for multi-year
budgets
Budget Draft
Total Project
Amount Requested
Other Funding
Costs
from Sponsor
Cost Share
Super Principal Investigator (base $80,000/10 x 1 month)
$8,000
$0
$8,000
Five undergraduate students ($7 per hr x 10 hrs per week x 10 weeks)
$3,500
$3,500
$0
$11,500
$3,500
$8,000
Super Co-Principal Investigator (base $80,000/10 x 2 months)
$16,000
$16,000
$0
Five undergraduate students ($7 per hr x 10 hrs per week x 5 weeks)
$1,750
$1,750
$0
Sub-Total Summer Salary
$17,750
$17,750
$0
Total Salary/Wages
$29,250
$21,250
$8,000
$4,036
$1,224
$2,812
Salary Academic Year:
Sub-Total Academic Year Salary
Summer Salary:
Fringes:
PI Fringes (35.15% academic year; 7.65% summer)
Student fringes (not applicable)
$0
$0
$0
$4,036
$1,224
$2,812
Total Salaries and Fringes
$33,286
$22,474
$10,812
Supplies/Materials
$2,500
$2,500
$0
Domestic Travel
$2,000
$1,500
$500
$500
$500
$0
Total Direct Costs
$38,286
$26,974
$11,312
Indirect Costs (75% of Salaries/Wages)
$21,938
$15,938
$0
Total Costs
$60,224
$42,913
$11,312
Sub-Total Fringes
Other: Publication costs
I received an award ….
Now what?
The Notice of Award:
o Is a legal document issued to notify the grantee that an
award has been made and details the terms and condition
of the award. Typically includes information about:
o
o
o
o
o
Relevant regulations
Amount of funding
Project and budget period
Restrictions on the expenditure of the funds
Reporting requirements
o Accepting the award- must be facilitated by OSP/CFR
o Only the person authorized to legally represent Rowan may sign
for an award
Things to Remember:
o Awardees are responsible for managing the day-to-day
o
o
o
o
operations of their award and for submitting required
narrative/technical and financial reports during the life
of the award
OSP/CFR will work with you to submit proposals and
reports
To ensure effective stewardship of the funds, a Banner
FOAPAL will be assigned to your award
Need to know whether budget transfers/extensions
permitted or whether prior approval is required from the
sponsor
Any deviation of contract/work/timeline must be
approved by OSP/CFR
Questions?
 Office of University Advancement

Deanne Farrell, Director of Corporate and Foundation Relations
(256-5418) [email protected]
 Office of Sponsored Programs

Stephanie Lezotte, Pre-Award Contracting Officer (256-4124)
[email protected]
Mark your calendar: Feb. 23rd 12-1 p.m.
Finding Grant Funding Workshop

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