How to Prepare a Grant Budget Presented by: The Office of Sponsored Programs.

  • Published on

  • View

  • Download


  • Slide 1
  • How to Prepare a Grant Budget Presented by: The Office of Sponsored Programs
  • Slide 2
  • The narrative/project description should drive the budget There should be no surprises for the reviewer familiar with the narrative/project description Cost estimates should be credible The requested budget should be consistent with the typical award given by the sponsor
  • Slide 3
  • Questions to ask before preparing the budget What is the typical size of awards from this sponsor? What are the real costs associated with conducting this project? What items will and will not the sponsor support? Does the sponsor provide flexibility to re-budget between categories once funds are awarded? Is cost sharing mandatory?
  • Slide 4
  • Slide 5
  • Cost of conducting the project The formula for calculating the real cost of conducting a research project is: Direct costs + indirect costs (F & A) +cost sharing Total costs
  • Slide 6
  • What are direct costs? Salaries for personnel Fringe benefits Student stipends Consulting Travel Equipment Materials/supplies Subawards/subcontracts Other Other may include: Student tuition & fees Computers (less than the equipment threshold) Publications Dissemination material
  • Slide 7
  • Slide 8
  • What are indirect costs? Defined as overhead & administrative costs associated with operating a project Universities must have a federally approved Indirect Cost/Facilities and Administration rate Rowans current rate is 75% of salaries only
  • Slide 9
  • What is cost sharing? Defined as that portion of the project costs not borne by the sponsor All of the direct cost categories Cash donations In some cases it can be: Space Cost of renovating the space Indirect costs Can be mandatory or voluntary
  • Slide 10
  • Budget Appearance Counts Use the budget format requested If no format is provided, start the budget on a new page if possible Use columns that are aligned Create column headings Round figures to the nearest dollar Include a 4-5% annual increase for multi- year budgets
  • Slide 11
  • BudgetTotal ProjectAmount RequestedDifference Costsfrom SponsorCost Share Salary Academic Year: Jane Doe, Principal Investigator (10% x $80,000 base)$8,000$0$8,000 Five undergraduate students ($7 per hr x 10 hrs per week x 10 weeks)$3,500 $0 Sub-Total Academic Year Salary$11,500$3,500$8,000 Summer Salary: Jane Doe, Principal Investigator (100% x $80,000/10 x 2)$16,000 $0 Seven undergraduate students ($7 per hr x 10 hrs per week x 5 weeks)$2,450 $0 Sub-Total Summer Salary$18,450 $0 Total Salary$29,950$21,950$8,000 Fringes: PI Fringes (36.05% academic year; 7.65% summer)$4,108$1,224$2,884 Student fringes (not applicable)$0 Sub-Total Fringes$4,108$1,224$2,884 Total Salaries and Fringes$34,058$23,174$10,884 Supplies/Materials$2,500 $0 Domestic Travel$2,000$1,500$500 Other: Publication costs$500 $0 Total Direct Costs$39,058$27,674$11,384 Indirect Costs (75% of Salaries)$22,463$16,463$6,000 Total Costs$61,521$44,137$17,384
  • Slide 12
  • Post Award Functions The Fruits of Victory
  • Slide 13
  • The Notice of Award Is a legal document issued to notify the grantee that an award has been made and the terms and condition of the award. Typically includes information about: Relevant regulations Amount of funding Project and budget period Restrictions on the expenditure of the funds Accepting the award Only the person authorized to legally represent Rowan may sign
  • Slide 14
  • Monitoring the Award Requires Everyone to Work Together
  • Slide 15
  • Monitoring Your Award Grantees are responsible for managing the day-to-day operations of their grant and for periodically submitting technical and financial reports during the life of the grant To ensure effective stewardship of the funds, a separate Banner FOAPAL will be assigned to your grant Mandatory cost share will be tracked within the same FOAPAL under account 7864
  • Slide 16
  • Monitoring of Expenditures Account budgets should follow the awarded categories Rowan sets up the budget based on what the sponsor obligates (some obligate the entire project period, others only obligate the current project period) Only allowable costs are charged to the account Need to know whether budget transfers are permitted or whether prior approval is required from the sponsor All direct costs (payroll, purchasing, etc) charged to the account should follow existing Rowan procedures
  • Slide 17
  • Payment System Method of receiving funds varies depending upon the sponsor Some require invoicing Some will give you money up-front Some will allow you to electronically draw down funds as expended All checks received must be reconciled to account
  • Slide 18
  • Audit Requirements All universities are subject to the federal requirements of OMB Circulars A-133 and A21 This means that all federal awards are subject to an audit All Recovery Act funded projects are not only subject to audit; but will be audited
  • Slide 19
  • Closeout and Record Retention Sponsors close out a grant as soon as possible after expiration of the grant Typically within: 30-90 days If the project has been delayed, you may request a: No Cost Extension (Extends time with no additional $) Cost Extension (Extends time and provides more $) All state, federal, and private grant files must be retained seven years after the termination of the grant


View more >