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Preparing a Proposal Preparing a Proposal BudgetBudget
Celia M. ElliottUniversity of Illinois
Copyright © 2004 The Board of Trustees of the University of Illinois
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Goals for this sessionGoals for this sessionLearn how to develop a proposal budgetUnderstand the difference between
“eligible” and “ineligible” costsLearn how to use budget worksheetsLearn what “institutional overhead” is
and how it is calculatedLearn to prepare a “budget narrative”
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Your budget must conform to your Your budget must conform to your technical descriptiontechnical descriptionGo through the narrative and highlight
every activity that has financial implications—make a list of everything that will have to be paid for
Assign each one of those costs to an appropriate budget category—personnel, equipment, materials and supplies, telecommunications, travel, services, publications…
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Make a note, too, of the nonMake a note, too, of the non--monetary monetary contributions your institution will contributions your institution will make to the projectmake to the project
You will want to emphasize these contributions in your budget narrative
Look at it from the funder’s point of view—your prior investment in facilities and equipment lowers the cost of doing this project for the funder, putting you at an advantage over competing proposals
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Your budget must be realistic Your budget must be realistic Reviewers and program officers know
what things cost; if your budget is not realistic they will think you are either dishonest or stupid
A budget that is too low may make it impossible to complete the project, which will jeopardize your chances for future funding
Estimate costs as accurately as possible; get written price quotations for equip-ment and binding agreements for subcontracts
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The RFP sets the budget rulesThe RFP sets the budget rules• Average grants are expected to be
~$65,000 over two years; no proposal requesting more than $100,000 will be considered
• The FSU team’s expenses may account for no less than 80% of the total budget
• The US team’s expenses may account for no more than 20% of the total budget
• Projects may last no longer than 24 months
• Eligible expenses are personnel, equip-ment and supplies, travel, subcontracts, and institutional overhead
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Budgets must conform to the RFP Budgets must conform to the RFP and include only and include only eligibleeligible costscosts
Personnel
Travel
Equipment and Supplies
Other Eligible Costs
Institutional Overhead
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The RFP will also tell you what The RFP will also tell you what costs are not costs are not eligibleeligiblePayments to individuals who do no
work on the projectTravel that is not connected to the
research projectEquipment and supplies that will not
be used in the research projectEntertainmentConstruction, repair, or remodeling of
facilities
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Calculate your personnel costsCalculate your personnel costsIndividual Financial Support FSU Team US Team
Name Amount per Month
No. of Months
A. Ivanov, Head of Lab. $650 24 $15,600
T. Bobrovski, PI $650 24 $15,600
A. Nikolaev, Co-PI $600 24 $14,400
V. Baranov, Sr. Scientist $400 24 $9,600
R. Vodolaga, Student $50 24 $1,200
K. Chupronova, Engineer $150 24 $3,600
R. Kukushkin, Researcher $150 24 $3,600
J. Martindale, U.S. PI $2,000 24 $48,000 S. Ellis, Student $1,000 9 $9,000
TOTAL INDIVIDUAL FINANCIAL SUPPORT
$63,600 $57,000
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Review the RFP budget rulesReview the RFP budget rules• No salary is permitted for US researchers • Up to $10,000 (for the entire award period)
may be used to support a US student• No support for admin. superiors of PI• Minimum and maximum salaries set
$200$75Admin/Clerical Support Staff
$300$100Student
$300$200Technical/Scientific Support Staff
$500$300Researcher/Engineer
$600$500PI/Project Director
MaximumMo. Rate
MinimumMo. RatePosition
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Individual Financial Support FSU Team US Team Name Amount
per Month No. of Months
A. Ivanov, Head of Lab. $650 24 $15,600
T. Bobrovski, PI $600 24 $14,400
A. Nikolaev, Co-PI $550 24 $13,200
V. Baranov, Sr. Scientist $400 24 $9,600
R. Vodolaga, Student $100 24 $2,400
K. Chupronova, Engineer $200 24 $4,800
R. Kukushkin, Researcher $200 6 $1,200
J. Martindale, U.S. PI $2,000 24 $48,000 S. Ellis, Student $300 9 $2,700
TOTAL INDIVIDUAL FINANCIAL SUPPORT
Revise your personnel costsRevise your personnel costs
$36,000 $2,700
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Individual Financial Support FSU Team US Team Name Amount
per Month No. of Months
A. Ivanov, Head of Lab. $650 24 $15,600
T. Bobrovski, PI $500 24 $12,000
A. Nikolaev, Co-PI $400 24 $9,600
V. Baranov, Sr. Scientist $400 24 $9,600
R. Vodolaga, Student $100 22 $2,200
K. Chupronova, Engineer $200 18 $3,600
R. Kukushkin, Researcher $200 6 $1,200
J. Martindale, U.S. PI $2,000 24 $48,000 S. Ellis, Student $300 9 $2,700
TOTAL INDIVIDUAL FINANCIAL SUPPORT
Revise your personnel costs, Revise your personnel costs, ………again………again
$28,600 $2,700
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Itemize the equipment and Itemize the equipment and supplies you’ll needsupplies you’ll need
N.B. The temperature-controlled cuvette holder, which is desperately needed in your laboratory, is to replace a broken cuvette holder that cannot be repaired. It will not be used in the proposed project.
Equipment and Supplies (Please list. All items over $1,000 must be justified in the Budget Narrative. If more space is needed, please list on separate page.)
FSU Team US Team
Personal computer, monitor, printer, internal fax modem, Ethernet card
$1,400
Television set for staff lounge $300 Repair/remodeling of fluorescence laboratory $4,000 CUV-TLC-FLKIT#77 Temperature-controlled cuvette holder, fluorescence kit
$4.834
Zeiss Axiovert 35 inverted microscope $4,875 Bandit industrial capture board, NT54-834, for scope $795
Chemical reagents $200 $200 JAI CV-S3200N Color CCD Camera $795 MJ Research : PTC-160 Thermal Cycler $4,000
TOTAL EQUIPMENT AND SUPPLIES
$16,404 $4,995
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Consult the RFP for allowable Consult the RFP for allowable equipment and supplies costsequipment and supplies costs• Research equipment to be used in the
project• Reagents, materials, and “consumables”
to be used in the project• US team may request only expendable
materials and supplies and small pieces of equipment—no “capital” equipment
• No funds may be used for facilities construction, remodeling, or repair
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Some funders define “supplies”Some funders define “supplies”broadly and some do notbroadly and some do not——check the RFP check the RFP • If a computer is part of a DAQ for an
experiment, it probably is “equipment”; if it is to be used to access the Internet or to write manuscripts, it may not be
• Telecommunications equipment (phone, fax, ethernet card, satellite link) and services (phone bills, ISP)
• Books, subscriptions to journalswww.addall.com=used books
• Registration fees for conferences• Office supplies, photocopying, printing
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Revised Equipment BudgetRevised Equipment BudgetEquipment and Supplies (Please list. All items over $1,000 must be justified in the Budget Narrative. If more space is needed, please list on separate page.)
FSU Team
US Team
Personal computer, monitor, printer, internal fax modem, Ethernet card
$1,400
Television set for staff lounge $300 Repair/remodeling of fluorescence laboratory $4,000 CUV-TLC-FLKIT#77 Temperature-controlled Cuvette Holder, Fluorescence Kit
$4,834
Zeiss Stemi 2000-C Stereo Microscope Video System $4,875 Bandit Industrial Capture Board, NT54-834 $795
Chemical reagents $200 $200 JAI CV-S3200N Color CCD Camera $795 MJResearch : PTC-100 Thermal Cycler $,4000
TOTAL EQUIPMENT AND SUPPLIES
$2,175
$11,745 $995
Photomultiplier Flow-through Detection System $6,485
2-yr subscription to 11 Am Microbio Soc Jrnls $690
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Estimate your travel expensesEstimate your travel expensesTravel (Please describe in Budget Narrative.) FSU
Team US
Team Domestic Transportation Sochi, Russia
$600
$0
Domestic Per Diem $30/day × 14 days
$420
$0
International Transportation Moscow/Boston (Aeroflot)
$900
$0
International Living Allowance/Per Diem $2000/month × 1 month
$2,000
$0
Other Travel Expenses Visa fee Conference Registration (Biophysical Society) Per Diem for BS meeting ($140 day × 4 days) Health Insurance for PI while in U.S.
$60
$395 $560 $340
$0
TOTAL TRAVEL $0
$5,275
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Check the RFPCheck the RFP• Transportation and per diem support for
scientific travel in connection with the project• Travel must be on US carriers where available
and is mandatory on transoceanic flights• Agency has a strong preference for projects
that include a three- to four-month visit by FSU team member to US PI’s laboratory
• International living allowance in US is $2,000/month for all costs, including required health insurance
• Maximum total stay abroad of all FSU personnel is five months per 12-month period
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Revised Travel BudgetRevised Travel Budget
Travel (Please describe in Budget Narrative.) FSU Team
US Team
Domestic Transportation Sochi, Russia
$600
$0
Domestic Per Diem $30/day × 14 days
$420
$0
International Transportation Moscow/Boston (Aeroflot)
$900
$0
International Living Allowance/Per Diem $2000/month × 1 month
$2,000 $0
Other Travel Expenses Visa fee Conference Registration (Biophysical Society) Per Diem for BS meeting ($140 day × 4 days) Health Insurance for PI while in U.S.
$60
$395 $560 $340
$0
TOTAL TRAVEL $0
Delta $1,600
3 months $6,000
$1,600$8,055
$1,600
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Subcontracts* may also be Subcontracts* may also be allowable expensesallowable expenses
Subcontracts (All subcontracting institutions must be identified and subcontracts described in detail in the Budget Narrative.)
FSU Team
US Team
Subcontract: Individual Financial Support Name Amount
/Month # Months
A. Sirunian, Technician
$100 6 $600 $0
Subcontract: Equipment and Supplies 1. AFM characterization of virus samples— 40 hours at $30/hour
$1,200 $0
2. Subcontract: Travel (Please describe in Budget Narrative.)
-------- $0
Subcontract: Overhead $180 $0 TOTAL SUBCONTRACTS $1,980 $0
*In the CRDF RFP, they’re called “secondary collaborations”
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Check the RFP to be sureCheck the RFP to be sure
• Subcontracts may include all allowable costs previously described
• The same minimum and maximum levels of salary support apply to subcontracts
• Institutional support of 10% of the total FSU team expenses is allowed
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Revise the subcontract budgetRevise the subcontract budget
Subcontracts (All subcontracting institutions must be identified and subcontracts described in detail in the Budget Narrative.)
FSU Team
US Team
Subcontract: Individual Financial Support Name Amount
/Month # Months
A. Sirunian, Technician
$100 6 $600 N/A
Subcontract: Equipment and Supplies 1. AFM characterization of virus samples— 40 hours at $30/hour
$1,200 N/A
2. Subcontract: Travel (Please describe in Budget Narrative.)
-------- N/A
Subcontract: Overhead $180 N/A TOTAL SUBCONTRACTS $1,980 N/A
$1,200
$240$2,640
$200
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Calculate “institutional” costsCalculate “institutional” costs
• 10% of the total FSU Team expenses
• Total amount of institutional support for the entire award period may not exceed $10,000 $5,295Total US Team
5,10410% InstitutionalSupport
$51,040Sub-Total FSU Team
2,640SecondaryCollaboration
8,055Travel
11,745Equipment &Supplies
$28,600FSU Personnel
$61,439
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Review general budgetary Review general budgetary requirementsrequirements• FSU team not less than 80% of total• US team not more than 20% of total
$5,295Total US
$56,144Total FSU
$5,104FSU Overhead
$51,040FSU Research
$61,439Total Requested from CRDF
91%
9%
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Finally, review the rules and Finally, review the rules and doubledouble--check check everythingeverything
Check your arithmetic —is everything added correctly?
Have you included all required information?
Has every line and every box been completed?
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The budget narrative should The budget narrative should answer all the questions a answer all the questions a skeptical reviewer would askskeptical reviewer would askExplain how all costs were determinedExplain what each person will do to
contribute to the projectExplain why equipment is needed and
how it will be used in the projectProvide written price quotations for
expensive items of equipmentEnsure that your costs are realistic
and in line with the scope of work to be done
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The budget narrative should The budget narrative should make a persuasive case for make a persuasive case for investing in you and your teaminvesting in you and your teamDemonstrate that project is cost-
effective, that it will have a significant impact for a reasonable cost
Remind the reviewer again why your project is important—what new knowledge you will create, what important problem you will solve, what useful applications you will enable
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Organize your narrative so that Organize your narrative so that it corresponds to the formal it corresponds to the formal budget pagesbudget pages
Budget NarrativeA. Summary B. Ind. Financial SupportC. Materials and ServicesD. TravelE. Secondary CollaborationF. Institutional Support
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Example of a wellExample of a well--organized, clear organized, clear budget summarybudget summary
Section F. Budget Justification An itemized budget for the one-year proposed project and a cumulative budget are pre-sented on NSF Forms 1030, pages 1–2 of this section. A total of $99,942 is requested from the National Science Foundation (NSF). In this section, we provide detailed justifi-cation for each line item. Section headings used below correspond to the respective sec-tions of Form 1030.
A. Senior Personnel Funds are requested for summer salary (1.5 months) for the PI, A. Bezryadin.
B. Other Personnel Funds are requested for a graduate student (50-percent time for 11 months). Graduate stu-dent tuition remission of $5841 is included as “other direct costs” on line G.6 of thebudget.
C. Fringe Benefits Fringe benefits have been calculated in accordance with the rates published in the Urbana-Champaign Campus and Central Administration FY04 Facilities/Administrative, Tuition Remission, and Fringe Benefit Rates schedule (rev. 8/25/03).
D. Equipment Funds are requested to purchase an Osmium Plasma Coater Model OPC-60 metal deposi-tion system ($36,000). This is an essential piece of equipment, which will allow the for-mation of a uniform metallic film on single molecules and molecular assemblies. More information on this system and a written quotation are included in Section I, Supplemen-tary Documentation, of this proposal. Should a contract be awarded by NSF, competitive bids would be solicited on this equipment, in conformance with standard University prac-tices.
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Use the budget narrative to Use the budget narrative to show institutional support of show institutional support of and commitment to your projectand commitment to your projectTo make your proposal more
attractive, identify existing special equipment or unique facilities that your institution owns which will be used in the project
If your institution is contributing “in-kind” goods or services to the project, be sure to emphasize it
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Let’s review what we’ve learned…Let’s review what we’ve learned…How to develop a research budgetWhy it is critical to understand the RFP
and adhere to it exactlyWhy it always takes longer than you
expect to develop a budget What are “eligible” costs—and what are
notWhat “institutional overhead” is and how
it is calculatedA budget isn’t finished until it has been
double-checked and the budget narrative written
