PRESENTED BY: THE OFFICE OF SPONSORED PROGRAMS

AND THE OFFICE OF UNIVERSITY ADVANCEMENT

Budgeting 101

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 credibleo The requested budget should be consistent

with the typical award given by the sponsoro 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 Salaries and wageso Fringe benefitso Consulting/stipendso Travelo Equipment o Materials/supplieso Subawards/subcontractso Publicationo Disseminationo Participant support costso Other

“Other” may include:

o Student tuition & feeso Advertising feeso Rental fees

Current fringe rates:•35.15% academic year•7.65% summer or part-timeNo 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 rateo Rowan’s current rate is 75% of all

salaries/wageso 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 donationso Use of space/facilitieso Cost of renovating the spaceo Indirect costs (if sponsor has rate restriction)o Salaries/fringe o Volunteered time/services

o Can be mandatory, voluntary, or disallowedo Must be approved by chair and deano Must be verifiable

Budget Appearance Counts

o Use the budget format requestedo If no format is provided, we can provide a

templateo Round figures to the nearest dollaro Consider including an annual increase for

multi-year budgets

Budget Draft Total Project Amount Requested Other Funding

  Costs from Sponsor Cost Share

       

Salary Academic Year:      

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

Sub-Total Academic Year Salary $11,500 $3,500 $8,000

Summer Salary:      

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

Fringes:      

PI Fringes (35.15% academic year; 7.65% summer) $4,036 $1,224 $2,812

Student fringes (not applicable) $0 $0 $0

Sub-Total Fringes $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

Other: Publication costs $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

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 Relevant regulations o Amount of funding o Project and budget periodo Restrictions on the expenditure of the fundso Reporting requirements

o Accepting the award- must be facilitated by OSP/CFRo 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 operations of their award and for submitting required narrative/technical and financial reports during the life of the award

o OSP/CFR will work with you to submit proposals and reports

o To ensure effective stewardship of the funds, a Banner FOAPAL will be assigned to your award

o Need to know whether budget transfers/extensions permitted or whether prior approval is required from the sponsor

o 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) farrelld@rowan.edu

Office of Sponsored Programs Stephanie Lezotte, Pre-Award Contracting Officer (256-

4124) lezotte@rowan.edu

Mark your calendar: Feb. 23rd 12-1 p.m.Finding Grant Funding Workshop