How to Prepare a Grant Budget

Presented by:

The Office of Sponsored Programs

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 credibleThe requested budget should be consistent

with the typical award given by the sponsor

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?

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

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

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

Rowan’s current rate is 75% of salaries only

What is cost sharing?Defined as that portion of the project costs not borne

by the sponsor

All of the direct cost categories Cash donationsIn some cases it can be:

Space Cost of renovating the space Indirect costs

Can be mandatory or voluntary

Budget Appearance Counts

Use the budget format requestedIf no format is provided, start the budget on

a new page if possibleUse columns that are alignedCreate column headingsRound figures to the nearest dollarInclude a 4-5% annual increase for multi-

year budgets

Budget Total Project Amount Requested Difference

  Costs from Sponsor Cost 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 $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 $16,000 $0

Seven undergraduate students ($7 per hr x 10 hrs per week x 5 weeks) $2,450 $2,450 $0

Sub-Total Summer Salary $18,450 $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 $0 $0

Sub-Total Fringes $4,108 $1,224 $2,884

       

       

Total Salaries and Fringes $34,058 $23,174 $10,884

       

Supplies/Materials $2,500 $2,500 $0

Domestic Travel $2,000 $1,500 $500

Other: Publication costs $500 $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

Post Award Functions The Fruits of Victory

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

Monitoring the Award Requires Everyone to Work Together

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

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

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

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

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