Preparing Proposal Budgets Matt Berry Tonya Easley Tena

Preparing Proposal Budgets Matt Berry, Tonya Easley, Tena Smith and Fran Stephens Proposal Development Specialists Office of Research Services

Types of Proposals ü Federal or Non-Federal (State or Local) ü Foundation/Non-Profit ü Industry ü International ü Subcontract/Subaward

Budget Components ü Direct Costs ü Indirect Costs (IDC) – hereinafter referred to as Facilities and Administrative Costs (F&A)

Direct Costs ü Expenses identified specifically with a particular sponsored project, instructional activity, creative or artistic pursuit, or other institutional activity ü Expenses that can be assigned to a particular sponsored project with a high degree of accuracy ü Must be allowable, allocable, reasonable & necessary for the program, given consistent treatment and conform to sponsor limitations

Typical Direct Costs ü Include: ü Compensation of employees for work under a sponsored agreement ü Related fringe benefit costs ü Materials consumed or expended in the performance of the work ü Other items of expense incurred for the sponsored agreement provided such costs are consistently treated (e. g. , travel, equipment)

Facilities & Administrative Costs ü Costs incurred for common or joint objectives which cannot be identified to a specific direct cost activity ü Facilities ü Salaries of administrative and clerical staff ü Office supplies (May be allowable if attributed directly and specifically to the project) ü Postage (May be allowable if attributed directly and specifically to the project-NO STAMPS!) ü Memberships

Budget Categories ü ü ü Personnel Costs Fringe Benefits Equipment Travel Participant Support Costs ü Other Direct Costs ü ü ü Facilities & Administrative Costs (F&A) ü Cost Sharing ü ü Research Materials and Supplies Publication costs Consultants Computer/ADPE Services Subcontracts Tuition Other Note the following slides are formatted to follow the ORS generic budget spreadsheet which is recommended for all budgets.

Types of Personnel Costs ü Faculty – Academic Year ü Graduate Students ü Faculty - Summer (GRA/GTA) ü Undergraduate Students ü Other ü Professional Staff ü Post Docs ü Professional Staff – Limited (temporary) ü Classified Staff (hourly)

Fringe Benefits Rates - FY 07 Full Time Employees Temporary Employees Post Docs, Fellows GRAs Undergraduates 40. 5% 9. 8% 16. 5% 4. 6% 1. 1%

Equipment ü Items costing over $5, 000 and having a useful life of one year or more ü Includes freight and shipping costs ü Fabricated Equipment ü Exempt from F&A

Domestic Travel ü ü ü ü ü Airfare, Lodging Car Rental (Not in Oklahoma) Per Diem, Mileage Parking Fees/Pike Pass Registration Fees Local Transportation (Taxi, Metro, Shuttle) Travel to Canada or Mexico is agency specific GSA Rates (http: //www. gsa. gov) OU Travel Policy link: ü http: //www. ou. edu/aa/travel. htm

Foreign Travel ü Airfare ü Apartment Rental ü Car Rental ü Local Transportation ü Lodging ü Per Diem ü Registration Fees ü Safety and security costs may also be included dependent on location ü Travel to Canada or Mexico is agency specific

Participant Support Costs ü Agency specific (only applicable in limited circumstances) ü Intended for conferences, meetings, symposia, training activities, and workshops ü Participants or trainees may not be employees ü Stipends ü Cost of transportation ü Subsistence ü Other related costs

Other Direct Costs ü Research Materials & Supplies ü Publication Costs ü Consultant Services ü Computer Services ü Subcontracts ü Tuition ü Other

Other Direct Costs Research Materials & Supplies ü Chemicals ü Cartridges for ü Expendable Equipment Copiers/Printers/Faxes ü Research Supplies (allocable to the project) ü Reference Materials ü Computer Software ü Computer Supplies ü Lab Supplies (Gases and Fuels)

Other Direct Costs ü Publication Costs ü Consultant Services ü Letter of commitment ü Computer Services ü Subcontracts ü Entire sub-proposal ü Institutional letter of commitment

Other Direct Costs - Tuition ü Graduate Research Assistant (GRA) labor budgeted on sponsored programs determines the amount of tuition to be budgeted ü GRA labor budgeted is multiplied by a percentage to arrive at the tuition amounts requested from sponsor and provided by the Graduate College ü Tuition is excluded from F&A FY 07 Cost of Tuition Remission is 32% Sponsor Share Graduate College Share 13% 19%

Other Direct Costs - Other Communication Costs: ü Express Mail Charges ü Fax Charges ü Mobile Phone Services/Pager Fees ü Postage (No Stamps!) ü Telecommunication ü Long Distance charges ü All charges must be directly attributable to project

Other Direct Costs - Other ü Copying ü Animal care costs ü Human subject care costs ü Maintenance agreements ü Audio/visual services ü Construction/renovation/remodeling costs ü Costs for workshops/conferences/technical meetings (if including food costs, state such in budget & justification) ü Contractual expenses/services/fees

Other Direct Costs (Excluded from F&A) ü Amount of Subcontract exceeding $25, 000 ü Scholarships/Fellowships ü Tuition Remission ü Rental Costs – Off Campus Facilities ü Equipment and Capital Expenditures ü Patient Care Costs

Facilities & Administrative (F&A) Cost Rates – FY 07 On-Campus Off-Campus 48% 26%

Calculating F&A ü Identify Exclusions ü Equipment ü Capital Expenditures ü Tuition remission ü Rental costs of off-site facilities ü Scholarships/Fellowships ü Subcontract amounts in excess of first $25, 000 ü Patient Care Costs ü Modified Total Direct Base (MTDC) = Total Direct Costs minus exclusions listed above

Common Budget Dilemmas ü Subcontractor versus Consultant or Vendor ü Consultants on Oklahoma Teachers Retirement ü Fellowship versus Stipends for Students (Is the student an employee? )

Cost Sharing - Sources ü PI Contributions ü Departmental Contributions ü University Contributions ü Vice President for Research ü Third Party Contributions (Subcontractors, Industry, etc. ) ü Oklahoma Regents for Higher Education ü Contributed and Unrecovered F&A

Sponsor-Required Cost Sharing ü Equipment ü Contributed F&A ü Unrecovered F&A (F&A not allowed or F&A associated with Cost Sharing; not in all casescheck guidelines) ü Regents Matching Funds

Requesting Cost Sharing from the Vice President for Research ü http: //research. ou. edu/about/cost_share_req. asp

Arithmetic ü Fringe Benefit Rate ü GRA Tuition Rate ü F&A Rate ü MTDC Exclusions ü Budget Total ü Correct? ü Within Sponsor Limits? ü For All Years?

How ORS can help you ü Perform budget review ü Ensure that subagreement documents are in line fringe and F&A rates with budgeted amounts are correct ü Ensure budget conforms ü Ensure that any cost sharing is approved and to sponsor requirements documented prior to or limitations submission ü Ensure calculations,

Useful Link for Proposal Preparation: n http: //research. ou. edu/proposal/generic_budget. html Site with downloadable budget templates. n http: //research. ou. edu/about/rateagr. html Site with downloadable F&A and fringe benefit rate agreements.

Preparing Proposal Budgets Thanks for joining us today! Tena Smith (A – D) : tena@ou. edu Tonya Easley (E – L): teasley@ou. edu Fran Stephens (M – R): fran@ou. edu Matt Berry (S – Z, CIMMS) : mberry@ou. edu (405) 325 -3901