The University of Texas at Arlington
Office of Research
and
Office of Accounting
and Business Services
Brown Bag Training
Session Three:
The 1,2,3’s of Budget Preparation
The 1,2,3’s of
Budget Preparation
and Management
Presenters:
Preparation: Rae Schofield
Management: Brent Norman
Goals and Objectives
1 ~ Read the Proposal/Agency Guidelines
and Evaluate your Budget Needs
2 ~ Elements of the Budget
3 ~ Special Requirements and
Restrictions
1 ~ The Guidelines and
Budget Needs
The guidelines tell you:
 Your dollar limit, if any
 Which costs are allowable
Evaluating your budget needs:
 Does the scope of your project fit the
solicitation?
 Will cost needs exceed the allowable dollar
limits?
2 ~ Elements of the Budget

Types of Costs:

Direct



e.g. salary, fringe benefits, travel, equipment, lab
supplies
Are easily associated with a specific project
Facilities & Administration (F&A)



Also known as Indirect Costs (IDC)
e.g. utilities, admin support, general office supplies
Can be associated with many other sponsored
projects or cannot be easily associated with a
specific project
2 ~ Elements of the Budget

Types of Direct Costs

Salaries:
UTA Employees who will direct effort to the
grant, e.g. PIs, Post Docs, Students
 Should reflect the amount of time that person
will spend on the project


Fringe Benefits:
Should reflect UTA’s approved rates for the
associated position
 Includes: Health Insurance, Social Security,
Retirement, Vacation/Sick Leave, FICA, OASI

2 ~ Elements of the Budget

Types of Direct Costs

Equipment
Must be identified and justified in proposal
 Costs $5,000 or more and has a lifetime of 1
year or more, including fabricated equipment


Consultants


Used to pay experts outside UTA who provide
professional advice or service
Publications

e.g. manuscript illustration, reprints, page
charges
2 ~ Elements of the Budget

Types of Direct Costs

Research and Expendable Supplies
Identified and justified in the proposal
 Must be clearly associated with, and necessary
to, that particular project
 Must be expended only for the associated
project
 Examples are: chemicals/glassware, small
electronics, software, animals, ect.

2 ~ Elements of the Budget

Types of Direct Costs

Travel



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Subcontracts



Identified and justified
Includes: transportation, room and board
Must be directly related to the project
Must provide a substantial programmatic contribution
At a minimum require a detailed budget, budget
justification, work statement, and institutional
endorsement
Tuition

Not permitted on federal awards
2 ~ Elements of the Budget

Types of Direct Costs

Copying & Duplication
Only allowable for unusual costs such as: large
survey instruments, test, questionnaires, work
shop procedures, program brochures
 Identified and justified


Other Direct Costs

e.g. renovation of space, off campus facility
rentals, long distance charges, participant
support costs
2 ~ Elements of the Budget

F&A Costs


Expressed as a percentage of S&W, MTDC, TDC
The rate is negotiated with the federal
government

MTDC excludes:
–
–
–
–
–
–
Equipment over $5,000
Portion of each subaward in excess of $25,000
Tuition remission
Off campus facility rental
Alteration and renovation
Participant support costs
2 ~ Elements of the Budget

F&A Costs

On-Campus vs. Off-Campus
To be considered off-campus you must be
paying rent for the facilities out of the program
budget
 The budget must be divided between oncampus and off-campus activities
 You must specify where the work will be done
and how long it will last

2 ~ Elements of the Budget

The Budget Justification
Identifies your costs and explains the need
for them
 Answer any questions a reviewer may have
about how you calculated your costs
 Indicates the basis salaries and for any
yearly increases
 Should reflect the objectives of the project

3 ~ Special Requirements and
Restrictions
Does the agency require cost share?
 Do they require special travel
considerations?
 Do they limit F&A?
 Do they prohibit certain cost categories?
 Specific forms or format?
 Remember that the budget can be reduced
upon award leading to a reduction in scope
as well.

Budget Preparation
 Start
early
 Contact your OR representative and
let them help you
 Ask questions
 Construct your budget
 Incorporate it into your proposal
Other Resources

OR Website:
http://www.uta.edu/research/

NSF GPG:
http://www.nsf.gov/pubsys/ods/getpub.cfm?gpg
NIH Forms and Applications:
http://grants1.nih.gov/grants/forms.htm
OMB Circulars:
http://www.whitehouse.gov/omb/circulars/indexeducation.html


Budget Management
Establishing Budgets
2. Grant Expenditures
3. Explanation of Receivables
Categories
4. Budget Modifications
1.
1. Establishing Budgets
Budgets are entered upon receipt of
a written, approved authorization
from an outside agency.
 Grant
 Contract
 Modification to an existing account
2. Grant Expenditures
All allowable, allocable direct charges should be
applied to the grant as they are incurred.
All requests to transfer expenditures to a grant
should be in writing (email) with justification
to the Grant Accountant and include the
following:
 Document number or voucher number
 Dollar amount
 Account number where expense was charged
 A copy of the invoice or receipt to support the
request
3. Receivables Categories
Budget Categories 91 and 92 reflect the
receivables for the account.
 91 Commitment Receivable – Begins as
the total amount of the awarded budget
and is reduced as billings are recorded
 92 Billings Receivable – Begins as zero
and increases to reflect the total
amount billed
4. Budget Modifications
Budget Transfers:
 All budget transfer requests should be written
(email) and submitted to the Office of
Research for approval.
 A transfer involving a category subject to F&A
and one not subject to F&A will have an
impact on the F&A budget.

Example: 50% F&A rate, transfer $100 from 50 to
80, must also transfer $50 from 90 to 80.
4. Budget Modifications
Modified By Sponsor:
 Modification letter from the sponsor
through the Office of Research
 Budget revision by the Office of
Research
Brown Bag Training Session Four
Wednesday January 22, 2003
 Gifts vs. Grants
