Grants Landscape III:
Grant Budget Development
Office of Sponsored Programs
Raubinger Hall, Room 107
William Paterson University
973-720-2852
November 2008
Contact Information:
 Staff:
Martin Williams, Director
TBH, Assistant Director for Pre-Award Services
Beth Ann Bates, Program Assistant
Graduate & Undergraduate Assistants
Nina Jemmott, Associate Vice President and Dean,
Graduate Studies and Research
 Office:
Raubinger Hall 107
Phone: 973-720-2852, fax: 973-720-3573
Email: williamsm@wpunj.edu
 Webpage:
www.wpunj.edu/osp
Agenda
I.
Grants Landscape I
a)
b)
c)
II.
The Office of Sponsored Programs
Resources available to search for grants at WPUNJ
WPUNJ Process, Policies and Procedures regarding grants
Grants Landscape II
a)
b)
Guidelines and proposal evaluation criteria
Project and proposal development
III. Grants Landscape III†
a)
b)
c)
developing a budget for a proposal
types of expenses
research plan and potential expenses
†
open to those who are in the process of completing a proposal or have completed Grants Landscape II.
Budget Basics
Budget Summary
 Total expenses by category
Budget Detail or Narrative
 Present as narrative or spreadsheet (or both)
 Provides details on expenses by category
 Provides fiscal perspective on the project and narrative
 No expenses included in the budget that are not identified
in the narrative
 No expenses in narrative that are not in the budget
Terminology
• Direct Costs
• Indirect Costs (Facilities and Administrative ~ F&A)
– Administrative Costs
– Overhead or Facilities Costs
• Cost Sharing
Direct Costs
• Costs that can be identified specifically with a particular
sponsored project
• Personnel (people)
– Salary and Wages
– Consultant fees and subcontracts
– Fringe benefits
• Non-personnel (things)
– Equipment
– Supplies
– Travel
– Publication charges
Direct Costs
• Salary and Wages
– Undergraduate and Graduate Students (salaries or
stipends?)
– Post-Docs, Fellows or Research Associates
– Part time or Full time personnel
– Months and/or Percent of time or effort
– Calendar or summer salary
Salaries
• How to estimate your future salary!
– Increases of 4.0% per year
• How to estimate a colleague’s salary?
– Freedom of information (or just ask)
– Sponsored Programs can find out
• Summer Salary ~ Faculty
– Two months over the summer doing research
• Two tenths of your annual salary
• 100% of your effort during July and August
Salaries
• Undergraduate Students
– Typical rates $10.00/hour
– For 10~12 weeks (summer)
– Hours (summer up to 35 hours)
• Graduate Students
– Typical rates $15.00/hour
– For 8 - 9 weeks (summer)
– Hours (summer up to 35 hours)
Direct Costs ~ Fringe
• Salary
– Other costs (FICA, Disabilility, Medicare…) are
included in the salary
• 33.15% Faculty during the academic year and for 12
month employees.
• 8.9% Faculty during the summer and part time
employees.
Direct Costs
• Fringe Example
– The granting agency will only support summer
research salary of $7500.00 over the summer.
– These funds must cover your salary and fringe
during the summer. What number plus 8.9% of
that number yields 7500?
• 6887.05+(6887.05*0.089)=7500
– So your salary would be $6887.05 and the fringe
based on that value would be $612.95.
Indirect Cost
• Indirect Cost at WPUNJ
– Calculated/negotiated through the Department of
Health and Human Services
– Based on a percentage of Salary and Wages
• 68.8%
– Department of Education
• 8% for projects they fund (classroom ~ offsite)
– Modified Total Direct Costs (MTDC)
Indirect Costs
• Indirect Costs ~ Costs that are incurred for
common or joint objectives: Cannot be
identified specifically with a particular
sponsored project.
– Personnel (people)
• Payroll
• Accounting
– Things
• Electricity
• Heat
Indirect Costs Calculation
• Example
– A proposal includes 50,000 in salary and fringe
and 50,000 in equipment.
– The indirect cost is based on the salary portion of
the request or ($50,000) and is determined by the
indirect rate x salaries
• 50,000 x 0.688 = 34,400
– The total request would then be
• 50,000 (salary and fringe)+50,000 (equipment)+ 34,400
(indirect) = 134,400
Indirect Costs
• How indirect is indicated on some proposals
– If in the previous example the total request can be
listed as 50,000 (salary and fringe)+50,000
(equipment)+ 34,400 (indirect) = 134,400
• Example ~ NSF (and most agencies)
– If in the previous example the total request can be
listed as 50,000 (salary and fringe)+50,000
(equipment) = 100,000 and the indirect is not
listed as part of the grant request
• NIH (some cases)
Shared Costs
• Project funds listed on the proposal that don’t
come from the funding agency.
– Soft Cost
• Funds that the institution already disperses
– Hard Cost
• Additional or new funds that the institution will
disperse
– External Matching
• Funds that are being applied to the project from other
grants or private funds.
Difference Between Hard and Soft
Cost Sharing
Hard Costs
• Examples
– Dollar for Dollar match
– Equipment purchases
• Provides the funding agency
an idea of the level of
commitment to the project
• Hidden costs, e.g. Service
contracts for equipment
Soft Costs
• Examples
– Time contributed by
volunteers
– Travel
– Salary
– Phone (if the proposal entails
a lot of phone usage)
Hard Cost Sharing
• Expenses that the institution will cover.
– Who pays?
• Department (Chair’s approval)
• College (Dean’s approval)
• Provost’s Office
– Work up the ladder
• Other Funding (Internal/External)
Sample Budget
Category
Personnel
Fringe
Supplies
Consultants
Travel
Item
Proj. Dir.
Cost Detail
Funder Matching Total
$150,000 x 15%
15,000
7,500
$22,500 x 33.15%
4,973
2,486
Ed. Materials 2000 @ $5 avg cost
10,000
Evaluation 5 days @ $500/day
2,500
To conf. In Proj Dir, round trip
250
250
Washington train @ $250 + hotel
Total Direct Expense
32,723
10,236
Indirect
68.8% Salary + Wages
10,320
5,160
Total Project Expenses
43,043
15,396
22,500
7,459
10,000
2,500
500
42,959
15,480
58,439
Using Excel
• Excel is a spreadsheet that is relatively
straightforward to use
– Quick demonstration of Excel!
– Tracks Various costs
– Tracks year to year costs
– Tracks total cost
• Spend some time to learn the program
– On campus workshops to learn the basics
Budget Categories Summary
 Typical Budget Categories
Multiple Year Budget?
Adjust for
 Salaries
• salary increments
 Fringe Benefits
• variable expenses
 Supplies
• non-repeating expenses
 Consultants
 Travel & Conferences
 Equipment (agency defined)
 Participant Costs (tuition/stipends, other)
 Indirect/Overhead Costs
Budget Justification
• The budget represents the financial aspect of
what you are doing
• The budget justification should clearly detail
the costs proposed and, in some instances,
explain how the cost was determined, i.e.,
salaries, animals etc.
Budget Justification
• Compare the budget justification to the
budget and make sure all costs are justified.
That is if the budget mentions an item the
item should be listed in the justification.
– Conversely, if the justification mentions an item
then the item should be listed in the budget.
Workshop Evaluation
All responses are completely anonymous. Data will not be
reported in a way that could divulge the identity of any
respondents.
Grants Landscape III:
Grant Budget Development
November 19, 2008
Contact Information
Staff:
Martin Williams, Director
TBH, Ass’t Director, Pre-Award
Beth Ann Bates, Program Assistant
Nina Jemmott, Associate VP & Dean,
Graduate Studies and Research
Office:
Raubinger Hall 107
Fax: 973-720-3573
Webpage:
www.wpunj.edu/osp
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