Developing a
Research Project Budget
Donna Smith, Office of the Vice-President
Research & Innovation
April 13, 2010
YORK RESEARCH
Budget Overview
YORK RESEARCH
1. Follows all sponsor rules for the project (eligible expenses)
and all University policies and procedures.
2. Are comprehensive
- Show details of all revenues and expenses.
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Indicate sources for revenues and whether cash or in-kind.
3. Are as accurate as possible
-
-
Note details and sources of estimates (incl. formal quotes).
Check your math.
4. Present information logically
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Group expenses together (e.g., salaries, benefits, equipment).
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Budget Overview
YORK RESEARCH
5. Are calculated over periods of time for multi-year projects
-
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Provide start dates and end dates for each period when you
will receive funds and when your expenditures are likely to
occur.
Sponsor fiscal year (e.g., Tri-council, Apr 1 - March 31).
University fiscal year (May 1 - April 30).
Other sponsors may use their fiscal year or could use the
calendar year.
6. Are defensible if audited
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Keep all of your records.
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Fundamental Principle
YORK RESEARCH
Two sides to every budget story (at least!)
Total Revenue (TR) and Total Expense (TE)
TR ≥ TE
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Revenue: Cash
YORK RESEARCH
– Ensure that your “ask” does not exceed
sponsor guidelines.
– Detail all non-sponsor sources of cash
commitments and keep written confirmation of
each commitment to your project as a long
period of time may elapse until collection.
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Revenue: The kinds of in-kind
YORK RESEARCH
– What is the value of the good or service that you
are receiving for your project that you are not
paying for directly with cash?
– Does the sponsor have regulations on what can
be counted as in-kind and the amount
represented in the project as in-kind
contributions?
– Substantiate the value of in-kind—what is
required by the sponsor? And just as important—
what may be required by an auditor?!
– Keep a written record of all in-kind contributions. 6
Revenue: The kinds of in-kind
YORK RESEARCH
Examples of in-kind expenditures:
– Salaries and benefits of human resources
donated to the project
– Space incl. utilities, furniture, equipment
– Vendor discounts on goods purchases
– Equipment time
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Budget Expense Details
Salaries and Benefits Overview
YORK RESEARCH
Salaries
– Costs must comply with all labour legislation (e.g., Employment
Standards Act of Ontario – ESA, minimum wage, public holiday
pay, etc.) and all applicable York University Collective
Agreements.
Benefits
– Must pay statutory benefits for all employees except Graduate
Student RAs and Postdoctoral fellows (i.e., employer portion of
EI, CPP, EHT, WSIB premiums and any other government
mandated payment, see
http://www.yorku.ca/hr/units/cpb/index.html).
– Actual costs are charged to research accounts—you can use
standard rates for budgeting purposes.
– Benefits are payable on earnings and vacation pay.
– Current standard benefit rates can be found at
http://www.yorku.ca/finance/documents.htm.
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Salaries and Benefits:
Graduate Students
YORK RESEARCH
Graduate Students
– Work through your academic department.
– GA? Or RA?
– GAs are covered under CUPE 3903 Unit 3 Collective
Agreement—see current CA for rates of pay.
– RAs are not employees. Clarity Note: For the purpose of clarity,
graduate students registered as full-time at York University who receive
financial assistance from or through York University for research or
academic activities which are predominantly for the purposes of
advancing the students’ progress towards fulfilment of their program
and degree requirements are not in the bargaining unit CUPE 3903
Unit 3 collective agreement).
– There are no benefits or other deductions for RAs and the
stipend rate is negotiable.
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Salaries and Benefits:
Post-Doctoral Fellows
YORK RESEARCH
Post Doctoral Fellows
– Are not employees.
– Receive a stipend, not employment income. Therefore, there
are no vacation pay requirements.
– Minimum benefits available (current rate 3.5 per cent).
– Funder may set limits on stipends, length of engagement, and
time from conferral of doctoral degree
e.g.,
NSERC current minimum is $25,000
SSHRC current maximum is $31,500
CIHR current minimum is $36,750
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Salaries and Benefits:
Undergraduate Students
YORK RESEARCH
Undergraduate Students
– RAY program – minimum pay rate $15.00 per hour plus
stat. benefits, with a $3,000 maximum financial
reimbursement F/W term
– Workstudy students –minimum pay rate is minimum
wage (currently $10.25) with a $1,500 maximum financial
reimbursement F/W term
Sample student salary calculation per hour:
Wage
Vacation
Pay 4%
10% Stat
Benefits
Total/hr
15.00
0.60
1.56
17.16
For further information see http://sfs.yorku.ca/employment/admin/.
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Salaries & Benefits:
Non-Student Research Personnel
YORK RESEARCH
Research Associates and Research Assistants:
– A research associate has an advanced degree
and participates actively in the research work.
Their work is primarily self-directed. They hold
similar qualifications to a faculty member.
– Research Assistant may have a Master’s
degree or less. They work under the PI’s
direction (e.g., technician).
– If the employee is not covered by a Collective
Agreement, the pay rate is negotiable.
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Salaries & Benefits:
Non-Student Research Personnel Example
YORK RESEARCH
E.g., Research Associate
•
•
Annual
Salary
Vacation
Pay
Benefits
23.5 per
Total
plus
75,000.00
Incl.
17,625.00
92,625.00
Full-time employees accrue vacation rather than a
percentage on each pay cheque.
The benefit rate is for budgeting purposes. Actual
amounts will be deducted from research account.
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Salaries & Benefits:
Multi-Year Projects
YORK RESEARCH
Multi-Year Projects
• Review Collective Agreements for future year
increases as appropriate.
• Increase salary/benefit total costs by 3 per cent each
year to account for unknown CA increases and those
employees not covered by a CA.
Pay freeze for Ontario BPS for two years:
– How does this apply?
– “It's complicated,” Dalton McGuinty, Toronto Star,
March 30, 2010
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Budget Expense Details
Procurement of Goods & Services
YORK RESEARCH
Purchase of Goods
– Obtain appropriate quotes through University preferred
suppliers where possible
– Ensure quotes include taxes, delivery and installation. See
http://www.yorku.ca/univsec/policies/document.php?document
=58.
– No preferred vendor. Obtain quote from Canadian supplier
where possible
– Ensure your budget accounts for replacement goods as
required such as computers if the research project is for many
years (e.g., computers purchased in Year 1 and replaced in
Year 5 of seven-year project).
– Budget for ongoing maintenance costs for any equipment.
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Budget Expense Details
Procurement of Goods and Services
YORK RESEARCH
Purchasing Services
– Ensure consultant/professional services are an eligible
expense
– Review procurement/Finance guidelines for eligibility. See
http://www.yorku.ca/finance/documents.htm.
HST (Harmonized Sales Tax)
– Effective July 1, 2010 at 13 per cent.
– Research equipment exemption has been removed. HST of 13
per cent will apply but cost eligible for a 78 per cent rebate of
OHST 8 per cent portion (67 per cent rebate of GST portion
still applies)
–
See http://www.yorku.ca/finance/documents/HST_General_Community_Web_Version.pdf.
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Budget Expense Details
Procurement of Goods and Services
Research Equipment
YORK RESEARCH
PST
ENVIRONMENT
OHST
ENVIRONMENT
Delivery before
July 1, 2010
Delivery after
June 30, 2010
Cost
$ 100.00
$ 100.00
GST
$ 5.00
$ 5.00
PST/OHST
Exempt
$ 8.00
GST Rebate at 67 per cent
$ (3.35)
$ (3.35)
HST Rebate at 78 per cent
N/A
$ (6.24)
Net Cost
$ 101.65
$ 103.41
Net Increase in Cost
$ 1.76
Source: “Harmonized Sales Tax in Ontario,” York Finance presentation March 2010, A. Dimarcantonio, D. Archer
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Budget Expense Details:
Research Space
YORK RESEARCH
Refer to the research costs table for in-kind costs.
See
http://www.yorku.ca/research/support/documents/.
When renovating space for infrastructure projects:
– Campus Services & Business Operations
(CSBO) must prepare all quotes for York space
renovations. Please contact the Office of
Research Services if you have a research
project involving infrastructure projects.
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Budget Expense Details
Travel and Conference Costs
YORK RESEARCH
Travel Costs
– Obtain quotes from online travel sites, e.g., Expedia,
Travelocity for airfare, hotel and other travel service
requirements.
– Check CAUBO/AUCC rates for hotels and car rentals.
– Use per diem rates for meal costs, although when
submitted actual receipts are acceptable in most cases.
– Most sponsors do not cover passport and/or visa costs,
travel insurance (other than cancellation insurance), so
check regulations carefully before including them.
– Be aware of change fees and non-refundable
components.
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Budget Expense Details
Travel and Conference Costs
YORK RESEARCH
Travel Costs
Breakfast
Lunch
Dinner
Total
Canada
$ 9.00
$13.00
$ 28.00
$ 50.00
United States
$ 9.00
$13.00
$ 28.00
$ 50.00
Outside Canada/USA
$ 9.00
$13.00
$ 28.00
$ 50.00
Effective for travel on or after September 1, 2008.
Vehicle Allowance
$0.45 per kilometer, effective for travel on or after September 1, 2008
http://www.yorku.ca/finance/documents.htm
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Budget Expense Details
Travel and Conference Costs
YORK RESEARCH
Conference Costs for Hosted Conferences
– Registration fees are HST taxable
– Travel costs, e.g., co-PIs from other universities (if
eligible)
– http://www.caubo.ca/pr/agreements_hotels_e.cfm
– Facility costs (e.g., room rental and assoc. costs such as
cleaning)
– Meal costs from on-campus/off-campus caterers
– Equipment rentals e.g., audio-visual, costs for recording
proceedings
– Printing/supplies costs (e.g., advertising, posters,
programs)
– Salaries/benefits for for extra staff
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Budget Expense Details
Audit Fees
YORK RESEARCH
Costs of professional audit when requested by
sponsor
– Costs must be budgeted in the research budget
– Costs paid from the research cost centre
– Research Accounting (Finance) arranges the
procurement of the auditor
– Currently cost approximately $7,500 (average) per
audit year
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Budget Expense Details
Miscellaneous Expenses
YORK RESEARCH
Insurance
– Vehicle insurance—The cost of vehicle may be an eligible
expense in the project but the cost of the insurance generally is
not. Insurance & Risk Management arranges coverage but the
Project must arrange an alternate source of funding to pay.
– Insurance for equipment—ensure that Insurance & Risk
Management is made aware of any expensive equipment
purchases to ensure that coverage, if required, is arranged.
– Insurance for transporting equipment outside Canada:
http://www.yorku.ca/finance/services/riskinsurance/insurance.ht
m
– Customs clearance costs—Procurement Services arranges for
clearance of goods imported or exported:
http://www.yorku.ca/procurement/internal/customsclearance/
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Budget Expense Details
Miscellaneous Expenses
YORK RESEARCH
Cost of Currency Exchange
– When project payments are from a foreign sponsor, is the
exchange rate set or floating?
– Win/lose uncertainty with foreign currencies.
– Finance sets the rate for US$ invoices/cheques periodically
relative to the current exchange rate between the US and
Canadian dollars.
– Use reliable websites (e.g., OANDA.com) for converting
currency for travel expenditures. Understand differences
between cash/credit card rates and buy/sell rates.
International Sponsor Regulations
– Check to see if you are required to follow another nation’s rules
when accepting funds from an international sponsor (usually
gov’t), such as the “Fly America” policy when accepting US
Federal government funds
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Budget Expense Details
Overhead
YORK RESEARCH
Overhead on Research Contracts
– Minimum overhead should be included in research budgets at
40 per cent of the total direct costs of research for industry
contracts.
– For contract research, York seeks the full federal government
contract research overhead rates as established by Public
Works and Government Services Canada (PWGSC):
65 per cent calculated on salaries + benefits for on-campus research
30 per cent calculated on salaries + benefits for off-campus research
2 per cent calculated on travel expenses
– Overhead MUST be calculated on partners’ cash contributions
matching funding programs such as NSERC, OCE and CIHR
industry matching programs.
Source: January 2009 memo to faculty from D. Dewitt/KWM Siu – Assoc. Vice-Presidents Research
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Budget Expense Details:
The Fine Print
YORK RESEARCH
Research Grants
–
By signing and submitting a research grant you are agreeing to abide
by all of the terms and conditions contained in the call. Therefore, your
budget must comply with the call.
Fixed-Price Contracts
–
You are agreeing to perform work for a set price. Accuracy in your
budget is critical.
“Change is inevitable” ~Benjamin Disraeli
“…except from a vending machine” ~Robert C. Gallagher
–
Always check current rules, practices, rates and regulations. Your
budget calculations from last year may not be accurate for this year.
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