December 5, 2012

BACKGROUND
AND GETTING
STARTED
BUDGET DETAIL,
JUSTIFICATION
AND DOCUMENT
PREPARATION
SUMMARY
AND
QUESTIONS

A. Recipient Institution has a Fiduciary Responsibility
Administration for all federal and nonfederal sponsor's funds
B. Proposal Reviewers Use Budget/Project Costs in Evaluation
Will the Reviewer fund or cut the budget and, ultimately, will Sponsor pay for the expense?
C. Regulatory Requirements

OMB A-21 Cost Principles for Educational Institutions - (Section J)

Cost Accounting Standards Board Cost
Accounting Standards 9905.501, 502, 505, 506 (CAS)

OMB A-110 Administrative Requirements

OMB A-133 Audits
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D. OMB A-21 (Section J) and Cost Accounting Standards
Costs Must be:

Allowable, Allocable, Reasonable and Consistent

Allowable versus unallowable
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Allocable--Is the expense related to the project?
Reasonable--Is the cost of a type generally recognized as necessary for the performance of the project?
Consistent--Cost Accounting Standards .501 require:
Consistency in estimating (budget preparation), accumulating, and reporting costs
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E. Sponsor's Specific Rules, Regulations, Guidance

Program Announcement, guidelines, request for proposal

Sponsor's Policies and Proposal Instructions (NIH, NSF and Website online information)
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Allowable Costs versus unallowable (for example, some private, sponsor programs will not allow the purchase of equipment)
Salary Caps--HHS/NIH grants and contracts subject to the NIH salary cap
Sponsor's Available
Funding and Funding
Maximums
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Cost Sharing
Project start and Funding
Period Limitations
Indirect Cost Rate
Limitations/Policy
Required budget format, information, and forms
Sponsor's reporting requirements
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A. Use Sponsor's Form and Provide Detail

Use current sponsor’s application forms and instructions.
B. Basis of Estimate/Budget Preparation

Historical data, experience with similar projects, vendor quotes, and price catalogues.
C. Know & Use Tufts’ Current Fringe Benefit Rates and
Indirect Cost Rate Per DHHS Negotiated Agreement
D. Narrative Elements

Project Summary, Abstract, Overview, Task Description,
Schedule – Use these sections as support of funds requested.
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E. Definitions

Total cost of the project consists of costs reimbursed by the sponsor/agency (direct and indirect) and costs borne by the institution (cost share or matching)

Direct Costs – “Those costs that can be identified specifically with a particular sponsored project, an instructional activity, or any other institutional activity, or that can be directly assigned to such activities relatively easily with a high degree of accuracy. “

Indirect Costs/Facilities and Administrative Costs – “F&A costs are those that are incurred for common or joint objectives and therefore cannot be identified readily and specifically with a particular sponsored project, an instructional activity, or any other institutional activity.”
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

Cost Share/Matching--that portion of project or program costs not borne by the Federal Government/sponsor.
Cost share can be mandatory or voluntary
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Voluntary costs share can be committed (specified in the proposal with the dollar value) or uncommitted
Tufts University strongly discourages voluntary committed cost sharing
If cost sharing is not required by the sponsor, structure the project with a scope that is commensurate with the available funding
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 Institutional Impact of Cost Sharing:

 lowers F&A rate for future years due to the impact on the formula calculations for the rate; adds additional administrative burden due to tracking and reporting requirements;

 is a high risk audit area; and commits institutional resources needed elsewhere and may be unavailable due to cost sharing obligations.
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A. Salaries and Wages


Distinguish whether Tufts University Employee(9 month v. 12 month appointment; academic v. summer, full-time v. part-time),
Consultant, or Honoraria Payments--impact fringe applicability
Individual’s effort cannot exceed 100% for all projects combined
(per OMB A-21), and need to meet sponsor’s minimum effort requirement, if applicable

Overbase--faculty/PI effort above 100% must be across interdepartmental lines and above normal responsibilities and approved by sponsor

Describe individuals' project function and unique role

Professional Salaries--Principal Investigators, Co- Principal
Investigators, Post Docs
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III. BUDGET DETAIL, JUSTIFICATION (NARRATIVE)
AND DOCUMENT PREPARATION (Continued)

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Administrative/Clerical Salaries:
Normally would not be allowable as direct costs
Exceptions would need to comply with CAS justification requirements
Students (Graduate and Undergraduate)
Escalation Factors 3-4% for each budget period of the project subject to sponsor rules (Example: NIH currently limits escalation increases to 0%)
B. Fringe Benefits

Use Tufts’ currently negotiated rates reference: http://viceprovost.tufts.edu/researchadmin/write-and-submitproposal/budget-figures-and-rates/
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III. BUDGET DETAIL, JUSTIFICATION (NARRATIVE)
AND DOCUMENT PREPARATION (Continued)
C. Consultants

Include number of days/hours, daily/hourly rate, relate expertise and function on project, statement of work, and letter of commitment

Travel section of budget should also include consultants’ related travel and per diem costs
D. Subcontractors

Subcontractor's detailed budget, justification, statement of work, and letter of commitment

Subcontractor's indirect cost rates normally apply; however, if sponsor limits indirect costs, need to consistently apply to subcontractor
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III. BUDGET DETAIL, JUSTIFICATION (NARRATIVE)
AND DOCUMENT PREPARATION (Continued)

Subcontractor should cost share consistent with sponsor's requirements (contributes to overall project cost sharing and reduces Tufts' actual cost sharing)

Justification relate expertise and function on project

First $25,000 of subcontractor's total cost included in Modified
Total Direct Cost base for indirect cost computation; costs greater than $25,000 excluded for remainder of project
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III. BUDGET DETAIL, JUSTIFICATION (NARRATIVE)
AND DOCUMENT PREPARATION (Continued)
E. Capital Equipment

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Per Tufts Negotiated Federal Rate Agreement—Nonexpendable items >$5,000 per unit and a useful life of > one year -
Excluded from Modified Total Direct Cost base for indirect cost computation.
Shipping, installation, fabrication and operating costs
(Sponsor/Tufts)
Describe equipment, model, vendor, use/need, and why critical to the project
Provide quotes for items costing >$25,000 or catalog pricing documentation (or documentation as may be required by sponsor)
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III. BUDGET DETAIL, JUSTIFICATION (NARRATIVE)
AND DOCUMENT PREPARATION (Continued)

Scientific purpose equipment--Lasers, spectrometer, pumps, power supplies

General purpose equipment--General use; office, multi-purpose use
Example: Computers and printers
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Computer with Specific Scientific Purpose--
Example: Small personal computer system to supervise air and heater systems and alarms
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III. BUDGET DETAIL, JUSTIFICATION (NARRATIVE)
AND DOCUMENT PREPARATION (Continued)

Make sure items budgeted are consistent with available institutional facilities and resources section of proposal

Schedule equipment cost consistent with the project schedule (if later years, explain in justification and include inflation factor)
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III.
BUDGET DETAIL, JUSTIFICATION (NARRATIVE) AND
DOCUMENT PREPARATION (Continued)
F. Equipment Maintenance

Service contracts, repairs, maintenance and replacement parts/units
G. Travel

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Itemize per trip--Airfare, per diem, mileage
Describe purpose, relation to project, destination, staff, consultants, and total number of people
Budget for project sponsor required programmatic meetings
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III. BUDGET DETAIL, JUSTIFICATION (NARRATIVE)
AND DOCUMENT PREPARATION (Continued)
H. Supplies, Materials, and Software

Itemize expendable items (such as glassware, chemicals) and non-capital equipment

Remote/off-site or survey type projects describe items such as stationery, folders, envelopes and justify in accordance with
CAS requirements (normally, office supplies would not be allowable as direct costs)
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III. BUDGET DETAIL, JUSTIFICATION (NARRATIVE) AND
DOCUMENT PREPARATION (Continued)
I. Publication, Reproduction and Printing

Page charges, reprints, photographs
J. Meeting/Conference Expenses (Conference Grants)

Include costs for speakers (honoraria), participants’ travel, and offsite facility/space rental
K. Stipends (Training Grants)

Budget per trainee, in accordance with sponsor limits

Normally, excluded from Modified Total Direct Cost Base for indirect cost computation
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III.
BUDGET DETAIL, JUSTIFICATION (NARRATIVE)
AND DOCUMENT PREPARATION (Continued)
L. Tuition and Fees (Training Grants)

Budget per trainee, in accordance with sponsor limits


Tufts University – School of Arts and Sciences and School of
Engineering Policy
Normally, excluded from Modified Total Direct Cost Base for indirect cost computation
M. Human Subjects/Participant Incentives

Example: $5,000 participant incentives ($10 per survey respondent, estimated at 500 responses)
N. Institutional Facilities

Applicable Animal Care, Computing Facility, NMR user rates,
Machine Shop
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III. BUDGET DETAIL, JUSTIFICATION (NARRATIVE)
AND DOCUMENT PREPARATION (Continued)
“This is the easy part. The challenge will be figuring out the indirect cost for the grant proposal.”
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III. BUDGET DETAIL, JUSTIFICATION (NARRATIVE)
AND DOCUMENT PREPARATION (Continued)
O. Facilities and Administrative Costs (aka- F&A, IDC, OH)

Current negotiated rates reference: http://viceprovost.tufts.edu/researchadmin/write-and-submitproposal/budget-figures-and-rates/

Per OMB A-21, rate in effect at time of grant issuance applies for entire grant project period/competitive segment
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III. BUDGET DETAIL, JUSTIFICATION (NARRATIVE)
AND DOCUMENT PREPARATION (Continued)

Modified Total Direct Costs--per rate agreement exclusions:
 equipment >$5,000,

 subcontracts >$25,000, tuition, stipends, participant support costs (NSF)
 rental costs of off-site facilities.

Sponsor Limits may direct other exclusions

In general, if indirect rate is limited to less than full indirect, the usual exclusions might not apply
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III. BUDGET DETAIL, JUSTIFICATION (NARRATIVE)
AND DOCUMENT PREPARATION (Continued)
$100,000 - Total Direct
Costs
(25,000) – Subcontract
( 5,000) – Equipment
( 6,000) – Tuition & Fees
$100,000 - Total Direct Costs
34,240 – Indirect Cost*
$134,240 – Total Project
Costs
$ 64,000 – Modified Total
Direct Cost Base
* $64,000 * 53.5%= $34,240
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
Allowable, Allocable, Reasonable and Consistent

Realistic, Credible, and Self-explanatory

Recipient Institution has a Fiduciary Responsibility and is
Required to Comply with Regulatory and Sponsor Requirements

Will the Sponsor fund or cut the budget and, ultimately if awarded, will the Sponsor pay for the expenses?

Questions
Page 25