Sponsored Programs

How to Budget

BUDGETING

BASIC CONSIDERATIONS

Benefit the Project

Allowable Costs

Total Cost Concept

Direct Costs

Indirect Costs (F & A)

The Total Cost Concept Also Relates to Cost Sharing & Cost Accounting Standards Policies

BUDGET DEVELOPMENT CONCEPTS

WHAT ARE DIRECT COSTS?

Needed to Perform & Advance the Scope of Work

Can Be Accounted for With a High Degree of Accuracy

Easily Identified & Allocable to a Specific Project

BUDGET DEVELOPMENT CONCEPTS

WHAT ARE INDIRECT COSTS?

Not Easily Identifiable As a Specific Expense

Not Easily Allocable to the Sponsored Project

BASIC BUDGETING

MAJOR BUDGET CATEGORIES

Personnel ( Salary, Fringe, Health)

Equipment

Tuition

Travel

Project Supplies

Patient Care Costs

Other Categories (Subcontracts, Consultants)

COST SHARING

A Term Describing Any Circumstance Whereby the University Is Not Reimbursed for Allowable Costs of Performing a Project Because the Requested or Approved Budget Does Not Cover the Full Costs Associated With the Specific Project

Total Cost Concept

COST SHARINGCost Shared Expenses in a Proposal Must Meet the Following Criteria

Identifiable and Authorized

Verifiable in the University’s Accounting Records

Not Included as Cost Sharing on Another Project

Necessary and Reasonable for the Project

Allowable and Allocable Under OMB-A21 (Federal)

Generally Provided for in the Approved Budget

Cannot Use Fed Funds to Cost Share On Fed Awards

Conform to OMB A-110, A21

COST SHARING

Any Portion of Project Costs Not Paid by the Sponsor

Matching-$ for $ Cash Match (NEH Challenge Grants)

In-kind-Third Party Contributions

COST SHARING

Mandatory Cost SharingRequired By Law or Regulation

RFP, RFA, Sponsor Guidelines

Program Announcement

Must Be Identified

Accounted For

Auditable Accounting System

Reported to the Sponsor in Fiscal Reports

COST SHARING

VOLUNTARY COST SHARING

Offered by the University

Not Required By Sponsor or Regulation

Must Be Identified & Authorized By College Dean

Accounted for in an Auditable System

May/May Not Have to Be Reported to Sponsor

Subject to Verification & Audit

Voluntary Cost Sharing Becomes Mandatory Cost Sharing When It Appears in the Award Documentation

COST SHARING

WHY IS COST SHARING IMPORTANT TO YOU?

Must Be Identified & Authorized Before the Proposal Is Submitted to the Sponsor

DSR Requires Copy of Sponsor Guidelines & Letter From Individual Authorized to Commit Cost Sharing for Mandatory CS

Policy States Letter With Dean’s Authorization for Voluntary CS

Must Have an After the Fact CS Tracking System to Account for CS

Aggregate CS Has a Negative Impact on the University’s Facilities & Administration Rate

COST SHARING

HOW DOES COST SHARING IMPACT IDC?

The Aggregate Dollars for CS Are Added Together

Included in the Base Number (The Denominator) Used to Calculate the University’s F & A Rate

As Denominator (the Base) Increases, the % Rate Is Reduced (Numerator Generally Remains in the Same Range)

COST ACCOUNTING STANDARDS

WHAT ARE THE COST ACCOUNTING STANDARDS (CAS)?

CAS Are Regulations in OMB A21

OMB A21 States That Direct Costs

Are Specifically Identifiable on a Particular Project

With A Relative High Degree of Accuracy

Incurred for Same Purposes, Under Like Circumstances

Treated Consistently As Either a Direct or an Indirect Cost

COST ACCOUNTING STANDARDS

WHY IS THIS IMPORTANT TO YOU?

It Is Important Because Costs You Think Should Be Charged As a Direct Cost to a Federal Project May Not Be Allowed to Be Charged to That Project, Even If They Are in the Approved Budget

COST ACCOUNTING STANDARDS

WHAT DOES UF POLICY SAY?

We Will Charge Project Expenses in Like Circumstances the Same Way, Either as Direct or Indirect Costs (F & A)

OMB A 21 Identifies Which Expenses Will Be Charged Directly & Indirectly

Total Cost Concept

COST ACCOUNTING STANDARDS

WHAT DOES UF POLICY SAY CAN NOT BE CHARGED DIRECTLY?

Clerical, Administrative, or Secretarial Positions

Postage

General Office Supplies

General Computer Supplies or General Software

Memberships or Subscriptions

Local Telephone

An Example of Like & Unlike Circumstances

“THE PENCIL” When a pencil is a writing tool & we use it to write with everyday in the

course of doing business. Is it a direct or indirect cost?

However, a pencil might be a direct charge if it is an item in a training packet being distributed with other training materials to participants attending a training program. The UF Accounting System does not know the difference. What can you do?

A pencil might become a lab supply when a scientist is studying the lead composition qualities of number 1, 2 & 3 pencils and performing research activities on the pencil to demonstrate scientific attributes or prove technical theories. The UF accounting system does not know the difference. What should be done in this case?

CAS PRACTICAL ADVICE

Tools to Help With CASReview C & G Monthly Reports

Cost Transfer Expenses to Non-Federal ProjectsProcess a Request To Allow a Direct ChargeDiligence in the Academic UnitsEmail or Call C & G or DSR With QuestionsUse the Right Codes

BUSINESS ASPECTS

Budgets

Indirect Cost, Cost Sharing, CAS

Insurance/Indemnification

Intellectual Property

Authorized University Official (Who Signs)

Compliance, Certifications, Assurances

BUSINESS ASPECTS

COMPLIANCE, CERTIFICATIONS, ASSURANCES

Human Subjects Protection (IRB)

Institutional Animal Use & Care Committee

Recombinant DNA/RNA

Hazardous Waste

Responsible Conduct in Research (Misconduct)

COMPLIANCE

CONFLICT OF INTEREST

Federal RegulationsPHS/NSF Disclosure of Significant Financial COI

State Regulations Section 112.313(12)(h) FS

Monitoring Plan

University Regulations Disclosure of Outside Activities

AWARD ADMINISTRATION OFFICE

Post Award Business Transactions

Compliance

Subcontracts Issuance

Close-out & Termination

AWARD ADMINISTRATION

Receives & Reviews Funding Documents

Generates a Notice of Acceptance (NOA)

Contracts & Grants Assigns Account Number

Engineering Sets up Its Own Accounts

IFAS Sets up Its Own Accounts (IFAS C & G)

PI Gets Funds Released in C & G Using a TR 20

POST AWARD

THE AWARD ADMINISTRATION OFFICE ASSISTS WITH ALL POST AWARD BUSINESS FUNCTIONS

Budget Transfers

No Cost Extension

Compliance With Sponsor & University Policies

IRB & IACUC Follow-up

Transfer of Grants to & From University

Subcontracts & Sub-accounts

Close-out

ELECTRONIC RESEARCH ADMINISTRATION (ERA)

Federal Commons

NSF FastLane

ERA/NIH Commons

EDISON

ONR

American Heart Association

Grants Electronic Application Proposal Process (GEPPS)

Grants Electronic Proposal Processing

DOD Central Contractor Registration

IBM Forms (Purchasing system)

Others