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  • Basic Budget Building Research Executive Area
  • Please Note
    • Rates used in this Tutorial are for example purposes only and may not be up to date.
    • For current rates, please see our
    • Proposal Fact Sheet
  • Basic Budget Building
    • This presentation is available on the www under “Basic Budget Building Tutorial” at http://www.umass.edu/research/ogca/proceds.htm
    • All underlined entries herein are hyperlinks to other resources. You are invited to use and share this presentation and to follow the links for additional important information
  • First Steps
    • Contact OGCA by sending an email to the pre-award research administrator responsible for reviewing your proposal. Let them know the deadline and provide the URL for program guidelines.
    • Review Sponsor guidelines for any costing rules that could include:
      • Ceilings on requested amount
      • Indirect cost limits
      • Cost-share requirements
      • Direct cost restrictions (no equipment for example)
    • Consult OGCA Fact Sheet for current rates
    • Identify sponsor forms
    • Build your budget using this basic budget building tutorial as a starting point. Contact OGCA with any questions.
  • Two Major Budget Components
    • Direct Costs:
      • The costs that are directly attributed to the project. Examples include salary, supplies, equipment, etc.
    • Facilities and Administrative Costs (F&A).
      • (Indirect Costs or Overhead):
      • Pooled costs UMass incurs in support of Sponsored Activities not directly attributable to any one sponsored project. F&A is assessed as a percentage of direct costs.
  • Two Types of Direct Costs
    • Personnel (Salaries and Fringe Benefits)
    • Non-Personnel
  • Personnel
    • Faculty Salaries
      • Academic
      • Summer
      • Calendar
  • Academic Year (AY) Salary
    • Consult with your department head to determine how much time you are allowed to dedicate to research projects. Personnel effort on all ACTIVE awards plus teaching load cannot exceed 100% . In other words, 100% summer salary (14 weeks) + committed academic year research effort (up to the maximum percentage allotted for research by your department during the academic year) + Teaching load + other obligations = 100%
    • Academic Year (AY) salary is based on a 9 month appointment
    • AY salary charged to the sponsor is assessed the full fringe benefits package. The exception to this is the non-tenure track research professor -- this can be non-benefited
  • Academic Year Salary (Cont’d)
    • Some sponsors (e.g. NSF) do not allow payment of academic year salary without strong justification (strictly research appointments, etc.)
  • Academic Year Salary Sample Calculation
    • To charge 11% (1 month) of an academic salary of $65,000:
      • 11% X $65,000 = $7,150
      • Show basis of effort according to sponsor preference, usually represented as either % of effort or monthly. NSF requires by month, NIH by %
  • Personnel Budget Detail Academic Salary $7,150
      • Principal Investigator (1 month or 11% academic year)
    $7,150 Total Personnel Fringe Cost Cost Type
  • Fringe on Academic Year Salary
    • Group Insurance & Retirement: 27.00%
    • Worker’s Comp., Unemp., & Univ. Health: .91%
    • FICA (Medicare): 1.45%
      • (applicable only if hired after 4/86)
    • Health & Welfare: $11 per week
  • Academic Year Salary Sample Fringe Calculation
    • Group Insurance 27.00% X $7,150 = $1,931
    • Worker’s Comp, etc. . 91% X $7,150 = $65
    • FICA (Medicare) 1.45% X $7,150 = $104
    • 38 weeks (AY) X $11/wk X 11% = $46
    • Total Fringe = $2,146
  • Fringe Budget Detail Academic Year Fringe $2,146 $7,150
      • Principal Investigator
      • 11% academic year
    $2,146 $7,150 Total Personnel Fringe Cost Cost Type
  • Personnel
    • Faculty Salaries
      • Academic
      • Summer
      • Calendar
  • Faculty Summer Salary
    • Federal:
      • Those faculty with Academic Year (AY) appointments can receive an additional 33% as summer salary. For example if AY pay is $100,000, then an addition $33,000 can be charged as summer salary.
      • The summer pay rate is based on the 9 month academic year salary.
      • NSF permits only 2/9’s, the equivalent of 2 month’s salary.
    • Industrial and Foundation:
      • Pay rate unrestricted – negotiated with sponsor
    • Personnel effort on all ACTIVE awards plus teaching load cannot exceed 100% . In other words, 100% summer salary (14 weeks) + committed academic year research effort (up to the maximum percentage allotted for research by your department during the academic year) + Teaching load + other obligations = 100%
  • Faculty Summer Salary Sample Calculation
      • Annual salary = $54,000
      • Monthly salary= $54,000/9 = $6,000/mo
      • 2 months of summer salary = $12,000 charged to the project
      • Show basis of effort according to sponsor preference, usually represented as either % of effort or monthly. NSF requires by month, NIH by %
  • Personnel Budget Detail Summer Salary $12,000
      • Principal Investigator
      • 2 months summer salary (67% summer)
    $2,146 $7,150
      • Principal Investigator
      • 11% academic year
    $2,146 $19,150 Total Personnel Fringe Cost Cost Type
  • Faculty Summer Salary Sample Fringe Calculation
    • If PI hired before April 1, 1986
      • Worker’s Comp. = .91%(Summer Salary)
    • If PI hired after April 1, 1986
      • FICA = 1.45%
      • Worker’s Comp. = .91%
      • 2.36%
      • For the sample budget, assume the latter:
      • 2.36% X $12,000 = $283
  • Personnel Budget Detail Summer Salary Fringe $2,146 $7,150
      • PI academic, 11% (1 month)
    $283 $12,000
      • PI summer, 2 mos
      • (67% summer)
    $2,429 $19,150 Total Personnel Fringe Cost Cost Type
  • Personnel
    • Faculty Salaries
      • Academic
      • Summer
      • Calendar
  • Faculty Calendar Year Appointment
    • Some faculty have calendar year appointments – 12 months
    • Full fringe is assessed; same as academic appointments
    • Additional compensation can only be charged to Non-Federal sources and with Dean and Provost written approval - only FICA & Worker’s Comp. are charged for fringe
  • Personnel
    • Faculty Salaries
      • Summer
      • Academic
      • Calendar
    • Other Professional (Programmer, Technician, etc.)
  • Other Professional Sample Calculation
    • Calendar year employees:
      • Sample annual salary = $30,000
      • Calculating effort on a % basis:
        • 30% X $30,000 = $9,000
      • Calculating effort on a monthly basis:
        • $30,000/12 months = $2,500/month;
        • $9,000/$2,500 = 3.6 months
    • Additional compensation: professional and classified staff can be budgeted up to an additional 12% salary from Non-Federal sources on top of their base annual with Dept. Head and Dean approval. Must be clearly noted in the budget as “Add comp” – consult with Human Resources for allowability.
  • Personnel Budget Detail Other Professional Salary $9,000
      • Other Professional, 30% (3.6 mos)
    $2,146 $7,150
      • PI academic, 11% (1 month)
    $283 $12,000
      • PI summer, 2 mos (67% summer)
    $2,429 $28,150 Total Personnel Fringe Cost Cost Type
  • Other Professional Sample Fringe Calculation
    • Assessed at full fringe rates
      • Fringe (27%) + Worker’s Comp (.91%): 27.91%
        • $9,000 x .2791 = $2,512
      • Health & Welfare $11/week or $572 annually
        • 30% effort x $572 = $172
      • FICA (if hired after 4/1/86) 1.45%
        • $9,000 x .0145 = $131
      • Total Fringe = $2,512 + $172 + $131 =
        • $2,815 for this example
  • Personnel Budget Detail Other Professional Fringe $2,815 $9,000
      • Other Professional, 30% (3.6 mos)
    $2,146 $7,150
      • PI academic, 11% (1 month)
    $283 $12,000
      • PI summer, 2 mos (67% summer)
    $5,244 $28,150 Total Personnel Fringe Cost Cost Type
  • Personnel
    • Faculty Salaries
      • Summer
      • Academic
      • Calendar
    • Other Professional (Programmer, Technician, etc.)
    • Graduate Student
  • Graduate Student Stipend
    • Stipend - Minimum Graduate Stipends are set by academic areas, per student contracts.  For a memo regarding specific minimum student stipends click here:
        • New Recalculated Minimum Graduate Student Employee Stipends
    • Example: for a graduate student hired in 2003 for 20 hrs per week both academic and summer:
    • 20 hours per week X 52 weeks = 1040 hours
    • 1040 X $14.12 = $14,685
  • Personnel Budget Detail Graduate Student Stipend $14,685
      • Graduate Student (1040 hours or 50%)
    $2,815 $9,000
      • Other Professional, 30% (3.6 mos)
    $2,146 $7,150
      • PI academic, 11% (1 month)
    $283 $12,000
      • PI summer, 2 mos (67% summer)
    $5,244 $42,835 Total Personnel Fringe Cost Cost Type
  • Graduate Student Sample Fringe Calculation
    • GEO Health Fee: assessed at $2.57 per hour
      • The following examples reflect typical appointments:
        • $1,950: 20 hours/wk X 38 weeks academic = 760 hrs X $2.57/hr
        • $2,673 : 20 hours/wk X 52 weeks = 1,040 hrs x $2.57/hr
        • $3, 392: 20 hours/wk X 38 weeks academic + 40 hours/wk X 14 weeks = 1,320 hours x $2.57/hr
  • Graduate Student Fringe Sample Fringe Calculation (cont’d)
    • Health & Welfare
      • $11/wk per student
        • $572 for 52 week year
        • $418 for 38 week academic year
        • $154 for 14 week summer
      • $572 this example
  • Graduate Student Sample Fringe Calculation (cont’d)
    • Summer Student Payroll FICA
      • If not enrolled in classes: 1.45% summer payroll (14 weeks)
      • $14,685/52 wks = $282/wk
      • $282 X 14 wks = $3,954/summer
      • 1.45% X $3,954 = $57
      • $57 for this example
  • Graduate Student Sample Fringe Total
    • GEO Health Fee $2,673
    • Health & Welfare $ 572
    • Summer Student FICA $ 57
    • Total $3,302
    • NOTE: Curriculum fee is assessed on all academic year grad student appointments but not budgeted as fringe -- see “Other” for more info
  • Graduate Student Fringe Calculation
    • It is important to understand how the fringe calculation is done, however we have constructed a Graduate Student Fringe Calculator to make it easier. It also calculates the Curriculum fee.
  • Personnel Budget Detail Graduate Student Fringe $3,302 $14,685
      • Graduate Student (1040 hours or 50%)
    $2,815 $9,000
      • Other Professional, 30% (3.6 mos)
    $2,146 $7,150
      • PI academic, 11%
      • (1 month)
    $283 $12,000
      • PI summer, 2 mos (67% summer)
    $8,546 $42,835 Total Personnel Fringe Cost Cost Type
  • Personnel
    • Faculty Salaries
      • Summer
      • Academic
      • Calendar
    • Other Professional (Programmer, Technician, etc.)
    • Graduate Student
    • Postdoctoral Fellow
  • Postdoctoral Fellow
    • Salary is determined by what the market will bear in a particular field and is usually figured on an annual basis. Check with Department Head for prevailing rates
      • $35,000 per year this example
  • Personnel Budget Detail Postdoctoral Fellow Salary $35,000
      • Postdoc (12 mos)
    $3,302 $14,685
      • Graduate Student (1040 hours)
    $2,815 $9,000
      • Other Professional, 30% (3.6 mos)
    $2,146 $7,150
      • PI academic, 11% (1 month)
    $283 $12,000
      • PI summer, 2 mos (67% summer)
    $8,546 $42,835 Total Personnel Fringe Cost Cost Type
  • Postdoctoral Fringe
    • UMass requires the budgeting of health insurance for postdocs by either providing:
      • 1) The full benefits package – includes group insurance and retirement
      • 2) Budgeting for the postdoc health plan – no retirement
  • Post Doc Fringe (cont’d)
    • 1) Full benefits:
      • Group Insurance & Retirement: 27%
      • Worker’s Comp., Unemployment, & Univ. Health: .91
      • FICA (Medicare): 1.45% (applicable if hired after 4/86)
      • Health & Welfare: $11 per week
        • 27% X $35,000 = $9,450
        • .91% X $35,000 = $319
        • 1.45% X $35,000 = $508
        • 52 weeks X $11/wk = $572
        • Total Fringe = $10,849
  • Postdoctoral Sample Fringe Calculation (cont’d)
    • 2) Postdoc Health Insurance plan:
        • Fellow only $232/mo
        • Fellow and child(ren) $615/mo
        • Fellow and spouse $728/mo
        • Fellow, spouse & child(ren) $1,111/mo
      • 12 months X $232/mo = $2,784
      • Worker’s Comp and FICA are assessed as well:
        • .91% X $35,000 = $319
        • 1.45% X $35,000 = $508
  • Postdoctoral Sample Fringe Total
    • Postdoc with health (no-retirement):
      • Worker’s Comp $319
      • FICA $508
      • Health Insurance $2,784
      • Total $3,611
  • Personnel Budget Detail Postdoctoral Fellow Fringe $3,611 $35,000
      • Postdoc (12 mos)
    $3,302 $14,685
      • Graduate Student (1040 hours)
    $2,815 $9000
      • Other Professional, 30% (3.6 mos)
    $2,146 $7,150
      • PI academic, 11% (1 month)
    $283 $12,000
      • PI summer, 2 mos (67% summer)
    $12,157 $77,835 Total Personnel Fringe Cost Cost Type
  • Personnel
    • Faculty Salaries
      • Summer
      • Academic
      • Calendar
    • Other Professional (Programmer, Technician, etc.)
    • Graduate Student
    • Postdoctoral Fellow
    • Secretarial
  • Secretarial
    • Secretarial salary can be charged to non-federal projects without any restrictions. The direct charging of secretarial services on federally supported projects is allowed only under a limited number of scenarios. See the policy statement and consult with OGCA proposal staff for guidance.
  • Personnel
    • Faculty Salaries
      • Summer
      • Academic
      • Calendar
    • Other Professional (Programmer, Technician, etc.)
    • Graduate Student
    • Post Doctoral Fellow
    • Secretarial
    • Undergraduate Student
  • Undergraduate Student
    • Undergraduate Students are hired for varying numbers of hours per week
    • The pay scale for undergraduates is determined by the job description and Human Resources guidelines
      • 10 hrs/wk X 38 wks X $10/hr = $3,800
  • Personnel Budget Detail Undergraduate Student Pay $ 3,302 $14,685
      • Graduate Student (1040 hours)
    $3,800
      • Undergraduate (10 hrs/wk academic)
    $3,611 $35,000
      • Postdoc (12 mos)
    $2,815 $9000
      • Other Professional, 30% (3.6 mos)
    $2,146 $7,150
      • PI academic, 11% (1 month)
    $283 $12,000
      • PI summer, 2 mos (67% summer)
    $12.157 $77,835 Total Personnel Fringe Cost Cost Type
  • Undergraduate Fringe
    • Undergraduate salary is not charged fringe. However, FICA is charged during summer employment if the student is not enrolled in summer classes.
      • Fringe = $0 for this example since the student is working during the academic year.
  • Personnel Budget Detail Undergraduate Student Fringe $3,302 $14,685
      • Graduate Student (1040 hours)
    $0 $3,800
      • Undergraduate (10 hrs/wk academic)
    $3,611 $35,000
      • Postdoc (12 mos)
    $2,815 $9000
      • Other Professional, 30% (3.6 mos)
    $2,146 $7,150
      • PI academic, 11% (1 month)
    $283 $12,000
      • PI summer, 2 mos (67% summer)
    $12,157 $81,635 Total Personnel Fringe Cost Cost Type
  • Non-personnel
    • Consultants
  • Non-personnel Costs Consultants
    • A consultant lends their expertise and advice in their given field without actually “working” on the project
    • UMass personnel cannot be paid as consultants on UMass grants & contracts
    • NSF limits consultant daily rate to max of $498 per day. This rate can be used for guidance on other federal projects but is not a requirement. Basis for costing on non-federal grants is market driven
    • Provide daily rate of pay in the budget – obtain from consultant – do not guesstimate, get exact rate
  • Non-personnel Budget Detail Consultants $4,980 Consultant – ABC Advice, Inc. ($498/day, 10 days) Cost Cost Type
  • Non-personnel
    • Consultant
    • Equipment
  • Equipment
    • Definition:
      • $1,000 unit cost or more
      • Non-expendable tangible property
      • Useful life of 2 years or more
    • Budgeting:
      • List pieces of equipment separately showing unit cost
      • Basis for costing: costing can easily be done on-line for items from laptops to centrifuges, or with familiar vendors. Avoid guesstimates
  • Non-personnel Budget Detail Equipment $4,980 Consultant – ABC Advice, Inc. ($498/day, 10 days) $3,299 Equipment – Mac Power Book G4, 17” super drive Cost Cost Type
  • Non-personnel
    • Consultant
    • Equipment
    • Administrative
  • Non-personnel
    • Consultant
    • Equipment
    • Administrative
      • Administrative and Office Supplies
  • Administrative Office & Administrative Supplies
    • Definition:
      • Pens, pencils, file folders, paper products, including photocopy paper, film, tape, etc., and small office machines under $100
    • Budgeting:
      • Federal: strict limitations placed on ability to budget. NOT ALLOWABLE – consult with OGCA . Not included in sample budget for this reason
      • Non-federal: no limits - budget as needed
      • Basis of costing: experience
      • Range: $25 - $100, depending on size of project
  • Non-personnel
    • Consultant
    • Equipment
    • Administrative
      • Administrative and Office Supplies
      • Postage and Telephone
  • Administrative Postage & Telephone
    • Definition:
      • Overnight courier services, regular postage, telephone
    • Budgeting:
      • Allowable on federal projects but only with thorough explanation and justification. Must detail project related need and state ability to separately track these expenses from routine non-project expenses for auditing purposes
      • Federal: telephone only for long-distance or for phone line entirely dedicated to the project
  • Administrative Postage & Telephone (cont’d)
      • Limitations on costing are not typically placed by non-federal sponsors
      • Basis for costing: experience in related projects with costing scaled up or down depending on relative size of project. Check your records and/or bookkeeper’s for prior accounting on project of a similar size and type
      • Typical range: $50 to $500; amounts vary depending on nature of the project
  • Administrative Postage & Telephone Sample calculation/justification
      • Postage for mailing brochures :
        • 200 X .25 = $50
      • Justification
        • Mailing of brochures to candidates for participation in the study. Brochures explain guidelines and criteria. They are required to properly educate possible participants prior to screening. These costs are auditable and accounted for separately from non-project costs
  • Administrative Costs Postage & Telephone Calculation/Justification (cont’d)
      • Telephone (long-distance):
        • $200
      • Justification:
        • Long distance phone calls required for follow-up with accepted participants to run initial interviews and to schedule and confirm appointments for participation. These costs are auditable and accounted for separately from non-project costs
  • Non-personnel Budget Detail Administrative (cont’d) $3,299 Equipment – Mac Power Book G4, 17” super drive $4,980 Consultant – ABC Advice, Inc. ($498/day, 10 days) $50 $200
    • Administrative –
      • Postage for mailing brochures
      • Telephone (long-distance)
    Cost Direct Cost Type $3,299 Equipment – Mac Power Book G4, 17” super drive $4,980 Consultant – ABC Advice, Inc. ($498/day, 10 days) $50 $200
    • Administrative –
      • Postage for mailing brochures
      • Telephone (long-distance)
    Cost Direct Cost Type
  • Non-personnel
    • Consultant
    • Equipment
    • Administrative
      • Administrative and Office Supplies
      • Postage and Telephone
      • Subscriptions, Membership Dues
  • Administrative Subscriptions, Membership Dues
    • Definition:
      • Self-explanatory; costs must be allocable to a specific project and allowed by the sponsor
    • Budgeting:
      • Federal: strict limitations placed on ability to budget. NOT ALLOWABLE – consult with OGCA . Not included in sample budget for this reason
      • Non-federal: no limits - budget as needed. Should be explained/justified
      • Basis of costing: current vendor rates
      • Range: variable
  • Non-personnel
    • Consultant
    • Equipment
    • Administrative
      • Administrative and Office Supplies
      • Postage and Telephone
      • Subscriptions, Membership Dues
      • Photocopying
  • Administrative Photocopying
    • Definition:
      • Both on and off-campus project-related photocopying services
    • Budgeting:
      • Federal: Allowable on federal projects but only with thorough explanation and justification. Must detail project related need and state ability to separately track these expenses from routine non-project expenses for auditing purposes
      • Non-Federal: no limits - budget as needed
  • Administrative Photocopying (cont’d)
    • Budgeting (cont’d)
      • Basis of costing: experience in related projects with costing scaled up or down depending on relative size of project. Check your records and/or bookkeeper’s for prior accounting on project of a similar size and type
      • Range: variable
  • Administrative Photocopying justification
    • Sample explanation/justification:
      • Funds are budgeted for project-related copying expenses incurred in the dissemination of paper submissions, documents/reports, and meetings/presentations required by the sponsor. These costs are auditable and separately tracked from routine non-project expenses
  • Non-personnel Costs
    • Consultant
    • Equipment
    • Administrative
    • Supplies
  • Non-personnel Costs Supplies
    • Consultant
    • Equipment
    • Administrative
    • Supplies
      • Laboratory supplies, chemicals
  • Supplies Laboratory supplies, chemicals
    • Definition :
      • Laboratory supplies and chemicals allocable to proposed project
    • Budgeting:
      • List types and give subtotals for major items in the budget explanation as applicable
      • Basis for costing: check with vendors or accounting records for prior costing on similar projects. If new to budget building, confer with more experienced colleagues. Avoid over-inflating costs
      • Range: variable, $100 - $25,000 based on project size/type
  • Supplies Lab supplies/chemicals Calculation
      • Lab supplies/chemicals:
        • Chemicals: $5,000
        • Reagents: $1,000
        • Antibodies: $2,000
        • Enzymes: $500
        • Disposable lab supplies
        • (pipettes, media agents,
        • syringes, etc.): $300
        • Total: $8,800
  • Non-personnel Budget Detail Supplies $50 $200
    • Administrative –
      • Postage for mailing brochures
      • Telephone (long distance)
    $3,299 Equipment – Mac Power Book G4, 17” super drive $4,980 Consultant – ABC Advice, Inc. ($498/day, 10 days) $8,800
    • Supplies –
      • Lab/chemical supplies
    Cost Direct Cost Type
  • Non-personnel Costs Supplies (cont’d)
    • Consultant
    • Equipment
    • Administrative
    • Supplies
      • Laboratory supplies, chemicals
      • Computer supplies
  • Supplies -- Computer supplies
    • Definition :
      • Computer paper, diskettes, zip disks, toner, etc
    • Budgeting:
      • Federal:
        • Allowable with proper explanation and justification
        • Must detail project related need and state that these expenses are separately auditable from non-project costs
      • Non-federal: no restrictions
      • Basis for costing:
        • Check with vendors, accounting records, or colleagues for prior costing on similar projects
        • Avoid over-inflating costs
      • Range: variable, $50 - $250 based on project size/type
  • Supplies Computer supplies Calculation/Justification
    • Computer supplies:
      • Cost: $200
    • Justification:
      • Computer supplies are required for project related sponsor mandated reports. These costs are separately auditable from non-project costs
  • Non-personnel Budget Detail Supplies $50 $200
    • Administrative –
      • Postage for mailing brochures
      • Telephone (long-distance)
    $3,299 Equipment – Mac Power Book G4, 17” super drive $4,980 Consultant – ABC Advice, Inc. ($498/day, 10 days) $8,800 $200
    • Supplies –
      • Lab/chemical supplies
      • Computer supplies
    Cost Direct Cost Type
  • Non-personnel Costs Supplies
      • The list of items in this sample budget under “Supplies” are not exhaustive but provided for illustrative purposes. Other costs that might arise are listed below for convenience. Click item for more information if hyperlinked
          • Research animals
          • Software, Software Upgrades, & Software Licenses
  • Non-personnel Costs
    • Consultant
    • Equipment
    • Administrative
    • Supplies
    • Travel
  • Non-personnel Costs Travel
    • Definition:
      • Airfare (domestic & foreign), per diem, hotel, conference registration, ground transportation (taxi/limo), car rental, mileage & tolls
    • Budgeting:
      • Federal:
        • Cannot charge business class or first class air travel
        • Must utilize U.S. flag carriers at the lowest available rates
      • Non-federal: No airfare limitations
  • Non-personnel Costs Travel (cont’d)
      • Budgeting cont’d.
        • Basis for costing:
          • Airfare: check with travel agent or on-line service.
          • Domestic per diem and hotel: UMass limits per diem (food) charge on domestic travel at $30.00 per day ($35 for MA, NYC, DC). See federal per diem site for suggested domestic hotel costs or call your travel agent.
          • Foreign: Use foreign per diem and hotel rates, actual expenses based on prior travel or check with travel agent and/or bookkeeper.
          • Mileage: set at the IRS rate, currently (FY ’03) set at .375 per mile.
  • Non-personnel Costs Travel (cont’d)
      • Range:
        • $1,200 to $1,600 per domestic conference
        • $1,500 to $3,000 per foreign conference depending on location/duration
        • Non-conference travel costs vary significantly
        • Do not guesstimate
        • Build budget with information suggested under “Basis for costing” and provide explanation
  • Travel Calculation
    • Domestic:
      • Conferences in DC (two each for PI & RA)
        • Airfare: $550 X 2 (PI & RA) X 2 trips = $2,200
        • Hotel: $110 X 3 days X 2 X 2 = $1,320
        • Per diem: 3 days X $35/day X 2 X 2 = $420
        • Registration: $400 X 2 X 2 = $1,600
        • Mileage (to/from Bradley): .375 X 70 miles X 2 = $53
        • Ground transportation (to/from Dulles): $35 X 4 = $140
      • Total: = $5,733
  • Travel Calculation (cont’d)
    • Foreign:
      • Conference in Moscow (PI)
        • Airfare: $950
        • Hotel: 5 days X $191 $955
        • Per diem: 5 X $103 $515
        • Registration: $400
        • Mileage: (to/from Bradley): $53
        • Ground transportation: $150
      • Total: $3,023
  • Non-personnel Budget Detail Travel $10,050
    • Supplies –
      • Lab/chemical supplies
      • Computer supplies
    $250
    • Administrative –
      • Postage for mailing brochures
      • Telephone (long-distance)
    $3,299 Equipment – Mac Power Book G4, 17” super drive $4,980 Consultant – ABC Advice, Inc. ($498/day, 10 days) $8,756
    • Travel –
      • Domestic: $5,733
      • Foreign: $3,023
    Cost Direct Cost Type
  • Non-personnel Costs
    • Consultant
    • Equipment
    • Administrative
    • Supplies
    • Travel
    • Subcontracts
  • Non-personnel Costs Subcontracts
    • Definition:
      • Generally, a subcontractor is defined as an organization, often another university, who helps carry out the activities of the proposed project by performing a portion of the research using their own facilities. They receive a proportional share of funding from the sponsor via UMass and will often charge their own indirect costs
  • Non-personnel Costs Subcontracts (cont’d)
    • Procedures
      • The following items must be provided to OGCA:
        • A letter signed by the subcontractor’s authorized signatory (OGCA equivalent)
        • Statement of work (subcontractor specific – does not include UMass effort)
        • Subcontractor budget
        • Indirect Cost Rate Agreement (if subcontractor is budgeting indirects in their own budget)
        • Sole source justification
  • Non-personnel Costs Subcontracts (cont’d)
    • Procedures (cont’d)
      • The first four items should be handled by the subcontractor and forwarded to OGCA
      • The sole source justification is completed by the UMass Principal Investigator. It explains why the subcontractor is uniquely qualified to carry out the work. Sole source justifications can be forwarded to OGCA via email
      • Subcontractors should use all sponsor forms, including any required certifications/assurances
  • Non-personnel Costs Subcontracts (cont’d)
    • Budgeting:
      • The subcontractor typically budgets for both Direct Costs (DC) and Indirect Costs (IC). Take the total of the DC and IC provided in the subcontractor budget and roll that total into your budget creating a line item called “Subcontracts” – see next slide for sample subcontractor budget. The subcontractor’s total costs are then rolled into the UMass budget under the “Subcontract” line item
  • Subcontractor Budget Sample $12,546 Total Indirect Cost (67% MTDC) $18,725 Total Direct Cost $31,271 Total Cost $2,500 6. Travel $500 5. Supplies $100 4. Administrative $2,500 3. Equipment $2,625 2. Fringe $10,500 1. Salaries Cost Wassamatta U. subcontract
  • Non-personnel Budget Detail Subcontracts $31,271 Subcontract – Wassamata U. $8,756 Travel – domestic & foreign $10,050 Supplies – Lab/chemical supplies; Computer supplies $250 Administrative – Postage for mailing brochures; Telephone (long-distance) $3,299 Equipment – Mac Power Book G4, 17” super drive $4,980 Consultant – ABC Advice, Inc. ($498/day, 10 days) Cost Direct Cost Type
  • Non-personnel Costs
    • Consultant
    • Equipment
    • Administrative
    • Supplies
    • Travel
    • Subcontracts
    • Other Direct
  • Non-personnel Costs Other Direct
    • Definition: the following items are often budgeted under “Other” but for the sample budget, only curriculum fee appears.
      • Curriculum fee
      • Equipment rentals, maintenance & repair
      • Human subject payment
      • Publication costs
      • Participant support costs
      • Do not use “Miscellaneous” as a line item
      • Above items not intended to be exhaustive but are illustrative of common items budgeted in the “Other” category.
  • Other Direct Calculation
    • Curriculum Fee
      • The rate is $6.31/hr. per Graduate Student (GS)
        • 1 GS X 20 hrs/wk X 38 wks X $6.31 = $4,796
      • Note:
        • No more than 760 hrs or $4,796 per GS will be charged in an academic year
        • Summer effort is not charged CF
        • Curriculum Fee is exempt from F&A
  • Non-personnel Budget Detail Other Direct $31,271 Subcontracts – Wassamata U. $4,796 Other Direct – Curriculum fee on graduate student $8,756 Travel – domestic & foreign $10,050 Supplies – Lab/chemical supplies; Computer supplies $250 Administrative – Postage for mailing brochures; Telephone (long-distance) $3,299 Equipment – Mac Power Book G4, 17” super drive $4,980 Consultant – ABC Advice, Inc. ($498/day, 10 days) Cost Direct Cost Type
  • Total Direct Cost $157,194 Total Direct Cost $4,796 Other $31,271 Subcontracts $8,756 Travel $10,050 Supplies $250 Administrative $3,299 Equipment $4,980 Consultant $12,157 Fringe $81,635 Salaries Cost Cost type
  • Two Major Budget Components
    • Direct Costs
    • Facilities and Administrative Costs
  • Facilities and Administrative Costs (F&A, overhead, indirect costs)
    • Definition:
      • F&A is calculated as a percentage of Direct Costs
      • Rates vary depending on type of project, sponsor type, and project location (on-campus, off-campus ); see fact sheet for specific rates. Consult with OGCA before budgeting either the “Off-campus” or “Other Sponsored Activities” or “Instruction” rates
      • If the sponsor’s F&A rate differs from the University’s, defer to sponsor mandated rates but provide OGCA with a copy of the sponsor’s guidelines supporting this restriction
  • Facilities and Administrative Costs (cont’d)
    • Definition (cont’d)
      • F&A is assessed either on a Modified Total Direct Cost basis (MTDC) or a Total Direct Cost (TDC) basis. MTDC simply means -- do not assess F&A (back them out of total before calculating F&A) on the following costs:
        • Equipment ($1,000 or more unit cost)
        • Tuition (for cost-sharing purposes)
        • Curriculum fee
        • Rental costs of off-site facilities
        • Fellowships
        • Subcontractor costs in excess of $25,000
  • Facilities and Administrative Costs (cont’d)
    • Definition (cont’d)
      • Total Direct Cost (TDC) means that the applicable F&A rate is assessed on the direct cost total. Every rule has an exception of course: never assess F&A on the curriculum fee
    • Budgeting:
      • Review sponsor guidelines and assess F&A costs as instructed. Confer with OGCA if unclear
  • Facilities and Administrative Calculation
    • Assume an on-campus research project for our sample budget with a 55% MTDC F&A rate. 55% is therefore assessed on the total direct direct costs less equipment, curriculum fee, and subcontractor costs in excess of $25K. Thus the MTDC base:
    • $157,194 - $3,299 - ($31,271- $25K) - $4,796 = $142,828; multiply this by 55%:
    • $142,828 X 55% = $78,555
    $157,194 Total Direct Cost $4,796 Other $31,271 Subcontracts $8,756 Travel $10,050 Supplies $250 Administrative $3,299 Equipment $4,980 Consultant $12,157 Fringe $81,635 Salaries Cost Cost type
  • F&A Budget Detail $78,555 Total Indirect Costs $157,194 Total Direct Cost $235,749 Total Cost $4,796 Other $31,271 Subcontracts $8,756 Travel $10,050 Supplies $250 Administrative $3,299 Equipment $4,980 Consultant $12,157 Fringe $81,635 Salaries Cost Cost type
  • Cost-sharing Definition
    • Definition:
      • Cost-share is that part of the project’s costs borne by the University rather than the sponsor. Many sponsors require cost-sharing, often specific matching (such as 1:1 or 1:2) is required and other times agencies simply indicate that cost- sharing is recommended and will be a factor in the review and scoring of a proposal
  • Cost-sharing When allowable
    • When to cost-share :
      • To include cost-share in your proposal, sponsor’s written guidelines must either require it, or strongly suggest its inclusion.
      • UMass policy does not allow for “voluntary” cost-sharing. If the sponsor doesn’t require it, cost-share must not appear in your budget.
      • Do not provide shared costs from third party sources (Non-UMass, non-subcontractor). Confer with OGCA if third party share is required by sponsor.
  • Cost-sharing Allowable costs
    • What to cost-share:
      • If established that the sponsor requires or recommends cost share, only the following costs may be shared regardless of whether sponsoring agency is federal or non-federal:
        • Salaries
        • Fringe
        • Equipment
        • Subcontractor
        • Tuition waivers
        • Indirect costs
    • NOTE: Cost share must be from UMass accounts, not from other grants or contracts, federal or non-federal
  • Cost-sharing Process
    • All cost-shared amounts and their associated state ledger account numbers must be listed on the second page of the Internal Processing Form ( IPF ). This cost-share must also be authorized with a signature in the far right column, by the individual authorized to commit the shared funds, usually the Department Head
  • Cost-share Budgeting
    • Salaries
  • Cost-share Budgeting
    • Salaries:
      • Shared salary must derive from UMass funds, not matched from other federal or non-federal grants
      • Shared salary can be budgeted for UMass personnel with paid appointments. Exceptions to this rule:
        • Faculty summer salary & emeritus faculty salary
      • Salary is shared only for time specifically dedicated to the project during the proposed project period
  • Cost-share Salaries (cont’d)
      • Cost-shared salary is typically shown as a percentage of the employee’s base appointment but can also be budgeted in weeks or months following the same rules of effort reporting as required for reporting time charged to the sponsor
      • Keep in mind that personnel effort on all ACTIVE awards plus teaching load cannot exceed 100% . In other words, 100% summer salary (14 weeks) + committed (charged and cost-shared) academic year research effort (up to the maximum percentage allotted for research by your department during the academic year) + Teaching load + other obligations = 100%
  • Cost-share, salaries Sample calculation
    • Prof. Grant wants to cost-share 1 month (11% AY) of his academic salary. Prof. Grant makes $65,000 per academic year
    • 11% X $65,000 = $7,150
    • Show basis of effort according to sponsor preference, usually represented as either % of effort or monthly. NSF requires by month, NIH by %
    $7,150 PI (11% AY) $7,150 Total Direct Cost UM cost-share Cost Type
  • Cost-share, salaries Sample Calculation (cont’d)
    • Regardless of whether funding is federal or non-federal, secretarial salary can be cost-shared
    • Secretary’s salary is $30,000/calendar year and will devote 10% to the project
    • $30,000 X 10% = $3,000
    $3,000 Secretary (10%) $7,150 PI (11% AY) $10,150 Total Direct Cost UM cost-share Cost Type
  • Cost-share Fringe
      • Salaries
      • Fringe
  • Cost-share, Fringe Sample Calculation on PI Academic
    • Same rules apply for budgeting shared fringe as for charging to the sponsor:
    • Group Insurance
      • 27% X $7,150 = $1,931
    • Worker’s Comp, etc.
      • .91% X $7,150 = $65
    • FICA (Medicare)
      • 1.45% X $7,150 = $104
    • Health & Welfare
      • 38 weeks (AY) X $11/wk X 11% = $46
    • Total Fringe: $2,146
    $2,146 Fringe PI $3,000 Secretary (10%) $7,150 PI (11% AY) $12,296 Total Direct Cost UM cost-share Cost Type
  • Cost-share, Fringe Sample Calculation on Secretarial
    • Same rules apply for budgeting shared fringe as for charging to the sponsor. If secretary benefited:
    • Group Insurance
      • 27% X $3,000 = $810
    • Worker’s Comp, etc.
      • .91 X $3,000 = $27
    • FICA (Medicare)
      • 1.45% X $3,000 = $44
    • Health &Welfare:
      • $11 week X 52 weeks X 10% = $57
    • Total Fringe: $938
    $938 Fringe: Secretary $2,146 Fringe: PI $3,000 Secretary (10%) $7,150 PI (11% AY) $13,234 Total Direct Cost UM cost-share Cost Type
  • Cost-share Equipment
      • Salaries
      • Fringe
      • Equipment
  • Cost-share - Equipment Sample Calculation
    • Criteria:
      • Must be purchased exclusively for use on the project from UMass funds
      • Must be purchased during the project’s anticipated period of performance
    • Sample budget:
      • Eye Tracker: $7,995
    $7,995 Equipment $938 Fringe: Secretary $2,146 Fringe: PI $3,000 Secretary (10%) $7,150 PI (11% AY) $21,229 Total Direct Cost UM cost-share Cost Type
  • Cost-share Subcontract
      • Salaries
      • Fringe
      • Equipment
      • Subcontract
  • Cost-share, Subcontract Sample Calculation
    • Subcontractor cost-share must be signed off by the sub’s OGCA. Shared items must be auditable.
    • When applying UMass F&A on UMass shared direct costs, the subcontractor’s total shared cost, like equipment, is exempt. See slide on sharing F&A costs for further explanation.
    • Sample budget: Sub contributes salary, fringe, and associated F&A costs: $4,175
    $4,175 Subcontract $7,995 Equipment $938 Fringe: Secretary $2,146 Fringe: PI $3,000 Secretary (10%) $7,150 PI (11% AY) $25,404 Total Direct Cost UM cost-share Cost Type
  • Cost-share Tuition waiver
      • Salaries
      • Fringe
      • Equipment
      • Subcontract
      • Tuition waivers
  • Cost-share, Tuition Waivers Sample Calculation
    • Tuition waivers are budgeted for graduate students whose salary is being charged or cost-shared to the grant
      • Student stipends must be budgeted at a minimum of $2,682 per semester to receive a waiver
      • Tuition waivers: $2,705.50 per semester
      • Calculation for sample budget:
        • 1 student X 2 semesters X $2,705.50 = $5,411
    $4,175 Subcontract $5,411 Tuition waiver $7,995 Equipment $938 Fringe: Secretary $2,146 Fringe: PI $3,000 Secretary (10%) $7,150 PI (11% AY) $30,815 Total Direct Cost UM cost-share Cost Type
  • Cost-share Facilities and Administrative Costs (F&A, overhead, indirect costs)
      • Salaries
      • Fringe
      • Equipment
      • Subcontract
      • Tuition waivers
      • Facilities and Administrative Costs
    • Assess F&A on shared direct costs using same rate charged to sponsor. However, always use MTDC basis for sharing of F&A: equipment and tuition waivers are exempt from F&A assessment. In addition, do not assess F&A on subcontractor’s total shared costs.
    • Sample calculation: $30,815 – ($7,995 + $4,175 + $5,411) = $13,234 X 55% = $7,279
    Cost-share, F&A Sample calculation $4,175 Subcontract $7,279 Total Indirect Cost $30,815 Total Direct Cost $5,411 Tuition waiver $7,995 Equipment $938 Fringe: Secretary $2,146 Fringe: PI $3,000 Secretary (10%) $7,150 PI (11% AY) $38,094 Total Cost Share UM cost-share Cost Type
  • Total Budget Sponsor & UMass cost-share $273,843 $38,094 $235,749 Total Cost $85,834 $7,279 $78,555 Total Indirect Costs $188,009 $30,815 $157,194 Total Direct Cost $10,207 $5,411 $4,796 Other $35,446 $4,175 $31,271 Subcontracts $8,756 $8,756 Travel $10,050 $10,050 Supplies $250 $250 Administrative $11,294 $7,995 $3,299 Equipment $4,980 $4,980 Consultant $15,241 $3,084 $12,157 Fringe $91,785 $10,150 $81,635 Salaries Total UMass Sponsor Cost type
  • Budget Explanation and Justification
    • A well developed budget is accompanied by a budget explanation.
    • A complete and realistic budget justification demonstrates that your project is well conceived. It also tends to minimize the chances that sponsors will arbitrarily reduce or eliminate budget categories. Sponsors have a good idea of what a project should cost, and generally know when you are over or under budgeting. Follow sponsor guidelines on minimum items required.
    • Explanation and justification are synonymous terms except with federal grants where “Explanation” merely details what the cost item is while “Justification” conveys why a cost item – particularly “Administrative costs” – are allocable and necessary for the successful completion of the project.