HOW TO WRITE A BUDGET

1
HOW TO WRITE A BUDGET

2
The Importance of Your Budget

• Preparation of the budget is an important part
  of the proposal preparation process. Pre-Award
  and peer reviewers are responsible for comparing
  the level of funding requested to the work
  proposed. Therefore, the budget section of the
  proposal should reflect, as accurately as
  possible, the funding needed to carry out the
  project.

3
Budget Categories

• Direct Costs Costs/Expenses that are directly
  charged to your grant account/contract.
• Indirect Costs Facilities and Administrative
  (FA) costs, also called overhead or indirect
  costs, reimburse the University for laboratory
  and office space, utilities, administrative
  services (e.g., Purchasing, Accounting, Research
  Administration, Human Resources, Security),
  Custodial Services, and building, grounds, street
  and parking lot maintenance. In other words, they
  include those things essential to support
  sponsored activities which cannot be specifically
  identified and directly charged to a specific
  research grant or contract.

4
Direct Costs

• Personal Services Salaries Wages, Fringe
  Benefits
• Non Personal Services
• Travel
• Supplies Materials
• Other Operating Expenses (i.e.
  Subscriptions, Registrations, Advertising, etc.)
• Software
• Publications Printing
• Per Diem Fees -Expense (i.e. Consultant,
  Lecturers, Interpreters, etc.)
• Per Diem Fees Reimb. (Travel for non
  employees, reimb. to non employees)
• Contracts (i.e. subcontracts)
• Stipends
• Equipment (Non-Inventory Inventory)

5
Indirect Costs

• Indirect costs are expenses incurred by the
  University for its facilities and services.
  Indirect costs are not profit, but are real costs
  to the University to support research and
  sponsored activities. The institution, as a
  policy matter, has decided to cover these costs
  out of the instructional budget, using indirect
  cost funds. Examples of indirect costs incurred
  by the University include building maintenance
  and operation, utilities, libraries, computer
  services and other facilities, payroll,
  accounting, purchasing, research administration,
  departmental administration, personnel services,
  and general administration. The University
  attempts to recover all of these support costs in
  accordance with guidelines.
• Kennesaw State University allocates a
  significant portion of its operating budget and
  facilities to the support of research and
  development activities.

6
KSUs Indirect Cost Rates

• The federal government actually establishes an
  indirect cost rate for KSU, which we are
  authorized to use when preparing our federal
  grant applications. KSU's indirect cost rate is
  34 of direct cost excluding capital
  expenditures (buildings, individual items of
  equipment, alterations and renovations) and that
  portion of each sub award in excess of 25,000.
  This is the maximum indirect cost we can charge.
• KSUs current indirects Agreement was renewed
  July 2005 and is in effect until June 30, 2009.
• All fixed price contract grants will be required
  to support an 8 indirects/overhead fee. This
  overhead is calculated on the total budget.

7
Key Points to Remember When Writing Your Budget

• Personal Services
• Fringe benefits need to be included for anyone
  being paid under Personal Services except
  graduate research assistant. For temporary
  employees (i.e. student assistants and temporary
  staff) must at least budget FICA and FICA Med
  (7.65).
• Fringe benefits for Faculty 30 Academic Year,
  20 Maymester and Summer
• If paying Faculty member an overload (extra
  compensation for Faculty)
• Fringe benefits need to be calculated and
  budgeted for the overload amount.
• Need to find out when to be paid. (Fall, Spring,
  Maymester or Summer (next FY)
• If during the Summer, need to make sure that the
  Faculty understand if the grant ends June
• 30th, need to be paid during Maymester.
• NOTE If paid from Federal Award, cannot be paid
  an overload (Academic or Maymester/Summer)
• Faculty members are paid during the academic year
  9 times.August-May
• During summer if being paid from an NSF grant the
  maximum a faculty member can be paid is 2/9 of
  their academic year
• salary1month of pay 1/9 of academic year
  salary, 2 months of pay 2/9 of academic year
  salary
• During summer if being paid from other funds 1
  month of pay 10 of their academic year
  salary2 months of pay 20 of their academic
  year salary.3 months of pay 30 of academic
  year salary
• Faculty Overload during summer.
• Over 30-33 1/3 will need memo from department
  head
• Over 33 1/3 will need memo from department head
  and overload form
• NOTE Faculty paid from Federal Award(s) cannot
  be paid overload.
• Staff cannot be paid overloads (extra
  compensation)

8
Key Points to Remember When Writing Your Budget
Continued

• Non Personal Services
• Travel
• KSU Employees Only
• Travel should not include registration or
  memberships fees/dues
• Travel for non KSU Employees should be budgeted
  under Per Diem and Reimbursable Expenses
• Travel Stipends (a flat payment for estimated
  travel cost for non KSU Employees) to be budgeted
  as stipends.
• Consultants
• Non KSU Employees only
• KSU Employees should be budgeted under Personal
  Services. KSU employees cannot be paid as
  consultants.
• Budget narrative for consultants needs to include
  the person by name and detailed scope of work or
  detailed scope of work and qualifications of
  consultant required.
• Indirects
• Must be included on all grants and contracts.
• Must be included in budget detail.

9
In Closing

• The Office of Sponsored Programs (OSP) assists
  faculty with identification of potential
  sponsors offers technical proposal development
  reviews proposals for compliance with agency,
  Regents and KSU policies. Additionally, the OSP
  facilitates the internal administrative review
  and approval of all contracts and grants. All
  contract and grant proposals must be routed thru
  the OSP prior to submission to funding agency.
• The new award information will be forwarded to
  the Office of Sponsored Operations once OSP
  receives the fully executed contract and all
  required documents are in place, The Grants
  Office will then review the information for
  completeness, set up the account and coordinate a
  post award meeting with the Project Director and
  his/her support staff.