Budget Management

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Budget Management
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Introduction

• All sponsored projects require a budget
• Including modular awards (for Institutional use
  only)
• Budgets help ensure that all costs toward
  completing the project have been anticipated

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OMB Circular A-110

• Subpart C Post-Award Requirements
• .25 Revision of budget and program plans
• Outlines the requirements for grants and
  agreements with Institutions of Higher Education

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Basic Grant Budgeting

• Follow the RFP guidelines
• Know the terms and conditions of your award

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Basic Grant Budgeting

• Total Cost Direct cost Indirect Cost (FA)
• Direct costs are those costs that can be directly
  attributed to a specific project
• Indirect Costs are those costs that cannot be
  directly attributed to a specific project

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FA Costs

• Base X Rate Indirect Costs (FA)

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NIH Requirements

• Prior Approval by agency required when
• Change in Scope
• Transferring amounts from trainee costs
• Capital expenditures (construction, land or
  building acquisition)
• Need for additional NIH funding
• Transfer of funds between construction and
  non-construction work

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No Cost Extensions

• Request must be generated by the PI and go
  through ORSP
• Provide written justification
• ORSP will authorize the No Cost Extension when
  applicable or contact agency for approval

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Budget Revision Request

• Budget revisions must be allowed under the terms
  and conditions of the award document.
• Any prior approvals must be obtained by the
  department through the ORSP office prior to
  submitting the budget revision.

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Budget Revision

• Be sure to recalculate the FA rate when
  transferring funds to and from exempt categories.
• Transferring funds from an exempt category to a
  non-exempt category will effect the direct costs
  available for the project.

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Effects of Rebudgets on FA Expenses

• Scenario 1
• 50,000 budgeted in equipment is to be
  transferred to supplies. How much can be
  rebudgeted to supplies and how much is to be
  rebudgeted to FA?

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Effects of Rebudgets on FA Expenses

• Answer
• The amount being transferred from an exempt
  category (equipment) should be divided by (1.00
  FA rate). This quotient can be moved into other
  direct non-exempt categories. The balance will be
  added to the FA budget.

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Effects of Rebudgets on FA Expenses

• Example
• 50,000 decrease in equipment
• At a 46 FA rate
• 50,000/1.46 34,246.57
• 34,246.57 is added to supplies
• 15,753.42 is added to FA

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Effects of Rebudgets on FA Expenses

• Scenario 2
• The PI needs to purchase an unbudgeted piece of
  equipment from the grant and wants to use funds
  from the supply line. How does this rebudget
  affect the FA budget line?

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Effects of Rebudgets on FA Expenses

• Answer
• The amount being rebudgeted to an exempt line
  (equipment) should be divided by (1.00 FA
  rate). This quotient is the amount to be reduced
  in the supplies category. The difference is the
  amount to be reduced in the FA category.

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Effects of Rebudgets on FA Expenses

• Example
• 50,000 increase in equipment
• At a 46 FA rate
• 50,000/1.46 34,246.57
• 34,246.57 reduction to supplies
• 15,753.43 reduction to FA

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Questions?