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Preparing a Proposal Preparing a Proposal BudgetBudget
Celia M. ElliottUniversity of Illinois
[email protected]
Copyright 2004 The Board of Trustees of the University of
Illinois
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Goals for this sessionGoals for this sessionLearn how to develop
a proposal budgetUnderstand the difference between
eligible and ineligible costsLearn how to use budget
worksheetsLearn what institutional overhead is
and how it is calculatedLearn to prepare a budget narrative
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Your budget must conform to your Your budget must conform to
your technical descriptiontechnical descriptionGo through the
narrative and highlight
every activity that has financial implicationsmake a list of
everything that will have to be paid for
Assign each one of those costs to an appropriate budget
categorypersonnel, equipment, materials and supplies,
telecommunications, travel, services, publications
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Make a note, too, of the nonMake a note, too, of the
non--monetary monetary contributions your institution will
contributions your institution will make to the projectmake to the
project
You will want to emphasize these contributions in your budget
narrative
Look at it from the funders point of viewyour prior investment
in facilities and equipment lowers the cost of doing this project
for the funder, putting you at an advantage over competing
proposals
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Your budget must be realistic Your budget must be realistic
Reviewers and program officers know
what things cost; if your budget is not realistic they will
think you are either dishonest or stupid
A budget that is too low may make it impossible to complete the
project, which will jeopardize your chances for future funding
Estimate costs as accurately as possible; get written price
quotations for equip-ment and binding agreements for
subcontracts
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The RFP sets the budget rulesThe RFP sets the budget rules
Average grants are expected to be
~$65,000 over two years; no proposal requesting more than
$100,000 will be considered
The FSU teams expenses may account for no less than 80% of the
total budget
The US teams expenses may account for no more than 20% of the
total budget
Projects may last no longer than 24 months
Eligible expenses are personnel, equip-ment and supplies,
travel, subcontracts, and institutional overhead
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Budgets must conform to the RFP Budgets must conform to the RFP
and include only and include only eligibleeligible costscosts
Personnel
Travel
Equipment and Supplies
Other Eligible Costs
Institutional Overhead
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The RFP will also tell you what The RFP will also tell you what
costs are not costs are not eligibleeligiblePayments to individuals
who do no
work on the projectTravel that is not connected to the
research projectEquipment and supplies that will not
be used in the research projectEntertainmentConstruction,
repair, or remodeling of
facilities
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Calculate your personnel costsCalculate your personnel
costsIndividual Financial Support FSU Team US Team
Name Amount per Month
No. of Months
A. Ivanov, Head of Lab. $650 24 $15,600 T. Bobrovski, PI $650 24
$15,600 A. Nikolaev, Co-PI $600 24 $14,400 V. Baranov, Sr.
Scientist $400 24 $9,600 R. Vodolaga, Student $50 24 $1,200 K.
Chupronova, Engineer $150 24 $3,600 R. Kukushkin, Researcher $150
24 $3,600 J. Martindale, U.S. PI $2,000 24 $48,000 S. Ellis,
Student $1,000 9 $9,000
TOTAL INDIVIDUAL FINANCIAL SUPPORT
$63,600 $57,000
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Review the RFP budget rulesReview the RFP budget rules No salary
is permitted for US researchers Up to $10,000 (for the entire award
period)
may be used to support a US student No support for admin.
superiors of PI Minimum and maximum salaries set
$200$75Admin/Clerical Support Staff
$300$100Student
$300$200Technical/Scientific Support Staff
$500$300Researcher/Engineer
$600$500PI/Project Director
MaximumMo. Rate
MinimumMo. RatePosition
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Individual Financial Support FSU Team US Team Name Amount
per Month No. of Months
A. Ivanov, Head of Lab. $650 24 $15,600 T. Bobrovski, PI $600 24
$14,400 A. Nikolaev, Co-PI $550 24 $13,200 V. Baranov, Sr.
Scientist $400 24 $9,600 R. Vodolaga, Student $100 24 $2,400 K.
Chupronova, Engineer $200 24 $4,800 R. Kukushkin, Researcher $200 6
$1,200 J. Martindale, U.S. PI $2,000 24 $48,000 S. Ellis, Student
$300 9 $2,700
TOTAL INDIVIDUAL FINANCIAL SUPPORT
Revise your personnel costsRevise your personnel costs
$36,000 $2,700
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Individual Financial Support FSU Team US Team Name Amount
per Month No. of Months
A. Ivanov, Head of Lab. $650 24 $15,600 T. Bobrovski, PI $500 24
$12,000 A. Nikolaev, Co-PI $400 24 $9,600 V. Baranov, Sr. Scientist
$400 24 $9,600 R. Vodolaga, Student $100 22 $2,200 K. Chupronova,
Engineer $200 18 $3,600 R. Kukushkin, Researcher $200 6 $1,200 J.
Martindale, U.S. PI $2,000 24 $48,000 S. Ellis, Student $300 9
$2,700
TOTAL INDIVIDUAL FINANCIAL SUPPORT
Revise your personnel costs, Revise your personnel costs,
againagain
$28,600 $2,700
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Itemize the equipment and Itemize the equipment and supplies
youll needsupplies youll need
N.B. The temperature-controlled cuvette holder, which is
desperately needed in your laboratory, is to replace a broken
cuvette holder that cannot be repaired. It will not be used in the
proposed project.
Equipment and Supplies (Please list. All items over $1,000 must
be justified in the Budget Narrative. If more space is needed,
please list on separate page.)
FSU Team US Team
Personal computer, monitor, printer, internal fax modem,
Ethernet card
$1,400
Television set for staff lounge $300 Repair/remodeling of
fluorescence laboratory $4,000 CUV-TLC-FLKIT#77
Temperature-controlled cuvette holder, fluorescence kit
$4.834
Zeiss Axiovert 35 inverted microscope $4,875 Bandit industrial
capture board, NT54-834, for scope $795 Chemical reagents $200 $200
JAI CV-S3200N Color CCD Camera $795 MJ Research : PTC-160 Thermal
Cycler $4,000
TOTAL EQUIPMENT AND SUPPLIES
$16,404 $4,995
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Consult the RFP for allowable Consult the RFP for allowable
equipment and supplies costsequipment and supplies costs Research
equipment to be used in the
project Reagents, materials, and consumables
to be used in the project US team may request only
expendable
materials and supplies and small pieces of equipmentno capital
equipment
No funds may be used for facilities construction, remodeling, or
repair
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Some funders define suppliesSome funders define suppliesbroadly
and some do notbroadly and some do notcheck the RFP check the RFP
If a computer is part of a DAQ for an
experiment, it probably is equipment; if it is to be used to
access the Internet or to write manuscripts, it may not be
Telecommunications equipment (phone, fax, ethernet card,
satellite link) and services (phone bills, ISP)
Books, subscriptions to journalswww.addall.com=used books
Registration fees for conferences Office supplies, photocopying,
printing
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Revised Equipment BudgetRevised Equipment BudgetEquipment and
Supplies (Please list. All items over $1,000 must be justified in
the Budget Narrative. If more space is needed, please list on
separate page.)
FSU Team
US Team
Personal computer, monitor, printer, internal fax modem,
Ethernet card
$1,400
Television set for staff lounge $300 Repair/remodeling of
fluorescence laboratory $4,000 CUV-TLC-FLKIT#77
Temperature-controlled Cuvette Holder, Fluorescence Kit
$4,834
Zeiss Stemi 2000-C Stereo Microscope Video System $4,875 Bandit
Industrial Capture Board, NT54-834 $795 Chemical reagents $200 $200
JAI CV-S3200N Color CCD Camera $795 MJResearch : PTC-100 Thermal
Cycler $,4000
TOTAL EQUIPMENT AND SUPPLIES
$2,175
$11,745 $995
Photomultiplier Flow-through Detection System $6,485
2-yr subscription to 11 Am Microbio Soc Jrnls $690
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Estimate your travel expensesEstimate your travel expensesTravel
(Please describe in Budget Narrative.) FSU
Team US
Team Domestic Transportation Sochi, Russia
$600
$0
Domestic Per Diem $30/day 14 days
$420
$0
International Transportation Moscow/Boston (Aeroflot)
$900
$0
International Living Allowance/Per Diem $2000/month 1 month
$2,000
$0
Other Travel Expenses Visa fee Conference Registration
(Biophysical Society) Per Diem for BS meeting ($140 day 4 days)
Health Insurance for PI while in U.S.
$60
$395 $560 $340
$0
TOTAL TRAVEL $0
$5,275
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Check the RFPCheck the RFP Transportation and per diem support
for
scientific travel in connection with the project Travel must be
on US carriers where available
and is mandatory on transoceanic flights Agency has a strong
preference for projects
that include a three- to four-month visit by FSU team member to
US PIs laboratory
International living allowance in US is $2,000/month for all
costs, including required health insurance
Maximum total stay abroad of all FSU personnel is five months
per 12-month period
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Revised Travel BudgetRevised Travel Budget
Travel (Please describe in Budget Narrative.) FSU Team
US Team
Domestic Transportation Sochi, Russia
$600
$0
Domestic Per Diem $30/day 14 days
$420
$0
International Transportation Moscow/Boston (Aeroflot)
$900
$0
International Living Allowance/Per Diem $2000/month 1 month
$2,000 $0
Other Travel Expenses Visa fee Conference Registration
(Biophysical Society) Per Diem for BS meeting ($140 day 4 days)
Health Insurance for PI while in U.S.
$60
$395 $560 $340
$0
TOTAL TRAVEL $0
Delta $1,600
3 months $6,000
$1,600$8,055
$1,600
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Subcontracts* may also be Subcontracts* may also be allowable
expensesallowable expenses
Subcontracts (All subcontracting institutions must be identified
and subcontracts described in detail in the Budget Narrative.)
FSU Team
US Team
Subcontract: Individual Financial Support Name Amount
/Month # Months
A. Sirunian, Technician
$100 6 $600 $0
Subcontract: Equipment and Supplies 1. AFM characterization of
virus samples 40 hours at $30/hour
$1,200 $0
2. Subcontract: Travel (Please describe in Budget
Narrative.)
-------- $0
Subcontract: Overhead $180 $0 TOTAL SUBCONTRACTS $1,980 $0
*In the CRDF RFP, theyre called secondary collaborations
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Check the RFP to be sureCheck the RFP to be sure
Subcontracts may include all allowable costs previously
described
The same minimum and maximum levels of salary support apply to
subcontracts
Institutional support of 10% of the total FSU team expenses is
allowed
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Revise the subcontract budgetRevise the subcontract budget
Subcontracts (All subcontracting institutions must be identified
and subcontracts described in detail in the Budget Narrative.)
FSU Team
US Team
Subcontract: Individual Financial Support Name Amount
/Month # Months
A. Sirunian, Technician
$100 6 $600 N/A
Subcontract: Equipment and Supplies 1. AFM characterization of
virus samples 40 hours at $30/hour
$1,200 N/A
2. Subcontract: Travel (Please describe in Budget
Narrative.)
-------- N/A
Subcontract: Overhead $180 N/A TOTAL SUBCONTRACTS $1,980 N/A
$1,200
$240$2,640
$200
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Calculate institutional costsCalculate institutional costs
10% of the total FSU Team expenses
Total amount of institutional support for the entire award
period may not exceed $10,000 $5,295Total US Team
5,10410% InstitutionalSupport
$51,040Sub-Total FSU Team
2,640SecondaryCollaboration
8,055Travel11,745Equipment &
Supplies
$28,600FSU Personnel
$61,439
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Review general budgetary Review general budgetary
requirementsrequirements FSU team not less than 80% of total US
team not more than 20% of total
$5,295Total US
$56,144Total FSU
$5,104FSU Overhead
$51,040FSU Research
$61,439Total Requested from CRDF
91%
9%
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Finally, review the rules and Finally, review the rules and
doubledouble--check check everythingeverything
Check your arithmetic is everything added correctly?
Have you included all required information?
Has every line and every box been completed?
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The budget narrative should The budget narrative should answer
all the questions a answer all the questions a skeptical reviewer
would askskeptical reviewer would askExplain how all costs were
determinedExplain what each person will do to
contribute to the projectExplain why equipment is needed and
how it will be used in the projectProvide written price
quotations for
expensive items of equipmentEnsure that your costs are
realistic
and in line with the scope of work to be done
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The budget narrative should The budget narrative should make a
persuasive case for make a persuasive case for investing in you and
your teaminvesting in you and your teamDemonstrate that project is
cost-
effective, that it will have a significant impact for a
reasonable cost
Remind the reviewer again why your project is importantwhat new
knowledge you will create, what important problem you will solve,
what useful applications you will enable
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Organize your narrative so that Organize your narrative so that
it corresponds to the formal it corresponds to the formal budget
pagesbudget pages
Budget NarrativeA. Summary B. Ind. Financial SupportC. Materials
and ServicesD. TravelE. Secondary CollaborationF. Institutional
Support
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Example of a wellExample of a well--organized, clear organized,
clear budget summarybudget summary
Section F. Budget Justification An itemized budget for the
one-year proposed project and a cumulative budget are pre-sented on
NSF Forms 1030, pages 12 of this section. A total of $99,942 is
requested from the National Science Foundation (NSF). In this
section, we provide detailed justifi-cation for each line item.
Section headings used below correspond to the respective sec-tions
of Form 1030.
A. Senior Personnel Funds are requested for summer salary (1.5
months) for the PI, A. Bezryadin.
B. Other Personnel Funds are requested for a graduate student
(50-percent time for 11 months). Graduate stu-dent tuition
remission of $5841 is included as other direct costs on line G.6 of
thebudget.
C. Fringe Benefits Fringe benefits have been calculated in
accordance with the rates published in the Urbana-Champaign Campus
and Central Administration FY04 Facilities/Administrative, Tuition
Remission, and Fringe Benefit Rates schedule (rev. 8/25/03).
D. Equipment Funds are requested to purchase an Osmium Plasma
Coater Model OPC-60 metal deposi-tion system ($36,000). This is an
essential piece of equipment, which will allow the for-mation of a
uniform metallic film on single molecules and molecular assemblies.
More information on this system and a written quotation are
included in Section I, Supplemen-tary Documentation, of this
proposal. Should a contract be awarded by NSF, competitive bids
would be solicited on this equipment, in conformance with standard
University prac-tices.
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Use the budget narrative to Use the budget narrative to show
institutional support of show institutional support of and
commitment to your projectand commitment to your projectTo make
your proposal more
attractive, identify existing special equipment or unique
facilities that your institution owns which will be used in the
project
If your institution is contributing in-kind goods or services to
the project, be sure to emphasize it
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Lets review what weve learnedLets review what weve learnedHow to
develop a research budgetWhy it is critical to understand the
RFP
and adhere to it exactlyWhy it always takes longer than you
expect to develop a budget What are eligible costsand what
are
notWhat institutional overhead is and how
it is calculatedA budget isnt finished until it has been
double-checked and the budget narrative written
