Budget Developmentin KC

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Learning Objectives

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Learn how to: Create a Grants.gov (detailed) budget Use the advanced features in the budget Create a non-Grants.gov (summary) budget

Practice your skills: Create a Grants.gov budget Create a non-Grants.gov (summary) budget

General information about Budgets in KC

A proposal development document must be “in progress” in order to create a budget

Salaries for MSU employees automatically populate in the budget from SAP information in the MSU EDW and become the basis for various calculations

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Recommendation: Add key personnel to the proposalfirst before starting the budget

General information about Budgets in KC (continued)

The calculation engine automatically calculates F&A, fringe, and applies inflation at appropriate intervals

Multiple budgets can be created for each proposal, allowing for what-if scenarios, but only one version can be submitted to the sponsor (designated as final/complete) Those not selected to submit to the sponsor

may be deleted, if desired

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Current State Process - eTransmittal

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Calculate personnel costs using Salary

Budget Builder, export the

information, and copy/paste into

budget spreadsheet

Add other applicable expenses to the

budget, including grad students,

equipment, travel, PSC, and other

direct costs

Copy expenses to subsequent budget periods, applying inflation, where

necessary

Calculate F&A on direct costs in each

period

Send budget to OSP/BC to review

Draft a budget in Excel using an

appropriate budget template

Using approved budget, enter

budget numbers in sponsor forms & enter totals in eTransmittal

Make corrections in master budget spreadsheet

OSP/BC communicates changes with administrator

Administrator makes changes to the

budget

PerformReview. Changesneeded

?

Yes

No

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Creating a Detailed Budget

New Process - KC

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Set budgetary parameters:

Periods, cost limits (if desired), F&A

type, etc.

Adjust F&A and/or Inflation rates as

necessary

Add personnel and non-personnel expenses (period 1)

Generate expenses in subsequent

budget years; verify and/or adjust

expenses in out years

Mark budget final and contact OSP/BC

for review

Add budget in the Budget Versions tab

OSP/BC changesBudget Status toComplete in KCMake corrections in

master budget spreadsheet

OSP/BC communicates changes with administrator

Administrator makes changes to the

budget

PerformReview. Changesneeded

?

Yes

No

Create a Budget Version

With the proposal development document opened and in edit mode, click on the Budget Versions tab

Enter a (brief) name for your budget Limited to 40 characters; this name does not

appear on any forms, nor does it get transmitted to Grants.gov

Click the add button The system will create the budget version

Click the open button 8

Behind the scenes...

The system brings the individuals named as key personnel in the proposal into the budget, along with their appointment and salary information

The project start and end dates populate into the budget

The system generates budget periods in 12-month increments, beginning from the project start date If the project dates are not full year increments,

the first period(s) will be in 12-month increments and the final budget period will be the remaining months

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Setting the Budget Parameters

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Setting the Budget Parameters

The budget parameters set the stage for your budget and have features that can help you in the budgeting process Some fields are set to default values, but can

be changed as needed to meet sponsor requirements

The Project Start Date and Project End Date flow from the Proposal to ensure that the budget and proposal are always in sync To change these dates, navigate back to the

proposal and change them on the Proposal tab, Required Fields for Saving Document panel 11

Parameters - Budget Overview

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Total Direct Cost LimitOptional, allows users to define the maximum amount of direct costs (excluding F&A) for the project to be paid by the sponsor; a warning message is displayed if the amount is exceeded

Budget StatusSelected by OSP/BC to signify their approval of the budget; Status must be Complete for the proposal to be routed for institutional approval

Final?Required for the proposal to be routed for institutional approval; set by the budget creator to signify that the budget is ready for review by OSP/BC

On/Off Campus

Optional, allows individuals to indicate if the activity is performed on or off campus, impacting which F&A rate is used in the budgetary calculations. The default option allows the user to adjust the on/off campus checkbox at the line item level. The user may select "All On" or "All Off" as necessary from the drop-down list set for all calculations and avoid having to change line-by-line.

Comments Optional, allows individuals to add notes about the budget version

Parameters - Budget Overview (cont.)

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Modular BudgetRequired only if the sponsor requires a Modular Budget; if checked, the system transmits the modular budget (instead of the detailed budget) to Grants.gov

Residual Funds Required only if residual funds exist from a prior award

Total Cost LimitOptional, allows users to define the maximum amount for the project to be paid by the sponsor (direct and F&A); a warning message is displayed if the amount is exceeded

Unrecovered F&A Rate Type

The type of F&A rate applied to costs within the project that are not being charged to the sponsor i.e. MTDC, TDC etc.

F&A Rate Type The type of F&A rate applied to direct costs within the project i.e. MTDC, TDC etc.

Submit Cost Sharing

Should be checked if the proposal contains mandatory cost sharing; this ensures that the cost sharing amounts are displayed on the budget forms and transmitted to Grants.gov. System defaults for this box to be checked. It should be unchecked if there is no mandatory cost sharing requirement.

Parameter – Budget Periods & Totals Budget periods can be changed, observing

some rules: The start date of the first budget period cannot

be before the project start date The end date of the final budget period cannot

be after the project end date Budget period dates cannot overlap

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Changing the budget periods Select the period you wish to change Enter period start date / period end date

for new period Click save

Alternatively, you can opt to delete the existing periods and add your own budget periods

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Parameter – Budget Periods & Totals

Setting Period Cost limits Total or Direct Cost limits can be added for

each budget period, if desired Functions the same way as the Cost Limits

on the Budget Overview panel, except applied to an individual period rather than the overall budget.

Can define different cost limits for each period

A warning message is displayed if exceeded

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140,000.00

145,000.00

147,000.00

Budget Actions Buttons – Parameter tab

Save, Close, and Reload are not unique; these buttons behave consistently throughout the application

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Generate All Periods

System calculates subsequent budget periods by copying the expenses in the first budget period and applying the applicable rates such as fringe, F&A, and inflation, where applicable

Calculate All Periods

System calculates all periods, either from expenses entered into the Personnel or Non-Personnel tabs or in summary on the Budget Periods & Totals Tab. Use this button to update all calculations after a change is made to the budget, i.e. rates, etc.

Default Periods

Resets the budget periods to the original, 12-month duration; this feature becomes inactive once expenses have been added to the budget

Rates

The Rates tab displays the rates that will be used by the application to calculate the budget; these rates include: F&A –costs which are necessary to support

research and other sponsored projects, but which cannot be readily assigned to individual projects

Fringe Benefits – non-salary components of an individuals compensation (e.g. healthcare & retirement)

Inflation - a general increase in the cost of salaries or other non-personnel expenses

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Rates

Description – indicates what class of rate is being used

On Campus Contract – indicates if the rate is on or off campus

Fiscal Year – fiscal year that the rate impacts; system uses the rate for the last FY if no rate has been defined

Start Date – the first date that the rate applies Institute Rate – the usual and customary rates as

negotiated by the university Applicable Rate – rate used in budget

calculations; when changed, generates unrecovered F&A

Flat Rate – indicates if the rate is a flat rate

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F&A Rates

“Research” on the F&A and Inflation panels refers to the Activity Type selected for the proposal and reflects another integration point between proposal and budget

The system stores different rates for the various Activity Types and populates the appropriate values in the F&A tab, using the label as a visual cue

Changing the F&A rate in response to a solicitation or F&A waiver will create unrecovered F&A in the budget Unrecovered F&A – the portion of F&A that is not being

collected from the sponsor and therefore is covered by the University in support of the research

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Sync Rates

Sync rates – resets the rates to the current rates as negotiated by the university Sync rates – located at the bottom of the

panel, this action will reset the rates on a specific panel to the current institutional rate(s)

Sync all Rates – located at the bottom of the page, this action will reset the rates in all panels (F&A, Fringe Benefits, Research Inflation, and Flat Rate Inflation) to the current institutional rate(s) simultaneously

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You should sync all rates if changing project start/end dates or on copied proposals to ensure that the most current rates are used in your new/revised budget

Reset Rates Reset rates – resets all values within the

“applicable rate” fields to match the rates listed within the “institute rate” fields Reset rates – located at the bottom of the

panel, this action will reset the applicable rates to match the institute rate on a specific panel

Reset all rates – located at the bottom of the page, this action will reset the applicable rates in all panels (F&A, Fringe Benefits, Research Inflation, and Flat Rate Inflation) to match the institute rate simultaneously

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Will reset to what is listed in the Institute Rate field, even if that is not the current institutional rate andif you have not clicked sync all

Step 1: Set up Project Personnel Step 2: Add personnel line item expenses

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Budget Personnel Expenses – 2 Steps

Step 1 – Set up Project Personnel Project personnel contains all the

individuals that will be included in your budget and defines basic information used in the calculations Individuals named as Key Personnel in the

proposal are automatically brought into this section

Other individuals can be added, if desired Employees – when added, also brings forth their

job code, appointment type and base salary Non-Employees – should rarely, if ever, be

added to MSU’s detailed budget To Be Named – appointment and salary

information must be entered24

Project Personnel

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Job Code The 8-digit alphanumeric value for the type of position held by the individual named in the Person column

Appointment Type

Indicates the duration of the appointment and determines what the base salary will be divided by to get the monthly salary for an individual. • 12M Duration – AN Faculty – Divides the base by 12• 9M Duration – AY Faculty – Divides the base by 9• Summer – Summer Salary – Divides the base by 3• Temporary – Monthly amount is reflected in base

salary field

Base Salary The rate of compensation an employee receives for a given time period

Salary Effective DateThe date that the budget will begin using the base salary in calculations. This field becomes important in situations where there is a non-inflationary raise anticipated.

Salary Anniversary Date Not being used by MSU.

Finalizing the Project Personnel List

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If you add key personnel to the proposal after creatingthe budget, you can click the sync personnel button to pull them in to Project Personnel.

You must click the save button in order to bring theProject Personnel down to the Personnel Detail panel

Step 2: Add Personnel Line Item Expenses

Line item expenses are added to the budget in the Personnel Detail panel Select the person

• Summary – used for lump sum entries, e.g. undergraduate students that are paid hourly

Select the object code Selecting a Group is optional

• This feature organizes personnel into groups on the object code subpanels

Click add27

Refining personnel line items

Once added, the system creates a new subpanel or adds the personnel line items to an existing subpanel Subpanels are grouped by Object Code

Enter the following for each individual Start Date End Date % Effort % Charged Period Type

Click calculate28

% Effort - % Charged = cost share

Personnel line items - fields

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Start Date The date during the budget period that the individual will begin working on the project

End Date The date during the budget period that the individual will stop working on the project

% Effort The total amount of effort the individual will expend, during the defined budget period

% Charged The amount of effort charged to the sponsor, during the defined budget period

Period TypeDetermines which box on the Grants.gov budget forms the person-months is placed in. Options are Calendar, Academic and Summer. Does not affect the calculations

Person-months is automatically calculated by the system basedon the start date, end date, and % effort entered; to view person-months, click save or calculate, and then click on the details button

Budgeting AY personnel

You will have to add multiple line items for academic year personnel, for example: Budget Period: October 1 – September 30

Line 1: 10/1 – 5/15 (academic year) Line 2: 8/16 – 9/30 (academic year) Line 3: 5/16 – 8/15(summer salary)

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Add Non-Personnel Expenses

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Panels are grouped by standard Federal budget categories: Equipment Travel Participant Support Other Direct

Adding Non-Personnel Expenses Expenses in each category are added the

same way: Select the object code Enter a description, optional

• Descriptions can be included on some of the printed budgets

Enter the quantity, optional• Does not impact calculations, but may assist with

budget review Enter the Total Base Cost

• Note that this reflects the total cost, rather than a unit cost

Click add32

The Participant Support category also requires the Number of Participants to be entered.

Enter Project Income, if Applicable

Project income (i.e. Program Income) is gross income earned by the University that is directly generated by a sponsored activity or earned as a result of an award

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Add Project Income Project Income panel is found on the Distribution

& Income Tab Example: registration fees for a conference

Select the budget period that the income will be generated in A separate line is required if income will be generated in

multiple budget periods Enter the amount of estimated income that will

be generated during the specified budget period Enter a description of how the funds will be

generated Click add

Once added the Income Summary sub-panel will populate with the income totals

34Note: The Cost Sharing and Unrecovered F&A panels are not being used by MSU

Once recurring expenses for the first budget period have been entered, expenses for future budget periods can be automatically generated Click the Parameters tab Click the Generate All Periods button

Expenses from the first budget period are copied to subsequent budget periods, applying inflation where applicable

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Generate expenses in future periods

Generate expenses in future periods Once future periods have been generated,

add non-recurring expenses in the appropriate budget period(s)

To change budget period views: Click the Personnel or Non-Personnel tab Select the budget period from the dropdown

menu Click the update view button

• This will change the Budget Period on both the Personnel and Non-Personnel tab

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The budget will not automatically save when switching between budget periods. Please click save before switching budget periods to avoiddata corruption.

Apply to later periods Adding recurring expenses after the

budget has been generated: Go to Budget period 2 (remember to save first if

you are in another budget period!) Add the expense line item Click show to open the line item details

subpanel Click the apply to later periods button

• This works like Generate All Periods button, but for a single line item

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Expense Details Personnel - Features

Changing the view can alter how much data is viewable on the screen

Full Detail (default) allows access to the Details subpanels, which includes some important features

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Expense Details Personnel

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Budget CategoryMaps the item to the appropriate category of expense on the Grants.gov budget form. System default should be used unless there is a special requirement in the solicitation

# of Person(s) The number of unique individuals included in this budget category (based on object class code)

Unrecovered F&A Amount of unrecovered F&A calculated for the expense item (system-generated)

Cost Sharing Amount of cost share calculated for this expense item (system generated).

Apply InflationOption to include/not include inflation when generating/applying this expense to future periods. Default is for the box to be checked (include)

Expense Details Personnel, cont.

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On/Off CampusNot used. MSU’s negotiated off campus rate applies to the overall budget rather than specific expense line items.

Submit Cost SharingIf cost share is being submitted (box is checked on the parameters tab), you may elect not to submit cost share for the line item by unchecking this box. (include)

Budget Justification Notes

Optional. Can be used to enter brief notes about the expense to aid in the preparation of the budget justification. Does not flow to Grants.gov.

Group Description Optional. Can be used to enter a brief description about the expense. Does not flow to Grants.gov.

Changes to the Personnel Details subpanel can be applied to futureperiods by clicking the apply to later periods button at the bottom of the subpanel.

Expense Details Personnel - Rate Classes

Apply Rate? – The system provides the option to opt out of fringe benefits and F&A costs at the personnel object code level by unchecking the applicable ‘Apply Rate?’ box; this should only be done if the sponsor solicitation requires it or a special waiver has been received Note: the system will automatically exclude F&A on the

appropriate object codes when MTDC is selected as the F&A base

KC calculates and displays the Fringe Benefit and F&A costs applied to the expense line item

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Expense Details Non-Personnel - Features

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Start DateThe start date of the expense may be defined. It must be within the budget period. Does not show on printed budget reports

End DateThe end date of the expense may be defined. It must be within the budget period. Does not show on printed budget reports

Cost Sharing Must be entered manually rather than being calculated by the system

Similar to Personnel features, with the following exceptions:

Expense Details Non-Personnel - Sync to Cost Limit feature

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Requires that you define a period cost limit on the Budget Periods & Totals panel (Parameters tab)

sync to period cost limit – when clicked, will increase/ decrease the amount of the line item so that the Total Sponsor Cost will equal the Cost Limit for the budget period

sync to period direct cost limit – when clicked, will increase/decrease the amount of the line item so that the Direct Cost will equal the Direct Cost Limit for the budget period

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Subaward Budgets for Grants.gov Proposals

Attaching Subaward Budgets

The system extracts the information from the R&R subaward budget attachment(s) and automatically adds the subcontract line items in the appropriate budget periods, reducing the risk of typographical errors

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Step 3:Click Save (after all completed RR

Budget forms have been uploaded)

Step 4:Verify that the

subaward(s) was added in the Other

Direct Cost line item

Step 2:Upload Completed

Budget Form(s) into KC

Step 1:Obtain completed RR Budget Form

from subrecipient(s)

This process only applies to Grants.gov applicationsthat are submitting a detailed (non-modular) budget

Attaching Subaward Budgets

Check your files before you upload! Budget periods in the subaward budget

attachment must match the periods defined in your budget

File names cannot contain special characters

• Includes the file name of the Budget Justification attached in the RR Subaward Budget

File names must be unique across all subawards

• Includes the file names for the Budget Justifications attached in the RR Subaward Budget

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Attaching Subaward Budgets

Click the Budget Actions tab Click show on the Subaward Budget panel Search for the subrecipient, using the

Organization Name lookup Return the appropriate subrecipient; email

KCHelpDesk@msu.edu if the subrecipient is not listed Click Browse and upload the RR_Subaward

budget Click Add (additional actions appear) Click Save

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Subaward File Options Details – opens the details window for

review or manual entry View PDF– allows you to view the form View XML – allows you to view the

translated file in a new browser window Delete – to remove the organization,

details, and uploaded form from your budget

Replace – allows you to upload a newer version of the subaward budget

Sync from PDF - allows you to refresh the displayed information from the uploaded file

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Creating NIH Modular Budgets

Creating Modular Budgets

Modular Budgets are used exclusively by NIH for some of their grant applications (e.g. R01, R21 & R03)

KC can automatically generate a modular budget from the detailed budget

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Step 4:Click Sync on the Modular Budget tab to generate

the modular budget

Step 1:Check the ‘Modular Budget?’ checkbox on the Parameters

tab

Step 2:Set the Direct Cost

Limits to the appropriate

modular amounts for each budget

period

Step 3:Use the sync to direct cost limit feature to make the total direct costs match the

modular amounts

Modular Budget – Step 1

Ensure Modular Budget is checked – this signals the system to transmit the modular budget rather than the detailed budget to the sponsor

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Modular Budget – Step 2

When the system generates the modular amounts, it will always round up

Once the module amounts have been determined, enter them in the Direct Cost Limit fields (for each budget period)

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Modular Budget – Step 3 Select a non-personnel expense that can

be adjusted up/down to meet the modular amount (e.g. Supplies)

Click the Non-Personnel tab Click the show button on the appropriate

panel and again on the Line Item Details subpanel

Click the ‘sync to period direct cost limit’ button

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Modular Budget – Step 3, cont.

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Check the Direct Cost in the Budget Overview panel to verify the new direct cost amount for your budget period

Before “sync”

After “sync”

Modular Budget – Steps 1-3 Repeat those same steps for each

subsequent budget period

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Modular Budget – Step 4

On the Modular Budget tab, click the sync button at the bottom of the page to generate the modular budget The system will generate each module based

on the detailed budget Verify that the modules and consortium

F&A costs in the out years are the desired amounts; adjust if necessary View All will present a summary of the Modular

budget; each module can be viewed (and edited) by changing the budget period and clicking update view

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Finalizing the Budget

Finalizing the Budget On the Budget Versions tab, click the Final?

Checkbox to indicate the budget is ready for review

Click and navigate to the S2S tab On the Forms panel, make sure the proper

budget forms are checked to be included in the Grants.gov submission

Contact OSP/BC to review the budget; be sure to include the PD number in your communication Once approved, OSP/BC will change the budget

status to “complete”

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Section Exercise

Please use the handouts provided to build a Detailed (Grants.gov) budget

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Creating a Summary Budget (Non-Grants.gov)

Summary Budgets

This section details budget information that must be entered in KC when the budget was created outside of the system

OSP/BC prefers that budgets are built using the KC budget module, but it is only required when submitting proposals via Grants.gov

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Create the Summary Budget1. Create and open a budget in KC2. Adjust period dates, if necessary3. For each budget period, enter:

direct costs F&A costs cost share, if applicable

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Create the Summary Budget, cont.4. Check Final?5. Click save6. Return to the proposal and attach the detailed

budget spreadsheet and budget justification Abstracts & Attachments tab > Internal

Attachments• Attachment Type = Detailed Budget• Attachment Type = Budget Justification

7. Email OSP/BC the final budget spreadsheet and the proposal number

OSP/BC will mark the budget as Complete when approved

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Section Exercise

Please use the handouts provided to build a Summary (Non-Grants.gov) budget

For more information Additional educational/support materials

are available at:http://ra-project.vprgs.msu.edu/user-education-and-resources

KC Support - (517) 355-2000 or KCHelpDesk@msu.edu

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Please note that first point of contact for questions will be your OSP proposal team or, based upon your sponsor, Business Connect,  as it is now, but you may contact the help desk directly to add sponsors, keywords, organizations, or non-employees to the system or have technical questions.

Questions???

Thank you for your attendance and participation!

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Support Materials available:The following materials are available at http://ra-project.vprgs.msu.edu/user-education-and-resources to aid you budget preparation: Job aids

Create a Modular budget Prepare a Detailed (G.gov) budget

Videos Starting a Budget Budgeting Personnel Budgeting Non-personnel Documenting Cost Share in a Proposal Entering participant support costs 67