#### Transcript Budget Exercises

Budget Calculations 1 You’re submitting a lump sum budget on a proposal to a foundation. Start date 1/1/2016. Your PI wants to recover one summer month of compensation (June 2016). 1. Calculate one summer month salary. 2. Find the appropriate fringe benefit rate. https://www.finance.duke.ed u/resources/docs/FringeBen efits_130708.pdf 3. Calculate the fringe benefits. 4. Calculate the total personnel costs per year. Personnel Costs Summer Salary $82,000 Fringe Benefits Rate Calculated Amount Total Personnel Costs Per Year Budget Calculations 2 You’re submitting a one year proposal to NSF. Start date 1/1/2016. Your PI wants to recover one summer month of compensation (June 2016). Your PI’s institutional base salary is $82,000. 1. 2. 3. 4. Calculate one summer month salary. Find the appropriate fringe benefit rates. Calculate the fringe amount. Find the total of salary and fringe benefits. Personnel Costs Summer Salary 82,000.00 Fringe Benefit Rate Fringe Benefits $ Total Personnel Costs Per Year $ Budget Calculations 3 You’re about to finish the budget for a one-year, oncampus proposal. Start date 1/1/2016. All you have left to do is calculate the F&A. 1. Calculate the total direct costs. 2. Find the correct F&A rate on the website. 3. Calculate the F&A to be charged to the grant. 4. Calculate the total project costs. Line Items Total Personnel Costs $27,187.00 Travel $5,000.00 Consultants $10,000.00 Other $7,500.00 Total Direct Costs F&A Rate Calculated Amount Total Project Costs Budget Calculations 4 The PI wants you to make some changes to the budget because she now plans to purchase a piece of capital equipment on the project. 1. 2. 3. 4. 5. Calculate the total direct costs. Calculate the modified total direct costs. Find the campus F&A rate. Calculate the F&A to be charged to the grant. Calculate the total project costs. Line Items Total Personnel Costs $27,187.00 Travel $5,000.00 Consultants $10,000.00 Equipment 15,000.00 Other $7,500.00 Total Direct Costs Modified Total Direct Cost F&A Rate Calculated Amount Total Project Costs Budget Calculations 5 Your PI has identified an expert in the field who works at UNC Chapel Hill, she wants to add a subcontract to UNC. 1. 2. Calculate the total direct costs. Calculate the modified total direct costs. 3. Find the campus F&A rate. 4. Calculate the F&A to be charged to the grant. 5. Calculate the total project costs. Line Items Total Personnel Costs $27,187.00 Travel $5,000.00 Consultants $10,000.00 Equipment $15,000.00 Other $7,500.00 Subcontractor $18,000.00 Total Direct Costs Modified Total Direct Cost F&A Rate Calculated Amount Total Project Costs Budget Calculations 6 Line Items The faculty member at UNC-CH has convinced your PI that they should double their efforts on the grant and seek support for two years instead of one. 1. 2. 3. 4. 5. Calculate the total direct costs. Calculate the modified total direct costs. Find the campus F&A rate. Calculate the F&A to be charged to the grant. Calculate the total project costs. Year One Year Two Total Personnel Costs $27,187.00 $28,003.00 Travel $5,000.00 $5,000.00 $10,000.00 $10,000.00 Consultants Equipment Other Subcontractor Total Direct Costs F&A Rate Modified Total Direct Cost F&A Rate Calculated Amount Total Project Costs / year Total Project Costs $15,000.00 $7,500.00 $7,500.00 $18,000.00 $18,000.00 Budget Calculations 7 You’re about to finish the budget for a one-year proposal and all you have left to do is calculate the F&A rate. Most of the work on this project will be conducted in Tanzania (off campus). 1. Calculate the total direct costs. 2. Find the campus F&A rate. 3. Calculate the F&A. 4. Calculate the total project costs. Line Items Total Personnel Costs $27,187.00 Travel $5,000.00 Consultants $10,000.00 Other $7,500.00 Total Direct Costs F&A Rate Calculated Amount Total Project Costs Budget Calculations 8 You’re submitting a three year proposal to NSF. Start date 1/1/2016. Your PI wants to recover one summer month of compensation per year. NSF allows for a 3% inflation rate. 1. 2. 3. 4. 5. 6. Calculate one summer month. Find the Fringe Benefit Rates. Calculate the salary increases for each year. Calculate the Fringe Benefits for each year. Find the Total Personnel Costs for each year. Then total the personnel costs for the project. Personnel Costs Summer (2014-15) Year Two Summer Year Three Summer Salary $82,000 Fringe Benefit Rate Fringe Benefits Total Personnel Costs Per Year Total Personnel Costs 24.8 Budget Calculations 9 You’re submitting a one year proposal to NIH. Start date 1/1/2016. Your PI wants to recover one summer month of compensation (June 2016). Your PI’s institutional base salary is $182,000 and she has a 9 month appointment. 1. Calculate one month PI salary _____________________________ 2. Calculate the NIH cap on one month salary _______________________ 3. Subtract the one month PI salary from the NIH 1 month cap to calculate the amount that will be cost shared _______________________ 4. Find the total of salary and fringe benefits. Personnel Costs Salary 182,000.00 Fringe Benefit Rate Fringe Benefits Personnel Costs Total Personnel cost NIH amount $ $ Cost shared