 | . | | . | |
. | | . | | . | |
. | | . | |
| . | |
Before beginning this assignment, study pp. 118 (beginning with the indirect costs section) to 127 of Bauer examining the sample budget carefully. Chapter 12 of the Miner & Griffith book is also useful.
This assignment is due July 25. There is no difference in the requirements for this assignment for those taking the course for 1/2 credit and those taking it for 1 credit.
Prepare a budget for your project. Miner & Griffith say a budget "is an alternative way of expressing your project." In fact, it should be possible to look at a proposal budget without reading the narrative and have a good sense of what the project is about, what its objectives are, how it will be carried out, evaluated and how and who will be told about it. Keep this picture in mind as you prepare your budget.
You are asked to prepare a generic budget for this proposal. For a real proposal, you would follow the specific guidelines of your funding agency is preparing it. Many of these guidelines and forms are available on the net -- check out some of the government sources or look at the SRA web site under forms or the common application form found at the Foundation Center site which is used by many of the foundations.
For this assignment, use the following categories when developing your budget (Some of these categories may not apply to your project and you may need to add others, but use the list as a guideline:
For each of the items on your budget show the calculations so we can understand how you derived the figure. Ex. Travel (100 miles per month @.31/mile x 12 months = $372).
Figure an average of $300 per year per key project staff member for supplies. Use a proportional amount if the staff person is not full time or not for a full year.
If it is difficult to get the true fringe benefit rate from your institution, use an estimated 25%. It will be close.
I don't think any of you will have a multi-year budget but if you did, you can show each year's expenses as a column with a total column for all the years. Allow a 5% salary increase and 3-5% increase for other budget items. An alternative way is to use a single sheet for each year's budget, e.g., one for the Year 1 budget, one for the Year 2 budget, etc. and a total budget sheet which is usually placed on top.
Remember to include, if applicable, budget support for service and maintenance constracts (about 10% of total cost of equipment), insurance, installation of equipment, legal services, training costs, and the like. Try to think through all contingencies and make reasonable estimates.
Number the budget category items. Attach a justification sheet (budget narrative) with an explanation, if needed for those items that seem to require additional explanation.
Some funders require cost-sharing, that is, you and the funder co-pay for the project. If you think this will be the case for you, then set up your budget in three columns -- total expenses, cost sharing (the part you agree to support) and funds requested (the amount requested from the funder). Frequently, saff time, telephone, office supplies, use of space are cost shared.
Some funders (the government is one) allow you to specify indirect costs and request additional money for them. Usually if the funder allows these costs, your institution will require that you include this line item (certainly true of universities). Each institution sets its own overhead rate (another term for indirect costs). This rate supposedly pays for costs that are difficult to separate out individually, such as heat, lighting and airconditioning, building maintenance, administrative support services. There are rules regarding overhead costs. Usually the funding agency sets a ceiling on the amount allowable and prohibits the rate from being charged against equipment purchases. For the purposes of this exercise, assume a 45% overhead rate (indirect costs) and calculate it on all costs except equipment purchases and consultant fees. Add it to the total. This will be the amount requested from the funding agency.
If your project is for seed money with the expectation that after the project is started that ongoing costs will be less and that continuation money can be supplied elsewhere. If this is the case for your project, please add a financing plan for future funding paragraph following the budget justification. Your plan may be as simple as a statement that your organization agrees to pick up ongoing costs if the project demonstrates success in its first year. Or it can include a combination of user fees, sales of publications, (look at our National Parks for an example of this kind of cost recovery), and/or plans to approach other granting agencies.
