Budget Development

There are several steps to preparing a proposal budget. Generally, these steps are the same regardless of the sponsor, whether it is for a contract, grant, or cooperative agreement, and whether UC Davis will be the lead or subaward institution.

Step 1:

Select a budget template

Step 2:

Prepare your budget

Step 3:

Prepare your budget justification

Step 4 (optional):
Prepare a budget with cost-sharing

Step 5 (optional):
Prepare a budget that involves subawards

Step 1: Select a budget template (Excel spreadsheet) based on the type of proposal you are preparing

- The Sponsored Programs Office (SPO) highly recommends you use the OR Budget Templates for the following reasons:
  - Auto-populated indirect (Facilities & Administrative) cost rates, fringe benefit rates, and single IRB rates.
  - Auto-calculated split rates (when a project period spans the end of a fiscal year (on June 30) and the beginning of a new fiscal year (on July 1) which may result in a rate change).
  - Information is presented in a manner that is familiar to internal reviewers, speeding the process.

Step 2: Prepare your budget

- Use the Preparing a Proposal Budget Handbook
- Proposal Budget Formulas
- Institutional Information, such as the UC Davis Unique Entity Identifier (UEI), Employer Identification Number (EIN) or Taxpayer Identification Number (TIN)
- Does your budget include cost-sharing/match funding? See step 4
- Does your proposal involve subaward arrangements with other institutions? See step 5
- Apply the appropriate F&A and Fringe Benefit Rates
  - Calculating Facilities & Administration (F&A) Costs
- Additional guidance:
  - Budget FAQs
  - Learn: Proposal Budgeting – webpage with FAQs, written materials, how-to videos, and links to eCourses and instructor-led trainings
  - The Proposal Development Services (PDS) Research Development Toolbox has additional Budget Development and Research Administration Resources. PDS was formerly known as Interdisciplinary Research Support (IRS).
  - Charging Administrative Costs to Federal Awards
  - Indirect Cost Rate Applicable to Clinical Trials
- Short “how to…” videos (note: if a video doesn’t start, refresh the video and it should then work):
  - Annualizing Salary (length: 1:37) – The OR Budget Templates no longer require annualized salary, but this video is provided for your reference.
  - Calculating Annualized Effort and Person-Months (length: 4:04) – The OR Budget Templates no longer require annualized effort, but this video is provided for your reference.
  - Calculating Salary to Charge – The OR Budget Templates perform these calculations automatically.

Step 3: Prepare a budget justification

This is a written document to be read by a reviewer alongside the budget spreadsheet and that explains the line items, notably how estimated figures were derived.

- - Budget Justification Checklist
  - Budget Justification Template (file in Box folder)

Step 4 (optional): Prepare a budget with cost-sharing (also known as match-funding)

Cost-sharing or matching is any portion of the project or program costs not paid by the funding agency.

- - Information on when cost-sharing should be included in a proposal can be found on this Contracts & Grants Accounting (CGA) page: Cost Share Defined
  - SPO provides Guidance on Submitting Proposals/IPFs that Involve Cost-Sharing

Step 5 (optional): Prepare a budget that involves subawards

An Outgoing subaward is when UC Davis forwards to another institution (subrecipient) a portion of an award it receives from a (prime) sponsor. UC Davis is the lead institution on the award, and the other institution is the subawardee. The UC Davis proposal to the sponsor must include both the UC Davis budget, and all of the subaward budgets

- - See Prepare a Proposal with Subawards

An Incoming subaward is when UC Davis receives an award through another collaborating institution rather than directly from the (prime) sponsor. In this situation, the collaborating institution is the lead institution on the award, and they forward to UC Davis (the subrecipient) a portion of an award it has received from the (prime) sponsor.

- - Incoming subawards are prepared like Awards (because they are “awards” to UCD) except that the other institution is treated as the “sponsor” for UCD, and their sponsor as the “Prime Sponsor”.

SPO and Proposal Development Services (PDS, formerly known as Interdisciplinary Research Support (IRS)) have numerous resources to help with the preparation and management of subawards:

- - Handbook for Submitting a Proposal with (Outgoing) Subawards
  - Subaward Processing Checklist
  - Use the PDS template for requesting a completed subaward packet from each subrecipient. Do this as far ahead of the sponsor’s submission deadline as possible.
    - Remember that SPO should receive the proposal that includes the subrecipient information in Cayuse SP both already certified (by the investigators) and authorized (by the department/dean’s office) no less than 5 business days before the (prime) sponsor’s due date.
  - Learn: Subawards– webpage with FAQs, written materials, how-to videos, and links to eCourses and instructor-led trainings.

Questions?

For questions on outgoing subawards, email [email protected]

For questions on incoming subawards (they are “awards” to UCD), email [email protected]

For questions on budget preparation? Email [email protected]