CALS Research Division
Link to CALS Research Division Home
Print this pageProposal Development
- Budget Building
- Effort on Proposals
- Sub-Contracts
- Forms & Documents
Budget Building
Budget Spreadsheets
Developing a proposal begins with budget building. There are several spreadsheets available to assist you in creating a budget. The Research and Sponsored Programs (RSP) website provides the UW Standard Budget Spreadsheet, the SF 424 R&R Budget Spreadsheet, and the NIH Modular Budget Spreadsheet. These spreadsheets can be downloaded as Microsoft Exel files. The RSP website also provides UW Standard Budget Spreadsheet instructions and NIH Modular Budget Spreadsheet instructions to assist you in completing those budget spreadsheets.
Direct Costs
An essential part of budget building is compiling the amount of direct costs. For the budget spreadsheet, you will need to know the amount of direct costs. Direct costs are costs that are identified specifically with a particular sponsored project, an instructional activity, or any other institutional activity. Some examples of direct costs include personnel, fringe benefits, supplies/material, salary, publications, equipment, travel, and any other allowable and allocable expenses directly related to the project.
Indirect Costs
Indirect costs must also be accounted for in the budget spreadsheet. Indirect costs are costs that are acquired for common or shared objectives. Thus, indirect costs cannot be identified specifically with a particular sponsored project, an instructional activity, or any other institutional activity. Indirect costs are negotiated by the University of Wisconsin with the Federal Government. For a listing of non-federal indirect cost exceptions, please see the Index of Non-Federal Indirect Cost Exceptions.
Indirect costs are called Facilities and Administrative (F&A) costs.
- Facilities costs include:
- building and equipment depreciation (or use allowance)
- operations and maintenance (utilities, custodial costs, non-capital improvements)
- interest expense (paid to external parties)
- library (books, facilities, administration)
- Administrative costs include:
- departmental administration (Dean's office, department heads, department administrative staff, faculty administrative work, bid and proposal preparation)
- general administration and expense (President of Chancellor, Insitution-wide Financial Management and Business Services, Personnel Management, Safety and Risk Management, etc.)
- sponsored projects administration (grant and contract administation, cost analysis, patent expenses)
- student services (registrar, bursar, student medical)
Administrative components are limited to 26% of MTDC (indirect cost rate and base are discussed in the following paragraph).
In general, when entering the indirect cost rate and base in a budget spreadsheet, please use the University of Wisconsin-Madison negotiated rate and base of 47% of MTDC (Modified Total Direct Cost). The Table of Indirect Cost Rates/F&A Rates is located on the RSP website. You can also view the rate agreement between UW-Madison and the federal government.
Once you have created a budget and completed a budget spreadsheet, you will want to write a budget narrative.The budget narrative is sometimes referred to as the budget justification. The budget narrative has two purposes: it explains how the costs were estimated and it justifies the need for the cost. You want to show as much detail as possible by thoroughly and clearly describing each item, explaining how you arrived at dollar amounts and giving enough detail so the costs correspond to the project's activities and goals described.
For instance, you should include the percent of effort for each person, the percent of fringe for each person, travel information (where, how, length, amount of people), specific supplies, and any other information that provides specifics that will validate your budget. Make sure the narrative follows the line items exactly. When costs seem high or low, the budget narrative can provide the explanation. You want your budget narrative to match the information on the budget spreadsheet. Do not make reference to leveraging funds.
Useful Budget Building Resources
- Research and Sponsored Programs website
- UW Standard Budget Spreadsheet
- UW Standard Budget Spreadsheet instructions
- SF 424 R&R Budget Spreadsheet
- NIH Modular Budget Spreadsheet
- NIH Modular Budget Spreadsheet instructions
- OMB Circular No. A-21, a document compiled by the federal Office of Management and Budget that details the principles for determining costs applicable to grants, contracts, and other agreements with educational institutions
Effort on Proposals
Overview
While for most people the term “effort” brings to mind the process of certifying commitments, the truth is that effort commitments come into play much earlier than that. Considering effort during proposal development is an important part of balancing commitments and being sure to allow enough time to complete responsibilities.
This page includes information about types of effort commitments and how to think about effort over the course of an award. For guidance on compliance requirements for effort reporting, please see Effort Reporting. Visit the Effort Polices page for more information about campus and college policies regarding effort. For additional assistance, please contact your department effort coordinator or the CALS effort coordinator.
What is an effort commitment?
An effort commitment can be paid or unpaid, and refers to the percentage or amount of time an individual allocates to a sponsored project. Effort is typically measured in person-months or percent. Effort is not based on a 40-hour work week. Instead, it is based on 100% of the activities for which you are compensated by the UW. So even if you have a 75% appointment, those 30 hours a week are considered 100% effort.
Who needs to consider effort?
The PI, Co-PI, and key personnel.
Recording Effort in an Award
Some awards ask specifically for an effort commitment. For those that don’t, the amount of time that someone is dedicating to a project might be found in the budget, budget justification, current and pending document, or scope of work.
Currently, under the new proposal development program WISPER, effort commitments are entered in on the proposals page and load directly into ECRT. Please be aware, though, that even if an effort commitment does not appear in ECRT, if you have made the commitment then you are responsible for it and in the case of an audit, agencies compare award documents to effort cards.
There are several different types of effort. Understanding the difference between types of effort is important when certifying effort.
- Mandatory cost share:
Cost share that is required by the sponsor as a condition for proposal submission is a mandatory cost share.
- Voluntary committed cost share:
Any effort that appears in the proposal that is not required in the terms of the award is considered voluntary committed cost-share and must be certified. Once a proposal is funded, an effort commitments becomes an obligation that the institution must fulfill.
- Voluntary uncommitted cost share:
Cost sharing not stated in the award documents. In most cases, voluntary uncommitted cost share comes into play when someone devotes more time to a project than stated in the proposal or award. Any extra effort does not need to be reported in ECRT.
One important thing to keep in mind is that if you are a PI on a project and do not offer an effort commitment somewhere in the award, you must still certify at least 1% on the award. As a PI, you must be committing effort to the project. There are a few exceptions, such as in the case of awards for graduate students. Although a faculty member must be listed as PI, mentoring students is considered a part of regular responsibilities.
- Paid effort:
Some individuals are paid directly from an award for the time they spend working on a project. In cases like this, the paydata should load directly into ECRT for certification. It is important that those effort commitments be met, so if Professor X budgets for 30% of her salary to pay for her time spent working on a project, but only ended up paying 20% from the award, she will need to enter the other 10% as a cost share in ECRT.
Effort Over the Course of the Project
Changing Effort Commitments
Agency approval is necessary for changes that are less than 25% of the total effort commitment. For example, if you committed 10% but only ended up applying 8% to the project, there is no need to contact the agency. If you want to commit more effort, it’s considered voluntary uncommitted cost-share, and there is no need to contact the agency or report on the extra effort. Work with your department effort coordinator or the CALS effort coordinator if you need to make changes to your effort coordinator.
Special Considerations
Reductions in budget. When an agency agrees to fund a proposal at less than the original budget amount, effort needs to be taken into consideration during revisions. If the scope of the project is changing due to less funding, will effort levels remain the same?
No cost extensions. During a period of no-cost extension, it is assumed that the effort commitment will remain the same. If the level of commitment for the PI, Co-PI, or key personnel on the project will change during the extension period, it is recommended that a request to change effort is submitted with the request for no-cost extension.
Subcontracts
Overview
A subcontract is a legal agreement to transfer part of a grant or contract from the awarded institution to another organization in exchange for services or supplies. The terms and conditions of the original grant/contract apply to the subcontract. Subcontract processes differ depending on whether:
- UW-Madison awards subcontracts to other agencies/institutions in the proposal
- OR
- UW-Madison is the recipient of a subcontract in another agency's/institution's proposal.
UW-Madison Awards Subcontract
A subcontract is included in the budget when another institution is to perform part of the work within a grant. Collaboration with a colleague at another institution frequently requires a subcontract in order to provide a way to transfer the funds necessary to perform that part of the project.
If a subcontract is to be included in a submission, a proposal from the cooperating institution which has been approved by their Office of Research and Sponsored Programs must be obtained. This is to insure that if the PI gains funding for the project, then there will be sufficient funds available to enter into the subcontract.
A subcontract amount is included as a line item in the budget spreadsheet. As part of your proposal, subcontracts need to be named and pertinent information included. The following is required from each insitution/agency:
- Application for funding form, completed with their institution/agency specific information for their portion of the project.
- A scope of work statement indicating their intended plan of work within the project.
- Yearly and cumulative budgets, completed on the standard budget spreadsheet. A budget narrative is also required.
- A timeline of outcomes may also be in order.
- PI and institution representative will need to sign each of the forms where indicated.
- Entire set of materials is required prior to submission and are included as a portion of the proposal according to agency requirements.
- Set one due date from all the subcontracts.
Once the grant has been awarded, then subcontracts can be formally issued to the various institutions/agencies. You will issue a requisition to each insitution/agency. The item description on the requisition will be a statement like: "Subcontract to (institution/agency name) for participation in the (title of project) funded by (funding agency) for the period beginning (date) through (date). Attached are: (1) Scope of Work, (2) Budget Details, and (3) (any other pertinent information specific to issuing that subcontract)."
Subcontracts to each institution/agency are issued through RSP. RSP will determine if the subcontractual arrangement qualifies for exemption under State Procurement policies, and will work with the principal investigator/department representative to develop the subcontract. It is at this time that you need to work with RSP to incorporate any special reporting requirements, timelines for accomplishments, etc., to be sure the subs provided the desired outcomes on the project prior to receiving payment.
Note: Subcontracts are to be issued on a yearly basis. Requisition year 1 for the first 12 month period. 3 months prior to the beginning of year 2, consult with the PI to confirm that subcontractor has performed duties properly and whether a continuation should be issued for the next 12 month period. Continue this process until the last period. However, final period of continuation should end 90 days prior to the award end date. This is to insure that the subcontractor provides UW all deliverables and related invoices by the award end date. This is required in order for UW to meet the 90 day close-out requirement of most agencies.
If there are any questions, contact Becky Bound at (608) 265-8443 or rbound@cals.wisc.edu
.UW-Madison is Recipient of Subcontract
When an institution/agency submits a grant and they intend to include UW-Madison as a recipient of a subcontract as part of the proposal, we need to provide pertinent information to them prior to proposal submission. Inclusion of this information at the time of proposal submission assures that the funding source knows the subcontract intent.
The pertinent information required varies between institutions/agencies, but it often includes:
- Application for funding form completed with our institution/agency specfic information for our portion of the project.
- Scope of work statement, indicating our intended plan of work within the project.
- Yearly and cumulative budgets, completed on the standard budget spreadsheet. A budget narrative is also required.
- A timeline of outcomes may also be in order.
- PI and institution representative will need to sign each of the forms where indicated.
- Entire set of materials is required prior to submission and are included as a portion of the proposal according to agency requirements.
You will need to clarify deadlines with the institution/agency, as well as if they require the materials to be faxed, mailed, or both. All materials are routed through campus via a transmittal form.
Once the grant has been awarded, a subcontract needs to be issued by the agency/institution to UW-Madison. Many agencies/institutions have established subcontracting procedures. When the subcontract is received, it is linked to our proposal and then processed as an award as long as all terms are agreeable to the PI and UW-Madison.
For an institution/agency who does not have an established subcontracting procedure, they must issue a formal document to UW Madision regarding the award of the subcontract. At the very least, the following must be included in their document:
- Statement of their intent to issue a subcontract to UW-Madison. The statement should define the period of the award (begin and end dates), amount of the award, title of the project, our principal investigator's name, and identification of the primary source of funding.
- Scope of the work (what they expect us to do).
- Detail of their reporting requirements.
- Detail of their invoicing/payment requirements.
- Note: If the primary source of funding is a federal agency, there will be specific federal documents and requirements which are also necessary.
When such a document is received, it is linked to our proposal and then processed as an award as long as all terms are agreeable to the PI and UW-Madison. If a proposal was not originally processed, a transmittal form would need to accompany the subcontracting materials.
If there are any questions, contact Meredith Luschen at (608) 261-1500 or mluschen@cals.wisc.edu
.Forms & Documents
| Development | ||
| Extra-mural Support Transmittal Form | ||
| Form 4653 (Foundation Status) | ||
| Human Subjects Training Certification Letter | ||
| Justification for Off-Campus Indirect Cost Rate | DOC | |
| Justification for Off-Campus Indirect Cost Rate | ||
| Letter of Commitment | DOC | |
| Letter of Commitment | ||
| Letter of Commitment (Fellowship) | DOC | |
| Letter of Intent | DOC | |
| Letter of Intent | ||
| Letter of Intent (Sub-contract) | DOC | |
| Percent Months Interactive Conversion Table | XLS | |
| Prior Year Fringe Benefit Rate Information | DOC | |
| Prior Year Fringe Benefit Rate Information | ||
| SF-424A Budget Information - Non-Construction Programs | ||
| SF-424A Instructions for SF-424A Form | ||
| SF-424B Assurances - Non-Construction Programs | ||
| SF-424C Budget Information - Construction Programs | XLS | |
| SF-424D Assurances - Construction Programs | ||
| SF-424 Application For Federal Assistance | ||
| Salary Rate Information | ||
| Shared Information Letter | DOC | |
| Shared Information Letter | ||
| Statement of Intent to Establish Consortium Agreement | ||
| Tax Exempt Letter | ||
| **External Development Documents | Source | |
| Federal Per Diem Travel Rates | USGSA | HTML |
| F&A and Fringe Benefit Rates 7/1/2007 - 6/30/2010 | RSP | HTML |
| Human Subjects Training Certification Letter | RSP | |
| Index of Non-Federal Indirect Cost Exceptions | RSP | HTML |
| Intent to Establish Consortium | RSP | |
| NIH Modular Budget Spreadsheet | RSP | XLS |
| NIH Modular Budget Spreadsheet Instructions | RSP | HTML |
| OMB Circular No. A-21 | OMB | HTML |
| SF 424 R&R Budget Spreadsheet | RSP | XLS |
| Table of F&A Rates | RSP | HTML |
| Tax Exempt Letter | RSP | |
| UW Foundation Transmittal | UW-Found | HTML |
| UW Standard Budget Spreadsheet | RSP | XLS |
| UW Standard Budget Spreadsheet Instructions | RSP | HTML |
| UW-Madison Travel Policies | BusSrvcs | HTML |