Assessment Task

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ASSESSMENT TASK

Assessment Task: Eco Garden University of West London



Assessment Task: Eco Garden University of West London

Introduction

The proposal budget is a plan for expenditure of project funds by specified cost categories. Many agencies provide budget forms or require budgets to be presented in specific formats.  The following points will assist in formulating a budget for submission with a proposal for sponsored funding.

Budget items should be determined and cost estimates obtained. Cost estimates listed in budgets should be high estimates to allow for price increases (Smith, 1986: 39).

A realistic budget should be formulated to avoid underestimated or overestimated project costs. An overestimated or "padded" budget may be viewed unfavorably by the proposal reviewers. An underestimated budget will not increase the probability of award and may not provide adequate funds to cover necessary project expenses.

The sponsor's project guidelines often provide information useful in budget preparation. Guidelines generally include the sponsor's cost definitions (i.e. equipment vs. supply items) and description of cost allows ability (Project Management Institute, 2004: 114). The allowable indirect cost charge will also be given. Budget formats, when required, will be outlined in the guidelines.

Rates most commonly needed for budget preparation are the University's indirect cost rate, fringe benefit rate, the travel per diem rate, mileage allowance, graduate student stipend and graduate tuition rate. These rates can be obtained from the Office of Research and Sponsored Programs. If internal charges (i.e. computer time, SEM time) will be included among project costs, established University rates must be used.

Multi-year project budgets must include an appropriate inflation factor for succeeding years to allow for wage and price increases (3% is generally acceptable).

The budget justification should briefly explain the need for other direct cost items in the budget. The justification should be consistent with the proposal narrative and should emphasize major cost categories not included in the narrative.

Cents should be rounded off to the nearest dollar.

Preliminary budgets should be submitted to the Office of Research and Sponsored Programs in rough draft for review. The final budget should be submitted with the proposal at least two weeks before the mailing deadline, allowing ample time for final processing (Murdoch & Hughes, 2008: 25).

 

Budget Categories

Expenses associated with sponsored funding are grouped into two types of costs: indirect costs and direct costs.

Indirect Costs

Indirect costs are real costs to the University and are incurred through common activity and, therefore, cannot be specifically identified with a particular project or program. General categories which comprise indirect costs are listed as follows (Smith. 1986: 39):

Plant operation and maintenance (utilities, janitorial services, building maintenance and repairs, etc.).

Use of buildings and equipment.

Sponsored project administration and accounting.

Library expenses and collection acquisition.

Institution-wide general administrative expenses.

General office supplies.

Most sponsors allow projects to be charged a proportionate share of indirect costs. The University of Tulsa negotiates its indirect cost rate with the Department of Health and Human Services. Full recovery of this rate is essential to the financial well-being of the University. If a sponsor will not reimburse the University for its Full Indirect Cost Rate, the unallowable portion must be shown as University cost ...
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