Contract Budget Development

Budget Development for a Project

Contents

Salaries for Project Personnel
Using a Budget Template
Figuring Unit Rates
Figuring Matching Funds
Employee or Independent Contractor

Salaries for Project Personnel: When developing a budget, including accurate personnel costs is very important.  Usually, you will need to know both the hourly rate and the annual salary. You will need to know the following:

  • Annual rate for an educator (faculty or A&P) (gross salary before deductions)

  • Annual salary for an hourly employee (A&P or Classified Civil Service)

Before a project proposal can be completed, personnel needs must be defined.  To begin, develop a job description that includes the work that needs to be done, how much time will be needed, and what qualifications the person doing the work will need to have. 

The work that needs to be done will determine the job classification. 
The job classification will determine the pay rate.

Amy Burns, Human Resources Generalist, will help you with this part of the budget development process. Phone: 614-292-2776

Is it ethical to charge for an employee's time (salary and benefits) from an externally funded project when that person is already being paid from University funds (General, County, State, etc)?

University funds programming as it is broadly described. Dollars are not tied to a particular person to complete specific work. Rather, they support the effort to complete specific work regardless of who the person is.

CFAES wants to reach as many people as possible with its programming. We frequently seek funding beyond our traditional sources that will allow us to do that by giving us more resources to hire more teachers and deliver more subject matter. Most professionals are paid by a combination of general, county, state, and federal funds. These are full time jobs with full time work assignments.

External project funds are used to support a specific program effort. When professionals expend effort toward an externally supported project (consulting, advising, administrating, teaching, etc. ), other planned work is set aside, or is handled by working longer hours. The other work still needs to be done. When a professional’s time is charged to the project, the cost of doing that work is recovered; money becomes available to pay for the planned work that didn't get done.

The professional is not paid twice for the time worked. The professional does not receive more money as a result of being paid from the project funds. The source of the professional’s salary and benefits for the time spent on the project changes to the project funds. This frees up local dollars to be spent on other programming such as wages, equipment, supplies (whatever lets you complete planned work load as promised and planned.) 

Even if the professional plans to work on this project and it appears in the annual Plan of Work, salary and benefit costs can be charged to the project. The money saved in the local budget is available to grow new programs and reach more people with more programs.

IT IS UNACCEPTABLE TO submit an invoice to one organization for wages for specific hours worked and then submit an invoice for those same hours to someone else. That is considered double-billing.

IT IS ALSO UNACCEPTABLE to submit an invoice for wages and benefits that exceeds the actual expenses of the person who did the work. Hours and costs submitted for payment must be those of the person who did the work.

Using a budget template: A good project budget includes all organizational resources that will be needed to support and complete the project. this includes but is not limited to time, money, materials, and space.  A budget that does not include all resources will, by necessity, deplete other projects' resources or  will be poorly done.

While not all costs may actually be included in the final budget, it is important to know what they are in order to be able to make decisions about the use of existing organizational resources. All budgets should be based on a realistic estimate of the costs of the project being considered. 

These templates includes categories of costs that are typically part of projects. 

Figuring Unit Rates: Some funders prefer to pay for services according to the number of units of service provided.  Examples of units of service are:  people served, a class taught, a field inspected,  or clubs started. Units need to have defined characteristics.  To learn more about how to calculate unit rates, click below. 

Figuring Matching Funds:  Some funders require that you match their grant dollars with some of your organization's money.  When a match is required, the funder may stipulate the match must be made with cash, with in-kind value, or with a combination of both. 

Whatever you choose to use, it must be possible to document and measure the value of an in-kind match by showing time sheets, receipts, or established market values.  Some examples of common cash matches are: Release time for personnel where time has an hourly value; supplies and materials for which itemized receipts can be provided; travel where mileage is reimbursed at a set rate.  Common in-kind matches may be a meeting room or piece of equipment that has an established rental rate and is normally rented; volunteer hours with volunteers documenting their contribution (see volunteer verification form) with the time valued at minimum wage.  If a volunteer's time is valued at more than minimum wage, be able to justify the higher rate.   

To calculate the amount needed when a request for proposals (RFP) requires a 10%, 20%, 30%, 40% or 50% match, refer to the matching funds chart. 

Employee or Independent contractor: How a person is hired to work depends on the work that will be done and the way the work will be done. 

The U.S. Internal Revenue Service has a list of questions that you can ask yourself about an employment situation. Your responses will help you decide how to classify a person who will work for you. Contact Amy Burns, Human Resources Generalist or Angie LeMaster, Grants and Contracts Specialist if you aren't sure. 

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