Sponsored Project Budgets & Cost Preparation

1. Determine the Expenditure Categories (Budget Resources in OFC) and amounts.

• Review your approved award budget to determine expenditure categories (e.g., salaries, UCSD equipment, travel, etc) and the amounts awarded to each one.
• If the award specifies indirect costs only as a percent of total direct costs (rather than as a dollar amount), determine the direct and icndirect costs.

2. Identify Project and Task numbers you will need.

• You will allocate to the specific project and task number that Sponsored Projects Finance (SPF) has established for the award.

3. Open the “Current Working” budget version for the appropriate project.

4. Prepare and submit an updated budget.

5. Once approved, review your budget displaying on reports.

• When you complete and approve your updated budget in OFC, it will automatically be routed to SPF to approve or reject. Typical reasons for rejecting a budget may be that a non-UCSD budget resource was selected, or the version number was taking off of the title.
• If approved, the new budget will become the new Baseline Budget in OFC and display on appropriate reports.

1. Most award budgets specify the approved dollar amounts for direct and indirect costs, but some give only percentages.
   To calculate costs when an award specifies indirect costs as a percentage of total direct costs, use the following example.
   Example: Consider a sponsored project award with these instructions:
   
   • The total award is $100,000
   • Equipment is budgeted at $20,000
   • The indirect cost rate is 15%, excluding equipment
   Calculate the amount subject to indirect costs (IDC):
2. Divide the modified total costs by 1.X% (where X=IDC percentage). The result is the dollar amount of direct costs.
   • In this example, $80,000 divided by 1.15 equals $69,565 in direct costs.
3. Subtract direct costs from the modified total costs amount. The result is the dollar amount of indirect costs.
   • In this example, $80,000 minus $69,565 equals $10,435 in indirect costs.
4. Allocate amounts and check your math. All allocations should add up to the total award amount.
   • In this example, the three allocations add up to $100,000:
     • $20,000 to the equipment account
     • $69,565 to the remaining expenditure accounts (direct cost)
     • $10,435 to the indirect cost account

Reasons for rebudgeting

• You need to change an existing budget when:
  • You received additional funding that has not yet been budgeted.
  • You have received agency approval to rebudget.
  • Rebudgeting between tasks for internal tracking.
  • Rebudgeting between projects - will have to work with SPF to move around funding on projects. OFC will not allow users to budget more than what is funded (only SPF can update) on any given project.

How to rebudget

• To update a budget in OFC, open the “Current Working” budget version in OFC and make appropriate changes.
  • Note: Please include the budget version number in the title so the History is clear.If rebudgeting between projects, contact your SPF accountant to move the funding around that will allow you to budget.