Budgeting and Rebudgeting

Determining a Grant’s Budget

Once a grant has been awarded, the approved budget is input into PeopleSoft.  The awarded budget may be different then the proposal.  SPA will always enter the budget as is awarded by the sponsor. I f the department wishes to modify the awarded budget they should contact their SPA accountant for further guidance.

Rebudgeting for Grants

When research is underway, it may be necessary to rebudget certain categories or amounts.  When you do need to make these adjustments, Sponsored Programs Accounting has compiled guidelines on approvals required for rebudget on Federal Grants.

Rebudgeting that Impacts F&A

Certain budget categories do not generate F&A:

Check mark button Capital Equipment ≥ $5000
Check mark button Tuition/Scholarships/Fellowships
Check mark button Subcontracts over the first $25,000
Check mark button NSF Participant Support
Check mark button Rental costs of off-site facility

Please be aware of the following when a rebudget includes these items:

  • If the rebudget transfers money from a non F&A bearing budget item (such as equipment) to an F&A bearing item (such as materials), the F&A dollar amount will increase in order to maintain the contracted F&A percentage. (See Example 1)
  • If the rebudget transfers money from an F&A bearing budget item (such as materials) to a non F&A bearing budget item (such as equipment), the F&A dollar amount will decrease in order to maintain the contracted F&A percentage. When the F&A amount goes down, BFO approval may be required. (See Example 2)

In most cases prior approval for rebudgeting is required by the Vice Provost’s Office and/or funding agency. The rebudgeting form is available at: http://researchadmin.tufts.edu

Example 1: Suppose a grant has a capital equipment budget of $10,000 and an F&A rate of 56%. If only $8,000 was spent for equipment the PI would most likely want to spend the remaining $2,000 on other materials. This is acceptable; however the $2,000 balance in equipment will need to be rebudgeted between materials and F&A since the materials purchases will generate F&A. Sponsored Programs Accounting can assist with these rebudgeting calculations. In this scenario, the $2,000 would be rebudgeted so that $1,282 would be added to materials and $718 added to F&A ($1,282 + $718 = $2,000).

Example 2: Suppose a grant has a capital equipment budget of $10,000 and an F&A rate of 56%. If $12,000 was spent on equipment a re budget would need to be done to reduce the F&A dollar amount since the additional $2,000 spent on equipment does not generate F&A. Sponsored Programs Accounting can assist with the re budgeting calculations. In this scenario, the F&A budget would be reduced by $1,120 (56% of $2,000) that could be re allocated to the equipment budget. As noted above, in this case, BFO approval may be required. Please contact your SPA representative who will advise you if BFO approval is needed.