BUDGET & WORK PLAN

Assistant professor family medicine

Hanan abbas

Objectives
Identify your resources
Describe associated costs
Demonstrate how to write a budget
Identify hidden costs
Identify the elements of sponsors

budget
Describe activities related to payment
and budget changes

Budget
Sets out the financial resources

required for implementation of the

study.

The Purpose ofBudgets

Demonstrate that all costs of achieving the

specific aims and project goals

Dedicate effort and resources to the project

Delineate budget categories which must be

adhered to (25%) once the project is

underway

Describe the scientific necessity of every

line item

Budget:
Items include:
Personnel salaries.
Transport, accommodation,
travelling.
Operation and maintenance of
equipment.
Purchases of fixed assets e.g.
computers and expendable
supplies e.g. papers.

Continu.,
Scientific meeting attendance.
Secretarial services.
Training of research assistants.
Printing and publication.
Library and literature.

 A budget is subject to periodical

revision.
Be clear on who is authorized to incur
expenditures on each and every project.
Who is responsible for accounting for
the project.
What are the reporting dates.

Remember
The total sum covered by the budget may not
be available at once.
Note conditions of reporting which affect cash
flow.
It is important to keep budget notes on each
item for future reference.
Anticipate items which may require foreign
exchange and make appropriate provisions,
and
Ensure that you are familiar with the budget
code for each project.

Remember
Researcher should be familiar with the
policies of funding agents with regard to:
Items which can be provided locally.
Items which cannot be purchased.
Expenditure costing on each item.
Availability of funds in local or foreign
currency.

The steps in preparation of the budget should

proceed in the following sequences:
Study the sequence of the research activity or work plan
and tally the budget accordingly.
Estimate the cost of each activity.
Group similar expenditure items together.
Allow for inflation.
Prepare a detailed periodic budget, and
Present a budget summary covering all years of the
project.

Review the ProtocolSchem atic

Hospital procedures
Physician practice costs
Lab costs
How many visits / Length of study
Visits until randomization
Length of coordinator procedures
Staff training

Budget Overview

1. Follows all sponsor rules for the project (eligible expenses) and

all University policies and procedures.

2. Are comprehensive

- Show details of all revenues and expenses.

- Indicate sources for revenues.
3. Are as accurate as possible
. Note details and sources of estimates (incl. formal quotes).
4. Present information logically
. Group expenses together (e.g., salaries, benefits, equipment).

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 Are calculated over periods of time

for multi-year projects.

Provide start dates and end dates for
each period when you will receive
funds and when your expenditures
are likely to occur.
University fiscal year (May 1 - April
30).
Are defensible if audited

Keep all of your records

Costing Principles

Allowability
Does the agency prohibit certain costs?

Allocability
Is the expense tied directly and proportionally to

the project?

Reasonableness
Are the cost reasonable in light of the study aims

and scope of work?

The Times test: does it pass public scrutiny?

Consistency
Are the costs consistent across projects units?

 Salaries and benefits of human resources

donated to the project

Space incl. utilities, furniture, equipment
Vendor discounts on goods purchases
Equipment time
Ensure your budget accounts for replacement
goods as required such as computers if the
research project is for many years (e.g.,
computers purchased in Year 1 and replaced
in Year 5 of seven-year project).
Budget for ongoing maintenance costs for
any equipment.

H idden Costs
Delayed start
Increased hospital procedure costs
Unscheduled visits
Tracking study funds
Amendments

ClinicalStudies Billing Form

This form is to be completed to

obtain accurate charges

Insert Correct Procedure
Performed by: MD, Department, etc
Location of Service
Charge Code
Charge for Service
Paid For By

Continued

B udget
The budget should be presented in the

form the sponsor requests.

The budget statement proposal is
based on employee and overhead
costs, is not just the wages or salaries
of its employees but also the
person/hour price that the contracting
firm charges.

Program announcement
Scope? Cost/category limitations? Modular or line item budget?

Project goals & specific aims

What is feasible/necessary to achieve goals?

Cost categories
Effort, subcontracts, other costs
Describe necessity

Justification

Budget Foundations

D irect Cost Categories

Personnel: define effort devoted to the project

Materials and supplies
Travel ( to study sites, conferences)
Consultants
Equipment
Other costs
Define categories and atypical line items at outset to

ensure allowability when project is underway

Subject items: animal research, pharmacy costs, rent,
project-specific office-type supplies, telephones,
mailing, copying, machines (<5k), core services

Develop project timeline

What is the project duration?
Who is involved?
Does effort fluctuate?
Enrollment timeline?
Analysis timeline?

WORK PLAN
I: Analysis of tasks:

The project is broken down into its smallest discrete

components for:
More accurate estimate of time and cost.
Easier monitoring and control.

WORK PLAN
II: Estimating time and cost:
Required for each component of the
project.
III: Synthesizing the plan:
Using graphic symbols to depict the
sequences of all project tasks.

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