Budget Calculation Formulas

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The system automatically calculates the value for a number of fields. This article describes those calculations.

Notes

The formulas use the following symbols for arithmetic processes.

  • plus sign (+) indicates addition
  • minus sign (- ) indicates subtraction
  • asterisk (*) indicates multiplication
  • forward slash (/) indicates division
  • parentheses indicate partial calculations, done first

Salary and Wages

Base Salary

  • Monthly Base Salary
    • First period = value entered or system-generated
    • Following periods = prior period’s Adjusted Monthly Base Salary
  • Adjusted Monthly Base Salary = Monthly Base Salary * (1 + Salary Inflation Rate)
  • Example
    • Monthly Base Salary = $5,000
    • Salary Inflation Rate = 2% = 0.02 in decimal form
    • Adjusted Monthly Base Salary = $5,000 * (1 + .02) = $5,100

Effort

  • Person Months = Months * Percent Effort
  • Example
    • Months = 12
    • Percent Effort = 80% = 0.80
    • Person Months = 12 * .80 = 9.6 months

Period Salary Total

  • Period Salary Total = Adjusted Monthly Base Salary * Person Months
  • Example
    • Adjusted Monthly Base Salary = $5,100
    • Person Months = 9.6
    • Period Salary Total = $5,100 * 9.6 = $48,960

Note: if you have enabled a Salary Cap, the Period Salary Total used in calculations will be the capped amount.

Benefits

  • Total Benefits = Period Salary Total * Benefit Rate
  • Example
    • Period Salary Total = $48,960
    • Benefit Rate = 26% = 0.26
    • Total Benefits = $48,960 * 0.26 = $12,729.60

Total Salary +Benefits

  • Total Salary + Benefits = Period Salary Total + Period Benefits Total
  • Example
    • Period Salary Total = $48,960
    • Period Benefits Total = $12,729.60
    • Total Salary + Benefits = $48,960 +  $12,729.60 = $61,680.60

Tuition

  • Academic Tuition Amount = Academic Quarter Tuition Rate * Number of Academic Quarters
  • Total Tuition = Academic Tuition Amount + Summer Quarter Tuition Amount

Sea Pay (01-86)

Note: available only in legacy budgets.

If you select Sea Pay on the Properties tab, this line item will display.

  • Monthly ($) = Adjusted Monthly Base Salary
  • Hourly Rate = Monthly / 173.3 (hours per average month)
  • Period Total = Hourly Rate * Hours

Other Costs

Common object code calculations

The following object codes use the same calculations:

  • (02) Service Contracts
  • (03) Other Contractual Services
  • (04) Travel
  • (05) Supplies and Materials
  • (06) Equipment
  • (10) Capital Projects

Those calculations are:

  • Period Subtotal = Quantity * Price
  • Period Inflation = Period Subtotal * General Inflation Rate
  • Total = Period Subtotal + Period Inflation

Object code (08) Student Aid calculations

  • Stipends, sub-object code 02
    • Sub Total = Number of Stipends * Stipend Amount
    • Total = Sub Total * (1 + Period Inflation)
  • Tuition and Fees, sub-object code  05
    • Academic Tuition Amount = Academic Quarter Tuition Rate * Number of Academic Quarters
    • Total Tuition = Academic Tuition Amount + Summer Quarter Tuition Amount

Object code (38) Unallocated calculations

  • Period Inflation = Period Subtotal * General Inflation Rate
  • Total = Amount + Period Inflation

Target & Limits: Auto-Adjusting Line Items

SAGE does not treat auto-adjusting line item amounts differently in any way from user-entered amounts in the calculations.

APL-Related Costs

If you select APL on the Properties tab, the (19) APL will display following the (38) Unallocated object code.  The (19) APL entry includes the Prorated Direct Costs 19-10 line item.

  • Prorated Direct Costs = Prorated Direct Costs Rate * (the sum of all MTDC values)

In the APL section of the Properties tab, if you select Budget includes Fixed Fee, the Department Fixed Fee (19-40) line item will display. It appears following the (25) Facilities and Administrative entry, and is described below.

Total Direct Costs

The Total Direct Costs entry displays a total, and can be expanded to show additional entries.

  • Total Direct Costs is the sum of the amounts for Object Codes 01 through 38, plus, if selected, (19) APL. It does not include (19-40) Department Fixed Fee.
  • Reference entries in the expanded section (on the parent worksheet)
    • Parent Budget TDC, excluding subcontracts = Total Direct Costs – the sum of Total Project Cost of any subcontract sub budgets
    • Subcontract(s) TDC, less F&A = sum of the Total Direct Costs for all subcontract sub budgets
    • Total Direct Costs Less Subcontract (Consortium) F&A = Total Direct Costs – sum of the F&A on any subcontract sub budgets
    • Entries for any internal or subcontract sub budgets
      • Internal sub budget entries display their Total Direct Cost
      • Subcontract sub budget entries display their Total Project Cost

Amount Subject to Facilities and Administrative

This entry displays a total, and can be expanded to show additional entries.

  • Amount Subject to Facilities and Administrative calculation involves two factors
    • The F&A Base Type, which defines the object and sub-object codes included in the calculation
    • The F&A Rate for the period
    • Amount Subject to F&A = total direct costs for the included object/sub-object codes * F&A rate (for each period)
  • Reference entries in the expanded section (on the parent worksheet)
    • (03-62) Outside Services–Subcontract entries display their Amount Subject to Facilities and Administrative
    • Internal sub budget entries display their Amount Subject to Facilities and Administrative
    • Subcontract sub budget entries display their Total Project Cost (up to a maximum of $25,000 per subaward budget)

(25) Facilities and Administrative

This entry displays a total. If the budget includes internal sub budgets, this entry can be expanded to show additional entries.

  • Facilities and Administrative = Amount Subject to Facilities and Administrative * F&A Rate (for each period)
  • Reference entries in the expanded section (on the parent worksheet)
    • Internal sub budget entries display their Facilities and Administrative amount

(19-40) Department Fixed Fee

Note: available only in legacy budgets.

This entry displays if you have selected “Budget includes Fixed Fee” in the Sea Pay & APL section of the Properties tab. The entry displays a total, and can be expanded to show additional entries.

  • Department Fixed Fee = Fixed Fee Rate * (F&A costs + Total Direct Costs)
  • Reference entries in the expanded section (on the parent worksheet)
    • Internal sub budget entries display either a dollar amount or N/A, depending on whether “Budget includes Fixed Fee” was selected for that sub budget

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