Budget Calculation Formulas

Tags
SAGE Budget

The system automatically calculates the value for a number of fields. This article describes those calculations, organized in the following sections:

Formula Notation
Salary and Benefit Costs (salary, benefits, sea pay)
Other Costs
Worksheet and Budget Summary Totals

Rounding Note

You can adjust the number of decimal places used for rounding to get a more precise calculation when trying to match values.

Formula Notation

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 = system-generated or entered value
- 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 + 0.02) = $5,100

Effort

Months = number of months in the period
Percent Effort = entered value
Monthly Hours = Percent Effort * 173.3 (standard hours in a month)
Person Months = Months * Percent Effort
Example
- Months = 12
- Percent Effort = 80% = 0.80
- Monthly Hours = 0.80 * 173.3 = 138.64
- Person Months = 12 * 0.80 = 9.6 months

Total Requested Salary

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

Note: if you enabled a Salary Cap, the Period Salary Total used in calculations will be the capped amount. For a given period, the capped salary limit = Cap Amount * Percent Effort.

Total Benefits on Salary

Benefit Rate = system-generated or entered value
Total Benefits on Salary = Total Requested Salary * Benefit Rate
Example
- Benefit Rate = 24% = 0.24
- Total Requested Salary = $48,960
- Total Benefits on Salary = $48,960 * 0.24 = $11,750.40

Total Salary and Benefit for the Period

Period Personnel Cost = Total Requested Salary + Total Benefits on Salary
Example
- Total Requested Salary = $48,960
- Total Benefits on Salary = $11,750.40
- The personnel cost for the period = $48,960 + $11,750.40 = $60,710.40

Sea Pay

If you enable Sea Pay in worksheet settings, you will have the option of adding sea pay to personnel. The Total Sea Pay and Total Benefits on Sea Pay are added to the Total Requested Salary and Total Benefits on Salary to get the overall personnel cost for the period.

Hours of Sea Pay = entered value
Sea Pay Hourly Rate = Adjusted Monthly Base Salary / 173.3 (hours per standard month)
Total Sea Pay = Hours of Sea Pay * Sea Pay Hourly Rate
Sea Pay Benefit Rate = system value for personnel sub-object code 01-86, editable
Total Benefits on Sea Pay = Sea Pay Benefit Rate * Total Sea Pay
Example
- Hours of Sea Pay = 20
- Sea Pay Hourly Rate = $5,100 / 173.3 = $29.42
- Total Sea Pay = 20 * $29.42 = $588.57
- Sea Pay Benefit Rate = 22.2% = 0.222
- Total Benefits on Sea Pay = $588.57 * 0.222 = $130.66

Salary & Benefit Costs Total

This row is a total of all the personnel costs, with a value for each period and for All Periods.

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:

Quantity = entered value
Unit Price = entered value
Inflation Rate = General Inflation Rate or entered value
Total = Quantity * Unit Price * (1 + Inflation Rate)
Example
- Quantity = 50
- Unit Price = $150
- Inflation Rate = 1% = 0.01
- Total = 50 * $150 * (1 + 0.01) = $7,500 * 1.01 = $7,575

Object code (08) Student Aid – Stipends and Tuition

Stipends, 08-02
- Number of Stipends = entered value
- Stipend Amount = entered value
- Inflation Rate = General Inflation Rate or entered value
- Total = (Number of Stipends * Stipend Amount) * (1 + Inflation Rate)
- Example
  - Number of Stipends = 2
  - Stipend Amount = $2,500
  - Inflation Rate = 2% = 0.02
  - Total (2 * $2,500) * (1 + 0.02) = $5,000 * 1.02 = $5,100
Tuition, 08-05
- Academic Quarter Rate = entered value
- Number of Academic Quarters = entered value
- Academic Tuition Amount = Academic Quarter Rate * Number of Academic Quarters
- Summer Quarter Amount = entered value
- Increase Percent (Acad. & Summer) = Tuition Inflation Rate (for the worksheet), editable
- Total Tuition Amount = (Academic Tuition Amount + Summer Quarter Amount) * (1 + Increase Percent)
- Example
  - Academic Quarter Rate = $6,000
  - Number of Academic Quarters = 2
  - Academic Tuition Amount = $6,000 * 2 = $12,000
  - Summer Quarter Amount = $5,000
  - Increase Percent (Acad. & Summer) = 3% = o.o3
  - Total Tuition Amount = ($12,000 + $5,000) * (1 + 0.03) = $17,000 * 1.03 = $17,5010Tuition and Fees, 08-05

Object Code (38) Unallocated Line Items

Amount = entered value
Inflation Rate = General Inflation Rate, editable
Total = Amount * (1 + Inflation Rate)
Example
- Amount = $25,000
- Inflation = 1% = 0.01
- Total = $25,000 * (1 + 0.01) = $25,000 * 1.01 = $25,250

Object Code (19) Applied Physics Lab – Prorated Direct Cost, 19-10

If you enable APL in the worksheet settings, a 19-10 line will display in the Other Costs section for APL Prorated Direct Cost. On the Budget Summary, if more than one worksheet has a Prorated Direct Cost (PDC) entry, then its section can be expanded to show each worksheet’s entry.

Prorated Direct Costs = PDC Rate * (period costs included in the MTDC base, excluding any 19-xx costs)

Note: When APL is enabled on the primary worksheet, and the budget includes subaward worksheets, the PDC value on the primary worksheet is a sum of

the PDC amount for the primary worksheet including the first $25,000 of any 03-62 entry
the first $25,000 for any subaward worksheet

Other Costs Total

This row is a total of all the other costs, with a value for each period and for All Periods.

Worksheet and Budget Summary Totals

Total Direct Costs

For a worksheet: Total Direct Costs = Salary & Benefit Costs Total + Other Costs Total
For the Budget Summary: Total Direct Costs = sum of TDC for all worksheets
- Expand the section to see additional details
  - Total Direct Costs less Subrecipient F&A
    - Subrecipient F&A is the amount of F&A charged by the subrecipient on subaward sub-budgets
    - Equal to Total Direct Costs if there are no subawards
- Subrecipient F&A displays if the budget includes
  - A subaward worksheet
  - An 03-62 entry on the primary or an internal worksheet

Facilities and Administrative

This section displays a total and can be expanded to show additional details.

On the Budget Summary, the primary worksheet or an internal UW worksheet, the description column includes:

The worksheet name (Budget Summary only)
The F&A Base Type which defines the object and sub-object codes included in the calculation
The Location which is a factor in determining the F&A Rate

An F&A entry has four rows with values for each period and All Periods.

Total Direct Costs = the same value as the Total Direct Costs row
Costs Subject to F&A = the total direct costs for the object/sub-object codes included in the F&A Base Type
F&A Rate = the value for each period from the worksheet settings for F&A
F&A Costs = the Costs Subject to F&A * F&A Rate

APL Fixed Fee

This entry displays if you have enabled Fixed Fee in the worksheet settings. A value displays for each period and All Periods. For a worksheet it’s a single row entry, for the Budget Summary there is a row for each worksheet with the worksheet name in the Description column.

APL Fixed Fee = Fixed Fee Rate * (F&A costs + Total Direct Costs)

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