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An Example of Changing OPE
To see a BCR that includes OPE changes, refer to Example C. It may be helpful to print a copy of the Example C and use it as a guide.
You are the LCC grant administrator for a grant that currently has only two accounts:
Account number Current budget
832-109-6200-211301-5203 (Classified full time)
$20,000
832-109-6200-211301-5919 (OPE)
9,000
Total
$29,000
You want to convert $8,000 of the Classified full time salary to Classified part time salary (sub-object 5304). The granting agency has approved this change as long as the total grant remains $29,000. The current LCC OPE rates are: 45% for full time employees, and 21% for part time employees. How much will you have to change the budgets for Classified full time and OPE on the Budget Change Request Form you need to send to your Funded Projects Accountant?
Step 1: Compute how much of the total grant will be consumed by the Classified part time change and its associated OPE. This requires algebra.
$8,000 + 21% of this amount= Desired Classified part time + OPE
$8,000 + 21% ($8,000)
= Desired Classified part time+ OPE
$8,000 + $1,680
= $9,680
Step 2: Compute how much of the grant is left for the remaining Classified full time and its associated OPE.
Total grant
$29,000
Less: Desired Classified part time + OPE
(9,680)
Available for Classified full time + OPE
$19,320
Step 3: Compute how much of this $19,320 will be for Classified full time salary. This also requires algebra.
Classified full time salary + OPE =
$19,320
Classified full time salary + 45%( Classified full time salary)
= $19,320
Let x = Classified full time salary. Then
x + .45x = 1.45x =
$19,320
or x = $19,320/ 1.45
so x =
$13,324
Step 4: Compute the OPE on this new Classified full time salary
Classified full time salary times OPE rate = new OPE on new Classified
full time salary
$13,324 X 45% = $5,996
Step 5: Compute the new total OPE for this grant, which is the sum of:
Classified part time OPE (from Step 1, above)
$1,680
Add: new Classified full time OPE (from Step 4, above)
5,996
Equals: New total OPE for this grant
$7,676
You now have all the new numbers you need to prepare the BCR. You can prove that these are the correct numbers by adding them together:
Classified part time (given)
$ 8,000
Plus, new Classified full time (Step 3, above)
13,324
Plus, new total OPE (Step 5, above)
7,676
Does, in fact equal the total amount of this grant
$29,000
You can now enter the changes on a BCR Form, in the Revised Budget
column, as indicated on the following Example
C. The differences between the Current Budget and Revised Budget
columns are the net changes, as shown in the Addition and Reduction columns.
V When a BCR includes:
B. Indirect Cost
Indirect Cost recovery is included in many grants, but not all grants.
These dollars are intended to cover a portion of indirect expenses incurred
by the college that support the grant activities.
If your grant includes a line item for Indirect Costs, it is possible that
any change to other budget line items will result in the need to change
the Indirect Cost budget. This need will, in part, be determined by the
grantís basis of indirect cost recovery.
Due to the uniqueness of indirect cost budgets, it is suggested that you
contact your FP accountant for assistance with BCRs that include indirect
costs.