Inflation

The Inflation section identifies what inflation rates will be applied to each object code within an Award Budget version.

Prepopulation: The “applicable rates” are pre-populated with the default “institute rates” which are initially pulled in from an institutional rate table (located within the Unit Hierarchy) upon each budget version creation. You can open the Inflation tab within the Budget Rates tab to see what default inflation rates have been itemized, and to see if current institutional rates are reflected. You may override the established/defaulted inflation rates (on a proposal and/or proposal version basis) by editing the Applicable Rates column. You can enter a different rate for each fiscal year.

Syncronization: You can click the sync rates button to ensure rates are up-to-date; this is of particular importance if a proposal has been copied from an earlier proposal that may have utilized old rates.

Calculation & Application: Applicable rates will be applied to applicable line item costs within the Expenses page. Calculations will be performed automatically, based on object code (cost element) table mapping. Inflation rates can be set by each institution, but generally map to the following ‘rate types’ on an object code level: employee salaries (of various types), student wages, tuition, and materials and services. The object code tables will list which object codes falls into each various ‘rate type’ as well as which object codes are inflation-bearing.

Figure 938 Award Budget Document, Rates Page – Inflation Section Example

Table 426 Award Budget Document, Rates Page – Inflation Section Column Descriptions

Column	Description
Description	The name of the Inflation rate type.
On Campus	Yes or No is displayed to indicate whether or not the rate type is on campus.
Fiscal Year	The associated fiscal year is displayed in yyyy format, and represents the fiscal year in which the Period Start Date falls.
Start Date	The Award Budget Period Start Date is displayed in mm/dd/yyyy format.
Institute Rate	The system applies inflation rate defined here to each subsequent budget period based on the Cost Element line item amount of the budget period immediately preceding it. For example: Award Budget Period 1 x 1.XX (one plus the Period 2 inflation rate) = Period 2 line item amount. Period 2 amount x (one plus the Period 3 inflation rate) = Period 3 line item amount.
Applicable Rate	Required. Click within the field and type a new value to change. Upon save, you are taken to the Summary page, which displays recalculated amounts for budget periods 2 and greater after all budget periods have been created. This rate may be different from Institute Rates for a number of reasons (for example, sponsor stipulations).
	Future period calculation does NOT occur if a Cost Element is excluded from the Inflation Rate Type in the Valid Cost Element Rate Type table. Click the reset rates button to change all editable values in the column of a single budget to match the existing Institute Rate values (whether old or current – those which were brought in upon Award Budget creation or subsequent synchronization). Click the sync rates button to bring Institutional Rate and Applicable Rate columns on a single budget up to date with rates for the current budget period.