Inflation

 

The Inflation section identifies what inflation rates will be applied to each object code within a budget version.

Defaults and Override Capability:  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. 

Synchronization:  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 and 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 274 Budget Document > Rates Page > Inflation Section - Example

 

Table 113 Budget Document > Rates Page > Inflation Section - Field Descriptions

Field	Description
Description	The type of rate that the system applies to specific cost elements (i.e. fringe benefits, F&A, inflation, etc.)
On Campus	On or Off is displayed to indicate whether the rate applies to on-campus use or off-campus use.  The campus checkbox on Institute Rate is where this is set.
Fiscal Year	Identifies the institutional fiscal year for which a rate is effective.
Start Date	The start date of a budget period as reflected in the fiscal period in which the rates apply.  In the KC budget module, this is the date for which a rate becomes effective.
Institute Rate	Institutional rate associated with the rate type, on/off campus and fiscal year.
Applicable Rate	In the budget module this is the rate that is automatically applied to object codes within each budget version, where applicable.  This rate may be different from Institute Rates for a number of reasons (for example, sponsor stipulations).
	System populates data in the “institute rate” and “applicable rate” fields with the current rates from the Unit Hierarchy rate table within the specific section in which the button appears.  (The sync rates button should only appear at the bottom of each section and not at the bottom of the Rates tab.)
	The system resets all values within the “applicable rate” fields to match the rates listed within the “institute rate” fields (whether or not the institute rates are current) within the specific section in which the button appears.  (The sync rates button should only appear at the bottom of each section and not at the bottom of the Rates tab.)