List by specific categories of cost e. Explain how estimates were derived.
Participant Support Costs The Principal Investigator the project director has primary responsibility for budget planning in consultation with the Department Chair or director of the research unit.
Budgets for all sponsored proposals are subject to review by the Office of Research and Sponsored Projects. ORSP staff members are available to assist the Principal Investigator in the preparation of the budget.
Budget Format Sponsors often prescribe the budget format that must accompany the proposal, including the specific cost categories that should be identified. The format shown on the sample budget page may be used, however, if one is not specified by the sponsor.
Be sure to check with your department, unit, school or college administrator to determine the best practice.
The budget should be subdivided into periods of month duration unless partial year funding is anticipated. A "starting date" should be specified, since it is essential to ensure accurate budget calculations.
If cost-sharing is included, each budget period should include columns for both "Sponsor" and "University" costs. A budget summary should be included for proposals with multi-year funding.
All budget entries should be rounded to the nearest whole dollar. The number of person months or percent effort to be applied to the project should also be shown.
Total salary costs can be determined by applying the percentage of effort to the current salary rates. An appropriate escalation rate e. While standard percentages are applied to make these calculations, no commitment and no constraint on the rate of increase for a given individual is implied by this procedure.
If a faculty member is working on several sponsored projects, care must be exercised to ensure that no more than percent of effort is committed to the aggregate of all projects and other University responsibilities. Summer salary for faculty with academic year AY appointments can be figured at one-ninth of their institutional base salary for each month of summer effort.
A maximum of two and one-half months may be included for the whole summer. Some sponsors, however, impose specific limitations on summer salaries. The National Science Foundation, for example, usually will not pay for more than two months of summer research at a rate of one-ninth of the AY salary per month.
Technical staff Costs incurred for the same purpose in like circumstances must be treated consistently. For example, salaries of technical staff should be treated as direct costs wherever the work to be undertaken can be identified with a particular sponsored project.
Direct charging of these costs may be accomplished by specifying individual positions within the project budget or through the use of recharge rates or specialized service facilities, as appropriate under the circumstances.
Administrative and clerical support The salaries of administrative and clerical support staff normally should be treated as indirect costs. That is to say, the project must require support services beyond the normal scope necessary for the typical sponsored project i.
Personnel may be hired to work on a sponsored project on an hourly basis for periods up to 12 months. Individuals hired on this basis receive no staff benefits other than Social Security and should be advised accordingly. The Personnel Service Center should be consulted to obtain the appropriate hourly rates for various categories of employment.
Depending on the mix of personnel assigned to the project, the staff benefit rate may show significant variation. If the appointment is for the winter and fall terms, the fringe benefit charges should be budgeted for the full year, since the student is eligible for coverage during the intervening summer even though he or she is not on a GSRA appointment at that time.
The non-resident tuition differential is provided by the University for out-of-state students appointed as GSRAs. The portion of the in-state tuition that remains after the fellowship is applied must be included on the grant as a charge to the sponsor. In-state tuition charges should not be included as part of the GSRA stipend.
The modified total direct cost MTDC base on which the University's indirect cost rate is calculated must exclude tuition charges. Therefore, indirect costs are not recoverable on tuition charges included in proposals for which the indirect cost rate is based on MTDC.
If it can be demonstrated that such supplies are used only in the conduct of the project and not for other purposes and are consumed completely in the course of the project, such items can be included as direct costs.
Laboratory supplies, laboratory notebooks, printer paper for research data and reports, and so forth usually can be justified as consumable supplies. Such items would include University stationary, pens, tablets, file folders, staples, paper clips, etc.
The estimated costs of consumable supplies and materials should be indicated in the proposed budget. It is generally acceptable to sponsors to provide a breakdown of supplies and materials by broad categories as opposed to the detailed listing of individual items. Contracts awarded by industries holding a prime contract with a federal agency, however, may require detailed itemization of supplies.
Equipment Major items of equipment proposed for acquisition should be itemized by descriptive name and estimated cost, and an adequate justification should be provided in the proposal narrative.Budget and Cost Resources; Budget and Cost Resources.
Quick Links. Budget & Cost Resources; The number of person months or percent effort to be applied to the project should also be shown. Total salary costs can be determined by applying the percentage of effort to the current salary rates.
Items normally considered indirect costs. Cost Descriptors Memo As Human Resource Manager for our organization, it is imperative that you understand the current discussions surrounding the company’s budget .
If they are too liberal, they can kill an otherwise viable project by making it look unaffordable. Good cost estimating requires access to a historical cost database. What are cost descriptors as they are applied to budgeting?
How are these cost descriptors effectively used in the budgeting process? Please provide some details and examples in your response.
Public Finance, Ch. 7. Politics and Budgeting: How has politics shaped the federal budget process? To develop a budget that includes indirect costs, the appropriate indirect cost (F&A) rate is applied to a defined direct cost “base.” There are three possible base options: The Modified Total Direct Cost (MTDC) base is used when the federally negotiated rates are applied.
Cost Descriptors Introduction This paper will clarify the various terms used to describe costs, such as fixed, variable, direct, indirect, and sunk, giving examples of each to help a good understanding of current budget discussions.