Budget Preparation Guide
(Revised 7/1/08)

The following are general guidelines for preparing budgets.  A budget may include items such as salaries, benefits, materials and supplies, travel, publications, consulting, equipment, subcontracts, and indirect (facilities and administration) costs.  The following is a further description of generally used budget categories:

Salaries - When developing a multi-year budget, faculty should estimate a 6% increase each year. 

Faculty Salaries – Summer

• Faculty members are paid on an academic year (i.e., nine month) basis.  Summer salary per month is equal to one-ninth of the academic year salary.  Hence, one month of Summer salary for a faculty member earning $63,000 equals $7,000.  Please note that NSF restricts total Summer salary to 2/9ths of academic year salary (i.e., they pay a maximum of two months of Summer salary.) 

Post-Doctorals/Research Technicians

• Post-docs are typically paid on a 12-month basis.  Normally the whole amount of the salary is included in the proposal budget.  Please estimate a 4% increase each year.

Graduate Students

• Graduate stipend rates are effective from June 1 to May 31.  Rates are determined by Graduate Student Services.  Please estimate a 4% increase each year.

Undergraduate Students

• Undergraduate students are paid on an hourly basis.  If a student qualifies as a work study student then the proposal budget should only include 50% of the total salary amount.  Please estimate a 4% increase each year.

Fringe Benefits

• These include University expenditures for FICA, pension contributions and medical/dental insurance.  Fringe benefit rates by employee category are:

Faculty – Summer                      7.65%

Post-docs/Research Techs      30.2% (Effective as of 7/1/08)

Graduate Students                      No benefits

Undergraduate Students            No benefits

Other Modified Total Direct Costs

• Materials and Supplies

Any consumable item regardless of cost, any item having an acquisition unit cost of less than $5,000, or any item having an anticipated life expectancy of less than one year, is considered a supply item.  Examples of such items include chemicals and glassware.  A reasonable amount should be budgeted for these items; it is not necessary to breakdown the cost of each item, but general categories should be listed (e.g., glassware, chemicals).  This includes lab consumables and other non-equipment type items.

• Travel

Covers trips to professional conferences, or invited talks.  Includes transportation costs, lodging, meals, and fees for conferences.  Each trip should be budgeted separately.

Consultants

• Consultants must be approved by the sponsoring agency in many instances.  The fee and traveling expenses should be included in the budget.  In almost all cases, the consultant will not be someone who is currently an employee of the University.

Subcontracts

• The potential subcontractor must provide a budget (including start/end dates), a Letter of Intent, and a Statement of Work to the Controller’s Office.  If the primary grantor is a Federal or State agency, then additional certifications will be required.  Note:  indirect costs are only charged on the first $25,000 of the subcontract.

Other

• This may include publications, equipment maintenance and postage.

Other Direct Costs (Not Subject to Indirect Cost)

Equipment

• Equipment consists of items costing $5,000 or more with a useful life of at least one year.  Quotes will often be necessary for equipment purchases.  General purpose equipment (office equipment) is not allowable under Federal and State government grants.

Indirect Costs

• Facilities and Administration (F & A) Costs are reimbursement to the University for items such as laboratory and office space, utilities, administrative services (accounting, human resources, sponsored research office, departmental assistants, etc.), custodial services, building and grounds, and library and computer center support.  Indirect cost charges encompass all those costs which are necessary to a research effort, but which cannot be charged directly due to the nature of the cost.   

• Indirect cost percentages are calculated every 3 years based on methodology specified by the Federal government.  These costs are audited, and the Federal government approves the rate.  The approved F&A rate for the period 7/1/08 to 6/30/11 is 65.9% of Modified Total Direct Costs (MTDC).  In other words, the sum of all direct costs less equipment, rental costs of off-site facilities and subcontract amounts in excess of $25,000.

• If more than 50% of the grant activities are to be performed off-campus, then the off-campus rate will apply to the entire grant.  The off-campus rate for the period 7/1/08 to 6/30/11 is 25.1% of MTDC.