GRANTS TOOLBOX:
Proposal Elements: The Budget

The Principal Investigator's best estimate of the financial support required to carry out the work should be presented in detail in the proposed budget. Be as realistic as possible. A reasonably detailed explanation of budget categories should be provided. Key each line item in your budget to a page in the proposal and be sure to list each cost you mention in the text in your budget explanation.

In undertaking any research project, whether it is sponsored by the Federal government or by some other organization, there are two components of costs -- those directly attributable to the specific project and those incurred for the general support and management of research. General support and management costs are usually referred to as indirect costs, and they are accounted for and controlled centrally. These two classes of expenditures are equally necessary to achieve the research objectives, and each type of cost is as true a cost as the other. The University becomes committed to incurring costs in both categories when it assumes stewardship of a sponsored research project. All budgets must be approved by the Academic Vice President through the Dean of The Graduate School.

Some funders may require the institution to contribute to the budget. The cost share may be actual funds or as in-kind contributions.

In addition to a detailed budget broken down by category (e.g., personnel, travel, equipment) and dollar amount, a brief budget narrative should be provided listing explanations for the budget categories.

Direct Costs:

	Salaries and Wages:
	List professional personnel first, staff personnel second, students, casual or part-time workers third. Professional and staff salary figures should include a percentage of effort figure to reflect the estimated amount of time each person will devote to the proposed project. In the case of part-time, non-professional personnel, the number of hours may be used in the estimate. Student help should be included in this category. Consultants should not be included here, but rather in a separate category. Care should be taken to anticipate and provide for annual merit and promotional rate increases. Generally, departmental secretarial and administrative support personnel are not included, but any individual specifically assigned to a project should be listed at the appropriate level of participation.
	Fringe Benefits:
	Fringe benefits, expressed as a percentage of salary, include such items as Social Security, retirement programs, health insurance, life insurance, and disability insurance. Often these become part of indirect costs. Please see the Faculty Grantsperson on how to determine these costs. See our information page for current fringe benefit rates.
	Supplies:
	Identify as specifically as possible the types of consumable supplies needed for the proposed project.
	Equipment:
	Include the costs of specific equipment acquired for use in the proposed project.
	Computer Use:
	Include costs for computer time and necessary supporting services.
	Travel Costs:
	Include travel costs directly related to proposal goals. Local and out-of-town travel should be estimated and specified.
	Miscellaneous:
	Where supporting funding agency regulations permit, the budget should include appropriate amounts for miscellaneous costs such as telephone, fax, computer time, postage and freight charges, equipment rental and maintenance and reference books specifically related to the project.

Indirect Costs Also known as facilities and administration (F&A) and overhead. Some costs can be identified easily and can be charged to the grant as direct costs. Other costs cannot be directly charged as they result from shared services. Indirect costs are paid to the host institution in return for its rendering certain services to the project. These costs are calculated in different ways depending upon the particular grant. Some funders do not allow any indirect costs. The following categories are considered part of the indirect costs and is not dependent on whether or not a specific grant actually uses each of the categories:

	General Administration and General Expense: accounting, payroll, purchasing services, administrative offices.
	Sponsored Project Administration: personnel and other costs of office whose responsibility is the administration of sponsored projects.
	Plant Operation and Maintenance: value of facilities, utilities, janitorial services, routine maintenance and repairs.
	Library Expenses: books, on-line services, staff.
	Departmental Administration Expenses: administrative costs at the college, school and departmental levels.
	Depreciation or Use Allowance: for building and equipment, excluding those paid for by the Federal government.
	Student Administration and Services: deans of students office, admissions office, and registrar's office

John Carroll's current federal indirect cost rate can be found on our information page.

Cost Share Agencies may require the University to demonstrate its participation in the total costs of any project supported by a research grant. This should be shown as part of the budget presentation as in-kind or cost sharing services. In-kind contributions from the university are assigned a monetary value and can include items such as time worked on the project, postage for survey research, catering, or dorm fees.

See also: Budget Planning