Pre-Award Online Tutorial

Table of Contents

1. Welcome and Introduction
2. Module 1: Introduction to Sponsored Funding
3. Module 2: Funding Tools
4. Module 3: Proposal Development
   1. Pre Test
   2. Common Flaws
   3. Abstract/Executive Summary
   4. Introduction
   5. Problem Statement
   6. Goals and Objectives
   7. Work Plan
   8. Evaluation Plan
   9. Developing Your Budget
   10. Common Budget Categories
   11. Budget Justification
   12. Other Relevant Information
   13. Post Test
   14. Frequently Asked Questions
   15. Glossary
   16. Resources
5. Module 4: Submitting Your Application

Common Budget Categories

The budget is an itemization of all of the allowable costs necessary to support the project as described in the proposal narrative. Generally, the budget is divided into three main sections: direct costs, indirect costs (now referred to as facilities and administrative-F&A-costs), and cost share, matching, and in-kind commitments. Additionally, each section is subdivided into the following common budget categories:

Direct Costs

Salaries and Wages (or Personnel) should be displayed in the line-item budget by listing the personnel, position title, the percentage or portion of time and effort each will devote to the project, the rate of pay, and the total salary amount being charged to the project and being paid through either grant funds or cost-share/matching funds. For example, if a full-time faculty member is earning $50,000 annually and is planning to commit one-quarter time and effort on the project, the budget will reflect: Dr. B., Project Director @ $50,000 annual salary x 25% FTE=$12,500

Fringe benefits for full and part-time personnel are currently 23.4% of salary and wages, and 8.1% of salary and wages for students and adjuncts. The fringe benefits rate is applied to all salaries requested for personnel in the proposed budget, in direct proportion to the percentage of effort assigned to the project. For example, if the PI/PD's annual salary is $60,000 and s/he works on the grant 50% FTE, the fringe benefits charged to the grant budget would be $6,780 ($30,000 x 23.1%).

Equipment is classified, according to federal regulations, as an item only when it meets allof the following criteria:

- a per unit acquisition cost of $5,000 or more;

- an expected service life of two years or more;

- the item is not expended or consumed in research; and

- the item is complete in itself and retains its identity as a separate item.

Supplies, materials, and equipment required for the project should be itemized, with per unit costs and total costs by line items. These include such things as office supplies (i.e., paper, pens, etc.), software, teaching aids, laboratory items, etc. Any unusual items or large amounts of an item should be thoroughly described and justified in the budget narrative.

Food is an unallowable expense on most federal awards unless the award is for a conference or training grant. Entertainment expenses such as alcohol, tickets to shows, etc., are always unallowable.

Travel expenses should be broken down according to transportation costs, lodging, meals, registration fees, and other travel-related expenses.

Participant/patient costs usually include the number of participants/patients; the estimated cost per day/per participant/patient; the expected number of visits/tests/trials; and the estimated cost per visit/test/treatment.

A subcontract occurs if some part of the proposed project must be performed by some other entity outside of the university, the Office of Grants and Contracts will develop and issue a subcontract for that work.

Consultants may be included in the project budget when the project calls for expertise of a well defined nature for a fixed period of time. Consultants are NOT employees of the university and should only be included in the proposal when the expertise required is not available within the institution's permanent staff.

Other direct costs which do not fit into any other category should be listed under other direct costs. Examples of these costs might include off-campus space rental, equipment maintenance, payments to human subjects, shipping and postage, local and long distance telephone charges, and printing and publication costs.

Indirect Costs

Facilities and administrative (F&A) rates, sometimes referred to as indirect costs or overhead, are those costs, as described above, which cannot be readily identified with a specific project or program. NSU negotiates the F&A rates with its cognizant agency, the Department of Health and Human Services (DHHS). These rates are effective for a period of three years. F&A rates are applied to salaries and wages to determine the cost recoverable under grants and contracts. No F&A rates are calculated on students on grants submitted by the Oceanographic Center.

Cost Sharing, Matching, and In-kind Commitments

Cost sharing is the sharing of costs on a grant by an organization, which is more than a token amount and not paid by the awarding agency.

Matching costs are the value of cash contributions made to a project by non-federal third parties.

In-kind contributions are the value of non-cash contributions made by non-federal third parties, which may include volunteer services, supplies, equipment, buildings, land, and property.