Developing a Proposal: Budget Development
Budget Development
Budgets include two types of costs, direct and indirect.
Direct Costs are the expenses that will be incurred solely for work on the proposed project. Indirect Costs are those which, because they occur for common or joint purposes, are not readily assignable to any specific project. Examples of costs which fall into these categories are costs for utilities, maintenance, space, equipment use, accounting, purchasing, personnel services, research administration, and library services.
Typical direct cost line items include:
Salaries/Wages
Fringe Benefits
Travel
Equipment
Supplies
Contractual
Subcontracts/Subawards
Other Direct Costs
Participant Support Costs
Faculty
List the key individuals and their amount of time dedicated to the proposed project. According to MnSCU policy, the maximum annual number of days for which University faculty can be paid is 224 (168 contract duty days plus up to 56 extra duty days).
Academic Credit Reassignment rate is calculated by dividing base contract salary by 24 credits.
Extra Duty Day rate is calculated by dividing base contract salary by 168 annual contract duty days.
Standard practices include:
- According to MnSCU policy, compensation on sponsored projects must not exceed an employee’s authorized base rate, regardless of an individual’s established consulting fees, “market standards,” or any other measure of compensation.
- Multi-year projects should incorporate potential salary increases; in the absence of fully-negotiated contract details, a 3% increase is recommended.
Graduate Assistantships
Graduate Assistantships (GA) receive a stipend for working up to 20 hours a week and tuition and fees up to 8 credits per semester. For current GA, tuition, and fee information, please see refer to http://www.stcloudstate.edu/graduatestudies/prospective/funding.asp.
These costs must be paid as defined within Union Contracts and MnSCU guidelines; they include insurance, employer retirement contributions, worker’s compensation, unemployment tax, and federal social security (FICA – applies to all personnel except qualifying enrolled students, for payroll procedures please see http://www.stcloudstate.edu/businessservices/payroll/.)
As each employee has individual circumstances, fringe rate varies greatly from person to person. To verify fringe, please contact the Office of Sponsored Programs at 8-4932 or osp@stcloudstate.edu.
Within the budget narrative, itemize each trip (include transportation costs), number of travel days, registration fees, and per diem.
Separate domestic and international travel as the funding sponsor may have special authorization procedures for travel outside the U.S. and its territories.
All travel is subject to University policy and regulations found at http://www.stcloudstate.edu/businessservices/travel/.
Equipment is defined as movable property with a life expectancy of more than one year, costing $5,000 or more.
For the SCSU purchasing policies, please see http://www.stcloudstate.edu/businessservices/purchasing/manual/default.asp.
Supplies are non-equipment purchases made for projects.
- Materials and supplies—may include laboratory supplies, teaching aids, office supplies, etc.
For the SCSU purchasing policies, please see http://www.stcloudstate.edu/businessservices/purchasing/manual/default.asp.
Consultants or service contracts are personnel or businesses that provide professional services for a fixed period of time and are not State of Minnesota employees.
Information and forms regarding the processing of contracts at SCSU are available at http://www.stcloudstate.edu/businessservices/contracts/.
Subcontracts/Subawards are used to pay other institutions for project services and research performed outside SCSU as the prime contractor or fiscal agent.
When external funds pay for these items, the PI and PI’s department will be responsible for ensuring that they are charged to the grant/contract cost center (including consistent use of the project’s assigned printing/copy codes, phone service/long distance, and other payments or services needed for the project).
- Photocopying, telephone, mailing
- Software
- Publication costs
- Minor equipment and equipment maintenance, rental, and/or lease
- Subject payments
- Space rental, renovation
- Tuition remission
- Other
Participant support costs are those costs paid to (or on behalf of) participants in meetings, conferences, symposia, and workshops, when allowable by the funding agency. These costs may include registration fees, travel allowances, manuals and supplies, and tuition and stipends.
These expenses must be appropriate for the project and follow the standard SCSU business policies which can be found at http://www.stcloudstate.edu/businessservices/default.asp.
