APPENDIX E

Proposal Budgeting Information Table

This table provides helpful hints, rules, and information for preparing proposal budgets.

DIRECT COSTS: Direct Costs are costs that can be specifically identified with a particular sponsored project. Direct Costs may include salaries, fringe benefits, equipment, travel, subawards, tuition (on training grants), and operations expenses such as materials and supplies, consultants, photocopying/printing, and long distance telephone toll charges.

NOTE: Due to provisions in the federal costing circular, OMB OMB CIRCULAR A-21, if requesting direct charges for salaries of administrative and clerical staff, office supplies, postage, local telephone costs and memberships, a justification for direct charging should be included in the proposal budget. On NIH modular grants programs, a special internal budget form has been prepared to show these costs.
SALARIES AND WAGES FRINGE BENEFITS Fiscal Year 2005 (effective 9/1/04)
Faculty/Staff 30% of salary Covers FICA, health insurance, unemployment and worker's compensation, retirement, etc.
Postdoctoral Employees
Full time
20 hrs/wk or under

30% of salary
10% of salary

Same as faculty/staff
Covers statutory benefits (FICA, etc.)
Graduate Students
over 20 hrs/wk
20 hrs/wk or under

15% of salary
10% of salary

Same as part-time faculty/staff
Covers statutory benefits (FICA, etc.)
Undergraduate Students
over 20 hrs/wk
20 hrs/wk or under

15% of salary
10% of salary

Same as part-time faculty/staff
Covers statutory benefits (FICA, etc.)
Temporary Employees 10% of salary Covers statutory benefits (FICA, etc.)

EQUIPMENT
Separately list any equipment purchase (defined as having a useful life of at least one year and an acquisition cost of $5,000 or more per unit). Equipment leases should be listed in operations costs. Equipment requests are strengthened by including the basis of the cost of proposed equipment, i.e., telephone quotes, vendor catalog prices or bids.

TRAVEL
Follow Health Science Center policies listed in the Handbook of Operating Procedures, Section 6.2 - Travel Policies and Procedures for travel expenses. Transportation equals the estimated round-trip airfare at lowest possible fares or $.35 per mile if driving is appropriate. Per diem costs (lodging, meals, and incidentals) should be estimated using the rates provided in the HSC Handbook of Operating Procedures, Section 6.2.22 - Meals and Lodging Expenses. Proposed travel should include conference name (if applicable), location, purpose and cost. Foreign travel should be budgeted separately and may require additional prior written approval from sponsor.

MAINTENANCE AND OPERATIONS
Maintenance and Operations costs include but are not limited to:
Category Cost Estimation Basis
Expendable materials and supplies Best estimate: check catalogs and historical records
Publication charges Use historical estimate; add more for color
Copy services Best estimate: $.04/copy
Long distance telephone, fax, network charges Best estimate
Postage/express mail Best estimate: $0.37 for 1 oz. Letter; $0.23 postcard by U. S. Post Office
Office supplies Best estimate: check catalogs and historical records
Equipment maintenance Best estimate: check historical records or contact Purchasing (x7-6032)
Consultants Actual daily rate and expenses with proper documentation
Subawards Authorized budget or written estimate/quotation on subawardee letterhead with authorized signature - refer to sponsor guidelines
Renovation Contact Health Science Center Facilities Department (x7-2880) for estimate
Lab animal costs Contact Laboratory for Animal Resources (x7-6166) for per diem and purchase rates

TUITION AND FEES
Calculate for training grants only; current tuition and fee schedules can be found at HSC home page under student services.

F&A OR INDIRECT COSTS: F&A costs are costs that cannot be specifically identified with a sponsored project, but which benefit that project (e.g., purchasing utilities, payroll, facilities, department administration).

F&A (INDIRECT COST) CALCULATION
When full F&A are allowable, apply the appropriate F&A rate to the modified total direct costs (MTDC) base. Items included in the MTDC base are:
ssalaries and wages scopy services scomputer software spublication/page charges
sfringe benefits sfirst $25000 of subcontracts smaterials and lab supplies sconsultant services
stravel scommunications costs (telephone and mailing) soffice supplies sany other costs not listed below

Items not in the MTDC base are: (exclude these from base calculation)

  • Equipment
  • Capital expenditures (construction and renovation)
  • Charges for patient care (e.g., tests, bed costs)
  • Tuition remission (not allowable on Health Science Center research projects)
  • Rental costs of off-site facilities
  • Scholarships and fellowships (not allowable on research projects)
  • Subaward amounts in excess of $25,000
  • If the rate used or prescribed by the sponsor is less than the Health Science Center's negotiated rate, F&A may be calculated on total direct costs or some other basis instead of modified total direct costs. Contact Grants Management for assistance.

    Indirect Cost Rates
    These rates were negotiated with the Department of Health and Human Services; date of agreement is July 12, 2004. These rates are classified as predetermined.
    Applicable to: Location Effective 9/1/04 until amended
    Research On-campus 46.0% MTDC
      Off-campus* 24.5% MTDC
    Instruction On-campus 38.0% MTDC
    Industry-Sponsored Research,
    Clinical Trials, SBIR/STTR
    Phase I
    Any 20% TDC**

    *Off-campus is defined as any facilities not owned by the Health Science Center and to which rent is directly allocated to the projects. Agreements should use only one F&A cost rate; if more than 50% is performed off-campus, the off-campus rate applies to the entire project.
    **No modifiers are to be used in calculating this rate with the possible exception of bed-costs.