Budget Justification |
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Capital
Projects |
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Cost
Sharing |
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Equipment |
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Facilities
& Administrative Rates |
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In-Kind
Contributions
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Matching
Funds |
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Materials
& Supplies |
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Other
Direct Costs |
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Photocopying |
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Postage |
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Publication
Costs |
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Research
Agreements & Contracts |
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Salaries,
Wages & Fringe Benefits |
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Subcontracts
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Summer Student Stipends |
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| Telephone |
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| Travel
& Per Diem |
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| Budget Justification | ||
| The need for budgeted items should be included in the text of the proposal unless sponsor guidelines indicate otherwise. Actual budget figures should be provided on a separate sheet or on agency forms and should always include a budget justification page. The justification should correspond with the budget page(s) and should provide detailed information on the need for items listed in the budget. Budget worksheets should be saved in case detailed calculations are requested by the sponsor during the review process. Note: The Grants and Contracts Office requires a detailed budget with explanation pages for presubmission review. | ||
| Capital Projects | ||
| Formal estimates for equipment to be constructed on campus or for alterations to facilities must be included in the proposed budget. Principal investigators should send a request to the director of the Physical Plant requesting a cost estimate for the work to be done. The request should outline the scope of the work, the name of the project, the funding agency and proposal deadline. A copy of the estimate of costs should be sent to the Grants and Contracts Office prior to proposal submission. | ||
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| Cost Sharing | ||
| Institutional
cost-sharing is one way to demonstrate to the sponsor the College’s commitment
to the proposed project. Usually, use of dedicated space or equipment,
or consultant time is accepted as cost-sharing. Faculty time donated to
the project is also acceptable. When donated time is written in a cost-sharing,
the corresponding indirect costs and fringe benefits applied to the salary
should be included. Federal regulations require that cost-sharing must
be both documented and auditable. Proposal requiring cost-sharing must receive pre-submission institutional approval. The Grants Office works with the Development Office, the Vice President for Academic Affairs and the President to determine potential sources of support. In order to maintain more stringent oversight of grant-related institutional cost-sharing, the Business Services Office and the Office of Grants and Contracts require a general ledger account number on the organizational prior approval form (gray OPAS) for each grant application. In the case of multi-year commitments, departments may spread their cost-share over the duration of the grant as long as the departmental commitment is met by the grant expiration date. Single year commitments should be transferred into the grant account at the time of award notification. Principal Investigators wishing to submit proposals to the National Science Foundation should review NSF's new cost-share policy dated 6/11/99. http://www.nsf.gov/pubs/1999/iin124/iin124.htm |
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| Equipment | ||
| Budgets
should reflect "educational discounts" when possible. For detailed information
on equipment purchases see planning considerations: http://www2.davidson.edu/academics/gc/prodev_plan.asp#gcplan_equip
The federal government’s definition of "equipment" is "any item with an acquisition cost of $5000 or more and a useful life of more than one year." Equipment costing less than $5000 should be listed in the "other" section of federal budget application forms. |
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| Facilities & Administrative Rates | ||
| Facilities
and Administrative expenditures are related to a particular research project
but are not easily assigned to a particular budget category. Facilities
and administrative costs may include costs incurred by the college for
utilities, building space, and administrative services. Where allowed,
project budgets should include the approved negotiated F&A rate. Private
contractual arrangements and other agreements may utilize a different
rate. In all cases, the maximum amount allowable should be charged to
the grant. On-campus: 60% of salaries/wages excluding fringe benefits Off-campus: 21% of salaries/wages excluding fringe benefits Predetermined rate with the Department of Health and Human Services (7-1-2004 to 6-30-2008 dated September 20, 2004). The waiver of F&A is inconsistent with college policy. When extenuating circumstances dictate, modified F&A costs may be employed by the director of Grants and Contracts. It is extremely important, however, for grant proposals to include the maximum F&A reimbursement so that budgets for academic programs and general operating funds are not depleted by the cost of research projects. If the sponsor limits F&A costs, the reduction should appear in the budget as a college contribution to the project. |
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| In-Kind Contributions | ||
| In-kind contributions are goods or services with a monetary value that are donated towards the cost of a project. Examples include the value of free use of vehicles, equipment, or facilities; the services of an office such as public relations; and free printing or publicity. Sponsor guidelines will usually outline the allowability of in-kind contributions toward the cost of a project. | ||
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| Matching Funds | ||
| Sponsors
sometimes require that the institution provide a cash percentage of the
total costs of the proposed research project. In some cases, the institution
may be required to match or even double the amount requested from the
sponsor; percentages vary according to sponsor guidelines. Matching funds
may be requested in the form of an institutional contribution or in the
form of external funding from another sponsor. While Davidson College is committed to supporting research by providing matching funds when required, financial obligations on the part of the College are not automatic. Principal investigators and project directors are encouraged to consult the Office of Grants and Contracts as soon as possible during he proposal/budget development stage in order to provide sufficient time for review of matching fund requests. |
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| Materials & Supplies | ||
| Indicate the types of expendable office or laboratory supplies (including research animals) and materials required along with estimated shipping charges. Refer to sponsor guidelines when calculating inflation rates for supplies; if no guidelines are provided, a general provision of three percent is appropriate. | ||
| Other Direct Costs | ||
| Principal investigators should contact the Grants Office to discuss other allowable direct costs that may be charged to the grant. "Miscellaneous" or "contingency" categories are not appropriate and should not be listed in the budget. | ||
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| Photocopying | ||
| Budget $.05 per copy | ||
| Postage | ||
| Estimate costs based on current postage rates. Contact Jane Biggerstaff (x2239) in Central Services for bulk rate mailing information. | ||
| Publication Costs | ||
| Costs associated with page charges, graphics, reprints or other publication items specified in the proposal may be charged to the grant. Note that journal page charges are often billed well after the project has been completed so that time extensions may be required to pay these charges before project close-out. | ||
| Research Agreements & Contracts | ||
| Research Agreements and Contracts are approved of and/or prepared by the director of Grants and Contracts. Faculty may not negotiate research agreements on behalf of Davidson College. | ||
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| Salaries, Wages & Fringe Benefits | ||
| For detailed
information on employee classifications see: http://www2.davidson.edu/administration/hr/hr_empguide/empguide-policies.asp Faculty: Faculty salaries are based on a nine-month period paid over twelve months - calculations should reflect the nine-month amount. Salary for summer research should be calculated as 1/9 x contract salary x number of months. (Note the NSF restricts summer salary to 2/9 of academic year salary). For projects occurring in the current fiscal year, use the current salary figure for each individual. For multi-year projects, calculate a five percent projected increase for each additional year. Salaries used as part of an institutional "match" should include fringe benefits and indirect costs. Fringe benefits are treated as direct costs and include FICA, retirement, health and life insurance, worker’s compensation and unemployment compensation. The following formula is used to calculate additional fringe benefit costs for Davidson College faculty: 30% of salaries/wages for salary replacement during the academic year OR 7.65% FICA for work conducted during summer months and 8.5% retirement (for projects involving more than one pay period during the summer) Support Staff (hourly): Wages for support staff are calculated using an hourly rate. If an employee of Davidson College is hired to work on a grant and the combination of regular work hours plus grant work hours exceed 40 hours during any work week, that employee must be paid time and a half for all hours worked beyond the standard 40 hour work week. FICA of 7.65% should be applied to support staff wages. For multi-year projects, calculate a four percent projected increase for each additional fiscal year. Please contact the Human Resources office for support staff level assignments and wage scales. Research Assistants/Technicians (salaried) Research assistants and technicians may be employed as full- or part-time temporary or time-limited employees and must enter a formal employment agreement with the College. Fringe benefits of 25% of salaries should be applied to full-time research assistant and technician positions of three years or less. If it is expected that the employee will work more than 12 months, the position must be classified as time-limited. For multi-year projects, calculate a four percent projected increase for each additional fiscal year. The creation of new positions requires the review and approval of the Human Resources office for the appropriate level assignment and pay scale. Note: All positions for time-limited positions must be formally advertised through Human Resources for a minimum of two weeks. Student Workers: Student workers should be enrolled during the semester during which they are employed, otherwise; they should be treated as temporary employees. The current minimum wage rate is $5.15 per hour. Principal Investigators are encouraged to pay students a higher rate based on level of responsibility and job knowledge. FICA of 7.65% should be applied to student wages for summer work only. Consultants: Consultants provide advice or assistance for a fixed amount, including expenses, which can be charged as a direct cost to the grant. Fees will normally depend on the professional level of the consultant; however, principal investigators and project directors should check restrictions established by each funding agency, especially federal agencies, regarding outside consultant fees. Federal rates change periodically and individuals should consult the Grants Office for the current federal rate. Proposals should include the name of the consultant, the proposed number of days of work, a curriculum vita, a justification of the selection and use of each consultant and a letter from each consultant indicating their willingness to work on the proposed project. Note: An accounts payable voucher must be submitted to pay consultants. Note: Formulas for salary and wage increases are a means for estimating budgetary requirements and implies neither commitment nor constraint on the institutional rate of increase to an individual. |
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| Subcontracts | ||
| To justify this expenditure, provide a copy of the subcontractor’s formal proposal, a work statement, a detailed budget, and a cover letter with original signature (s) from the subcontracting agency. All subcontracts must be reviewed and approved by the director of Grants and Contracts prior to proposal submission. | ||
| Telephone | ||
| Contact Information Technology Services (ITS), x2500, for installation and monthly rate charges | ||
| Travel & Per Diem | ||
| Mileage
is calculated at 44.5 cents per mile for private vehicle use. (See detailed
information
on college travel policies.) Travel estimates should be adjusted to accommodate
fare increases and inflation when projecting travel one or two years in
advance. Principal investigators/project directors who pay for travel
out of federally funded grants must (with a few exceptions) use domestic
carriers for foreign travel. Per Diem: When no guidelines are provided, costs should reflect sensible estimates of food and lodging needs. Budgets for travel abroad should take value-added hotel and food taxes into account. |
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| Summer Student Stipends | ||
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Under Treasury Regulation Section 1.119-1, the payments Davidson College makes to students for grant-related work, including salary/stipends, housing and meals, are taxable to the student, and are subject to Federal, State and FICA/MDCR (FICA and Medicare) withholding from the student. In addition, unless separately funded by the grant, the College’s matching contribution for FICA/MDCR of 7.65 percent must be deducted from the total compensation amount per student before setting the amount available for salary/stipend, housing and meals. |
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| Example (actual
amounts for housing and meals may differ): Grant A has $3,000 per student for summer compensation and FICA/MDCR is not separately funded. |
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$3,000.00 |
Total compensation amount MINUS | |
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(213.19) |
FICA/MDCR withholding ($3,000 minus [$3,000 divided by 1.0765]) | |
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$2,786.81 |
Net amount for student wages/stipend, housing and meals | |
| Note: In order to simplify the administration of the grants, pro-rata costs for on-campus housing may be deducted from the student’s pay. Please contact Rene Baker to establish this deduction. Also, students should be “on their own” for purchasing meals, though the Principal Investigator may arrange for favorable on-campus meal rates. | ||
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