The proposal budget is the financial plan of action that reflects the costs required to perform the proposed work statement.  The following information has been prepared to help you develop your budget plan.  See the links at left for specific information on Salaries, Fringe Benefits, Indirect Costs, and other budget categories.

It is important to demonstrate that the budget proposed is reasonable.  A budget justification should be submitted in order to allow each budget item to be explained relative to the proposed research.  The specifics of the sponsoring agency’s budgetary guidelines should be followed carefully.  Budgets should be prepared for the entire proposed project. Both direct and indirect costs should be identified in the budget. The following categories are generally included in the preparation of a proposal budget.

Sponsor budget requirements vary considerably, depending on the sponsor and type of proposal. Cost principles specified in the Office of Management and Budget (OMB) Uniform Grant Guidance are used to describe the cost principles for all sponsored agreements at the University of Connecticut. The tests for appropriateness under these principles are:

• Reasonableness – A cost may be considered reasonable if the nature of the expenditure and the amount involved reflects the action that a prudent person would take under the circumstances.
• Allocability – A cost is allocable if it is beneficial to the project.
• Allowability – Costs must be allowed in accordance with the Uniform Grant Guidance and the terms of the sponsored agreement.
• Consistency – Costs incurred for the same purpose in like circumstances must be treated consistently as either direct or indirect costs, and the method used to estimate, record, and report costs must be consistent as well.  See the table below for a description of how costs should be treated.

Budget Categories

Salaries and Wages

List all personnel, including the names, roles, how many months, or the percent of effort that will be devoted to the project. Information on salaries, rates, and recommended escalation can be found on the Salaries page (linked at left).  Additional information about salary classifications and compensation can be found at the Human Resources or Payroll websites.  The NIH Guidelines for Salary Limitation on grants should be adhered to when calculating faculty salaries for NIH submissions.

Fringe Benefits

The fringe benefit rates should reflect the current rate schedule for the employment category being proposed. Information on fringe benefit rates can be found on the Fringe Benefits page (linked at left)

Other Direct Costs

The Other Direct Costs (or Other Costs) budget category includes those costs that are not appropriately included in other cost categories, or as required by the sponsor’s budget form. Generally, such costs include animal per diem costs (the cost of animals should be listed as a supply), human subject honoraria, publication charges, subawards, computer time, maintenance and other service agreements/charges, space rental, consultants, alterations or renovations, equipment rental, etc. Please see the SPS Other Direct Costs page for more information on many of these categories.

Indirect Costs

Direct costs are those costs that can be specifically identified with a particular sponsored activity, and can be assigned to an activity relatively easily and with a high degree of accuracy. Indirect costs are those costs that are incurred for common or joint objectives and therefore cannot be identified readily and specifically with a particular sponsored project. The recovery of indirect costs reimburses UConn for actual costs incurred by support functions to sponsored research programs at the University.  In addition, a portion of this money from research grants goes to the Research Council to be used for research incentive funds, grant programs for faculty and graduate students, and to meet cost sharing requirements for large equipment purchases. The University negotiates its rate, which is based on Modified Total Direct Costs (MTDC), with the Department of Health & Human Services.  UConn’s negotiated rate agreement can be found under Frequently Requested Information, along with the name, address, and point  of our Cognizant Agency. Additional information about the application of the indirect cost rate can be found on the SPS Indirect Costs page.

It is the policy of the University to collect full indirect costs at the federally negotiated rates from all funding sources whenever possible.  Occasionally, sponsors may specify an indirect cost policy inconsistent with the University’s negotiated rate, and budgets should be prepared using the sponsor rate. Only the Office of the Vice President for Research has the authority to accept a reimbursement rate other than the negotiated rate.

Consistent Treatment

Costs must be treated consistently.  Consistent treatment means that similar costs must be treated uniformly in the same manner as either a direct cost or as indirect costs.  Certain types of costs, such as the salaries of administrative and clerical staff, office supplies, and postage are normally treated as indirect costs; therefore, the same types of costs cannot be charged directly to federally sponsored agreements.

The OVPR SPS reviews the appropriateness of costs to determine if they qualify as direct costs. Exceptions (allowing costs listed in the Indirect Cost column as direct costs) are rare and are reviewed on a case-by- case basis by the OVPR SPS. Exceptions may occur when:

• The program is a large complex project such as a center project that involves assembling and managing teams of investigators from a large number of institutions or units.
• The project involves extensive data collection, analysis and entry, surveying, tabulation, cataloging, searching literature, or reporting.
• The project requires coordinating travel and meeting arrangements for a large number of program participants, patients or subjects; or for conferences or seminars.
• A project where the principal focus is the preparation and production of manuals, large reports, books or monographs (excluding routine progress and technical reports).
• The project is off campus and does not have access to normal department administrative services.

Nonrecoverable (Unallowable) Costs