Direct Costs
Direct costs are those costs that are specifically identifiable and which can be charged directly to the contract or grant.
Salary & Benefits
Includes the following information for each employee listed in the budget:
1. Name and Payroll Title of the employee
2. Monthly or annual salary
Include applicable salary escalation rate for academic employeesor estimate salary escalation at 3% annualy for staff.
3. Include applicable Composite Benefit Rate
Calculating Salaries & Benefits
Salary Example
$70,000 (annual salary) x 10% ( effort : your time commitment that will be charged to the project to the project).
Benefits Example
$7,000 (project salary) x 55.3 (Composite Benefit Rate)= $3,871
Supplies & Expenses
Supplies and expenses are generally required based on the scope of the project.
examples include:
• Equipment items that have an acquisition cost of less than 5,000 dollars
• Repair parts or replacement components for equipment items
• Computers and computer software: Computing devices (under $5,000) are an allowable cost provided that the device is essential and allocable, but not solely dedicated, to the performance of the project. The project must not have reasonable access to other devices or equipment that can achieve the same purpose; devices may not be purchased for reasons of convenience or preference.
They should not include miscellaneous or departmental general supplies
Equipment
Estimated cost should also include sales tax, shipping, and assembly, if necessary.
Equipment is:
• appraised for value
• has an acquisition cost of $5,000 or more
• is free-standing or can stand alone
• has a normal useful life expectancy of one year or more
Equipment is not:
• Items that cost less than $5,000
• Repair/replacement components for equipment
• Computers/ computer software
All of these should be placed in the Supplies and Expenses category
Travel
Travel are costs associated with the required travel for each employee working on the project or program.
The following aspects of each trip should be outlined on the budget justification:
• The specific destination, if known, of each trip.
• The purpose of the trip : who? where? why? and what is the purpose?
Miscellaneous Costs
Each of these miscellaneous costs should be listed separately and include sufficient detail.
Miscellaneous costs may include:
• Publication expenses
• Printing costs
• Recharge activities
• Any other costs not included in previous categories
Next
Tools
Academic salary escalation rate
Composite Benefits rates
Indirect Cost F.A.Q's