Developing Your Budget
Develop a Proposal Budget
Detailed budgets are required to be submitted with your proposal in Cayuse so that they can be reviewed and approved by OSPRI. Please note that for opportunities where the sponsor does not require a detailed budget, you still must provide an internal budget breakdown for review and approval.
Direct Costs
Direct costs are costs that are specifically associated with a particular sponsored project or activity or that can be directly assigned to that project or activity with a high degree of accuracy. We will go over Personnel Costs (Salaries/wages, Fringe Benefits), Equipment, Travel, Materials and Supplies, Consultants, Subawards, Other Direct Costs, and Participant Support Costs.
Personnel: Salaries and Wages
Extramural funding agencies/sponsors require information about the amount of effort that senior personnel provide towards a grant. Effort is the amount of time a faculty member works on a grant/agreement/contract. Some sponsors require documentation of effort in months while others require effort as a percentage of time.
- Faculty (Senior Personnel)
Salary is based on the faculty member’s 9 or 12-month institutional contracted salary. To determine summer salary take the 9-month salary and divide by 9. - Graduate Research Assistants
Graduate Research Assistants can be hired per semester, 9 months, or 12 months. UCCS has established a salary range for graduate assistants. - Undergraduate Students
Undergraduate Students are paid hourly and the minimum rate is the standard minimum rate of pay.
Students (GRA and Undergraduate) may work a maximum of 25 hours per week (or maximum of 50 hours per bi-weekly payroll period with no single week exceeding 40 hours) during the student employment defined 20 week fall and 20 week spring semesters (40 hours during the 12 week defined summer semester)
See also Budgeting for GRA Salaries/Stipends
See also Budgeting for Faculty/Staff Salaries
Fringe Benefits
UCCS’s fringe benefit rate consists of health insurance, dental insurance, life insurance, disability insurance, unemployment compensation, worker’s compensation, and vacation and sick payout, etc.
Current Fringe Benefit rates can be found here.
Fringe benefit rates for students are 0%
Fringe benefits (benefits paid by the University) are required to be included in extramural funding requests for salaries and wages.
Equipment
- Federal Sponsors:
On federal budgets, equipment means an article of non-expendable, tangible personal property having a useful life of one year or more and an acquisition cost which equals or exceeds the lesser of the capitalization level established by the organization for financial statement purposes, or $5,000.
- Non-Federal Sponsors:
Other sponsors may have different policies regarding the definition of equipment. Please check the sponsor's policies and instructions. To the extent there is flexibility to use university policy, or if no sponsor policy is identified, use the UCCS policy which means handling the same way as described above for federal sponsors.
Important questions to keep in mind when budgeting for equipment:
- Is the item necessary for the project?
- Does the cost include tax, shipping, transit insurance and/or installation? Maintenance fees?
- Can it be supported in the current space without facility alterations?
- What are the material components and applicable costs?
- Are there any recharge services or supplies required?
Review the Capital Equipment Standard Operating Procedures for UCCS for more information.
Travel
Most Funding sponsors will allow both domestic and international travel. Please review the request for proposal/applications and guidelines carefully to determine if there are restrictions for international travel. Travel costs are the expenses for transportation, lodging, subsistence, and related items incurred by employees who are in travel status on official business of the institution. All travel costs must be per the University of Colorado’s managed travel program, and Sponsor regulations/policies/procedures.
Materials and Supplies
Consumable scientific and technical supplies that are necessary to carry out a sponsored project. Have an acquisition cost of less than $5,000 and/or life expectancy of less than 1 year.
- May include: Chemicals, reagents, glassware, etc.
- General office supplies (computers, pens, paper, toner) ordinarily NOT allowed.
Consultants
An individual or entity whose expertise is temporary, highly specialized, and needed to assist with the project. A consultant is distinguishable from a subaward as a consultant does not develop the objectives of the project and is not responsible for programmatic decisions. A consultant is an independent contractor who is NOT an employee of the University.
Subawards
Subawards are issued when part of the research is being performed by another institution outside of UCCS. Subawards are distinguishable from consultants as they contribute substantively to the scholarly/scientific conduct of the project and have responsibility for programmatic decision making. Further guidance on determining whether a collaborator is a consultant or subaward can be found on the Subcontractor Vs. Contractor form.
When a proposal budget includes funds for subawards, several documents must be obtained from the proposed subrecipient and be routed with the proposal for internal approvals before the proposal is submitted to the sponsor. The following documents are required when including subawards in a proposal budget:
- Statement of Work (should describe the specific activities that will be performed by the collaborative party)
- Budget (should identify the specific items that the funds will cover)
- Budget Justification (should explain why each budget item is needed)
- Biographical sketch and Current/Pending Awards (required for most federal programs)
- Signed Subrecipient Commitment Form – (an internal form that must be signed by the proposed subrecipient’s authorized organizational representative)
It is best to request these documents from your collaborator as soon as possible to allow them time to work with the research administrative office at their institution to get the documents routed for internal approvals.
The final/approved documents will need to be sent from the collaborator’s research administrative office to UCCS/OSPRI. So please notify Sponsored Programs as soon as possible so that communication between both offices can be initiated.
Other Direct Costs
This is a budget category for miscellaneous costs such as tuition, human subject payments, publication costs, facility user fees, participant costs, etc.
Participant Support Costs
Uniform Guidance definition “Direct costs for items such as stipends or subsistence allowance, travel allowance, and registration fees paid to or on behalf of participants or trainees (but not employees) in connection with the conference, or training projects.”
Indirect Costs
Indirect costs are also known as Facilities & Administrative Costs (F&A) or Overhead. These are costs incurred for common or joint purposes and cannot be specifically identified with a particular sponsored project.
F&A rate percentage is applied to the modified total direct cost (MTDC) base amount. MTDC base excludes equipment, capital expenditures, patient care, rental costs, tuition remission, scholarship and fellowships, participant support costs, and a portion of subaward in excess of $25K.
For more information see the UCCS Controller’s Office F&A website.
Budget Justification
The budget justification is the narrative explanation of the budget. It helps the funding agency evaluate the reasonableness of the costs proposed. The justification should explain and defend each budget category in sufficient detail.
Cost Share
Cost sharing is the portion of the total project costs that is contributed by UCCS and/or other non-federal sources but not reimbursed by the sponsor. UCCS does not encourage cost sharing commitments in sponsored research and generally will not commit university resources to a project unless required to do so by the sponsor.
See Cost Sharing Procedures for additional information.
If Cost Sharing is included on a project a Cost Share Addendum Form is required prior to submission.
Additional Resources
- UCCS/Office of Research “Show Me the Money: What to Put in your Grant Budget”
- National Science Foundation: Preparing your Proposal Budget
- National Institutes of Health: Develop Your Budget
Budgeting for GRA Salaries/Stipends Monthly
Making sure that GRA salaries budgeted to sponsored projects are accurate for your unit and for any other units that your PI may be collaborating with and having a well-documented justification will make it much easier to answer any questions that may arise during award/contracting. It will also help to alleviate unexpected post award issues due to incorrect salaries.
Please refer to the UCCS job classifications and pay ranges for student employment.
All student salaries should be entered in the budget template using the 12 month appointment or calendar year column.
Stipends vs. Salaries
GRA stands for Graduate Research Assistant, a student who is supported by external grant funding.
The terms salary and stipend are frequently used interchangeably, but they are quite different.
Stipends = the amount paid to trainees or fellowship recipients to help cover basic costs/or costs of living while they receive career training
Salary = the compensation given to employees for the services provided by them to the university
GRA students are employees, not trainees. Their supervisor/advisor defines the work they will complete for the University. While we do see the terms used interchangeably, the accurate term for sponsored project budgeting is ‘salary’.
Budgeting for GRAs in a project year can be tricky. The following should help in estimating how much of their salary to budget and what we would put into a budget justification.
First, let’s break down a “Year” at the University:
Academic Year (AY) = 9 months. The AY consists of two semesters which are 4.5 months each or 9 months total. Approximately: mid-August – December 31st and January 1st – mid-May
Summer consists of 3 months. Approximately: mid-May – mid-August
Calendar Year (CY) = 12 months, January 1st – December 31st
Second, let’s discuss FTE:
During the AY, GRAs are generally paid 50% FTE (Full Time Equivalent). It is the expectation that the other 50% of their time during the AY is dedicated to their classes and course work. GRAs can also be paid in the summer months, ranging from 1% – 100% FTE.
Third, when is your GRA paid?
You must know if the GRA is paid over the AY or the CY and at what FTE in the summer.
With the above in mind, let’s look at some scenarios:
Scenario #1: Budgeting a GRA paid on a CY for a full year on a project
GRA has a full time equivalent (FTE) salary of $48,000. They are paid 50% FTE through the CY by their department. We want to budget them each year, solely on this project.
The math:
$48,000/12 months = $4,000/month
$4,000/month*50% FTE = $2,000/month
$2,000*4.5*2 semesters = $18,000/AY + $2,000*3 months = $6,000/summer = $24,000
This is how it would look in a budget:
Student’s salary is input or pulled into the budget at $48,000
FTE is figured: 12 months*50% FTE = 6 months; 6 months/12 months = 50% FTE
$48,000*50% = $24,000 Total
Justification would indicate that the student will be working on the project during the CY at 50% FTE or 6 months.
Scenario #2: Budgeting a GRA paid on a AY on a project
GRA has a full time equivalent (FTE) salary of $48,000. They are paid 50% FTE during the AY by their department. We want to budget them to work during the academic year, solely on this project.
The math:
$48,000/12 months = $4,000/month
$4,000/month*50% FTE = $2,000/month
$2,000*4.5 = $9,000/semester or $18,000 in the AY
This is how it would look in a budget:
Student’s salary is input or pulled into the budget at $48,000
FTE is figured: 9 months*50% FTE = 4.5 months; 4.5 months/12 months = 37.5% FTE
$48,000*37.5% = $18,000 Total
Justification would indicate that the student will be working on the project during the AY at 50% FTE or 4.5 months.
Best practice: If you need summer months, calculate summer months using the monthly salary calculated for the AY.
Scenario #3: Budgeting a GRA paid on a AY and Summer project
GRA has a full time equivalent (FTE) salary of $48,000. In their department they are paid 50% during the AY and 100% during the summer months. We want to budget them each year, solely on this project.
The math:
$48,000/12 months = $4,000/month
$4,000/month*50% FTE = $2,000; $4,000*100% FTE = $4,000
$2,000*4.5 = $9,000/semester or $18,000 in the AY
$4,000*3 = $12,000/summer
$30,000 Total
This is how it would look in a budget:
Student’s salary is input or pulled into the budget at $48,000
FTE is figured: 9 months*50% FTE = 4.5 months + 3 months/100% FTE = 3 months; 7.5 months/12 months = 62.5% FTE
$48,000*62.5% = $30,000 Total
Justification would indicate that the student will be working on the project during the AY at 50% FTE and at 100% FTE in the summer or 7.5 months.
Budgeting for Faculty/Staff Salaries
To calculate your base salary, take your annual faculty salary and divide by 9 to get a monthly rate. Calculate a monthly rate from any other permanent appointments, including chair stipends, director stipends, IRB stipends, etc. Add all the monthly rates together to get your total monthly salary.
NOTE: All Salaries need to be at current actual rate of pay. Annual increases for all years have been built into the budget template.
EXAMPLE: 9-month appointment salary calculation
Faculty salary $80,000/9 = $8,889 per month
Director Stipend $10,000/12 = $833 per month
IRB Stipend $9,000/12 = $750 per month
Total: $8,889 + $833 + $750 = $10,472 x 9 = $94,248
EXAMPLE: 12-month appointment salary calculation
Staff salary $75,000/12 = $6,250 per month
Director Stipend $12,000/12 = $1,000 per month
Total: $6,250 + $1,000 = $7,250 x 12 = $87,000
Percent Effort Information
% effort - indicates the percent of effort you are requesting to calculate your salary
Not sure how to convert percent effort to calendar, academic, or summer months? See Effort Calendar Months Conversion Chart
Academic Year: one course offload = see Course Buy-out document
Summer month: X month(s) of 9 month salary = (X/9)*100
EXAMPLE - Percent Effort Calculations
- Academic Year (AY) course offload:
40% teaching designation, 3/2 course load, percent effort: (0.4/5)*100= 8% effort or .72 AY months
- Summer Salary:
1 month of summer salary = 33.33 % effort, 2 months = 66.67%, 3 months = 100%
- Calendar Year (CY) (for 12 month employees):
One month = 8.333% effort or 1 CY month
With the above in mind, let’s look at some scenarios:
Scenario #1: Faculty member will have one course buy out during the AY year and work 1.5 summer months
Faculty salary = $80,000/9 = $8,889 per month
(0.4/5)*100 = 8% effort or .72 AY months = $6,400 OR $8,889 x .72 = 6,400
1.5 month of summer salary = 50% effort OR $8,889 x 1.5 = $13,333
Total effort 2.22 person months = $19,733
(Do not add the effort percentages together)
Scenario #2: Faculty member will have one course buy out during the AY year and work 3 summer months
Faculty salary = $80,000/9 = $8,889 per month
(0.4/5)*100= 8% effort or .72 AY months = $6,400 OR $8,889 x .72 = 6,400
3 months of summer salary = 100 % effort OR $8,889 x 3 = $26,667
Total effort 3.72 person months = $33,067
(Do not add the effort percentages together)
Scenario #3: Staff member will work on the project for 2 Calendar Months
Staff salary = $80,000/12 = $6,666 per month
2 months of CY effort = 16.67% effort OR $13,333
Budgeting for students (GRA’s/Undergraduates) paid hourly
Please refer to the UCCS job classifications and pay ranges for student employment.
To calculate a student base salary, take the hourly salary and multiply by 2080 hours to get an annual rate. All student salaries should be entered in the budget template using the 12 month appointment or calendar year column.
With the above in mind, let’s look at some scenarios:
Scenario #1: Budgeting a student paid for 10 hours a week at $15 hour during the Academic Year only
The math:
Student has a FTE salary of $31,300
100% FTE = $31,200 (2080 hours x $15)
1/4 of a 40-hour week or .25 effort
9 months is an AY: 25% of 9 months = 2.25
2.25 AY months at $15 an hour
$31,300 x .25 = $7,800
Justification would state:
Student will be working 10 hours per week at $15 per hour or 2.25 academic months.
Scenario #2: Budgeting a student paid for 20 hours a week at $18 hour during the Calendar Year
The math:
Student has a FTE salary of $37,440
100% FTE = $37,440 (2080 hours x $18)
1/2 of a 40-hour week or .50 effort
12 months is an CY: 50% of 12 months = 6
6 CY months at $18 an hour
$37,440 x .50 = $18,720
Justification would state:
Student will be working 20 hours per week at $18 per hour or 6 calendar months.
Scenario #3: Budgeting a student paid for 20 hours a week at $25 hour during the Academic Year and 40 hours per week during the summer
The math:
Student has a FTE salary of $52,000
100% FTE = $52,000 (2080 hours x $25)
Academic Year
1/2 of a 40-hour week is .50 effort OR 9 months is an AY: 50% of 9 months = 4.5
Summer
A 40 hour work week is 100 effort OR 3 months of a Summer: 100% of 3 months = 3
Total Calendar Year effort = 4.5 + 3 months = 7.5 months
$52,000 x .625 = $32,500
Justification would state:
Student will be working 20 hours per week during the academic year and 40 hours per week during the summer at $25 per hour or 7.5 calendar months.