General Information for Preparing Proposal Budgets
-
General Information
Topics Covered
- Definition of a Budget
- Project Costs
- Budgeting Facilities and Administrative Costs as Direct Costs
- Cost Estimation
- Escalation Factors
- Cost Assignment and Allocation
- Documentation
Definition of a Budget
A categorical list of anticipated project costs that represent the Principal Investigator's best estimate of the funds needed to support the work described in a proposal. A budget consists of all direct costs, facilities and administrative costs, and cost sharing commitments proposed.
Project Costs
All proposed costs must clearly benefit the project and must be allowable under OMB Circular A-21, sponsor policies, and University policies.
Budgeting Facilities and Administrative Costs as Direct Costs
A facilities and administrative cost may be budgeted as a direct cost only when special circumstances exist that would necessitate or require treating the cost as a direct cost. In such a case, the budget justification must explain the special circumstances and the Principal Investigator and department are responsible for maintaining and retaining all appropriate documation that evidence such special circumstances.
Cost Estimation
Use generally accepted cost estimation methods such as catalog prices, price quotations, or historical or current costs and appropriately escalate costs over time.
Escalation Factors
Use inflationary or escalation factors as appropriate.
- The current escalation rate for non-personnel cost categories is 3% (excluding vivaria sales and service rates). Effective November 1, 2012, please use a 10% annual escalation rate for vivaria sales and services.
- Personnel costs should be escalated in accordance with guidance provided on the Quick Reference page.
Cost Assignment and Allocation
When developing a budget, it is necessary to estimate how the project will incur costs during each phase or year. The budget must itemize costs by major cost category for each project year as required by the sponsor's guidelines.
When assigning costs to proposal budget categories, use UCR's financial system budget categories, unless a sponsor's proposal budget form or policies require more detailed categorization.
As appropriate, describe the details of the costs proposed within each major cost category. Use general descriptions that can be tracked and reported through UCR's financial system. The budget justification should disclose the details that make up each cost category, and may include more detailed information regarding the items in each general description, as well as explain the method used to estimate these costs.
Documentation
The principal investigator and/or department must maintain supporting documentation related to project cost estimates (on a proposal-by-proposal basis) for negotiation and audit purposes. This documentation should clearly describe or demonstrate the processes, methods and data used to estimate project costs.
Examples of supporting documentation include:
- Current University salary and wage scales
- Projected range adjustments (cost of living increases) and merit increases for personnel costs and the periods to which they apply
- Source of the benefit rate used (composite rate or actual rate)
- Vendor quotes
- Catalog prices
- Historical records indicating the supply/material costs incurred for like projects
Guidance by Budget Category
-
Salaries and Wages
Salary and Wages
Topics Included
- Project Personnel
- Calculating Salaries
- Calculating Merit Increases and Range Adjustments
- Summer Salaries for Nine-Month Appointees
- Cost Sharing Personnel Costs
- Salary Cap
- Employee Salary Range Projections
Project Personnel
When providing information about project personnel, follow the sponsor's guidelines and University policies.
List only UCR project personnel in this category. Salary and wage costs associated with non-UCR personnel must be treated either as consultant costs or as a subcontract. Project personnel usually includes faculty, technicians, post-docs, graduate students and other personnel who are essential to perform the project.
Calculating Salaries
Calculate all project personnel costs using actual salaries. If the individual who will fill a position is not known, calculate the salary by using the mid-point salary from the appropriate UCR salary scale.
Never express personnel costs or effort in terms of hours, except for student, casual and per diem employees who are paid by the hour.
Calculating Merit Increases and Range Adjustments
Project anticipated merit increases and range adjustments as appropriate for each position in each budget period. There is a six- to nine-month delay between proposal submission and award, so remember to calculate personnel costs using current actual salaries plus any merit or cost of living increases anticipated between proposal submission and the proposed start date.
Summer Salaries for Nine-Month Appointees
List summer salary for nine-month instruction and research appointees using one-ninth, two-ninths or three-ninths of the base salary or apporpirate fractions thereof (e.g., half of a summer month) to calculate the amount requested. Some sponsors (e.g., NSF) restrict summer salary compensation to no more than two months.
Cost Sharing Personnel Costs
Cost sharing that is offered and quantified anywhere in a proposal will become a legally binding obligation upon UCR if the sponsor makes an award in response to the proposal. This obligation includes the requirement to track and report the costs that UCR shared to fulfill its commitment. Please note the University does not cost share on projects proposed to, or funded by, for-profit sponsors.
Cost sharing faculty (nine-month instruction and research appointee) salaries associated with effort contributed during the academic year should only occur, or be offered, when a governmental or non-profit sponsor requires that the commitment of such effort be treated as cost sharing. If salaries of faculty or other project personnel will be offered as cost sharing, do so by listing the percent of effort to be funded by the sponsor as a single budget line item and the level of effort to be cost shared by the University as a different line item.
Example: In response to sponsor mandated cost sharing, a principal investigator will contribute 10% of her effort during the academic year to perform the proposed research. The first line of the personnel budget should indicate the 10% effort and request $0 for salary and $0 for associated fringe benefits. The next line in the personnel budget should be used to request an appropriate amount for the principal investigator's summer salary (commensurate with the level of effort to be devoted to the project during the summer period).
Salary Rate Cap
If an individual's salary rate exceeds a salary rate cap imposed by sponsor policy (e.g., NIH salary rate cap), list the institutional base salary (negotiated salary) in the budget, but calculate salary costs using the maximum salary rate allowed under the cap. This methodology must be disclosed in the budget justification. (Note: The amount of salary in excess of the salary rate cap is an unallowable cost and is not eligible for University cost sharing.)
Employee Salary Range Projections
The table in the Proposal Preparations - Salaries tab shows projected salary increases and should be used in calculating all contract and grant proposal budgets.
-
Administrative/Clerical Salaries - Special Guidance
Administrative/Clerical Salaries - Special Guidance
Topics Included
- Standard Treatment
- Examples of Administrative/Clerical Activities
- Treatment of Administrative/Clerical Salaries in Special Circumstances
- Major Project Criteria
- Examples of Major Projects
- Questions to Address When Justifying Administrative/Clerical Salaries
Standard Treatment
In accordance with OMB Circular A-21 and University policy, administrative/clerical salaries are considered F&A costs and should not be budgeted in proposals or charged to extramural awards (sponsored programs).
Examples of Administrative/Clerical Activities
The following list (which is not all inclusive) represents some of the most common, routine administrative/clerical activities:
- General departmental administration including maintaining general departmental databases
- Contracts and grants administration including proposal preparation
- Personnel, payroll and human resource functions, both staff and academic
- Accounting, budgeting and financial monitoring functions including bookkeeping and reconciling ledgers
- Travel planning
- Preparation of newsletters, brochures, correspondence and reports
- Purchasing functions including processing and tracking purchase orders, placing low value orders and receiving ordered goods/services
- Space management
- Equipment inventory
- Regulatory committee oversight including preparation of protocols for regulatory committee review
Treatment of Administrative/Clerical Salaries in Special Circumstances
Administrative/Clerical salaries may be treated (budgeted and/or charged) as a direct cost if special circumstances exist that would necessitate or require an extensive amount of administrative/clerical personnel expenses significantly greater than the routine level of support that is provided by UCR departments and units. To treat an administrative/clerical salary as a direct cost, the following conditions must be met:
- the sponsored project/program must satisfy the Major Project criteria contained in OMB Circular A-21 (see below); and
- the administrative/clerical activities of the individual(s) whose salary and related benefits comprise such expenses can be specifically identified (i.e., with a high degree of accuracy) with the sponsored project/program; and
- the administering unit must maintain documentation that explains and supports items 1 and 2 above.
Major Project Criteria
Major Project, as defined in OMB Circular A-21 is a project that requires an extensive amount of administrative/clerical personnel support, which is significantly greater than the routine level of such services provided by academic departments.
Examples of Major Projects
The following examples of federal Major Projects are illustrative of circumstances where direct charging of administrative and clerical support is appropriate:
- Projects that are geographically inaccessible to normal departmental administrative services such as research vessels, radio astronomy projects, and other research field sites that are remote from campus (e.g., field projects).
- Projects that require making travel and meeting arrangements for large numbers of participants, such as conferences and seminars.
- Large, complex programs, such as Primate Centers, Program Projects, environmental research centers, engineering research centers, and other grants and contracts that entail assembling and managing teams of investigators from a number of institutions.
- Projects which involve extensive data accumulation, analysis and entry, surveying, tabulation, cataloging, searching literature, and reporting.
- Projects whose principal focus is the preparation and production of manuals and large reports, books, or monographs (excluding routine progress and technical reports).
- Projects requiring the management of large databases; individualized graphics or manuscript preparation; projects involving multiple human or animal protocols; or projects involving coordination of, and communication between, multiple investigators at various locations.
- Since training grants are for a different purpose than a traditional research project, these project budgets may include costs that are normally treated as F&A costs. Training grants permit a budget for an "institutional allowance" which authorizes direct charging of appropriate expenses normally treated as facilities and administrative costs if they are reasonable, specifically identified with the project, and budgeted in the award.
The following examples are illustrative of circumstances where direct charging of administrative or clerical salaries to non-federal projects may be appropriate if the costs are budgeted and approved by the awarding agency:
- For-profit (Industrial/Commercial) sponsors: Projects performed for these organizations are proposed and awarded to be performed, at least in part, for the benefit of the sponsor. Total costs are the concern of the sponsor, not whether the costs are direct or facilities and administrative.
- Non-profit sponsors: Generally the purpose of private foundation funding is to supplement federal research support. Typically, non-profit sponsors do not support the facilities and administrative activities of the research project as indicated by their practice of funding facilities and administrative costs at a rate less than the institution's full F&A cost rate.
- State sponsored agreements: State agreements that have defined the types of costs that are direct or facilities and administrative would constitute a different circumstance than costs incurred under federal agreements. UCR must comply with State agency regulations and statutory requirements. Consequently, costs normally treated as facilities and administrative costs could be treated as direct if they are reasonable, specifically identified with the sponsored agreement, included in the award budget and considered allowable by the State or under the terms of the award.
Additional Examples of Activities in Support of "Major Projects"
- Competitive and complex procurement (e.g., securing competitive bids for one or more large subcontracts under a UCR prime award)
- Conducting a telephone survey or extensive interviewing of human research subjects
- Coordinating and managing a high number of consultant contracts/subcontracts
- Coordinating extensive travel and meeting arrangements
- Extensive data collection or entry
- Managing a large projects at multiple sites/locations
- Planning and organizing large conferences
- Preparing manuscripts/publications beyond the routine
- Extensive administrative activities in support of related projects (see OMB Circular A-21 (C.4.d. (3))
The above examples are neither exhaustive nor are they intended to imply that direct charging of these expenses would always be appropriate.
Questions to Address When Justifying Administrative/Clerical Salaries
When justifying administrative/clerical salaries in proposal budgets (or before charging such expenses to a sponsored project/program), it is helpful to address the following issues:
- Are the administrative support needs of this project significantly greater than the routine level of administrative support provided for other projects in the department? If so, why? Also, describe how the administrative support activities of the administrative/clerical personnel working on the project are necessary for the successful performance of the project.
- If a job title or payroll classification implies that an individual's work is administrative in nature, but the person will be engaged in non-administrative work on a sponsored project/program, describe the non-administrative work to be assigned to the individual, as well as how such work is necessary for technical performance of the project.
- Can the proposed administrative/clerical support costs be easily and accurately allocated to the project? How will this be done? For example, an administrator working full-time for a project can be allocated easily and accurately to the project. However, if that person works on multiple projects, it may be difficult to accurately document the relative benefit of the administrator's salary (effort) to any specific project. The more projects a person works on, the more difficult it is to accurately and easily document the relative benefit to each project.
-
Distinguishing Between Stipends and Salary & Wages
Distinguishing Between Stipends and Salary & Wages
Topics Included
- Comparison
- References
Comparison
Stipend Salaries & Wages Financial assistance or support paid to university students; no work assigned. Compensation for performance of assigned work. No scope of work. Scope of work assigned. No UC Patent Agreement. UC Patent Agreement signed. No Workers' Compensation coverage. Workers' Compensation coverage. No required fringe benefits or remissions. Applicable UC employee fringe benefits and Tuition and Fee Remission as appropriate based on eligibility. Student-mentor relationship; no employer-employee relationship. Employer-employee relationship. No grant and contract support unless the purpose of the award is to provide fellowship or scholarship. Can be paid from grant and contract funds, and other internal funding sources. Pay at the beginning of the quarter. No obligation to perform any assigned tasks or specific projects. Pay based upon hours or percentage of time worked performing assigned job specific duties. Selection based upon University policies that determine student's financial need or merit through competition. Selection by the individual Principal Investigator or Lead Researcher based on competency, skills, knowledge, and ability and coordinated with Human Resources. Disbursed by Graduate Division or Financial Aid Office. When supported by extramural awards made to UCR, administered jointly by Sponsored Programs Administration, Contract and Grant Accounting and the responsible school or department. Salary/wages disbursed by Payroll. When supported by extramural awards made to UCR, requires additional coordination with Sponsored Programs Administration and Contract and Grant Accounting. Amounts based upon reasonable need or stipend limits set by the sponsor of the training or fellowship grant. Amounts restricted by University salary scales. References
UC C&G Manual, 8-515
Scholarships and fellowships are defined as financial aid paid directly to University students as scholarships, fellowships, stipends, or dependent allowances. This category does not include any disbursement of salaries and wages or honoraria.
UC C&G Manual, 7-217
Salaries and wages charged to sponsored agreements must be made in accordance with University payroll procedures. Holiday pay, sick leave pay, and other paid absences are included in salaries and wage charges to sponsored projects. Vacation pay is charged to sponsored projects as vacation and accrued through an assessment on payroll. Under no circumstance may the rate of salary and wage charges to a sponsored project exceed the employee's regular rate of pay. (For further information, see: Academic Personnel Manual, section IV, “Salary Administration”, and Policies Pertaining to Personnel and Compensation for staff.)
(https://www.ucop.edu/academic-personnel-programs/academic-personnel-policy/salary-administration/index.html
https://policy.ucop.edu/manuals/personnel-policies-for-staff-members.html)UC Accounting Manual, Section T-182-77
Presents the Internal Revenue Service (IRS) requirements and related University procedures for Federal income tax withholding and reporting of scholarship and fellowship grant payments, tuition reductions, and employee educational assistance made to U.S. citizens, resident aliens, and nonresident aliens.
2 CFR § 200.466 Scholarships, student aid costs, and tuition remission
- Costs of scholarships, fellowships, and student aid programs at IHEs are allowable only when the purpose of the Federal award is to provide training to participants, and the Federal agency approves the cost.
- Tuition remission and other forms of compensation paid as, or instead of, wages to students performing necessary work are allowable provided that (1) the individual is conducting activities necessary to the Federal award, (2) tuition remission and other support are provided in accordance with the established written policy of the IHE and consistently provided in a like manner to students in return for similar activities conducted under Federal awards as well as other activities, and (3) the student is enrolled in an advanced degree program at the IHE or an affiliated institution during the academic period and the student’s activities under the Federal award are related to their degree program; (4) the tuition or other payments are reasonable compensation for the work performed and are conditioned explicitly upon the performance of necessary work, and (5) the IHE compensates students under Federal awards as well as other activities in similar manners.
Charges for tuition remission and other forms of compensation paid to students as, or instead of, salaries and wages are subject to the reporting requirements in § 200.430. The charges must be treated as a direct or indirect cost in accordance with the actual work performed. Tuition remission may be charged on an average rate basis. See § 200.431.
OMB Uniform Guidance, Cost Principles (Subpart E)
No explicit guidance exists in the Uniform Guidance for the allowability of stipends, but the Cost Principles section does address student support. The only allowance for payments to individuals that do not represent compensation for services rendered appears in §200.466, Scholarships and student aid costs, which says such payments are allowable “…only when the purpose of the Federal award is to provide training to selected participants and the charge is approved by the Federal awarding agency.”
Two sections of the Uniform Guidance Cost Principles (Subpart E), suggest that stipends should not be charged to research awards. First, §200.430 (Compensation - personal services) requires that the amounts paid to individuals for their services on federal programs be documented, implying that payments to individuals which are not for services rendered should not be funded by research awards. Harvard’s effort reporting system does not include stipends, since these amounts do not represent compensation for work effort. Additionally, the Uniform Guidance Cost Principles for direct and indirect costs requires that the University includes all modified total direct costs allocable to benefiting activities across its major functions in determining indirect costs. If funds used to support effort directly benefiting organized research are coded as stipends, these costs are excluded from the research base in violation of the federal cost principles.National Institutes of Health
The National Institutes of Health Grants Policy Statement (Revised April 2024) states a stipend is provided as a subsistence allowance for Kirschstein-NRSA fellows to help defray living expenses during the research training experience. It is not provided as a condition of employment with either the Federal government or the sponsoring institution. Stipends must be paid in accordance with stipend levels established by NIH, which are based on a 12-month full-time training appointment. In the event of early termination, the stipend will be prorated according to the amount of time spent in training. The sponsoring institution must base its calculations on the applicable stipend level provided by NIH.
National Science Foundation
The National Science Foundation Grant Proposal Guide allows for stipends only in support of participant costs at conferences, symposia, workshops, or other specific training activities. In these cases, the scope of work should include a description of the training activity and NSF would have acknowledged that participant costs would be funded by stipends. NSF guidelines do not provide an allowance for payments to non-employees or non-consultants for activities that benefit a research award.IRS Publication 519 (U.S. Tax Guide for Aliens) Scholarships and Fellowships
Wages and other compensation paid to a nonresident alien for services performed as an employee are usually subject to graduated withholding at the same rates as resident aliens and U.S. citizens. Therefore, your compensation, unless it is specifically excluded from the term "wages" by law, or is exempt from tax by treaty, is subject to graduated withholding.
If you work as an employee in the United States, you must pay social security and Medicare taxes in most cases. Your payments of these taxes contribute to your coverage under the U.S. social security system. Social security coverage provides retirement benefits and medical insurance (Medicare) benefits to individuals who meet certain eligibility requirements...All taxable wages are subject to Medicare tax...Your employer must deduct these taxes even if you do not expect to qualify for social security or Medicare benefits. You can claim a credit for excess social security tax on your income tax return if you have more than one employer and the amount deducted from your combined wages for 2023 is more than $9,932.40.IRS Code, Title 26, Section 1.117-3, Computation of Taxable Income
Scholarship. A scholarship generally means an amount paid or allowed to, or for the benefit of, a student, whether an undergraduate or a graduate, to aid such individual in pursuing his studies. Fellowship grant. A fellowship grant generally means an amount paid or allowed to, or for the benefit of, an individual to aid him in the pursuit of study or research.
And Section 1.117-4
The following payments or allowances shall not be considered to be amounts received as a scholarship or a fellowship grant for the purpose of section 117: . . . (c) Amounts paid as compensation for services or primarily for the benefit of the grantor. (1) Except as provided in paragraph (a) of Secs. 1.117-2 and 1.117-5, any amount paid or allowed to, or on behalf of, an individual to enable him to pursue studies or research, if such amount represents either compensation for past, present, or future employment services or represents payment for services which are subject to the direction or supervision of the grantor. (2) Any amount paid or allowed to, or on behalf of, an individual to enable him to pursue studies or research primarily for the benefit of the grantor.
-
Employee Fringe Benefits
Employee Fringe Benefits Information and Guidance
Topics Included
- Fringe Benefit Costs
- Calculation Method
- "To Be Named" Positions
- Employee Benefit Rate Projections
Fringe Benefit Costs
If a proposal budget requests project personnel salaries and wages, the budget must also request the fringe benefit costs associated with the salaries and wages.
Calculation Method
Each proposal must be consistent in the method used to calcuate fringe benefit rates; therefore, actual fringe benefit rates should be used as they offer the highest degree of accuracy. Use the composite fringe benefit rates listed below for "to be named" positions (defined below) or when an employee's actual fringe benefit rate is not known (e.g., budgeting fringe benefits for a new employee).
All fringe beneift rates (actual or composite) are expressed as a percent of salary. Therefore, to calculate fringe benefit costs, multiply the salary requested for each employee by the applicable fringe benefit rate.
Do not escalate fringe benefit rates from year to year in multiyear budgets. Fringe benefit rates remain stable as a percentage of the requested salary.
"To Be Named" Positions
A "to be named" position is a position or role on a project where the person who will undertake the responsibilities and activities of that position or role is not known at the time of budget preparation. Even if actual fringe benefit rates are used to calculate the costs for all other personnel, use the appropriate composite employee benefit rate listed below for the "to be named" position. Disclose the composite rate used in the budget justification and explain the deviation from use of actual fringe benefit rates.
Employee Benefit Rate Projections
In accordance with guidance issued by the UC Office of the President, Research Administration Office and the UCR Research and Economic Development Office, use actual fringe benefit rates when estimating fringe benefit costs. Use the composite fringe benefit rates at Proposal Preparation - Benefits when estimating fringe benefit rates for "to be named" positions, or when an employee's actual fringe benefit rate is not known (e.g., budgeting for the fringe benefits of a new employee).
Sometimes it is necessary to provide a sponsor with detailed background information regarding the composite fringe benefit rates. This information is available by contacting the Contract and Grant Officer assigned to your unit.
-
How to Calculate Fringe Benefit Rates
How to Calculate Fringe Benefit Rates
When preparing a proposal budget, you will need to know not only the salary but also the fringe benefit rate of all employees who will be paid from the award. The term fringe benefits includes the following employment related costs at UCR (not all of the below costs are applicable to every employee):
- Percentage Based Benefits
- FICA (Social Security and Medicare)
- Workers Compensation Insurance
- Employee Support Program
- Unemployment Insurance
- UC Retirement Plan (employer contribution to resume April 1, 2010)
- Vacation Assessment
- Staff Recognition & Development Award Program
- Other Post Employment Benefit (formerly Annuitant Health)
- Benefits Administration Rate
- Flat Rate Benefits
- Health Insurance
- Life Insurance
- Core Life Insurance
- UC Paid Disability
- Benefits Posted Outside the Payroll System
- General Liability (Percentage Based: Source Code GEL)
- Employment Practices (Percentage Based: Source Code GEL)
- Benefits for Graduate Students Only
- Graduate Student Health Insurance Program (GSHIP)
- Graduate Student Fee Remission
- Graduate Student Tuition Remission (Non-resident Students Only)
- Dependent Care Reimbursement
To obtain the current year's percentages and flat rate amounts for these benefits, go to accounting's UCR Benefits page and select the correct year.
A Current UCR Employee
To calculate a current employee's fringe benefit rate, use UCR's web‐based Super DOPE application to download the individual's actual salary and benefits. (If the employee's position has been reclassified recently, only download actual data from the date of change forward. The goal is to capture information that is most predictive of what the benefit rate will be during a future budget period - so use your judgment as to the appropriate block of time to download.)- From the opening Super DOPE screen (the Criteria tab) select the appropriate fiscal years and periods/months, department and organization code, and then select the employee. Click on the icon to the right of DOS (Description of Service) and select REG (Regular). You may choose to also include any stipend‐type DOS codes if the employee is being paid a stipend that would be continued during the project period.
- Click on the Columns tab, which opens showing Common Fields. Select the Title Code, End Date, DOS, Pay Rate, Gross Amount, Time Hours, and Time Percent fields.
- Click on the Benefit Fields link and click on the Show Total Benefits option.
- Click on the Other Fields link and select the Title Code Desc field.
- Click the Search button and download your query results to Excel.
- From within Excel, delete any end dates that you do not need (if necessary), and total the Gross Amount and Total Benefits columns.
- Divide the sum of Total Benefits by the sum of Gross Amount (don't forget to change the format of the answer to percent) and you have this current employee's fringe benefit rate.
Please note that if an employee's title and pay rate has recently changed or will change, the employee's actual fringe benefit rate may change. As a general rule for non-ladder rank academics and career staff, the lower the salary, the higher the benefit rate. Conversely, as the salary gets higher, the benefit rategets lower.
Note that by not choosing the DOS code VAC, vacation usage has been excluded while vacation accrual costs have been included as part of this calculation.
An Employee Who Is to Be Hired or Is Not Known
To calculate the total labor cost for employees who have not yet been hired, you will need to know the official UCR Title that will be used. With the correct title, you can look up the associated salary range on the UC Title and Pay Plan chart, which is on the Human Resources website. Determine the salary at which the new employee is expected to be hired and select the appropriate composite rate from the Composite Employee Benefit Rates chart at Proposal Preparation - Benefits.Postdoctoral Scholars (often referred to as Post Docs)
These academic employees have different medical, life, disability, and workers' comp rates. If you are calculating these rates for someone who will be hired as a Post Doc, but who is not currently a UCR employee, go to Proposal Preparation - Benefits where all composite rates are listed. For additional information you may also go to UCR Benefits page, click on the Employer Cost link for the correct year, and scroll down to find details of the Post Doctoral Scholar Benefit Plans.Any Current Employee and Future Employee ("to be named" position)
There are currently two benefit costs that are posted outside the payroll system in two different accounts.- General Liability posts in BC47, Other, S&E, in account 780220 Insurance, Gen Liab & Comp
- Employment Practices Liability posts in BC47, Other, S&E, in account 780210, Insurance, Employment Related
If the Activity Code for your unit begins with A4 or A5 and you will be preparing a proposal to a State of California, local government or private sponsor that will be associated with such an Activity Code, these benefit costs should be included in your fringe benefit calculation. The current year's rates for these expenses are on UCR Benefits page.
Important Considerations
While this may be self evident, it is important to remember that actual costs posted to a Contract or Grant may differ from those costs estimated for budget purposes. There are many instances where budgeted costs may vary from actual costs. The actual rate is what will be charged to the sponsor.The Communication Worker Fee is not currently charged to Contract & Grant funds and should not be budgeted as a fringe benefit or any other type of direct cost in a proposal budget.
This guidance may not be applicable to ladder-rank academics with 9 month appointments as individuals with less than annual appointments may be subject to significant changes in their actual fringe benefit rate between the academic year and summer months.
- Percentage Based Benefits
-
Graduate Student Fees and Tuition Remission
Graduate Student Fees and Tuition Remission
Topics Included
- Estimating Graduate Student Fees and Tuition
- Budgeting Graduate Student Fees and Tuition
- Student Eligibility
- Payment of Fee and Tuition Remission
Estimating Graduate Student Fees and Tuition
Please use the information located on the Tuition, Fee Remission, GSHIP tab of the Proposal Preparation page to estimate tuition, partial fee remission and graduate student health insurance program costs.
Budgeting Graduate Student Fees & Tuition
Graduate student fees and tuition are considered fringe benefits for budgeting purposes. To comply with UCR's cost accounting practices, budget graduate student fees and tuition by:
- Calculate fringe benefit costs as described in Employee Fringe Benefits.
- Determine the appropriate graduate student fees and nonresident tuition (as applicable) for the period of time that the graduate student will receive compensation for working on the project and remain eligible for partial fee and tuition remission.
- Determine the cost for graduate student health insurance, as applicable.
- List the combined costs (fringe benefits plus partial fee and tuition remission plus GSHIP) in the budget as the total fringe benefit cost for the graduate student.
- Explain in the budget justification that the total fringe benefit costs include fringe benefits, partial fee and tuition remission and GSHIP. In addition, describe how these cost components were estimated for multi-year projects.
- When calculating the Facilities and Administrative Costs (indirect costs) for the budget, remember that F & A costs are not assessed on the partial fee and tuition remission when using the modified total direct cost base described in UCR's Rate Agreement with the Department of Health and Human Services.
Student Eligibility
To be eligible for UCR's Graduate Student Partial Fee and Tuition Remission Program, a graduate student must meet all of the following conditions:
Partial Fee Remission & GSHIP
- The student must have an appointment in the Graduate Student Researcher series serving at 25% time or more across all funding sources for the full academic quarter for which fees and tuition are paid.
- The appointment must be effective the first day of the quarter for which fees and tuition are paid.
- The student must be within normative time for the degree program.
Non-Resident Supplemental Tuition Remission
- The student must have an appointment in the Graduate Student Researcher series serving at 45% time or more across all funding sources during the academic year to qualify for tuition remission.
Payment of Fee and Tuition Remission
To comply with UCR's cost accounting practices and UCR's Graduate Student Partial Fee and Tuition Remission Program:
- Payment for fee and tuition remission should be made from the same funding source that provided salary and fringe benefits whenever possible.
- Departmental, fellowship or other unrestricted funds must be used to pay the fees and tuition of eligible graduate students receiving salary/fringe benefits from General Funds or awards originating from nonparticipating sponsors.
-
Supplies and Materials
Supplies and Materials
Topics Included
- Cost Estimation
- Budgeting Facilities and Administrative Costs as Direct Costs
- Categorizing Expenses
- Project Specification and Descriptions
- Special Considerations: For-Profit Sponsors
Supplies and materials are consumable items (e.g., animals, glassware, chemicals, reagents, etc.) used in the course of conducting the scope of work for a project.
Cost Estimation
Estimate supplies using an appropriate cost estimation method such as catalog prices, vendor quotes or historical costs for like projects (appropriately escalated). The estimate should include all costs associated with obtaining that supply or material, including shipping, handling and delivery charges.
Budgeting Facilities and Administrative Costs as Direct Costs
Do not propose as a direct cost supplies/materials normally treated as a facilities and administrative cost without adequately documenting in the budget justification the project specific special purpose or circumstance necessitating the charge.
Projects funded by industry sponsors are performed primarily for the benefit the sponsor, the University and the public of California. Generally, these sponsors are concerned with the total cost of conducting a project rather than the classification of costs. Accordingly, direct charging supplies/materials normally treated as facility and administrative costs may be appropriate under such circumstances.
Categorizing Expenses
Assign only supply and material costs to this category. Do not propose equipment or other direct costs as supplies and materials.
Use broad categories to describe supply expenses and provide a more detailed description of the category in the budget justification (e.g., glassware would include test tubes, beakers, etc.)
When using a standard budget, propose costs using UCR's major cost categories to enable the tracking of such costs in the UCR financial system. If the sponsor requests or requires more detailed information, provide it in the budget justification.
Project Specification and Descriptions
All proposed supply expenses must be project specific. That is, performance of the project must necessitate the acquisition and consumption of the budgeted supplies and materials.
Do not use words such as "general" or "miscellaneous" to describe supply costs.
Special Considerations: For-Profit Sponsors
University Regulation No. 4 requires full recovery of expenses (direct and indirect costs) incurred when undertaking activites for external entities. Consequently, it is not appropriate to use University funds to support the costs of a project funded by a for-profit sponsor. Likewise, it is not apprpriate to use funds provided by one sponsor to support the costs of a project funded by another sponsor, as doing so could result in the University promising the same exclusive rights regarding project intellectual property to both sponsors and extensive litigation expenses for the University.
-
Equipment
Equipment Costs Information and Guidance
Topics Included
- Definition
- Implementation of Change in the Capitalization Threshold for Equipment
- Estimating Equipment Costs
- Project Specific
- Describing Equipment
- Fabricating Equipment
Definition
Equipment is defined by the University as an article of non-expendable, tangible personal property having a useful life of more than one year and an acquisition cost of $5,000 or more per unit.
Implementation of Change in the Capitalization Threshold for Equipment
Proposal budgets with projected expenditures for equipment items to be received on or after July 1, 2006 must budget for Facilities & Administrative (F&A) costs at the new threshold of $5,000. Since it may be difficult to forecast the beginning date of a project and delivery dates for purchased items, the Office of Research strongly recommends that all proposals submitted on or after January 1, 2006 use the new $5,000 threshold when estimating and budgeting equipment costs.
Estimating Equipment Costs
Estimate the cost of equipment using an appropriate cost estimation method such as vendor quotes or catalog prices. Make sure that sales tax, duty, transit insurance, freight, and installation charges are included in the estimated cost.
Project Specific
All proposed equipment expenses must be specific to the project (i.e., the proposed work could not be performed without acquiring and using the proposed equipment). Do not propose general purpose equipment such as office equipment (computers, typewriters, etc.), furnishings, air conditioners, refrigerators, freezers, etc. without clearly describing the project specific need for such equipment in the budget justification.
It is not appropriate for UCR to propose the use of University funds to support the acquisition of equipment on a project funded by a for-profit sponsor or to propose the use of funds provided by one sponsor to acquire equipment for a project supported by a for-profit sponsor.
Describing Equipment
To maximize flexibility in purchasing equipment, avoid describing equipment by product name, or referencing the maker of the equipment in either the budget or the budget justification. If it is impossible to describe proposed equipment without referencing the manufacturer, make, model number, etc. then provide this information and include the words "or equivalent" at the end of the description.
Fabricating Equipment
If equipment will be fabricated during the course of the project, the cost of material components (even if the cost of these components do not meet the definition of equipment) are exempt from facilities and administrative costs and should be listed as equipment costs. Recharge costs or purchased services directly related to the fabrication of equipment are also exempt from facilities and administrative costs. However, the salaries, wages and benefit costs associated with equipment fabrication are not exempt from facilities and administrative costs.
-
Travel
Travel Information and Guidance
Topics Included
- Travel Costs
- Domestic/Foreign Travel
- Air Carriers
- Estimating Costs
- Itemization
- Descriptions
Travel Costs
Travel costs must benefit the proposed project and usually include travel associated with fieldwork and attendance at scientific meetings for the purpose of presenting project findings and/or results.
Domestic/Foreign Travel
Budget domestic travel and foreign travel separately. Foreign travel is defined as any travel outside of Canada and the United States and its territories and possessions.
Air Carriers
In accordance with University policy, U.S. flag air carriers must be used to the maximum extent possible when commercial transportation is the means of travel between the United States and a foreign country or between foreign countries.
Estimating Costs
Use historical costs, contact a travel agent or use an internet travel service (e.g., Travelocity, Expedia, Hotwire, etc.) to estimate airfare, hotel and ground transportation (e.g., rental car) costs.
Remember that UCR employees may take advantage of certain State of California fares and rates. In addition, the University has several travel contracts for rental cars and hotel rooms. The information from the contracts can be very useful in estimating travel costs and are availabe on the UCR Accounting Services Department website.
Use current UCR per diem and mileage rates for domestic travel and U.S. State Department approved rates for foreign travel.
Itemization
Itemize travel costs in the budget justification only.
Descriptions
Do not use words such as "general" or "miscellaneous" to describe travel costs.
-
Participant Support Costs
Participant Support Costs
Participant Support Costs are allowable direct cost expenses on sponsored programs related to conferences, meetings, symposia or training projects. These expenses include stipends or subsistence allowances, travel allowances and registration fees paid to or on behalf of individuals (but not employees) who participate in such activities. It is important to note that stipends or subsistence allowances, lodging expenses and/or travel allowances associated with bringing colleagues to UCR for the purpose of collaborating on sponsored research programs are not Participant Support Costs and should be proposed in the appropriate direct cost budget category (e.g., travel).
UCR receives extramural funding from a broad spectrum of sponsors. Therefore, it is important to refer to sponsor policy and program-specific guidelines prior to preparing proposal budgets to determine if Participant Support Costs are allowable and, if so, how to properly budget and justify such costs. In the absence of specific sponsor guidelines or policies, Participant Support Costs should not be included in UCR's proposals without written prior approval from the sponsor.
Prior to rebudgeting funds from Participant Support Costs to another budget category, it is important to carefully review award terms and sponsor policy, and consult with Sponsored Programs Administration, as the sponsor's prior approval may be required or rebudgeting may be prohibited. -
Other Direct Costs
Other Direct Costs
Topics Included
- Defining Other Direct Costs
- Consultants
- Publications
- Subawards
Defining Other Direct Costs
The other direct costs (or other costs) category includes expenses such as 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, patient care costs, space rental, consultants, alterations or renovations, equipment rental, etc. Some of these costs are discussed below.
Consultants
Consultants are individuals hired to give professional advice or services for a fee but not as an employee of the University and they do not perform a portion of the programmatic work. Consultants are used to provide such advice or services when no other University employee with like expertise or experience is available to participate in the proposed project. University policy prohibits University personnel from serving as paid consultants on grants or contracts awarded to UCR.
Do not list consultants in the personnel or salary and wages section of the budget.
Cost estimates should be secured in writing. This may be in the form of a written quote or in a letter from the principal investigator or department to the consultant confirming a verbal quote.
Do not use the words "honoraria" or "honorarium" to describe payments to consultants as it implies that there is no requirement to perform any service.
Review the sponsor's budget guidelines for limitations on consultant costs.
Publications
Estimate the cost of preparing and publishing project results by determining the journal(s) in which project results may be published. Then use the established page rate charge(s) assessed by the journal(s) to estimate publication costs based on the anticipated number of pages to be published (based on historical experience).
Subawards
Entering into a subaward is the means by which a portion of the project work (programmatic or technical effort) is transferred to another entity, UC campus or UC managed lab.
A proposal from the subaward recipient must be secured and included with or incorporated into UCR's proposal. The subaward recipient's proposal should at minimum include a scope of work and budget and must be signed or endorsed by the subaward recipient's authorized official.
Unless otherwised required by the sponsor, the total cost of the subaward (both direct and indirect costs) must be listed as a single cost item in the other direct costs category. If multiple subawards are anticipated, the sum of all subawards should be listed.
-
Non-Salary Administrative Expenses - Special Guidance
Non-Salary Administrative Expenses - Special Guidance
Topics Included
- Standard Treatment
- Examples of Non-Salary Administrative Expenses
- Treatment of Non-Salary Administrative Expenses in Unlike Circumstances
- Examples of Unlike Circumstance
- Questions to Address When Justifying Non-Salary Administrative Expenses
Standard Treatment
In accordance with 2 CFR Part 200, Subpart E - Cost Principles, non-salary administrative expenses are considered Facilities and Administrative (F&A) costs and should not be budgeted in proposals or charged to extramural awards (sponsored projects/programs).
Examples of Non-Salary Administrative Expenses
The following list (which is not all inclusive) represents the most common, routine non-salary administrative expenses:
- Basic telephone line, equipment, installation and local telephone services
- General purpose equipment
- Postage and other mailing expenses, as well as express mail and/or courier charges for routine departmental operations including delivery of proposals
- Memberships and subscriptions
- General administrative supplies
- Normal repairs and maintenance services
- Service of equipment installed as part of state funded capital projects or an integral part of a central building service
- Utilities
Treatment of Non-Salary Administrative Expenses in Unlike Circumstances
Non-salary administrative expenses may be treated (budgeted and/or charged) as a direct cost if, as a result of the scope of the project/program, unlike circumstances exist that necessitate or require that a project/program incur non-salary administrative expenses at a level significantly greater than what is routinely provided by UCR departments and units. To treat non-salary administrative expenses as a direct cost, the following conditions must be met:
- the scope of the sponsored project/program must necessitate or require non-salary administrative expenses that are significantly greater than what is routinely provided by the department or units; and
- the non-salary administrative expenses can be specifically identified, with relative ease and a high degree of accuracy with the sponsored project/program; and
- the administering unit must maintain documentation that explains and supports items 1 and 2 above.
Examples of Unlike Circumstance
Following are examples of Unlike Circumstance where direct charging of non-salary administrative expenses may be appropriate:
- Mailing expenses for projects that involve a large survey.
- Departmental administrative supplies used for the production of manuals as described in the scope of work or required as a deliverable under the terms of an extramural award.
- Departmental administrative supplies required to conduct, tabulate and store the results of a survey identified in the scope of work of an extramural award.
- A membership fee required in order to subscribe to a journal, where the subscription is necessary for performing the work under a sponsored agreement.
- Telephone line charges for projects that are geographically inaccessible (i.e., where the geographical separation between the project work site and departmental administrative support would reasonably necessitate such an expense).
The above examples are neither exhaustive nor are they intended to imply that direct charging of these expenses would always be appropriate.
Questions to Address When Justifying Non-Salary Administrative Expenses
When justifying non-salary administrative expenses in proposal budgets (or before charging such expenses to a sponsored project/program), it is helpful to address the following issues:
- Are the non-salary administrative needs of this project/program significantly greater than what is routinely provided by the department to other sponsored projects/programs? If so, why? Also, describe why it is necessary to incur the non-salary administrative expenses for the successful performance of the project/program.
- Can the proposed non-salary administrative expenses be easily and accurately allocated to the project/program? How will this be done? If non-salary administrative expenses benefit multiple projects/programs, it may be difficult to accurately document the relative benefit of such expenses to any specific project/program.
-
Budgeting International Scholar Center Fees
Budgeting International Scholar Center Fees
Budgeting and Allocating International Scholar Center (ISC) Fees
In July 2008, the International Scholar Center (ISC) implemented a fee-for-service model for visa processing services. The following guidance is provided to assist PIs, departments and research units with budgeting ISC fees in proposal budgets and allocating such costs to sponsored awards. Questions regarding this guidance should be directed to the Contract and Grant Officer assigned to your unit or the Assistant Vice Chancellor for Research.
Circumstances Where Budgeting and Allocating ISC Fees May Be Allowable
The following are examples of circumstances where it may be allowable to budget ISC fees in extramural proposals and allocate such costs to sponsored awards:
- A position that is essential to the conduct of a project will be (or has been) recruited and the recruitment will more than likely result (or has resulted) in the hiring of a person other than a U.S. citizen or a U.S. permanent resident.
- The research team for a sponsored program includes a current UCR employee who is neither a U.S. citizen nor U.S. permanent resident, whose visa will expire during the project period and where the employee's continued participation in the research is essential to the conduct of the project.
- A proposal includes an international exchange of visitors and the purpose of the program is, in part, to provide support for the travel of such visitors to enable face-to-face research collaborations.
The preceding is not an all-inclusive list of examples. Rather, it is meant to encourage thoughtful analysis and to illustrate that each situation is unique and should be evaluated based on the relevant facts and circumstances.
Allowability
The allowability of ISC processing fees as a direct cost in extramural proposals and on sponsored awards may be determined by considering the circumstances of each case in conjunction with applicable policies and regulations, including but not limited to:
- The terms and conditions of the sponsored award
- Sponsor proposal and award policies and regulations
- UCR/UC costing policies, including UCR's Cost Accounting Standards Board Disclosure Statement
- Code of Federal Regulations - 2 CFR Part 200, Subpart E - Cost Principles
Effective Date: July 14, 2008
-
Facilities & Administrative Costs
Facilities & Administrative Costs
Topics Included
- Background
- Applying F&A Cost Rates in Proposal Budgets
- Calculating F & A Costs
- F & A Cost Waivers
- Definitions
Background
As a publicly supported institution, the University is obligated to The Regents and the State to recover the full costs of sponsored research activities. Facilities & Administrative (F&A) costs are reimbursement for costs incurred and paid primarily with public funds from the State of California to cover actual operating costs incurred by the University for facilities and administrative personnel necessary to support extramurally funded research. All organizations require an infrastructure of buildings, equipment, management, administrative and fiscal systems, and staff to carry out the activities of the organization.
2 CFR Part 200 defines indirect (i.e., F & A costs) as "those costs incurred for common or joint purpose benefitting more than one cost objective, and not necessarily assignable to the cost objectives specifically benefitted, without effort disproportionate to the results achieved."
As a recipient of Federal funds, UCR is required to negotiate a F&A cost rate agreement with the Department of Health and Human Services (UCR's cognizant federal audit agency) to establish F&A cost rates for use with UCR's extramural awards. The University negotiates "predetermined" F & A cost rates. These rates are final and not subject to upward or downward adjustment based upon actual costing experience. Typically, predetermined rates are significantly lower than those supported by the calculations used by the University to determine its actual F & A cost rate. However, by negotiating a stable F &A cost rate in a multi-year agreement the University avoids annual audits of actual cost data and annual rate adjustments, and also avoids significant rate fluctuations that may result from fluctuating cost pools.
Applying F&A Cost Rates in Proposal Budgets
The rates listed on Proposal Preparation - F&A Cost Rates must be used when estimating F&A costs in proposals to extramural sponsors. Use of a rate other than those identified in our F&A rate agreement or approved by the UC Office of the President, requires approval of a waiver request. Contact the Contract and Grant Officer assigned to your unit for questions regarding the appropriate rate to use in your proposal budget.
Calculating F & A Costs
Calculate the Modified Total Direct Cost (MTDC) base by subtracting the costs listed below from the budgeted Total Direct Costs:
- equipment and capital expenditures;
- charges for patient care;
- rental, lease and maintenance costs of off-campus space;
- tuition and fee remission;
- financial aid paid directly to University students, but not as salaries and wages, when allowable under the terms of the award;
- participant support costs;
- subawards issued to other UC campuses; and
- the portion of each non-UC subaward that is in excess of $25,000. Simply stated, UCR indirect costs are assessed on the first $25,000 only of each sub-award. Renewal of a prime award generally requires the issuance of a new subaward, hence indirect costs are charged to the first $25,000 of the renewed subaward. The indirect costs charged by a subaward recipient are not limited by this exception.
Then, multiply the result (MTDC base) by the appropriate F&A cost rate to find the F&A cost amount.
F & A Cost Waivers
Facilities and administrative costs are a normal and necessary part of funding research at the University of California, Riverside. These costs are real expenses that are incurred by the campus and that must be met, either by the sponsor that provides support for the research or by other funds.
In order for UCR to waive or reduce F & A costs on a given project, a compelling reason showing that a higher University purpose will be served is necessary. It is for this reason that UC campuses cannot make independent decisions on these matters; requests for waivers which are received by the Vice Chancellor for Research are forwarded to the Office of the President for review and approval.
It is increasingly the case that requests for such waivers are presented to the Office of Research very close to the time at which the proposal must be approved and submitted to comply with a rigid deadline. Such timing does not allow for proper and fair evaluation of such requests. Therefore, requests for waivers or partial waivers of F & A costs, including a full explanation of the reasons for the request, must be forwarded to Sponsored Programs Administration at least 5 working days before the deadline for submitting a proposal. Each request will be considered independently on its own merits. Approvals are the exception rather than the rule. In particular, requests will not be approved simply because a PI feels more funds are needed for direct costs than would otherwise be available.
The above does not apply for proposal submissions to sponsors for which the University of California has agreed to a reduction or waiver of F & A costs on a class basis.
Address any questions concerning whether a specific sponsor falls under this exemption with the Contract and Grant Officer assigned to your unit.
Definitions
Organized Research - All research and development activities of an institution including sponsored research. Sponsored research includes all research and development activities that are sponsored by Federal and non-Federal agencies and organizations. This term includes activities involving the training of individuals in research techniques (commonly called research training) where such activities utilize the same facilities as other research and development activities and where such activities are not included in the instruction function.
Instruction - Instruction means the teaching and training activities of an institution, except for research training as described above. Instruction includes all teaching and training activities, whether they are offered for credits toward a degree or certificate or on a non-credit basis, and whether they are offered through regular academic departments or separate divisions, such as a summer school division or an extension division. Instruction also includes sponsored instruction and training which means specific instructional or training activity established by grant, contract, or cooperative agreement.
Other Sponsored Activities - This means programs and projects financed by Federal and non-Federal agencies and organizations which involve the performance of work other than instruction and organized research. Examples of such programs and projects are health service projects, and community service programs.
Direct Costs - Direct costs are those costs that can be identified specifically with a particular sponsored project, an instructional activity, or any other institutional activity and are directly assigned to such activities relatively easily with a high degree of accuracy.
Facilities and Administrative Costs - F&A costs are those incurred for common or joint objectives and, therefore, cannot be identified readily and specifically with a particular sponsored project, an instructional activity, or any other institutional activity.
Modified Total Direct Costs (MTDC) Base - The MTDC base is the total direct costs for a project less those budget items that are excluded by agreement with the audit agency. The excluded costs are: equipment, construction, alterations and renovations, hospital or clinic charges for patient care, space rental or lease, tuition and fee remission, scholarships, participant support costs, and the amount that exceeds $25,000 of any subaward. See the Calculation section for more information.
Off-Campus Projects - Projects that are based at facilities not owned, or leased and maintained by the University. However, if the project is conducted in leased space and the lease costs are directly charged to the project, the off-campus rate must be used. If the project involves both on-campus and off-campus sites, either the on-campus or off-campus rate generally should be applied, consistent with where the majority of the work is to be performed as measured by salary cost. The use of both on- and off-campus rates may be justified if both rates can be clearly identified with a significant portion of project salaries, meaning 25% or more of total salary/wage costs and the project's total salary/wage costs exceed $250,000.
Project Period - Project period means the total time for which support of a program has been approved, initially or by a renewal award. As used by the Public Health Service, Project Periods consist of one or more annual budget periods with funding for future years beyond the initial budget period provided on a non-competing basis.
Total Direct Costs (TDC) - TDC is the total of all direct costs budgeted for a project.
Guidance for Proposals Submitted to NIH
-
NIH Modular Budgets at UCR
NIH Modular Budgets at UCR
Applications for the following types of NIH grants which request funding of $250,000 or less for direct costs per year must be submitted using the modular format:
- Individual Research Project Grants (R01)
- Small Grants (R03)
- Exploratory/Developmental Grants (R21)
- SBIR and STTR, Phase I (R41 and R43
- Requests for Applications (RFAs)
Unsolicited, investigator-initiated applications requesting more than $250,000 in any year, and applications for grant activities not specified above, continue to follow the traditional application instructions and applicable NIH policies. RFAs soliciting applications greater than $250,000 may be modular at the discretion of the issuing Institute/Center(s), as specified in the published RFA.
Below is additional guidance for the preparation of modular grant proposal budgets at UCR. If you have questions, please contact the Contract and Grant Officer assigned to your department.
BACKGROUND
Under the modular format, direct costs are requested in increments of $25,000 (modules), up to $250,000 per year. A typical modular grant application will request the same number of modules in each year. Although NIH does not require that detailed budgets be submitted with Modular Grant Applications, detailed budgets should be created by the PI and department administrator to ensure that:
- sufficient direct costs are included to complete the project;
- the Facilities and Administrative (F&A - formerly indirect) cost base is accurately calculated, as this information must be shown on the Checklist page; and
- UCR Extramural Accounting will be able to allocate the funds properly when an award is made.
GENERAL APPROACH
To insure that the proposed budget accurately reflects the funds needed to carry out the scope of work and complies with the modular format:
- Prepare a detailed budget as in the past (this detailed budget should be retained in the department files in the event of an award).
- If the same level of support is contemplated for each year, divide the total direct costs of the entire project by the number of years of the project, rounding off to the nearest $25,000, to determine the annual level of support to be requested.
- Determine the base for calculating F & A for each year by totaling any standard exclusions (equipment, GSHIP, PFR, etc.) and subtracting these from the modular total for that year. This step is necessary to request the annual F&A costs on the Checklist page.
- Provide a budget narrative for all project personnel by position, role and level of effort and, when applicable, consortium/subcontract costs.
- When variations in the level of funding is needed due to specific project expenditures for one or more years include an additional justification that addresses the reason(s) for the fluctuation.
Additional information pertaining to modular budgets is available from the following NIH web sites:
-
NIH Salary Cap
UCR Academic Personnel Office will annually announce the updated guidelines on the NIH Salary Cap rate on the UCR Academic Personnel website, under Local Compensation Policy and Guidelines, during the winter quarter or spring quarter (based on when the information from the NIH is available).
Guidance for Research Projects Operating Abroad
-
Insurance and Liability
Guidance for Research Projects Operating Abroad - Insurance and Liability
The UCOP Office of Risk Services has arranged foreign liability insurance for the University's operations outside the USA. The primary goals of purchasing this centrally controlled insurance program are to protect the University and adhere to local insurance laws, while allowing the University faculty and staff to engage in research and educational endeavors abroad with minimal insurance procurement administration and costs.
Before starting any project abroad, there are several items that should be to taken into consideration:
Foreign General Liability
- Are you signing a lease for office or research space and being required to provide evidence of insurance coverage?
- Are you purchasing any office or research space?
- Are you entering into any contracts with foreign government agencies or entities?
If you answer "Yes" to any of the above, UC may be required to procure a general liability policy in the country where you are operating, in order to be compliant with local insurance laws and regulations. UCOP Risk Services has partnered with a global insurance carrier who has the capabilities to issue a general liability policy in most countries abroad, thereby facilitating and minimizing the administration for UC.
- Are you conducting any clinical trials abroad and being required to provide the insurance coverage for the trial?
If you answer "Yes", UC may be required to procure a Human Clinical Trial liability policy to adhere to the insurance laws and regulations of the country where you are conducting the trial. Each country has its own compulsory liability insurance requirements for Human Clinical Trials.
Foreign Automobile Liability
- Are you acquiring a long-term leased automobile or purchasing an automobile?
If you answer "Yes", you will need to either purchase the compulsory automobile liability insurance from the automobile leasing company or from a local insurance market. Automobile liability insurance is compulsory in almost every country and UC and/or you could face severe penalties and fines if you do not purchase this insurance coverage.
Foreign Workers' Compensation & Foreign Employer's Liability
- Are you hiring any local nationals to work for you as an employee?
If you answer "Yes", UCOP Risk Services and our insurance broker, Marsh Risk & Insurance Services, will need to evaluate whether the workers' compensation and employer's liability benefits in the country where you are hiring the employee are part of a government social scheme or require the purchase of an insurance policy. Workers' compensation is compulsory insurance coverage in most countries, and employer's liability insurance is required in several countries.
- Are you hiring anyone as an "independent contractor"?
If you answer "Yes", you will need to use the same methodology employed in the USA to evaluate the tasks of the "independent contractor" in establish whether this person would be deemed an employee. If you are unsure of this methodology, you will need to contact UCOP Risk Services.
If you have any questions regarding this coverage or need any assistance regarding insurance issues related to operating abroad, please contact UCR Risk Management.
How to Budget for Open Access Publishing
Open Access Fact Sheet for Researchers Applying for Grants
Preparing Proposal Budget Justifications
Sample Budget Justifications (doc)