Proposal Budgeting Guidance

Salaries
Faculty/Staff

  • When preparing a budget in InfoEd, please go to URI InfoEd Budget Guide  Look up base salary on HR listing or check with the specialist assigned to your college if you do not know what the salary is.
  • Salary escalation should be 2.5% annually unless limited by the agency (i.e. NIH cap). The base salary should include two 2.5% increases to reflect the time frame between the proposal, the award and the actual charge to the grant. A 3% increase should be included for every year after 7/1/21.
  • Conversion of percentage of effort to person months is straight-forward. To calculate person months, multiply the percentage of your effort associated with the project times the number of months of your appointment.
    For example:
    25% of a 9 month academic year appointment equals 2.25 (AY) person months (9 x 0.25= 2.25)
    10% of a 12 month calendar appointment equals 1.2 (CY) person months (12 x 0.10 = 1.2)
    35% of a 3 month summer term appointment equals 1.05 (SM) person months (3 x 0.35= 1.05)
    10% of a 0.5 FTE 12 month appointment equals 0.6 (CY) person months (12 x .5 X .1 = 0.6)

Another example:
If the regular pay schedule of an institution is a 9 month academic year and the PI will devote 9 months at 30% time/effort and 3 months summer term at 30% time/effort to the project, then 2.7 academic months and .9 summer months should be listed in the academic and summer term blocks of the application (9 x 30% = 2.7 person months; 3 x 30%= .9)

  • Administrative salaries are allowed on grants provided they follow OMB’s Uniform Guidance: http://www.ecfr.gov/cgi-bin/text-idx?tpl=/ecfrbrowse/Title02/2cfr200_main_02.tpl
    Section 200.413 Direct Costs-(c) “The salaries of administrative and clerical staff should normally be treated as indirect (F&A) costs. Direct charging of these costs may be appropriate only if all of the following conditions are met:
    1. Administrative or clerical services are integral to a project or activity:
    2. Individuals involved can be specifically identified with the project;
    3. Such costs are explicitly included in the budget or have the prior written approval of the Federal awarding agency; and
    4. The costs are also not recovered as indirect costs. These costs should be clearly addressed in the budget justification for the administrative position or supplies.
  • Postdoctoral Fellowships – For salary guidance, please review the following document: Postdoctoral Fellow Salary Guidelines 2023

Graduate Stipends

  • These sheets are developed for grant budgeting purposes so that adequate funds are budgeted for student training.
    1) Simplified student rate sheet; The URI graduate school and the Division of Research and Economic Development developed this rate sheet to reflect best practices and for simplicity in budgeting and covering full graduate student costs in the summer (40 hours a week for 14 weeks). This budget sheet ensures a living wage along with a cushion to fund students regardless of level (funds are based on the level III rate).
    2) Student rate sheet with breakdowns by level and hourly pay.
  • It is best to show academic year stipend and summer stipend separately because the fringe rates are different.
  • The stipends must be included in the Modified Total Direct Cost (MTDC) base. There is an exception in some RFPs such as when the stipend is for a fellowship and the RFP restricts indirect cost (this language should be uploaded to Cayuse). All fellowships are exempt from indirect costs.
  • GRA stipend, fringe and tuition have to be charged in the same percentage per the GAU Union contract

Students

  • Hourly student rates for grads and undergrads can be found at the bottom of the grad rates: 
  • These sheets are developed for grant budgeting purposes so that adequate funds are budgeted for student training.
    1) Simplified student rate sheet; The URI graduate school and the Division of Research and Economic Development developed this rate sheet to reflect best practices and for simplicity in budgeting and covering full graduate student costs in the summer (40 hours a week for 14 weeks). This budget sheet ensures a living wage along with a cushion to fund students regardless of level (funds are based on the level III rate).
    2) Student rate sheet with breakdowns by level and hourly pay.
  • Fringe benefits are calculated using the fringe benefit calculators for the corresponding class of employee: https://web.uri.edu/hr/benefits/salary_ratio_home/ Please include a three percent increase from base year going forward and a three percent for every year after year 1.
  • Vacant positions should be budgeted at the family plan rate.
  • URI does not charge any fringe benefits on summer salary for faculty if they are a nine month appointment.
  • For Information is regarding Tuition Differential please see https://web.uri.edu/wp-content/uploads/sites/922/Graduate-Research-Tuition-Differential-Fellowship-Policy.pdf

Post Docs – use the Board of Governors non-classified, nonunion rates. Include all benefits.

Graduate Research Assistants – For academic year and summer, use current fringe rates found:

  • These sheets are developed for grant budgeting purposes so that adequate funds are budgeted for student training.
    1) Simplified student rate sheet; The URI graduate school and the Division of Research and Economic Development developed this rate sheet to reflect best practices and for simplicity in budgeting and covering full graduate student costs in the summer (40 hours a week for 14 weeks). This budget sheet ensures a living wage along with a cushion to fund students regardless of level (funds are based on the level III rate).
    2) Student rate sheet with breakdowns by level and hourly pay.

Students — FICA (7.65%) is only charged on summer hours for graduate and undergraduate students.
Health benefits are not applicable for undergraduates or hourly graduate students.

Equipment: (see UG 200.439)

  • Must have a useful life of more than one year;
  • Per unit cost should be $5,000 or more;
  • Software is never considered equipment regardless of the cost since software is frequently upgraded.
  • Fabricated equipment is self-constructed equipment that should be capitalized if the total unit cost incurred to fabricate the equipment is $5,000 or more, and the asset has estimated useful life of more than one year. Self-constructed equipment should be recorded at cost, which includes materials, and direct labor to fabricate the equipment.
  • Indirect is not charged on equipment
  • URI’s Capitalization Policy is located here: http://web.uri.edu/wp-content/uploads/sites/1376/Capitalization.pdf

Travel:

  • URI’s current travel policy can be found here: http://web.uri.edu/controller/travel/
  • The budget must break out foreign travel. Foreign travel that is not originally submitted in a proposal budget must get approval from the funding entity.
  • As of January 1, 2021 $.56. Rates fluctuate so please check the Controller’s website.
  • When preparing a budget you should include air and ground transportation as well as per diems for lodging, meals and incidentals.
  • Domestic travel rates may be found on the following website: http://www.gsa.gov/portal/content/104877
  • Foreign Travel Rates may be found on the following website: https://aoprals.state.gov/web920/per_diem.asp
  • Verify that agencies do not disallow foreign travel.
  • Travel is subject to indirect on an MTDC basis.

Participant Costs:

  • All Participant support costs on federal grants are direct costs for items such as stipends or subsistence allowances, travel allowances and registration fees paid to or on behalf of participants or trainees in connection with meetings, conferences, symposia or training projects.
  • With the exception of Research Experiences for Undergraduates (REU) grants, participant support costs can not be used to support URI faculty, staff, and students. 
  • Funds provided for participant support may not be used by grantees for other categories of expense without the prior written approval of the federal agency. Therefore, awardee organizations must account for participant support costs separately.
  • Participant support allowances may not be paid to trainees who are receiving compensation, either directly or indirectly, from other Federal government sources while participating in the project. A nonfederal employee may receive participant support allowances from federal grant funds provided there is no duplication of funding of items and provided no single item of participant cost is divided between his/her nonfederal employer and federal grant funds.

Participant costs are exempt from indirect costs for all federal agencies.

Supplies:

  • Supplies are those items with a purchase price of less than $5000/unit.
  • UG §200.453 Materials and supplies costs, including costs of computing devices.
    (a) Costs incurred for materials, supplies, and fabricated parts necessary to carry out a Federal award are allowable.
    (b) Purchased materials and supplies must be charged at their actual prices, net of applicable credits. Withdrawals from general stores or stockrooms must be charged at their actual net cost under any recognized method of pricing inventory withdrawals, consistently applied.
    Incoming transportation charges are a proper part of materials and supplies costs.
    (c) Materials and supplies used for the performance of a Federal award may be charged as direct costs. In the specific case of computing devices, charging as direct costs is allowable for devices that are essential and allocable, but not solely dedicated, to the performance of a Federal award.
    (d) Where federally-donated or furnished materials are used in performing the Federal award, such materials will be used without charge.
  • Supplies are subject to indirect on an MTDC basis.

Other Costs:

  • Tuition is exempt from indirect cost under MTDC and includes 20% of student fees. Tuition rates can be found: 
  • These sheets are developed for grant budgeting purposes so that adequate funds are budgeted for student training.
    1) Simplified student rate sheet; The URI graduate school and the Division of Research and Economic Development developed this rate sheet to reflect best practices and for simplicity in budgeting and covering full graduate student costs in the summer (40 hours a week for 14 weeks). This budget sheet ensures a living wage along with a cushion to fund students regardless of level (funds are based on the level III rate).
    2) Student rate sheet with breakdowns by level and hourly pay.
  • Subawards– the first $25,000 on each subaward is subject to indirect on an MTDC basis. If there are two PIs at the same institution but with different scopes of work, there will be two different subawards; indirect must be charged on the first $25,000 for both. The same criteria applied to URI budgets should be applied to the subaward budget.

Note:
The following costs are normally indirect. They may be charged directly only under special circumstances (See UG 200.402-200-410):

  • Office supplies (paper, pencils, pens, markers, binders, file folders)
  • Postage, including express mail
  • Facilities repairs and maintenance
  • Local telephone services (monthly rental)
  • Automotive maintenance
  • Membership dues
  • General purpose equipment repairs and maintenance
  • General purpose computer software

These costs may be directly charged only where they meet all of the following requirements and they are clearly justified in the budget narrative:

  • The project has a special need for the item or service that is beyond the level of services
    normally provided.
  • The costs can be specifically identified to the work conducted under the project.

Verify that there are no unallowable charges in the budget. Unallowable costs are stipulated in 2 CFR Part 200 Uniform Guidance be found in the Unallowable Expenses Guidance document. If there are any questions whether something is unallowable, please check with the Sponsored Projects Office.

Indirect Cost (i.e., Facilities and Administrative Costs, Overhead).

  • Refer to URI’s Facilities & Administrative (F&A) or Indirect Costs (IDC) for federally negotiated rates.
  • Sponsors may have published rates which are lower than the federally negotiated rates. These rates are acceptable, but require Dean’s acknowledgement.
  • For requests to waiver or reduce indirect costs, Vice President of Research and Economic Development approval is needed. PI should email the Associate VP of Research Administration with a justification.
  • Use of the approved indirect rate will be reviewed by pre award staff at the time of proposal review prior to submission to the sponsor. Rate will be further evaluated at the time of award by post award to ensure the rate is not in excess of rate(s) in effect at the time of the award.
  • URI will waive overhead if a limitation on indirect is clearly articulated in the RFP. This should be documented in InfoEd.
  • Verify that the MTDC base includes all salaries, fringe benefits, travel, supplies and other costs including the first $25,000 of each subcontract. Equipment, participant costs, tuition and subawards over the first $25,000 are exempt from indirect charges.
  • If URI is taking a lower indirect rate than our federally negotiated rate, in certain circumstances we can use a total direct cost base instead of MTDC. Please see Director or Associate Director with specific situations.
  • The USDA indirect rate varies based on the RFP and is charged on TOTAL DIRECT COST. On the budget, please do a comparison calculation of what would have been charged at URI’s federally negotiated rate on MTDC compared to the USDA rate to determine which results in lower indirect costs. For assistance with this, contact a grant specialist or the Associate Director (Preaward) for guidance.
  • DOD also had a limitation, not to exceed 35% on TOTAL DIRECT COST. At URI’s current federally negotiated rate of 57.5%, DOD’s limit would not be exceeded, so it is acceptable to use URI’s negotiated rate. For guidance on this, contact a grant specialist or Associate Director (Preaward).