FAQs

The budget and budget justification present a financial picture of your project to the reviewer and help the reviewer understand your project.  The scope of your project will help guide the development of a realistic and appropriate budget. Funding caps and indirect costs often result in more narrowly focused projects to meet smaller funding opportunities. It is important that the scope of the project align with the requested support.

First, consider your project’s resource needs. Read the sponsor’s guidelines and note any limitations. Use the online resources to generate a draft budget and budget justification. Also, watch for professional development opportunities. Finally, a research advocate can assist with general questions and you Sponsored Programs Coordinator can assist with specific questions, as needed.

No, you do not have to use the BGSU PI budget template. You should use the template that makes the most sense for your final submission; however, the BGSU PI template has embedded calculations that will allow you to more accurately generate a draft budget.

The budget justification allows the PI to fully explain the need/alignment for specific expenditures within the scope of the project and demonstrate how total amounts were determined. Transparent, well-aligned budgets and budget justifications indicate the ability to manage a project and are less likely to result in significant cuts at the award stage. Note: The budget justification should align with the budget categories in the budget.

Budgeting for salary and benefits takes careful planning so that your account will not run out of funds. Because we do not know from year to year what will be allocated for raises, your budget is really a “best estimate.” The university does not charge the grant account more than the actual salary expenses. The Sponsored Programs Coordinator will provide you with needed base salary information and the BGSU PI budget template has embedded calculations for fringe benefits and annual estimated raises.

The university’s approved on-campus F&A rate (also known as Indirect Cost Rate) is 45% on a modified total direct cost basis. Additional information on the F&A rate is available here. The BGSU PI budget template will automatically calculate the F&A rate, excluding any appropriate categories.

F&A costs are charged to all sponsored programs (grants and contracts) under the requirements of the U.S. Office of Management and Budget and consistent with the University’s federally-negotiated rate determined by the Department of Health and Human Services.

If you believe that you will have a different F&A rate (e.g. funding opportunity limits F&A to less than 45%), then share that information with your Sponsored Programs Coordinator as soon as possible so that appropriate approvals can be secured. Obviously, the F&A rate will significantly impact your overall budget and the feasible scope of work, so you want to ensure that you are generating a draft budget using the correct percentage.

A simple way to calculate: If you plan to work one month on the project, use 11.11% of your academic salary (1/9). Using $60,000 as a salary estimate, you would request $6,666; fringe benefits would also be added to the budget. A course release would be budgeted at 12.5% of the academic year salary.  Remember that some funding agencies, notably the National Science Foundation, do not allow more than two months per year on a project without prior sponsor approval.

A simple way to calculate: If you plan to work one month on the project, use 11.11% of your academic salary. Using $60,000 as a salary estimate, you would request $6,666 in summer salary; fringe benefits would also be added to the budget. At a maximum, faculty on 9-month appointments can secure up to 33.33% (or 1/3) of their academic year salary in the summer (using the $60,000 AY salary example, the max summer salary would be $20,000). Remember that some funding agencies, notably the National Science Foundation, do not allow more than two months per year on a project without prior sponsor approval.”

There are two methods to calculate fringe benefits: (1) see the fringe benefits section for rate tables and (2) use the BGSU PI budget template that has built-in calculations based on employee categories.

A funding agency will sometimes require that the University contribute a specific percentage of the total project costs. For example, some agencies require a 1-to-1 match (if your total project sponsor budget is $50,000, the university will be asked to contribute $50,000 as a match).

Any matching arrangement requires prior institutional approval; see the cost sharing or matching tab.

Equipment is defined by the federal government as tangible, nonexpendable property having a useful life of more than one year and an acquisition cost of $10,000 or more per unit (including tax, shipping and installation). However, when the terms of an award set a lower dollar threshold for equipment – $1,000 for example – the PI’s department must track it as if it falls under the definition of equipment. 

Note: The university defines equipment at a $3,500 threshold for tracking purposes.

Yes, there are some special considerations.

• Equipment purchased on a sponsored project should be directly linked to the needs of the project. General-purpose equipment is unallowable as a direct cost, except with the prior written approval of the sponsor.
• If a piece of purchased equipment will benefit more than one sponsored agreement or activity, the cost should be distributed to all benefiting activities using a reasonable and documented method of allocation.
• Maintenance and repair costs to keep project-specific equipment – whether existing or purchased with project funds – in operating condition may be allowable within the time frame of the project performance period. If the maintenance agreement or repair cost benefits more than one sponsored agreement or activity, the cost must be allocated to the various projects and activities proportionately based on the benefit directly received by each.
• Budgeted equipment is generally purchased in the beginning of a project unless the scope of work is such that the equipment is essential during a later period of performance. Note: If the equipment purchase is to be made within 60 days of the award end date, the justification must be reviewed and approved by Grants Accounting before purchase.