Budget Preparation

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Budget Overview
NIH Budget
Internal Templates
Justification Language

BUDGET PREPARATION

Drafting a proposal budget goes hand in hand with developing your scope of work. It is critical to think through all of the costs associated with being able to accomplish your desired scope. A thoughtfully prepared budget will ensure that you do not end up in an overdraft as your project progresses.

Before drafting your budget, read through the funding opportunity announcement and sponsor guidelines to familiarize yourself with allowable and unallowable costs. Your budget must comply with these guidelines, as well as UCLA policy.

Total Costs (TC) outlined in your budget will be composed of two types of costs:

Direct Cost (DC)

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These costs directly benefit the grant-supported project or activity. Examples include salaries, travel, consultants, etc.

Indirect Cost (IC)

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Indirect Costs (IC) - also referred to as “Facilities & Administrative (F&A) Costs”, Overhead, 9H. These costs are not directly linked to a project and provide a benefit across more than one project or activity. Examples include salaries for departmental administration, facilities operation and maintenance, salaries for central administrative offices, etc.

IDC by Sponsor
IDC by Type

Indirect Cost/F&A Agreements by sponsor

Federal

State

Other (include F&A Waiver)

If a sponsor has a written indirect cost policy, apply that rate and provide a copy of the written policy when submitting your proposal
Provide a completed vital interest exception request if the sponsor does not have a written policy and is requesting application of a limited indirect rate. These requests must be signed by the requesting PI and Department Chair. Requests will be reviewed by VC Roger Wakimoto. Acceptance of the limited indirect rate is not guaranteed.

Indirect Cost/F&A Agreements by Type

Lump Sum – F&A will be awarded as a lump sum / not as a % of DC

MTDC – F&A will not be awarded on certain cost categories and is calculated on a portion of total direct costs:

The most common indirect cost base type used in our department is MTDC
When applying the federally negotiated rate, there are specific direct costs excluded from the indirect cost calculation:
1. Equipment (single item that costs >$5K)
2. Tuition & fees
3. Subaward costs budgeted for a non-UC exceeding $25K
4. All subaward costs budgeted for another UC
5. Patient Care Costs
6. Rental costs of off-site facilities

Other – a non-standard F&A rate will be awarded

Salaries & Wages – F&A will only be award on salary expenses

Salary & Wages (w/Benefits) – F&A will only be awarded on salary & benefit expenses

TADC (Federal Training) – TDC base excluding tuition & fees and equipment expenditures

TC – F&A will be awarded as a % of TC (ie., 10% F&A rate on $10K TC = $1K)

TDC – F&A will be awarded on TDC with no exclusions

NIH BUDGET

As you begin to develop a budget for your research grant application and put all of the relevant costs down on paper, many questions may arise. They can answer questions such as:

What should be considered a direct cost or indirect cost?
What is the fringe benefit rate?
What is the graduate student stipend rate?
What Facilities and Administrative (F&A) costs rate should I use?

Please reference the NIH guide on how to “develop your budget“
Use the templates below for your NIH “internal budget” preparation worksheet.

RESOURCES FOR BUDGET PREPARATION

Templates & Standard Language
Download the internal budget templates and standard language for preparing a Budget Justification.