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Grants Office
Project Budgeting for Direct Costs
This example shows the calculation of project budgeting for the academic year, and another example for summer work. SUU's blended direct cost rate for fringe benefits is 42%.* Indirect charges are on salaries, wages and benefits. Summer fringe rates are less than the academic rates and are equal to 20%.
A. Example: project with PI, student, and supplies - for two months work occurring in the academic year:
| Salary & Wages: |
| PI |
$10K |
($5K per month) |
| Student |
3K |
|
| |
$13K |
(Total of salary & wages) |
| Fringe Benefits: |
| PI |
x .42 = 4.20 |
(using full blended fringe rate of 42%) |
| Student |
x .0031 = .10 |
(see below) |
| |
$17.30K |
(Total of salary, wages and benefits) |
| IDC, factor of |
.41= $7.10K |
(Total indirect costs charged on: SWB - Salaries, Wages & Benefits) |
| |
|
By SUU - U.S. DHHS rate agreement for cost recovery of facilities & administrative costs - commonly known as indirect costs (IDC)- at 41%. All other costs associated with a project, such as supplies, travel, publishing, etc., are below this line. |
| Supplies |
1.00 |
|
| |
$25.4K |
(Grand Total) |
B. Example: project with PI, student, and supplies - for two months work occurring in the summer:
| Salary & Wages: |
| PI |
$10K |
($5K per month) |
| Student |
3K |
|
| |
$13K |
(Total of salary & wages) |
| Fringe Benefits: |
| PI |
x .20 = 2.00 |
(using full blended fringe rate of 42%) |
| Student |
x .0796 = .239 |
(see below) |
| |
$15.239K |
(Total of salary, wages and benefits) |
| IDC, factor of |
.41= $6.25K |
(Total indirect costs charged on: SWB - Salaries, Wages & Benefits) |
| |
|
By SUU - U.S. DHHS rate agreement for cost recovery of facilities & administrative costs - commonly known as indirect costs (IDC)- at 41%. All other costs associated with a project, such as supplies, travel, publishing, etc., are below this line. |
| Supplies |
1.00 |
|
| |
$22.49K |
(Grand Total) |
*For general budget purposes, 42% is the rate to use for Direct Costs for full time faculty- or factor of .42. However, for occasions when break out data are needed, detailed information is on the The Grants Office website: http://www.suu.edu/academics/provost/grants/faqs.htm
| Description |
Factor |
| Workers Comp Insurance 0.31% |
.0031 |
| Student workers compensation 0.31% |
.0031 |
| FICA 7.65% |
.0765 |
| Life Insurance 0.21% |
.0021 |
| Medical Insurance (blended rate) 21.9% |
.2190 |
| Dental Insurance (blended rate) 2.2% |
.0220 |
| Retirement - TIAA-Cref 14.2% |
.1420 |
| Retirement - State plan 14.88% |
.1488 |
Summer work: For summer work for faculty, use the total rate of 42% noted above.
For summer work for students, factor an additional charge for FICA and Medicare at a total of 7.65% and workers' compensation at .31% for a grand total of 7.96% or a factor of .0796
Academic year: For academic year for students, with greater than 6 credit hours, factor .31 % for workers compensation benefit. There are various categories of works compensation rates based on job risk. Check the grants web page for more information.
Note: The order of line items on the NSF budget form is based on the MTDC accounting method. However, SUU uses the simple accounting method - charging IDC only on salaries, wages and benefits. You should note on the bottom of the NSF form that SUU uses the simple accounting method.
Ref. NSF GPG # 2gii - usual accounting practice related to fringe benefits |
Provost's Office Home
Grant's Office Home
| Contact Info |
Dianne Sheridan
Interim Coordinator
Sponsored Research and Grants
Southern Utah University
351 W University Blvd
Administration Building 304C
Cedar City UT 84720-2470
Phone: 435-865-8175
Fax: 435-586-5475
email: sheridan@suu.edu |
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