OSPRA | Office of Sponsored Programs and Research Activities
Preparing a comprehensive grant budget is a crucial step in the grant application process. Here’s a step-by-step guide to help you create an effective grant budget:
Understand the Grant Guidelines: Review the grant guidelines thoroughly to ensure all expenses are eligible and align with the grant’s requirements.
Gather Pertinent Information: Collect all necessary information, including your organization’s financial data and the project’s needs.
Categorize Your Expenses: Organize your expenses into categories such as personnel, supplies, and equipment. Distinguish between direct costs (expenses directly tied to the project) and indirect costs (overhead or administrative expenses).
Estimate Your Costs: Be as accurate as possible in estimating costs. Use historical data or obtain quotes to support your estimates.
Create a Draft Budget: Using the provided MS Excel Budget Worksheet, begin to create your draft budget. The Budget worksheet is predesigned with all the relevant formulas and currents UDM approved rates to ensure accurate calculations. If you have any questions about the worksheet please contact Ann Serra, serraam@udmercy.edu
Review and Revise: Review the draft budget with Ann Serra, Director of OSPRA as needed to ensure accuracy and compliance with the funder’s requirements.
Ensure Clarity and Transparency: Your budget should clearly demonstrate how funds will be used effectively and efficiently.
Include Measurable Outcomes: Link your budget to measurable outcomes and evaluation plans that show the impact of your project.
Demonstrate Sustainability: Funders often look for sustainable projects that will continue to thrive even after the grant period.
Compliance and Accountability: Make sure your budget complies with the grant’s accountability requirements.
Understanding the difference between direct and indirect costs is crucial for budgeting, financial planning, and grant management. Here’s a clear explanation with examples:
Direct costs are expenses that can be directly attributed to a specific project, product, or department. These costs are easily traceable and directly linked to the cost object.
Examples of Direct Costs:
Indirect costs, also known as overheads, are expenses that are not directly traceable to a single project, product, or department. These costs support the overall operations of a business and are shared across multiple cost objects.
Examples of Indirect Costs:
Imagine a company that manufactures furniture:
Understanding these distinctions helps in accurate budgeting, cost control, and financial reporting, ensuring that all expenses are properly accounted for and managed.
Allocating costs for shared resources is essential for financial transparency and accountability within an organization. Whether you’re managing cloud services or other shared assets, effective cost allocation ensures that expenses are distributed fairly and accurately. Here are some steps and considerations for allocating costs:
Remember, each section should be clear, well-organized, and directly related to the funder’s interests and guidelines.
To see the full policy please visit the policies & procedures page “Determining the Allowability of Costs to Grants Policy”
Excerpt: “Determining the Allowability of Costs to Grants Policy”
A Quick Reference to Treatment of Direct and Indirect Cost Expenses
Please refer to the University’s Policy & Procedures for Facilities and Administrative Costs/Indirect Costs for additional information about indirect cost charges.
| Direct Costs (Allowable as Grant charges) | Indirect Costs (Not Allowable as grant charges) |
| Salaries/Wages & Fringe Benefits: Faculty, other professionals, technicians, post doc associates, research associates, graduate and undergraduate students, background checks | Salaries/Wages & Fringe Benefits: Clerical and administrative assistants, fiscal manager, secretaries, and department directors |
| Materials and Supplies: Project related research and scientific supplies or any equipment or software that does not qualify under the equipment definition | Office Supplies/ Office Furniture/Books & Journals: Pens, pencils, paper, staples, toner cartridges, printer paper, general use software and computers, filing cabinets, office furniture, journal subscriptions |
| Equipment: Equipment used for scientific, technical, and research purposes that costs greater than $5,000 and has a useful life of at least one year | Equipment: General office equipment such as copiers, printers, office computers, and fax machines |
| Facilities: Project specific space or equipment rental for off-campus facilities from a third party | Facilities: Utilities, building use, grounds maintenance, renovations, and alterations of University property whether on- or off-campus |
| Travel: Transportation, lodging, subsistence, and related items incurred by employees who are on travel status on official business of the University related to the project | Travel: Costs of entertainment, and any costs directly associated with such costs (such as tickets to shows or sports events, meals, lodging, alcohol, rentals, transportation, and gratuities) |
| Telephone: Long distance calls, phone surveys or calls to project participants | Telephone: Local calls, cell phones, installation and maintenance |
| Maintenance & Repairs: Requires justification that the expenditures are required and directly related to the specific award | Maintenance & Repairs: Maintenance and repairs to general purpose equipment, buildings, and grounds |
| Advertising: Recruitment of research subjects or for job openings approved for a specific project | Advertising: Public relations to promote unit/department/college/program |
| Printing/Publications: Copying charges must be project related and only included when charges can be tracked; poster printing costs used for the dissemination of project-related outcomes | Printing/Publications: General printing and copying |
Memberships, Subscriptions and Professional Activity: All membership expenses must be justified and receive prior approval | Memberships, Subscriptions and Professional Activity: Membership in any civic or community organization; Membership in any country club or social/dining club or organization; Subscriptions to business, professional, and technical periodicals related to and supportive of project; Personal memberships to business, technical, and professional organizations |
| Shipping and Postage: Justification required that cost needed to transport project material in a timely way | Shipping and Postage: Routine or internal courier |
| Consulting: Project specific | Consulting: General, management, financial |
| Miscellaneous Costs: Subcontract costs, recharge center charges, and training costs, speaker fees, pre-award costs (justification and approval required) | Miscellaneous Costs: Computer network charges, lobbying, insurance, depreciation, legal services, interest, postage, honoraria, and utilities |
Research, Trainee or Project Participant Incentives: Research or project participant support is allowable at the discretion of the sponsor and only when included as part of an approved University of Detroit Mercy IRB protocol Justification and prior approval is required for participant support |
Ann Serra, Dir. OSPRA
serraam@udmercy.edu
(313) 993-1469
CAYUSE SUPPORT
Michele Favoretto
favoremi@udmercy.edu
(313) 993-1428
Required Forms/Templates
Working with OSPRA from project concept through award has significantly increased my awareness and understanding of the processes and UDM policies.
OSPRA offers a series of workshops throughout the academic year. Browse the workshop schedule and register today.
OSPRA Workshops offer the perfect opportunity to lean more about the sponsored research activities at UDM and gain an understanding of the process and policies. Register today.