Develop a Budget
Develop a Budget
Forms & Tools
Policies & Instructions
Developing a budget is an important part of the proposal process, and your budget must conform to established federal, UNH, and other sponsor requirements.
Grant and Contract Administrators (GCAs) provide one-on-one assistance with budget development. Contacting your GCA early and often will smooth the budget development process for you.
GCAs are assigned responsibility for specific departments/programs/campus offices.
Budgets generally include two different types of costs: (1) direct costs and (2) facilities and administrative (F&A) costs.
Direct costs are those costs that are specifically associated with a particular sponsored project and/or can be directly assigned to that project or with a high degree of accuracy.
The tests of allowability for direct costs budgeted and charged to sponsored programs are that:
(a) they must be reasonable;
(b) they must be allocable;
(c) they must be given consistent treatment (as either direct or indirect); and
(d) they must conform to any limitations or exclusions set forth in the sponsored agreement.
Common Direct Costs include:
Salaries and Wages
UNH has adopted the definition of equipment as an article of non-expendable, tangible personal property having a useful life of more than one year and an acquisition cost of $5000 or more.
Supplies are defined as expendable property with an acquisition cost of less than $5000 per unit and/or a life expectancy of less than one year. General office supplies normally are considered as F&A costs; if the proposed project calls for supply items normally considered general office supplies, the budget justification must explain how the supplies are intended to advance programmatic objectives.
Consultants are individuals from outside of UNH whose expertise and skills will add value to a project; faculty or other UNH staff should not be budgeted or paid as consultants on a project.
Travel costs are the expenses for transportation, lodging, and subsistence to be incurred by employees who will travel on official project business. On occasion, travel for non-UNH personnel involved in the project may be budgeted.
Collaborating institutions budgeted to perform a significant portion of the project.
Other costs could include items such as animal care, long distance telephone charges, duplicating costs, leases/rentals, etc.
Facilities and Administrative (F&A) Costs
Sometimes called “indirect costs” or “overhead,” F&A costs are those that cannot be readily assigned to particular projects or activities and include the costs of administration, maintenance, utilities, and other expenses necessary for the operation of a research enterprise.
F&A costs are calculated for a project by using the formula Rate x Base = Cost where Rate varies depending on the type of activity (i.e., research vs. instruction and on-campus vs. off-campus) and Base varies according to Federal and/or sponsor regulations. UNH’s F&A rates are negotiated for a set number of years with its “cognizant” agency, currently the U.S. Department of Health and Human Services (DHHS).
For further information see University of New Hampshire Guide to Sponsored Programs F&A Cost.
Estimating the cost of a research project is an inherently unpredictable exercise; primarily because the manner in which a research endeavor progresses is itself unpredictable. Experience makes the exercise easier to carry off and liberal rebudgeting authority from sponsors (when it is offered) makes precise estimating less critical.
Federal agencies will generally provide either a form or a prescribed format for estimating and presenting cost; it is important to follow their instructions explicitly. Many agencies that haven’t developed their own forms use the SF 424 as their standard format.
Value of Volunteer Time (This standard is used by the Federal government and provides state-by-state values.)