A budget with justification must be included with the submission form. Use the format required by the grantor. If no form is required, use a format desired by the PI, or one of the Grants Accounting templates at http://www.comptroller.ilstu.edu/faculty/grants/BudgetSamples.shtml
Because ISU receives grants and contracts from federal funds, ISU applies the Office of Management and Budget (OMB) Circular A-21, Cost Principles for Educational Institutions. For costs to be allowable, they must be reasonable, allocable to the sponsored project, allowable under University and sponsor poilcy, and treated consistenly with respect to being charged directly or included in the Indirect Cost rate. For more information on these cost principles, see http://www.whitehouse.gov/omb/grants_circulars/.
Use budget guidelines given by the granting agency. For multiple year awards, prepare annual and cumulative budgets.
BUDGET CHECKLIST:
1. Direct Costs
A. Personnel (ISU Employees)
If you plan to pay ISU employees, PRIOR to the start of any work, contact Human Resources at 438-8311 or hr@IllinoisState.edu to determine the appropriate job classification and compensation for the type of grant work to be performed. HR will also provide assistance with recruitment, benefits, and employment policies and procedures.
i. If there are salary questions other than job classification and employment policies contact Grants Accounting at grantsacct@ilstu.edu about salary and benefit issues.
ii. Work performed by an ISU employee is considered Personnel not contractual
iii. Will anyone be paid as a scholarship or fellowship for training, an award, etc? If so, it should be included in the Participant Support Costs section
iv. Budget justification needs to specify the type of pay for each employee:
a. Purchased Release Time (time where the employee is released from the department to work an equivalent amount on the grant)
b. Summer Salary
c. Administrative Increment
d. Extra Pay
v. The budget justification should also explain the % FTE and number of months.
vi. Separate salary/wage budgets by the following categories:
a. Faculty
b. Administrative/Professional
c. Civil Service (full-time or temporary)
d. Graduate Assistants - confirm that these are at least the minimum required
e. Student Workers - confirm that this is at least minimum wage
vii. For multiple years, add a 3-5% increase to salary each subsequent year. If the increase is more than 5%, an explanation for the increase and the Chair and Dean approval needs attached to the budget. Per OMB A-21, salaries cannot be above base salary, so increasing base salary will need Chair, Dean and grantor approval.
viii. Confirm granting agency allows the budgeted salary. Some grantors limit the number of months or cap the salary amount.
ix. Salary payments will be made as a "buyout". Per OMB A-21, if exra pay is being requested because the duties will be performed in additional to a 100% FTE appointment, the budget justification must state that payment is being requested as Extra Pay.
B. Fringe Benefits
Contact Grants Accounting at grantsacct@ilstu.edu for the correct rate to budget.
i. Benefits cover the proportional share of SURS, FICA and insurance.
ii. Even if an employee is currently paid 100% from GR and the benefits are 100% GR, CMS requires the grant/contract pay its proportional share of benefits.
iii. The benefit rate is determined by the employee's selected insurance package in relation to their salary, plus the current FICA and SURS rates so everyone has a different rate.
iv. Include a 1% rate increase each year on multi-year proposals.
v. Students and Grad Assts have no benefits assessed, except FICA at 7.65% while not taking a "full load". For FICA, a "full load" is 3 credit hours during the Summer semester and 6 credit hours for Fall and Spring semesters.
C. Contractual Services
i. If total purchase will be $2,500 or more, contact Purchasing, 309-438-7611
ii. Two Party Agreements (services of non-ISU employees)
iii. Spouses of University employees cannot be used as consultants without prior approval of the University President.
iv. Illinois State University employees that are consultants need to be paid through Payroll, with benefits, so should be listed under salaries
v. Conference Registration, duplicating/copying, subscription, external sample analysis that are allocable to the sponsored agreement.
vi. This is not a complete list. If there are questions about allowable expenses, please contact Grants Accounting at grantsacct@ilstu.edu.
D. Commodities
Consumable items such as office supplies, toner, and lab supplies. Items that can be used for multiple tasks are considered indirect costs and should not be included in this budget. This is not a complete of commodity expenses. If there are questions about allowable expenses, please contact Grants Accounting.
E. Printing
Separate if required by agency, otherwise include in Commodities.
F. Travel
i. Transportation, Airfare (Coach) Fleet or rental car (if required), the state mileage rate changes periodically and the FY10 Mileage rate is $.50 as of 1/1/10.
ii. Air travel to foreign destinations must be done on American flag carrier airlines per the Fly America Act.
iii. Lodging and Per Diem rates are limited by State regulations. See rates at http://www.comptroller.ilstu.edu/faculty/travel/reimbursements-travel.shtml
iv. This is not a complete list of travel regulations. If there are questions about allowable expenses, please contact Grants Accounting at grantsacct@ilstu.edu.
G. Equipment
i. If total purchase will be $2,500 or more, contact Purchasing, 309-438-7611.
ii. ISU and CMS policies are that items over $100, with a life of more than one year, and not consumable are considered equipment.
iii. List items and costs separately
iv. Grantors do not usually allow equipment to be purchased at the end of a grant.
v. Make sure RFP allows equipment as some grantors do not allow equipment.
vi. Follow grantor guidelines as to the category equipment should be budgeted. For example, ISBE definition of equipment is over $500 with a life of more than 1 year. NSF considers items over $5,000 equipment. (If grantor considers item commodities and not equipment, budget under commodities).
vii. Equipment with a per unit cost over $5,000 are excluded from IDC.
viii. Equipment purchased from Restricted funds become property of ISU. If plans are for something different, they have to be specifically written into the budget justification and approved by the grantor. At time of title transfer, PI must contact Property Control, 309-438-3150 for appropriate paperwork to file with CMS.
H. Audit
i. Some IBHE require audits of a specific award.
ii. Contact Grants Accounting at grantsacct@ilstu.edu for an estimated audit fee
iii. Grants Accounting will schedule the audit when it is due, approve the audit and send it to IBHE per the contract.
I. Sub-Award
i. When ISU passes funds on to another agency to perform some of the scope of work, this is a sub-award.
ii. Grantor rules apply to the sub-award also.
iii. An itemized budget for each sub-award must be included with grantor budget so it is listed as to how they will spend the funds. This budget also must be approved by Grants Accounting.
iv. only for schools or organizations. Individuals would be contractual.
v. List each school/organization and amount of sub-award separately
vi. First $25,000 of each subcontract will have IDC assessed.
vii. Sub-awards are written and negotiated through RSP. Contact RSP prior to the start of work.
viii. Payment schedule and required reports need to be mentioned in subcontract
ix. Include sub-award contact information.
J. Participant Support Costs
i. Use this category only if required by grantor. If not required, use the Personnel, Travel, etc categories - the specific type of expense.
ii. Participant Stipends - cannot be ISU employees
iii. For the payment process and additional questions, see the Scholarship Reporting Form located at http://www.comptroller.ilstu.edu/forms/business_forms.shtml Contact Brenda Banwart if there are more questions on this form.
iv. Travel Expenses
v. Meals
vi. Depending on the grantor, this category may not be assessed IDC. (NSF does not allow IDC to be assessed.)
vii. Can't be transferred to another category without grantor's prior written approval.
K. Indirect Cost/Facilities & Administrative
i. Federal negotiated rate is 42.5% of modified total direct costs, 44% starting 7/1/10
ii. Off campus rate is 26%, Graduate Assistants 10%
iii. Is Appendix B-1: Indirect Cost Rate Change Request required?
a. If the grantor does not allow the current IDC rate, Appendix B-1 needs completed and approved by Research and Sponsored Programs prior to review of the budget.
b. If it is in writing that grantor does not allow 42.5% IDC< bring copy of grantor restriction to budget reivew.
iv. Is Appendix B-2: Indirect Cost Split Request required? Appendix B-2 is used when there is departmental collaboration on the grant and departments have agreed to split the IDC that will be assessed.
v. MTDC means all costs except:
a. Any equipment item over $5,000
b. The portion of each Sub-award that exceeds $25,000
c. Scholarship, tuition, NSF Participant Support Costs.
vi. Remove the above costs from the Direct Cost Base
vii. Calculate IDC on the Direct Cost Base.
L. Cost-share/Matching
i. Is Cost-Share required in this proposal? Some agencies require cost sharing or matching funds. The same budget categories apply to these funds.
ii. Is Cost-Share voluntarily included in the proposal? If cost-share is not required, do not include it in the proposal or it becomes committed.
iii. Is Appendix C attached? Appendix C details the cost-share being committed. The PI, Department Chair and Dean must approve cost-share since it requires the commitment of departmental funds.
iv. Appendix C allows Grants Accounting to track the commiteed matching on their database and send confirmation reports to PI as required. If additional amounts are matched, or items change, PI should contact Grants Accounting with that information.
v. PI and department are required to track cost-share since these expenses are from non-grant accounts.
M. Make sure figures in the budget justification or narrative add up and that they match the figures in the budget. If grantor requires rounding to nearest 100, then the budget should have numbers in that format.
Budget Review Process
Contact Grants Accounting any time with questions. Once PI is satisfied with budget, they should contact Grants Accounting for a review of the budget and justification.
E-Mail Grants Accounting at GrantsAcct@ilstu.edu: Include:
RFP, Program Requirements, Etc. Link to website is preferred.
Detailed Budget
Budget Justification/narrative
Any required appendices.
- If not using Cayuse, bring paper copies of the submission form, budget and justification. Grants Accounting has to initial these pages prior to RSP accepting them.
- The budget is approved when Grants Accounting signs section VI of Proposal Submission Form or the routing box in Cayuse.
- Obtain Chair and Dean signatures
- Submit to RSP
Post-Award Personnel Payment Information
1. At least one month prior to the ISU Employee's begin date, complete appropriate paperwork for new hires or payments to current employees.
2. Forward the APPROPRIATE PAPERWORK to Human Resources, Campus Box 1300, 101 Nelson Smith Building, no later than the 10th of the month in which the employee is to receive their first payment. Failure to do so may result in the individual not receiving their pay in a timely basis.
3. For contractual services, a Two Party Agreement should be signed by the fiscal agent and the service provider prior to the beginning of the service. For contract amounts of $2,500 or greater, please contact Purchasing at 438-7611.
Contact Purchasing for any purchases totaling $2,500 or more.