Budget preparation is a critical part of any grant application. The Office of Foundation and Government Support can work with you, other University offices, other Universities, as well as with State and Federal agencies to make sure that your budget meets requirements.

Importantly, if you are requesting released time as part of a research or other project, it is critical that you contact the OFGS to get the correct information. The cost of released varies from person to person and proposal will meet significant delays in the approval process if released time is not budgeted for appropriately. The OFGS will gladly act as your liaison, gathering the information you need and ensuring that the approval process goes smoothly.

• Preparing Grant Budgets
• Grant Budgeting at Primarily Undergraduate Institutions
• Subsistence (M&IE) Rates for High-Cost Areas
• Domestic Per Diem Rates (GSA)
• MU Employee Travel Guidelines
• MU Maximum Reimbursement Rates

Following Office and Management (OMB) A-21, Direct Costs are defined as "those costs that can be identified specifically with a particular sponsored project relatively easily with a high degree of accuracy." Examples of direct costs may include salaries for the principle investigator and students, specific kinds of equipment, or supplies, such as chemical reagents, necessary to conduct the work. In all cases, direct costs must be:

The links below provide key information on writing a successful budget.

• Reasonable - what a prudent person would spend;
• Allocable - limited to that portion of expenses directly benefiting the project; and
• Consistently treated as direct charges.

Indirect costs (ID costs, or alternatively Finance and Administrative Costs) are defined as "those that are incurred for common or joint objectives." Said another way, indirect costs are costs that cannot be specifically attributed to an individual project. Examples of indirect costs may include the services of the accounting staff, the cost of utilities for a building housing your research project, office supplies, postage, or salaries for departmental support personnel.

Importantly, indirect costs are typically figured as a percentage of your budget, rather than as a single fixed cost. For Millersville, the negotiated rate is 41 percent of wages and salaries. Alternatively, if the funding agency is unwilling to pay ID costs at the negotiated rate, then you may ask for 8 percent of the total budget.

After July 1, 2009, 30 percent of ID costs returned to Millersville will directly benefit the originating faculty, department and school, and an additional 20 percent will be used for faculty professional development. Currently, only 40 percent of ID costs are returned to schools and departments. The difference goes to the University bottom line.