Developing a Budget
The budget should list all cost details for the year or other appropriate period of time. It should include any applicable salaries & wages, fringe benefits, services, supplies, equipment, publications, travel, other direct expenses, and any facility and administrative costs. A brief outline for developing a budget is included in Michigan Tech's policies and procedures manual.
You can download a budget worksheet (Excel) to help you with this process. Refer to the Guidelines for Budget Development for additional calculation help and information.
The following are cost considerations when developing your budget:
- Direct Costs—Costs that can be specifically linked to your project.
- Fringe Benefits—Compensation made to an employee beyond the regular benefit of payment for work. Fringe benefits are charged using a negotiated rate approved by the federal government in accordance with Michigan Tech’s fringe benefit rate agreement.
- Indirect Costs—Costs that cannot be attributed to a specific project. Indirect costs are also charged using a negotiated rate approved by the federal government in accordance with Michigan Tech’s facilities and administrative costs agreement.
- Cost Sharing and Matching—Cash or in-kind support provided by Michigan Tech or a source other than the main sponsor.
- Allowable and Unallowable Costs—Allowable costs can be budgeted and expensed under a sponsored agreement, while some costs are simply unallowable. Cost allowability is determined in accordance with federal guidelines and Michigan Tech policy.
- Subawards—Costs for payment to an organization outside of Michigan Tech to conduct a portion of the sponsored project activity.