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.
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.