Proposal Preparation

Proposal Overview

Early advice and assistance on matters such as potential sponsors, budget preparation, and internal procedures will often prevent delays, changes and crises. To ensure the smooth processing of all proposals, the faculty or staff member is urged to discuss the plans from the beginning with their department Chairperson and/or Dean and the Division of Sponsored Research.

The PI's Quick Reference Guide the Principal Investigator Awareness Online Training Modules are invaluable tools to assist researchers thru both the Pre-award and Post-Award steps. In addition to being a web-based, both are available in hard copy. Brochure style format of the PI's Quick Reference Guide is available through the Sponsored Research Administrators (SRAs) in the Division of Sponsored Research (DSR).

Of considerable importance in proposals preparation is early contact with DSR. An SRA from DSR is assigned to each college and a Grant Financial Administrator (GFA) from RFM is assigned by funding source for assisting faculty and staff in proposal preparation, submission and the subsequent administration of awarded projects.

The SRA can assist the investigator in the development of his/her proposal, and can also provide advice on sources of cost sharing, information on agency requirements and completion of government and agency forms, and provide back-up documentation. Early consultation on policy areas such as subcontracts, copyrights and patents, and research involving human subjects and laboratory animals is crucial to the completeness of the proposal package.

Program Guidelines

The first step in writing (and reviewing) any proposal is learning the program guidelines. The guidelines help the investigator determine if his/her idea is within the agency's area of interest, and, if so, what format the agency requires. Either a copy or the link to the Sponsor guidelines must be provided when the proposal is submitted for review.

In many cases, the funding source will use the guidelines to tell the writer exactly what it wants to see in the application. Guidelines may specify and detail the sections to be included in the proposal; they may provide evaluation criteria and the number of points of each criterion. Occasionally, guidelines may not give any information at all.

It is imperative that the writer follow the guidelines, because reviewers are usually pressured to evaluate a large number of proposals very quickly. If the proposal is presented according to the guidelines, the reviewers are far more likely to give the proposal a favorable rating. This is especially true of a Request for Proposal (RFP) or Request for Application (RFA), items that usually require independent business and technical sections. Failure to present the proposal in the required format can exclude it from being reviewed or cause it to be denied outright.

In the event the agency does not have a specific format, listed criteria, or detailed specifications (as in an RFP or RFA) some of the standard sections that could be included in proposals are described in the Proposal Component section of this manual. These components should be written clearly and concisely.

Timeline

See the NEW PROPOSAL SUBMISSION GUIDELINES for proposal submission deadlines.

Electronic submission deadlines are strictly adhered to by the Agency. They do not grant reprieves for "operator" or "technical" errors, nor will they accept proposals one minute after the deadline time. It is imperative to allow sufficient time for "glitches".

Internal Form

The Internal Form (formerly named the USF Proposal Review and Certification Form) is completed and "signed" online via the Research Online Site. The Internal Form is the University's mechanism for communicating approvals for the proposals, and the DSR mechanism for collecting proposal data.

An Internal Form bearing all applicable signatures and detailing all pertinent information must accompany all proposals submitted to DSR for review and delivery to the sponsoring agency.

The department Chairperson and/or Dean must endorse the proposal to the funding agency approving all departmental resources: space, equipment, and time.

If a project is interdisciplinary, all affected department Chairpersons and/or Deans must be consulted for their endorsement. Endorsement/approval is indicated via the respective signatures on the Internal Form.

In some instances, a proposal is received with an unsigned Internal Form. DSR will need to contact the PI or Dean/Director explaining the proposal cannot be sent without the signatures.

DSR developed the online version of the Internal Form, which uses electronic signatures to expedite certification by department/college officials.

Proposal Components

Having developed a good concept supported by a sound research plan, in most cases the PI will include the following sections in a proposal:

Letter of Transmittal

A letter of transmittal from the University accompanies every proposal to the agency. This letter is prepared by the SRA after their review is completed.

The letter states in general that the University is pleased to make the submission and would be happy to discuss any questions posed by the sponsor with technical questions to be referred to the PI; and business, administrative or financial questions to be addressed to the SRA.

A proposal transmittal letter template is provided for your convenience.

Project Title

The project title should be clear, concise and precise. Some agencies restrict the number of words that may be included in the title or require the title to reference the RFP/RFA. News releases often rely on the title to reference a project, and precise syntax will help avoid misinterpretation of a study.

Title or Cover Page

The face page, or cover page, in most applications contains institutional data that the funding agency requires for both administrative and statistical purposes.

See our DSR Fact Sheet for the most current Institutional Data. For matters of security, some information cannot be listed on the DSR website. See the Director of DSR if the required information is unavailable on the DSR Website.

Most cover pages include the following information:

• Project title (clear, concise and precise)
• RFP number (if any), or the agency number for a continuation or renewal project
• Name of agency to which proposal is submitted
• Name of University and College/Department
• Date submitted (optional)
• Projected beginning and ending dates of the project
• Lines for signature, typed names, titles, and phone numbers of PI/Project Director an official authorized to sign proposal (normally the Associate Vice President of DSR or the Director of DSR.

Forms

A proposal usually requires the completion of a set of agency forms. These forms often deal with basic information about the University, assurances, and often include budget forms. In most cases, the applicant is directed to place them at the beginning of the proposal.

Abstract or Project Summary

The abstract describes the major objectives of the proposed research and the research strategy to meet those objectives. The abstract serves a variety of purposes and should be prepared with care.

The abstract or project summary becomes the foundation of the proposal. The first impression it gives will be critical to the success of the venture.

In many instances, the abstract may be the determining factor in assigning the proposal to the appropriate study section for review, and later may be used in news releases. The clear, precise language contained in the abstract should be understandable to both the expert and the layperson. The abstract should be written when the proposal is complete. This makes it easier to include all key points necessary to communicate the objectives of the program.

• Statement of objective
• Methods to be employed
• Significance of the proposed activity to the advancement of knowledge

Table of Contents

The table of contents denotes the page numbers of the major parts and divisions of the proposal. Preliminary and very brief proposals ordinarily do not require a table of contents.

Description of Project

The description of the proposed project should explain the general goal and the specific objectives. The need for the project must be justified and its significance should emerge clearly and convincingly. The investigator must differentiate between the overall goals (stated in general terms), and specific intermediate or enabling objectives (stated in concrete terms).

See DSR Memorandum dated July 18, 2005 entitled "Proposal Documentation" as it relates to the necessity of having a description of the project in file prior to the opening of a project account.

Related Studies/Review of the Field

The investigator must demonstrate clearly that s/he is aware of other work in the area. The investigator should carefully select and discuss only those sources that are significant to the proposed research. For the new investigator, this step is particularly important, since this section is used to gauge his/her potential for success.

Methodology and Time Frame (Research Plan)

The investigator must demonstrate a critical assessment of the proposed work. S/he should use a focused and logical approach, and include clear explanations of the assumptions and limitations of the planned research (e.g. the identification of possible problems and the planned solutions). According to NIH, investigators often fail to define the criteria used in evaluating a specific technique or procedure as a success or failure. It is also important to address the statistical aspects of the application. Finally, the investigator must carefully project the overall length of time required to conduct the research project, allowing for data collection, analysis and interpretation.

Biographical Information of Key Personnel

Curriculum vitae (CV) or Biographical sketch should be included for all investigators and Key personnel on a project.

• Biographical (Bio) sketch information usually includes education (through postdoctoral training) research and professional experience (previous employment) honors, memberships in federal government public advisory committees and publications.
• Bio sketch information for most USF research faculty is maintained in COS.

Budget

A budget is a projected cost estimate for future research needs, and must be prepared with great care. Projected costs must conform to the policies as prescribed in Circular OMB A-21 in conjunction with the Cost Accounting Standards and applicable USF policies.

Most agencies provide specific budget forms, but the basic categories of direct costs and indirect costs apply to all agencies. Direct costs are those that can be identified specifically with the funded project. Indirect costs are essentially overhead costs incurred by the institution housing a project (e.g. providing support services for the funded project).

Facilities/Special Resources

Only the facilities that will be utilized while conducting the research should be described in detail. If unique facilities exist with regard to the proposed research, the investigator must denote this in the proposal. (See General Information Blurb for detailed information.)

Equipment

Identify major items of equipment and the extent that it will be available for use while conducting the proposed research.

Other

Include resources available that will enhance the ability to do research, such as: seminars, library facilities and access to relevant colleagues

Current and Pending Support

For each project currently funded or pending review in which the investigator is involved, the following should be stated: the funding agency, title of project, total requested or awarded, project period, the investigator's percentage of effort and role in the project.

Dissemination

The investigator must explain how the results of the project will be disseminated (e.g. conferences, training workshops, professional journals, special newsletters, manuals, and audio-visual materials).

Appendices

Appendices are useful when the Procedures of Methodology (Research Plan) section becomes too long to be clear, or when the narrative is limited in size by the funding agency. Appendices can make the proposal clearer, and serve as excellent documentation tools. Appendices may be skimmed or skipped, for example, and should not include vital information. Many agencies limit the number of appendices that may be submitted.

Frequently Requested Information (DSR Fact Sheet)

The face page, or cover page, in most applications contains institutional data that the funding agency requires for both administrative and statistical purposes.

See our DSR Fact Sheet for the most current Institutional Data. For matters of security, some information cannot be listed on the DSR website. See the Director of DSR if the required information is unavailable on the DSR Website.

Personnel

Who should be listed as personnel on a budget?

The answer is simply "everybody who has a role to play", whether they receive compensation for their services or not.

All university personnel associated with the project should be identified, including positions which are "To Be Named" (TBN).

Non-university personnel should be identified as either Consultants or as Subcontractors.

What are the roles on a project?

While the exact wording may vary slightly, the roles on an application are as follows:

PI (PI)/Program Director/Project Director

A Faculty member designated by the grantee to direct the project or activity being supported by the grant. He or she is responsible for the scientific and technical direction of a project, the day-to-day management of the project or program, and is accountable to the grantee for the proper conduct of the project or activity. The PI is always considered to be Key Personnel.

Co-Investigator

An individual involved with the PI in the scientific development or execution of the project. The co-investigator may be employed by, or be affiliated with, the applicant/grantee organization or another organization participating in the project under a consortium agreement. This individual would typically devote a specific percent of effort to the project and would be identified as Key Personnel. The designation of a co-investigator, if applicable, does not affect the PI's roles and responsibilities.

Consultant

An individual hired to provide advice and/or professional services, usually for a fee, to a project. While a consultant is almost always employed outside the university there may be rare cases where the consultant may be a university employee.

Research Associate

Professional staff who provide any number of services to the project, ranging from lab work to data analysis. These individuals are rarely considered Key Personnel.

Graduate Research Assistant

A pre-doctoral student who performs specific services to a project in return for tuition remission and a stipend or salary. These individuals are rarely considered Key Personnel.

Post-Doc Fellow

Personnel with doctoral degrees who conduct research in return for salary or stipend. These individuals are rarely considered Key Personnel.

Project Support Staff

Personnel who provide routine (usually clerical or administrative) support to a project. These individuals are rarely considered Key Personnel. While these salaries are typically considered part of F&A, there are circumstances when clerical activities can be included as direct costs. This is most common on larger program project grants. Care must be taken to include a detailed justification in the budget justification under these circumstances.

Subcontractor

An entity which the university contracts to conduct a portion of a project's work scope. The subcontractor is required to submit a scope of work, budget, budget justification and endorsement by the subcontractor's institution.

For example, an entity subcontracting with the university on a federal proposal will need to submit to USF a signed face page (or other signed supporting document from the subcontractor’s institution), budget, budget narrative, checklist (if applicable), and scope of work. If the subcontractor’s agreement(s) for fringe and indirect cost rates (F & A) are not accessible online, a copy of these agreement(s) will need to be included in the documentation packet.

Personnel Groupings Key vs. Non- Key

Key Personnel

Individuals who contribute in a substantive way to the scientific development or execution of a project, whether or not they receive compensation from the grant supporting that project are considered to be Key Personnel. The PI and Co-investigator are included in this category.

Typically, Key Personnel have doctoral or other professional degrees, although individuals at the masters or baccalaureate level should be included if their involvement meets the definition of Key Personnel.

Key Personnel must devote measurable effort to the project whether or not salaries are requested--"zero percent" effort or "as needed" are not acceptable levels for those designated as Key Personnel.

In most cases, a CV or Biographical Sketch is provided for each person listed as Key Personnel.

Some agencies (NIH in Particular) will list on the NGA those individuals they have determined to be "Key" to the project, regardless of the information contained within the proposal.

Who should NOT be considered as "Key" personnel?

To list a few, Research Asst/Assoc, Graduate Research Assts, Post-Docs, Support staff.

Why?

Even though the PI may have a tendency to want to list everyone on the project as Key, these individuals rarely contribute significantly to the project. Some of the employees filling these positions are even temporary in nature (students and Post-Docs may come and go with each semester). The individual, not the position title, is considered "key".

When an individual is listed as Key, special care is taken by the agency to follow the individual throughout the life of the project, which normally translates into special guidelines. (NIH requires any change in Key personnel to be explained in the yearly progress report. There may be times when the agency must grant approval prior to the change being made.)

Other Significant Contributors

This category identifies individuals who commit to contribute to the scientific development or execution of the project, but are not committing any specified measurable effort to the projects. These individuals are typically presented at "zero percent" effort or "as needed" (individuals with measurable effort cannot be listed as Other Significant Contributors). Consultants should be included if they meet this definition. This would also be an appropriate designation for mentors on Career awards.

In most cases, a CV or Biographical Sketch is provided for each person listed as an Other Significant Contributor.

The following links contain sponsor-specific definitions of personnel:

• NSF
• NIH

Budget Preparation

A budget is a projected cost estimate for future research needs, and must be prepared with great care. Projected costs must conform to the policies as prescribed in Circular OMB A-21 in conjunction with the Cost Accounting Standards and applicable USF policies.

Most agencies provide specific budget forms, but the basic categories of direct costs and Facilities and Administrative (indirect) costs apply to all agencies. Direct costs are those that can be identified specifically with the funded project. Facilities and Administrative (indirect) costs are essentially overhead costs incurred by the institution housing a project (e.g. providing support services for the funded project).

Note: It is the responsibility of the college to review proposal budgets and determine that all costs are allowable and allocated correctly between direct and indirect cost categories.

Direct vs. Indirect
Direct Costs	Indirect Costs
Those costs that can be identified specifically with a particular sponsored project	Those costs that are incurred for common or joint objectives (of the University) and therefore cannot be identified specifically with a particular sponsored project
Examples:	Examples:
- Salaries	- Salaries
PI, Research & Technical Personnel	Clerical & Administrative Personnel
- Supplies	- Supplies
Lab supplies, project specific software or photocopies	General purpose supplies
	Subscriptions
	Institutional & Individual memberships
- Equipment	- Equipment
Technical or scientific	General purpose equipment (computer, calculator, fax machine , furniture, file cabinets)
- Telephone Charges	- Telephone Charges
Long distance charges	Basic monthly service
	Installation
	Maintenance

Direct Costs

A direct cost is any cost that is identified with a specific area established for the accumulation of costs.

A particular item is chargeable as a direct cost if it meets all of the following criteria:

• The cost is necessary, reasonable and allocable to the grant program.
• The cost complies with the limitations of the grant agreement.
• The cost is allocated to the grant on the basis consistent with policies that apply to all activities of the grantee.
• The cost is accounted for consistently and in accordance with the generally accepted accounting principles.
• The cost has not been allocated to or included in the cost of any other externally funded program.

A cost element is not chargeable to a sponsored program if it is incurred:

• To meet deficiencies caused by over expenditures
• To relieve a project of unexpected balances
• To avoid restrictions imposed by the law or by the term of the term of the project agreement
• For other reasons of convenience
• If work was not done

Further information regarding direct costs that may be charged to federally sponsored grants are contained within USF's Policy for Charging Costs Directly or Indirectly to Federally Sponsored Projects.

Direct Costs include the following major categories. A detailed explanation of each category is provided following the listing:

• Salaries/Wages
  • Fringe Benefits
• Consultant Services
• Equipment
• Supplies
• Travel
• Patient Care Costs
• Alterations and Renovations
• Other Expenses
• Training Expenses
• Subcontractor/Contractual Costs

Salaries/Wages

For non-federally funded projects, the salaries of general Faculty, Administration, Staff and Other Personnel Services (OPS) may be charged to a project.

Stipends are not considered salary for sponsored project purposes.

Federally sponsored projects do not routinely allow salary for administrative personnel. Always review the individual sponsor's guidelines for allowable administrative salary costs. In addition, read the USF policy regarding administrative personnel.

Institutional Base Salary:

Salaries and wages should accurately reflect the current compensation level of employees also known as the Institutional Base Salary. In view of the length of the proposal review process and the duration of the project, realistic salary increases should be built into the budget. Summer salaries for faculty appointed on an academic year base should be projected at the per-month rate of one-ninth of the academic year salary. It should be noted that the National Science Foundation only approves two summer months per year.

Is institutional base salary really important? The Office of Research Integrity newsletter, published by NIH, reported in its June 2003 edition that Northwestern University (NU) received a $5.5 million fine from the federal government "to settle allegations that the university violated the False Claims Act in connection with several federally-sponsored medical research grants..." The allegations claimed the NU violated the False Claims Act by "...misstating the salary base of researchers on a number of grants, thus improperly inflating researcher's time and effort charges."

Salary Cap:

The University may not submit an application that has an institutional salary base in excess of the NIH salary cap, including salaries for future years. (Salary in excess of the cap for the corresponding effort is considered cost share.) This cap only applies to grants funded by NIH, unless the sponsoring agency specifically invokes the salary cap in its guidelines.

Joint Appointments:

For the purpose of this section, a Joint Appointment involves a USF Faculty member who also has an appointment with the Veteran's Administration (VA). These Investigators must have a Memorandum of Understanding, MOU that specifies:

• The title of the investigator's appointment,
• The responsibilities (at both the university and the VAMC) of the proposed investigator
• The percentage of effort available for research.

The MOU must be signed by the appropriate officials of the grantee and the VAMC.

The joint VA/university appointment of the investigator constitutes 100 percent of his/her total professional responsibilities.

The grant application may request the university's share of an investigator's salary in proportion to the effort devoted to the research project. The institutional base salary as contained in the individual's university appointment determines the base for computing that request.

The Authorized Institutional Representative signature (submitting university) certifies that:

• The individual whose salary is included in the application serves under a joint appointment documented in a formal MOU between the university and the VA
• There is no possibility of dual compensation for the same work or of an actual or apparent conflict of interest.

Click to view a sample MOU.

Effort:

The amount of salary requested should be in proportion to the time each resource will spend on the project, a.k.a. "Effort."

If the percentage of time spent on the project will be greater than the amount of salary requested, this should be clearly detailed in the budget justification as cost share. Cost Share, unless otherwise required by the agency, is not permitted. All cost sharing must be indicated on the Internal Form and endorsed by the department via the respective signatures. The sum of each individual's percentages of time and effort for all assignments may not exceed 100%.

In the budget justification the investigator must describe the role of each resource, professional and nonprofessional, even if salary is not requested. The investigator must provide the percentage of time and effort on the project for each person.

Some agencies do not allow salary recovery of a PI and/or Co-I or other faculty (e.g. American Heart Association). A copy of the agency guidelines should be retained in the proposal file for future reference. In addition, that portion of the unpaid effort committed to the project becomes cost sharing.

Additional Compensation from Federal Contract and Grant Accounts:

Additional compensation on contract and grant accounts is governed by the U.S. Office of Management and Budget (OMB) Circular A-21, which allows for payment of extra compensation on federal grants when all three of the following conditions are met:

• Consultation is across department lines, or involves a separate or remote operation.
• The work performed is in addition to the faculty member's regular department assignment.
• The terms are specifically provided for in the contract/grant agreement or they have been approved in writing by the sponsoring agency and appropriate USF responsible authorities.

PIs and Co-PIs are not permitted to earn extra compensation on federal grants.

Refer to the Faculty Extra Compensation policies, procedures, and guidelines as well as the Additional Compensation on Contracts and Grants in the Post Award section of this manual.

• Faculty Extra State Compensation Policy
• Faculty Extra Compensation Procedures
• Extra Compensation Guidelines for Research
• Request for Extra Compensation Form

Fringe Benefits

The fringe benefit rate is a projected rate that includes:

• worker's compensation
• unemployment compensation
• social security (FICA)
• retirement

Salaried Faculty, USPS, and A&P employees are entitled to these full fringe benefits.

OPS employees are covered by:

• worker's compensation
• unemployment compensation
• Medicare

A special fringe rate is assessed for OPS.

Grant budgets should include fringe benefits rates based on the percentage of salary requested. Current fringe benefit rates are available on line and can also be obtained from the SRA in the DSR.

A separate amount should be included for health insurance. Faculty with 9 month appointments are not assessed for health insurance during the summer months. The health insurance costs are incurred during their nine month appointment pay periods.

Consultant Services

A consultant is an individual who provides specific professional advice and expertise to a research project on a limited basis, normally for a fee. While a set rate is not utilized, Consultant fess must be reasonable.

Consultant or lecturer charges for travel, lodging, per diem and professional fees may be included in the budget, but should be justified carefully. The budget explanation should include the time period of the consultant's service, while the narrative should include an explanation that the specific expertise either does not exist on campus or is not easily available. Some consultants may provide their services without charge, but they should still be identified in the budget.

Federal employees may not be paid from federal grant funds, nor can USF faculty be paid a consultant fee on a grant.

A Consultant is not the same as a Contractor. A Contractor is a person or an entity that enters into a formal agreement to conduct significant portions of the work described in the research plan.

Refer to the COMPASS procedures and the Independent Contractor Consulting & Professional Services Worksheet.

Honorarium:

An honorarium is a type of independent contractor payment that includes payments made to speakers and presenters. See COMPASS for further information.

Independent Contractor:

These are payments to an individual in exchange for services such as consulting, entertaining or catering. Independent contractor payments may not be made to employees.

USF Purchasing Department requires that all departments paying an individual for services must complete an Independent Contractor Consulting & Professional Services Worksheet. All individuals and organizations requesting payment from USF must complete an IRS Form W-9. Form W-9 is available on the Purchasing and Financial Services Forms and Schedules website.

USF must determine if an individual providing services is an independent contractor (payment should be made via Purchasing and reported on Form 1099) or an employee (payment should be made via the Payroll Department and reported on Form W-2). Payments made to non-resident aliens are subject to special tax provisions and withholding under the Internal Revenue Code, thus, payments to nonresident aliens must be processed by the USF Non-resident Alien Accounting Coordinator in the Payroll Department (SVC 2172). See Non-Resident Alien Documentation Requirements.

Equipment

According to Federal circular OMB A-21, Cost Principles for Educational Institutions, Section J, Item 16, "Equipment" is defined as:

• An article of nonexpendable, tangible personal property
• Having a useful life of more than one year
• An acquisition cost which equals or exceeds the lesser of the capitalization level established by the organization for financial statement purposes, or $5000.

The equipment threshold amount for USF is $1,000, as dictated by Florida Statute 273.02.

Equipment costing less than $1,000 is considered a supply expense. True equipment expenses are excluded from receiving indirect costs.

The specific acquisition cost of any piece of required permanent equipment must be listed in the budget, and justification of need must be detailed in the budget justification. Some agencies require price reference and detailed stock numbers from catalogues, especially for contractual agreements. If freight and installation charges are to be billed on the same invoice as the piece of equipment, these charges should be included in the acquisition cost.

Maintenance costs should be listed in the "other" or "expense" direct cost category. Many agencies will approve an equipment purchase for specific scientific purposes contingent on the availability of that equipment at the University.

Expendable Equipment and Supplies:

Even though amounts projected for the expendable equipment and supplies are estimates, it is advisable to provide a breakdown of these items by general classification.

General Purpose Equipment:

General purpose equipment is not limited to use on a specific sponsored project. Examples include office equipment and furnishings, reproduction and printing equipment, and automatic data processing equipment. Federal expenditures for general purpose equipment are generally not allowable, and must be approved in advance by the sponsoring agency.

Property Process for Fabrication of Equipment:

Occasionally, equipment needs to be manufactured and/or assembled at the University. From a budget standpoint we do not assess indirect costs on the individual expense items, but we will charge indirect on any salaries or machine shop charges associated with the manufacturing of the equipment. The current procedure depends on the departments to fill out the REPORT OF EQUIPMENT MANUFACTURED or ASSEMBLED AT THE UNIVERSITY OF SOUTH FLORIDA FORM and send it to the Purchasing & Property Services, AOC200, along with copies of all PO's for the items that were used in the equipment manufacturing.

See COMPASS for the process summary

Supplies

Animal Costs:

Comparative Medicine per diem rates can be found at http://www.research.usf.edu/cm/ppd_a.htm. These costs are normally contained within the supplies section of a proposal.

Supplies:

These should be itemized by general classification (glassware, chemicals, etc). Some agencies require itemization and justification for all expenditures grater than $1,000.

Travel

All travel expenses (transportation, lodging, meals and incidentals) must benefit the research project. This usually means to conduct fieldwork or to attend scientific conferences.

Note: A person must show effort on a project in order to allow travel charges to the project.

Travel expenses should be specific and detailed, as reviewers carefully scrutinize this category. In the budget justification section, the investigator should include the purpose, destination and time frame for domestic travel. The travel estimate should be as realistic as possible so that the faculty does not come up short of funds.

Contact the USF Travel Department for allowable rates, or visit COMPASS for more information online. Please see the State of Florida Statutes Related to Travel for policies and procedures.

Out of State Travel:

Out of state travel should be requested on the basis of actual expenses for lodging, meals and round trip economy airfare, ground transportation, and any other specifics that can be detailed. Some agencies may have set maximum per diem limits. See the US General Services Administration for further information.

Foreign Travel:

Foreign Travel requests must specify the destination, and the US Department of State foreign per diem rates should be used. It is frequently no longer possible for federal agencies to cover travel for conference attendance unless there is active involvement of the faculty in the program to be presented and/or unless the meeting has direct relevance to the research project. Faculty should consult a travel agency for airfares. Only American flag carriers may be used. For foreign per diem rates, contact the USF Travel Department.

Patient Care Costs

To be considered an allowable Patient Care Cost, the charges must be over and above the routine costs of a subject's hospital visit.

Patient care costs are excluded from receiving indirect costs.

Patient care costs are not the same as Human Subject costs.

If the subject was admitted to the hospital for the sole purpose of participating in a research project, all applicable patient care costs may be charged to the grant. If reimbursement is requested for in-patients participating in the research, the negotiated hospitalization fee must be stated, along with the required number of patient days. Outpatient charges may also include transportation and an escort, if required. These costs should be detailed in the budget justification.

Human Subjects, Focus Group and Training Group Participants:

Includes payments to individuals participating in educational and research programs sponsored by USF. (For information regarding how to make these payments, see COMPASS Business Procedures for Human Subjects, Focus Groups, and Training Group Participants.)

Human Subject costs are subject to sponsor guidelines and are not the same as Patient Care Costs.

Participant Support Costs (unique to NSF grants only):

• Stipends
• Travel
• Subsistence (living expenses)
• Other misc. expenses

Alterations and Renovations

For certain proposals, the university may find it necessary to complete a renovation of lab or office space in order to accommodate the grant. These costs may be included as direct costs on the grant, but they are not subject to F&A recovery. Please check the sponsor's guidelines as not all sponsors will pay for renovation costs.

Other Expenses

This category includes miscellaneous items such as:

• Purchase orders/vendors
• Long distance telephone charges
• Copying charges
• Materials and supplies (not to be confused with general office supplies which are not normally allowable)
• Postage
• Publication costs
• Computing/data charges.

Purchase Orders (PO):

PO's fall under the "Other Expenses" category in the grant budget. POs typically cover goods and services provided by a Vendor that are specifically defined by the PI, with the final product not subject to interpretation by the vendor. These services are routinely performed by a standard fee. Note that even professional services like lab or statistical analyses are typically carried out under a PO.

Vendors:

A Vendor in simple terms is someone who sells something. Vendors are normally thought of in terms of a company who provides a service or goods for a fee.

Publication Costs:

Faculty may budget the anticipated costs of publishing the results of research, including the costs of reprints, page charges and illustration costs if needed. Costs of typing, editing, graphs, illustrations, and all other costs prior to printing are not considered publication costs, and may be covered in the "other cost" category.

Training Costs

This category may include fees, tuition, trainee travel costs and stipends. The budget justification should include a breakdown of costs per trainee.

Unless otherwise prohibited by the funding agency, all sponsored projects that include undergraduate or graduate students should also include a request for proportionate fulltime in-state tuition. (See Tuition for further information).

Scholarships:

A scholarship is an amount paid for the benefit of a student (usually an undergraduate student) at an educational institution to aid in the pursuit of studies. Recipients must not be required to perform past, present or future services for the grantor or the USF Department in charge of administering the award.

Note: If services are required it is considered compensation for services and is subject to federal income tax withholding and also Social Security and Medicare (FICA) tax withholding.

Stipends:

The term stipend has traditionally been used to describe a variety of activities such as: scholarship, fellowship, tuition waiver/remission, and salary. It is imperative in proposals to use the correct term appropriate to the "intent" of the stipend. Correct term usage can avoid many problems once the award is received.

Note: Failure to appropriately classify a stipend payment may result in disallowances by the awarding agency, in addition to significant interest, IRS penalties and/or other fines that may be allocated to the department.

For sponsored project purposes, a stipend is a financial payment made to an individual under a fellowship or training grant in accordance with pre-established levels to provide for the individual's living expenses during the period of training.

A stipend, as referenced above, is not salary paid via the USF payroll system.

Stipends are excluded from F&A costs. Payment can be made either thru Financial Aid or Accounts Payable dependent upon circumstances. See Scholarship, Fellowship, Tuition Waiver/Remission and Stipend Payments and Stipend Payments in Compass for more information.

Agencies may regulate the total amount of stipend compensation requested on sponsored projects. For the most up to date information, please review the appropriate funding agency's policy.

Tuition:

All awards requesting salary support for students must also request the proportionate share of tuition and fees, unless the sponsor's published guidelines do not allow the direct charging of tuition. Tuition is not assessed F&A costs.

Fellowships:

A fellowship is an amount paid for the benefit of an individual (usually a graduate student at an educational institution) to aid in the pursuit of study or research. To qualify as a fellowship, the payment must be a relatively disinterested, "no strings attached" educational grant with no requirement on the recipient's part to perform substantial services. A payment will qualify as a fellowship provided the University as grantor will obtain no benefit, or only incidental benefit, as a result of the fellowship.

Note: If the University will receive more than incidental benefit, the payments are compensation for services performed that are subject to federal income tax withholding and also Social Security and Medicare (FICA) tax withholding.

For example:

• NIH training grants by definition are always classified as a fellowship. Federal research grants generally provide funding for compensation for services.
• Private instruction and research grants vary as to the nature of funding awarded (see guidelines below).
• University general funds and endowment income funds generally provide funding for compensation for services (see guidelines below). If the payment is made in consideration for past, present or future services, it is compensation for services.
• If the payment represents payment for services that are subject to the direction or supervision of the University, it is compensation for services.

Guidelines for the Fellowship Classification:

• Fellowship Recipients:
  • Are only required to submit progress reports
  • Determine activities based on the terms of the fellowship (may be assisted by faculty advisor)
  • Do not provide teaching, research or other services that will benefit the University
• Student Employees:
  • Are told by a University employee where, when and how to work
  • Perform work that is controlled or supervised by the University
  • Determine activities based on University needs/consultation with University representative (such as completing work on a University research grant)

Subcontractor Services

When subcontracts are necessary for the project, the total dollar amount must include the direct as well as indirect costs of the subcontracting party. These will appear as a direct cost in the USF budget. Federal projects are subject to the assessment of USF indirect cost on the first $25,000 of each subcontract.

PIs occasionally use the terms Subcontract, Consultant or Vendor interchangeably. They are in fact very different in terms of their respective roles on a project. Different in regard to their accountability to a project; different in how the dollars are handled budgetarily.

A Contractor is a person or an entity that enters into a formal agreement to conduct significant portions of the work described in the research plan. Entities working under a contract (as opposed to a purchase order) are provided a certain degree of autonomy in their work. A contractual agreement typically requires the contractor to provide the university with a detailed budget, which is incorporated in the university's proposal application.

Questions to determine when a Contractor or a Consultant is used:

• Will the performance be measured against the objectives of the project?
• Will the subrecipient be responsible for programmatic decisions?
• Will subrecipient be responsible for adhering to applicable federal programs requirements?
• Will subrecipient use the funds to carry out a program, not just a goods or service?"
• Is there an identified investigator for the subagreement?
• Is he/she a Co-Investigator?
• Is the lower tier organization free to decide how to carry out the activities requested?
• Will there be any patentable or copyrightable technology?
• Will lower tier produce any publications or co-author any publications?

If the majority of these questions are answered negatively, a vendor or Consultant relationship should be considered and charged accordingly, of which 100% of those costs are subject to overhead.

Other Expenses

Purchase Orders (PO):

PO's fall under the "Other Expenses" category in the grant budget. POs typically cover goods and services provided by a Vendor that are specifically defined by the PI, with the final product not subject to interpretation by the vendor. These services are routinely performed by a standard fee. Note that even professional services like lab or statistical analyses are typically carried out under a PO.

Vendors:

A Vendor in simple terms is someone who sells something. Vendors are normally thought of in terms of a company who provides a service or goods for a fee.

Publication Costs:

Faculty may budget the anticipated costs of publishing the results of research, including the costs of reprints, page charges and illustration costs if needed. Costs of typing, editing, graphs, illustrations, and all other costs prior to printing are not considered publication costs, and may be covered in the "other cost" category.

Unallowable Costs

Some items of direct cost are unallowable under most normal circumstances (although they can be allowed under certain circumstances if properly justified). To be justified, they must be itemized in the budget, should represent a significant part of the budget and include a detailed justification in the budget narrative.

Costs considered "unallowable" in accordance with various authoritative documents and the individual Sponsors must be identified and accounted for separately. These costs may not be budgeted, charged or reported to a sponsor.

The most common unallowable costs are:

• Clerical and administrative salaries with associated fringe benefits on Federal awards
• Postage
• Telephone/Cellular phone service
• Office and general computer supplies (paper, toner, diskettes. CDs, pens, file folders, etc)
• Software purchased for general purposes (e.g., Microsoft Word)
• Subscriptions
• Institutional and individual memberships
• Business meals (non-travel)
• Entertainment
• Membership and dues

Further information regarding direct costs that may be charged to federally sponsored grants are contained within USF's Policy for Charging Costs Directly or Indirectly to Federally Sponsored Projects.

Indirect Costs

Simply stated, indirect costs are those costs associated with "housing" a contract or grant from an outside agency at the University. Indirect costs include use of:

• University space
• Utilities
• Maintenance
• Custodial
• Equipment depreciation
• Use of student services, library services and support services provided by University administration, research administration, and department administration

A proposed budget should consist of direct costs, indirect costs, and total costs. At this point, all the direct costs of the project should have been included and a total amount should be included for indirect costs. The indirect costs are calculated on a percentage of the direct costs of the project.

Each educational institution submits its Disclosure Statement, also called a DS-2 to a designated federal agency for negotiation and review. The cognizant agency for USF is the U.S. Department of Health and Human Services (DHHS). Using the DS-2 as a basis, the various rates are negotiated by the DHHS representative and a USF representative until an agreement is reached. These rates become the accepted indirect cost rates for all federal contracts and grants.

The DS-2 lays out our costing accounting practices with regard to the distinction between direct and indirect costs. In addition, for those types of cost which are sometimes accounted for as direct and sometimes accounted for as indirect, we set forth in our DS-2 the specific criteria and circumstances for making such distinctions. In essence, the DS-2 submitted by the educational institution, by distinguishing between direct and indirect costs, and by describing the criteria and circumstances for allocating those items which are sometimes direct and sometimes indirect, will be determinative as to whether or not costs are incurred for the same purpose.

There are different federally approved indirect rates for:

• Research
• Instruction
• Other Sponsored Activities
• On-Campus
• Off-Campus
• With and Without the use of the Library

The appropriate USF negotiated indirect rate is applied to all federal or federal-flow-thru awards using a modified total direct cost base (MTDC). MTDC consists of all:

• Salaries and Wages
• Fringe Benefits
• Materials and Supplies
• Services
• Travel
• The first $25,000 of each subgrant and subcontract regardless of the period covered by the subgrant or subcontract.

Excluded from the MTDC calculations are:

• Equipment
• Alterations and Renovations
• Charges for Patient Care
• Tuition Remission
• Space Rental Costs
• Scholarships
• Fellowships
• Stipends
• The portion of each subgrant or subcontract in excess of $25,000.

All proposals must include the appropriate indirect cost rates.

For all awards other than federal and federal-flow-thru, the appropriate USF negotiated indirect rate are applied to the Total Direct Cost (TDC) base. TDC consists of salaries and wages, fringe benefits, materials and supplies, services, travel, subgrants and subcontracts in full, tuition remission equipment and participant support costs.

University Indirect Cost Policy

All proposals must use one of our negotiated indirect rates. If a sponsor has formal guidelines indicating a lower rate, USF will accept the lower rate. Letters indicating a sponsor's refusal to pay our negotiated rate is not acceptable. We must have reference to an official rule or published guideline. F&A Reduction Requests must be submitted to the Assoc. Vice President for Research.

Federal Agency Sponsors:

USF's full indirect rate (dependent upon type of activity), or the sponsor's restricted rate, must be requested on the MTDC all awards from the Federal Government. There will be no waivers of indirect cost during the proposal stage. If an award is jeopardized because of the indirect cost rate, DSR may negotiate the indirect cost with the sponsor.

State of Florida Agencies:

If the project is to be funded from general revenue or from State-appropriated trust funds, then the indirect cost must as prescribed in Florida Statute 216.3475 must be used.

Local Government Municipalities:

The PI must request full indirect costs. If full indirect costs cannot be earned, DSR will negotiate a rate with the sponsor and, in such negotiation, will take into account whether the sponsor has a previously established designated rate. Where no designated rate is established, the minimum acceptable rate will be 20% of TDC.

Private Foundations/Professional Societies:

The PI must request full indirect costs. If full indirect costs cannot be earned, DSR will negotiate a rate with the sponsor and, in such negotiation, will take into account whether the sponsor has a previously established designated rate. Where no designated rate is established, the minimum acceptable rate will be 20% of TDC, regardless of a previously established rate.

Industrial, Private Companies:

The PI must request full indirect costs (an amount less than the full indirect cost will only be approved for a pilot or start-up project for the first year, only).

Fixed Price Contracts:

The PI must request full indirect costs or the sponsor's restricted rate on all Fixed Price Contracts. The total amount of the indirect cost will be taken as a lump sum charge at the beginning of the project. No indirect cost will be assessed when the project is closed and a balance is transferred to an unrestricted fixed price account.

Negotiation of Indirect Costs:

Faculty members are not authorized to negotiate indirect cost rates without prior consultation DSR approval.

Note: DSR must be involved in any negotiation of indirect cost rates with granting agencies; any exception to the standard indirect rates must be approved by DSR.

In all cases where a lesser rate than the approved rate is utilized, an F&A Reduction Request must be signed by the PI, the department Chair/Dean and submitted to DSR for approval.

F&A Reduction Requests should be directed to and approved by the DSR Director or DSR Associate Vice President for Research.

Budget Templates

Click to view a sample Budget and Template (Budget Calculator).

For Grants.gov.budget submissions, use the 3-Minute Budget Preparation Tool. See how it works! 3-Minute Budget Preparation Tool Demo.