U N I V E R S I T Y O F N O T R E D A M E. Budget Preparation. Office of Research. Elements of a Budget. There are a number of elements that are important to building a budget. These include: Let’s explore each of these…. Allowable and Allocable Costs.
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There are a number of elements that are important to building a budget. These include:
Let’s explore each of these…
But first, a word or two on allowable and allocable costs…
Those project costs that are eligible, reasonable, necessary, and allocable to the project.
Costs that are assignable or chargeable to one or more cost objective in accordance with the relative benefits received or other equitable relationships defined or agreed upon by contractual parties.
Meaning: The cost has to be clearly related to the scope of the research project within the parameters agreed upon by the researcher and the sponsor.
The following are some examples:
General categories of direct costs include but are not limited to:
Total Direct Costs
Modified Total Direct Costs
Modified Total Direct Costs
Cognizant Agency: To simplify relations between Federal grantees and awarding agencies, the US Office of Management and Budget (OMB) established the cognizant agency concept, under which a single agency represents all others in dealing with grantees in common areas. In this case, the cognizant agency reviews and approves grantees’ indirect cost rates. Approved rates must be accepted by other agencies, unless specific program regulations restrict the recovery of indirect costs. The cognizant agency for non-profit organizations is determined by calculating which Federal agency provides the most grant funding.
Cost sharing can be identified within one of two categories:
The budget data should then be added for the budget period in the corresponding budget areas…
Note: The internal budget should contain all of the budget areas found in an NSF budget. Be sure to use the internal budget as a guide when entering data into FastLane. This will help to ensure accuracy.
To properly calculate the indirect costs, the F&A rate and the Modified Total Direct Costs (MTDC) must both be entered in the Indirect Costs section.
MODIFIED TOTAL DIRECT COSTS (MTDC)
To calculate the total Direct and Indirect Costs, click here…
When all budget data has been entered, the Calculate & Save button must be clicked in order to save all data. Once it has been saved, click the Go Back button and follow the same process for subsequent budget years.