The budget is the financial expression of a sponsored project's statement of work, project description or work plan.  Many folks, especially those new to sponsored programs, are intimidated by this aspect of their application

So to demystify the process, this section is designed to help faculty, staff or students systematically consider the kinds of items of cost they may need in developing the budget. It also introduces the 'cost principles' that most sponsors expect will be followed. 

These guiding principles require that you consider -

• whether the sponsor prohibits paying for particular types of items (e.g. your time, tuition, etc)

• why the personnel and non-personnel resources are essential to conduct your project;

• is the sponsor paying its fair share of the costs; and

• how accurate are the cost estimates for these items.

In the jargon of research administration, these considerations are associated with cost principles, which are -

Allowable:  does the solicitation, sponsor's policies, or overarching regulations restrict or disallow an item of cost?

Allocable:  is the item charged in proportion to the anticipated benefit to be received?

Reasonable:  is the cost budgeted an amount that a prudent person would pay in similar circumstances?

Consistency:  is the cost consistently treated treated as a direct or indirect cost in like circumstances?

• Ordinarily administrative costs, both personnel and non-personnel items, are not allowed as direct costs to sponsored proejcts. This prohibition results from the impracticality of allocating these costs directly to a project, as they routinely benefit many institutional activities and programs, e.g., the range of teaching, research and service activities supported in a department or center,  On occasion however, there there are exceptions to this particular guideline, which will be discussed further.