A budget serves as the financial plan for a proposed project, outlining the projected costs necessary to complete the scope of work during the project period. It provides a framework for allocating resources effectively and serves as a management tool for monitoring expenditures, project activities, and progress toward deliverables. Each sponsor has specific budget requirements, formats, and templates that must be followed. Carefully review the funding opportunity announcement and sponsor guidelines when preparing a project budget. Even when a sponsor does not require a formal budget submission, the Office of Research and Sponsored Programs (ORSP) requires an internal Excel budget for review and approval of the proposed project costs. Direct Costs. A cost is considered a direct cost when it can be specifically identified with a particular sponsored project or activity with a high degree of accuracy. Common categories of direct costs include the following: Salaries. Salary costs should be budgeted based on the percentage of effort each individual will devote to the project and their annual salary. For multi-year projects, ORSP recommends applying a 2% annual escalation rate to salaries budgeted in subsequent project years. Fringe Benefits. Fringe benefits are calculated as a percentage of salary and vary based on personnel classification. Use the current University of Wisconsin–Whitewater (UWW) approved fringe benefit rates when preparing proposal budgets. Equipment. Universities of Wisconsin capital equipment is defined as a movable item with a useful life of more than one year and an acquisition cost of greater than $5,000 per unit. Items that do not meet this definition should be budgeted as supplies. Equipment purchases are generally allowable when the equipment is necessary for the project and is not otherwise available at the University. Materials and Supplies. Materials and supplies are consumable or expendable items costing less than $5,000 per unit. Budget requests should provide a reasonable breakdown of anticipated materials and supplies by general category. Travel. Travel costs must be directly related to the project and should be described in sufficient detail. Prior to budgeting travel expenses, review the University’s travel policies. Travel budgets should include: <ul> <li>Names and number of travelers, if known</li> <li>Purpose of the trip</li> <li>Destination (domestic and international travel and specific location, if known, should be listed separately)</li> <li><a href="https://per-diem-calculator-a007.betty.app/" target="_blank" class="extLink" title="Per Diem Calculator" rel="noopener">Lodging costs</a></li> <li><a href="https://per-diem-calculator-a007.betty.app/" class="extLink" title="Per diem calculator">Per diem rates</a></li> <li>Ground transportation expenses</li> <li>Registration fees</li> <li>Other related travel expenses</li> </ul> Consultants. Consultants are individuals or entities that are not employed by UWW and are not affiliated with another collaborating institution on the project. Consultant services must be professional in nature, short-term or intermittent, and primarily advisory to the project. Depending on sponsor requirements, proposals may need to include a letter of collaboration and the consultant’s curriculum vitae (CV) or biographical sketch. Subrecipients and Consortium Costs. Subrecipients should be identified during proposal development. Each subrecipient should be included as a separate line item in the proposal budget, reflecting both direct and indirect costs. When a proposal includes a subaward, the following documentation is typically required from the subrecipient: <ul> <li>Statement of Work (Scope of Work)</li> <li>Detailed budget</li> <li>Budget justification</li> <li>Subrecipient commitment form</li> <li>Letter of intent</li> <li>Current indirect cost (F&A) rate agreement</li> </ul> Sponsors may also require additional documentation, including: <ul> <li>Biographical sketches for key personnel</li> <li>Current and pending support disclosures</li> <li>Facilities descriptions</li> <li>Description of equipment</li> <li>Letters of support</li> <li>Representations and certifications</li> <li>Data Management and Sharing Plans</li> </ul> Note: UWW applies indirect costs only to the first $50,000 of each subaward during the project period. Tuition. For Graduate Research Assistants supported by sponsored projects, UWW usually contributes no tuition costs. Tuition costs can be included in the proposal budget and charged to the sponsored project. Other Direct Costs. Other direct costs may include project-related expenses such as publication charges, user fees, animal care costs, equipment maintenance, participant support expenses, and other allowable costs necessary to complete the project. Contact ORSP at ORSP@uww.edu  with questions regarding allowable project expenses. Indirect Costs (Facilities and Administrative Costs). Indirect costs, also referred to as Facilities and Administrative (F&A) costs, overhead, IDC, or indirects, represent expenses incurred by the University in support of sponsored activities that cannot be readily identified with a specific project. Examples include facilities operations, administrative support, utilities, and compliance infrastructure. UWW’s indirect cost rates are negotiated with its cognizant federal agency. Current negotiated rates are available on the ORSP website. Determining the Appropriate Indirect Cost Rate <ul> <li>Indirect cost rates vary depending on the sponsor, project type, and project location. Investigators should consult with ORSP to determine the appropriate rate for each proposal.</li> <li>Indirect Cost Limitations. Some sponsors limit or cap the amount of indirect costs that may be charged to an award. When a sponsor has a published indirect cost policy, proposal budgets must comply with that policy.</li> <li>On-Campus and Off-Campus Rates. Under University policy, a project is considered off campus when more than 50% of the project’s direct salaries and wages are incurred at a location that is neither owned nor leased by the University. Investigators seeking to apply the off-campus indirect cost rate should consult with ORSP during proposal development.</li> </ul> Cost Sharing. Cost sharing represents project costs that are not funded by the sponsor. Because cost sharing increases institutional commitments and administrative burden, it should only be included when explicitly required by the sponsor. All proposed cost sharing or matching contributions must be approved by the appropriate Department Chair, Dean, and ORSP prior to proposal submission. Budget Justification. A budget justification, also known as a budget narrative, explains the purpose and calculation of each budgeted expense. The justification should clearly describe how each cost supports the proposed project and provides sufficient detail for the sponsor to determine that the requested costs are reasonable, necessary, and allocable to the project.