Fringe benefits are assessed on salaries depending on appointment type and term (academic year or summer). Fringe must be assessed against the budgeted salary at current rates.

• Faculty — academic year effort: Full fringe less Sick Leave Bank
• Faculty — summer effort: Only Worker’s Comp, UI, UHI, and MTX
• Faculty — 12-month calendar year appointments: Full fringe less Sick Leave Bank
• Benefitted staff: Full fringe
• Post docs: Health insurance, Worker’s Compensation, UI, UHI, MTX and Health & Welfare
• Graduate Research Assistants: GEO Health Deferment rate, Health & Welfare, and Worker’s Compensation/UI/UHI/MTX on summer effort only

Some sponsors restrict charging for fringe or put a cap on the level that can be charged. These are rare, but in the event this requirement is in play, the difference between the amount allowed for reimbursement vs. actual fringe costs must be covered by UMass and typically that coverage will need to come from the department. Please consult with the OPAS pre-award administrator for input.

For current rates and details, please see the Fact Sheet.

Travel

Travel costs are classified as those expenses for transportation, lodging, subsistence and related items incurred by employees who are traveling on official university business related to a sponsored project. 

Unless otherwise stated by the sponsor, domestic travel is considered to be travel among any of the 50 United States, its possessions and territories, and Canada. 

Foreign travel is classified as travel outside the areas listed above. 

Some items to consider: 

• During budget preparation, consideration should be given to expenses for attending professional meetings and conferences related to the project, field work travel and living allowances, consultation with experts, and meetings required by the sponsor. 
• Travel expenses and requests should be clearly justified and reasonable. 
• Costs should be based on historical data (previous travel) and the UMass Travel Policy, airline quotes from a travel agency, and sponsor guidelines. 
• Travel in excess of commercial coach airfare is normally non-recoverable. 
• Keep in mind, foreign travel is a restricted category by most federal agencies and requires prior approval by the sponsor. 
• When costs are charged to a federally-sponsored agreement, the use of U.S. flag carriers is required. 
• The budget justification page should include the number of trips, the purpose and relationship to the project, and the estimated costs for each trip. For foreign travel the countries to be visited and the visit dates must also be included. 

Resources for Travel 

• Travel & Expense Program
• Per Diem Allowances
• Mileage Reimbursement Rate
• Fly America Policy

Materials and Supply Costs

Material and supplies is a broad category of costs that contains all non-capital items like computers and electronic equipment as well as laboratory materials and research related supplies. The scope of work will drive what gets budgeted in this cost category. The expenses must benefit the project, as well as be specifically identifiable with the aims of the project.

Budgeted costs must be Reasonable, Allowable, and Allocable (RAA).

• Reasonable: Basis of cost should be provided in the Budget Justification. The cost should be based on existing costs for same or similar sponsored projects as it correlates to the needs of the project or should be based on actual quotes.  Note the basis of your cost estimate in your Budget Justification.
• Allowable: The sponsor must allow the budgeting of the cost. Federal cost principles for example restrict the charging of so-called administrative/office supply costing (see below).
• Allocable: Cost and use must be solely assignable to the sponsored project.

Administrative/Office Supplies (federal)

Office Supplies: This type of expense may be appropriate as a direct charge to a grant/contract only when it clearly benefits/supports programmatic objectives. Examples would include research notebooks and computer paper used during the technical course of a project. Items such as pencils, paper clips, memo pads and post-its are normally considered an indirect cost and therefore not allowable as a direct charge. Reasonable judgment should be exercised when charging office supplies directly to a grant/contract because they are likely to be highly scrutinized during sponsor proposal review or during an audit.

Postage: The direct charging of postage to an award for purposes such as the shipment of materials, mailing of research surveys to human subjects and submitting deliverables is appropriate if reasonable care is taken to assure that such costs are for the sole purpose of the grant/contract and can be specifically identified and justified as such. Routine correspondence is considered to be an indirect cost and not an allowable direct charge.

See Administrative Costs Requirements and the Guidelines for Charges to Sponsored Projects Funded by Federal Agencies

Animal Care Costs

Animal purchases are considered technical supplies. Budget the cost to purchase laboratory animals separately from the cost of animal care. Please consult with the Animal Care Services for current rates.

Computers and Electronic Equipment (Federal)

Although the Uniform Guidance indicates that computing devices need not be solely dedicated to the performance of the federal award, there is still the concept of allocability that must be addressed. We need to confirm the allocability of the item in terms of cost vs. the benefit to the project. The cost of the computer to the project must accrue to the budget proportionally to the expected use. We do need to confirm that if we are budgeting the full cost of the computer that it is not in turn being used for other projects as well.

Incidental use for non-project related emails, etc. is acceptable, but if the project is charged the total cost of the computer, it is assumed that the project benefits proportionally and it is not being used on other projects. If proportional usage is expected, then the amount budgeted must be based on some reasonable expectation of allocable use.

In summary, and other points to consider about costs for use of computers and electronic equipment:

• They must be necessary for and provide benefit to the project: the computer must be essential for project activities.
• They must be allowable: the computer is specifically identifiable to the grant as an "unlike circumstance.”  While the Uniform Guidance indicates that the computer does not need to be solely dedicated to the project — it can be split funded and shared with other projects — a robust justification must be provided in the budget narrative demonstrating “unlike circumstance” and thus the justification will provide very specific and robust details on how the technical and scientific nature of the project drives the need to budget computing and electronic devices.  To provide evidence of unlike circumstances, the Principal Investigator must document in the proposal that the use of the computer is beyond the normal and customary use and application of computers in the day‐to‐day operations of the laboratory
• The items must be directly allocable: the principal use of the computer must be directly allocable to the purpose, goals, and activities of the funded projects; they can be split funded with other projects but the justification should provide a rationale for charging a proportional cost to the grant.
• They must be reasonable: there must be an informed, prudent decision making regarding the basis of the cost, utility, and value to the project.
• Although incidental email use is acceptable, they must be non‐personal in nature.
• The need for the items has been included in the original proposal and completely justified as to the reason it is being included, the purpose and benefit to the project have been fully described.
• The PI is required to evaluate and ensure that the project does not have reasonable access to other devices or equipment that can achieve the same purpose. Devices may not be purchased for reasons of convenience or preference.  Include this evaluation in the budget justification.

Other Direct Costs

Other direct costs can be a catch all for costing that does not easily belong in any of the other major cost categories. Often they are contracted services rather than supplies, travel, equipment or labor related. They include such costs as:

• Fee for service costs
• Participant support costs
• Maintenance contracts
• Software licenses
• Tuition
• Telephone service

Fee for Service Costs

A fee-for-service cost is when a vendor provides a service for a set fee according to a published rate schedule routinely charged for same or similar items to all potential customers.

• Examples of fee-for-services have included items such as assay services, catscan services, MRI facilities use, aerial photography, etc.
• Provide OPAS a copy of the published rate sheet by loading it to the “Internal Attachments” section in Kuali.
• In contrast to a subrecipient, the vendor would not be responsible for conducting a portion of the research but rather they simply provide a defined service for a set, published fee.
• Fee-for-service items should be budgeted under "Other Direct Cost” and not blended with “Materials and Supplies”.
• If the cost is a university-approved fee, the budget justification must show the facilities/service being utilized along with the actual university-approved fee per unit cost. Load a copy of the university-approved rate sheet to the “Internal Attachments” section in Kuali.

Human Subject Compensation (Research Participation Incentives)

Payment or non-monetary reward to subjects as remuneration for time and inconvenience of participation in research studies, as well as an incentive to participate. Compensation can include monetary (cash, gift cards, vouchers, etc.) and/or non-monetary (gifts/promotional items, course credit, extra credit, etc.) enumeration. Such compensation is subject to limits as outlined in the university's Business and Travel Expense Policy and Standards. See also the Controller's Office guidance on compensating human subjects. When budgeted into a grant or contract budget, such costs are treated as other direct costs and included in the direct cost base when calculating indirect costs.

 All research involving human subjects must be reviewed by the campus Institutional Review Board (IRB).  Approval must be obtained prior to any involvement of subjects.

Participant Support Costs

Participant support costs means direct costs for items such as stipends or subsistence allowances, travel allowances, and registration fees paid to or on behalf of participants or trainees (but not employees) in connection with conferences, or training projects (2 CFR Part 200.75).

• Costs that qualify as “participant support” are exempt from indirect costs.
• Participant support costs are often subject to special sponsor regulations, in particular, the NSF –excerpted from the “Grant Proposal Guide”:
  
  “This budget category refers to costs for items such as stipends or subsistence allowances, travel allowances, and registration fees paid to or on behalf of participants or trainees (but not employees) in connection with NSF sponsored conferences or training projects. Any additional categories of participant support costs other than those described in 2 CFR § 200.75 (such as incentives, gifts, souvenirs, t-shirts and memorabilia), must be justified in the budget justification, and such costs will be closely scrutinized by NSF. (See also GPG Chapter II.D.9) For some educational projects conducted at local school districts, however, the participants being trained are employees. In such cases, the costs must be classified as participant support if payment is made through a stipend or training allowance method. The school district must have an accounting mechanism in place (i.e., sub-account code) to differentiate between regular salary and stipend payments.”
   
• In contrast with the NSF, NIH states that unless specifically listed as an allowable cost in the Program Announcement, NIH and other PHS agencies applicants should not budget Participant Support Costs. Keep this in mind and note the qualifying criteria in the definition provided above from 2 CFR Part 200.75.
• UMass requires projects to track participant support costs in a separate sub-account
• The transfer of funds budgeted for participant support costs, as defined in the Uniform Guidance (§200.75), to other categories of expense requires sponsor approval.

What does not qualify as participant support costs

• Honoraria for guest speaker at a conference, symposium or workshop
• Human Subjects – Incentive payments to encourage individuals to participate in research study and provide private data/information through intervention or interaction.  This includes participation in surveys and interviews.
• Fellowships – financial support for a postdoctoral fellow to do things such as attend conferences or workshops
• Payments to university employees (faculty, staff, and student employee on the award) or subrecipients
• Project organizer, consultant, facilitator, or coordinator of the workshop, conference, training session
• Speaker fees (unless the majority of time is spent as a participant and not a speaker)
• Rental fees, catering and general supplies

Maintenance Contracts

Budgeted costs must be Reasonable, Allowable, and Allocable (RAA).

• Reasonable: Basis of cost should be provided in the budget justification. The cost should be based on existing costs for same or similar contracts, quotes, or on-line catalog prices. Note basis in your budget justification.
• Allocable: Cost must accrue to the budget based on benefit to the project for the covered item. If the equipment will be used 100% on the project, 100% of the maintenance can be charged to the sponsor. Provide a rationale for proportional usage and corresponding cost. See Budget Justification.

If budgeting based on expected proportional use, split funding generally should not fall below a reasonable level whereby multiple investigators share the cost in a manner that would suggest the need to create a fee based account for shared equipment use.

Split funding maintenance contracts should generally only occur on large laboratory equipment, not small equipment.

Software Licenses

Budgeted costs must be Reasonable, Allowable, and Allocable (RAA).

• Reasonable: Basis of cost should be provided in the Budget Justification. The cost should be based on existing costs for same or similar contracts, quotes, or on-line catalog prices. Note basis in your Budget Justification
• Allocable: Cost must accrue to the budget based on benefit to the project for the covered item.  Software cannot be split funded with other accounts. The budget justification should name the software product; note that it is dedicated to the project; and provide a strong justification for why it is needed especially emphasizing what aspect of the project will benefit from its use. The software should not be general purpose software but rather specialized in a manner that supports the specific technical aims of the project.

Do not split fund software. It must be dedicated exclusively to the aims of the proposed project.

Tuition Charge

A tuition charge (TC) is assessed on working Graduate Research Assistant (GRA) appointments.

• TC is budgeted on an hourly basis during the academic year up to 760 hours per academic year (20 hrs. a week for 38 weeks as outlined in the GEO/university contract definition of "full-time"), per GRA. Summer effort is exempt.
• For current rates, see the Fact Sheet
• TC is always exempt from indirect costs.
• If tuition is not allowed by the sponsor and that restriction is clearly noted in their guidelines, TC cost cannot be budgeted.
• Use the Salary Guide (Excel) found here.

Telephone Service

Toll calls are allowable if they are allocable to the project and justified in the budget justification. Cell phones are generally not allowable due to difficulties of assuring allocability. They are however allowed in extremely unique situations.

Further guidance:

• Explain why these devices are necessary for the performance of grant work or are necessary in order to accomplish the programmatic objectives of the project; clarify how they are for business, not personal use.
• Is there an extensive and continual need for such devices throughout the project life, rather than simply an infrequent or periodic occurrence?
• Demonstrate that the charges are easily allocable to the grant: substantiate that the cost will be solely consumed by, and solely benefit, the sponsored agreement or can be easily allocated in some manner.
• Substantiate that these devices will be used for project work at a remote site inaccessible to normal departmental administrative support or normal phone facilities.

Charges for land lines are also not generally allowable except for extremely unique situations. The land line must be dedicated to the project and a strong justification provided that ties back to the technical needs of the project and specific aims of the project.

A cost of living adjustment (COLA) or allowance must be budgeted in order to cover cost increases ranging from union mandated raises for salaries and generic inflationary forces for other direct costs.

Salaries

• Budget 3% to 5% COLAs for future years on multiple year projects.
• Some sponsors set limits on COLAs. For example, NIH limits them to 2%.
• If the budgeted rate of pay exceeds the employee's current rate of pay by more than 5%, or is otherwise out of line with bargaining unit agreements, please provide an explanation. Are there any pending personnel actions or anticipated promotions? Since OPAS is required to assess reasonableness of cost, provide detail either in a note to OPAS or in the budget justification itself.
• The PI should be prepared with supporting documentation when sponsor award negotiation occurs in case any questions arise.

For the latest bargaining unit contracts and information on COLA's and merit raises, visit Human Resources.

Non-Salary Inflation Factor

• Anywhere from 3 to 5% is also recommended.
• Some sponsors place limits on the rate of inflation built into the proposal. Check sponsor guidelines for any restrictions.
• Cost of living increases should not be applied to fringe or indirect cost (F&A) rates: use current (predetermined) rates or provisional rates as applicable. See the Fact Sheet.

Tuition Charge

• Tuition charges should be inflated by 2 to 5%. Apply the same COLA rate to tuition charges as for salary and non-salary items in the budget. So, for NIH budgets, use 2%. For most other sponsors, use a COLA of between 3 and 5%.
• Keep in mind that actual tuition rates will apply to the award, and tuition rates usually increase every year, so it is best practice to apply a COLA.  
• Please reach out to the R&E Help Desk with questions about sponsor policies that deviate from these instructions.