Budget

A budget provides details of projected expenses necessary to complete the proposed scope of work or research plan. Each sponsor has their own set of budgetary requirements. Be sure to follow the sponsor guidelines and the NOFO instructions when completing a budget. If a sponsor does not require a formal budget, OSP will still require an internal excel budget and budget justification to review costing plans. 

Direct Costs 

Source: OSP Policy 

An expense is a “direct cost” if that expense can be identified specifically with a particular sponsored project or other activity with a high degree of accuracy. Direct costs include categories such as salaries, fringe benefits, tuition, consultant costs, equipment, supplies, travel, subagreements, other costs. 

Resources 

Personnel 

Required information to complete a budget: 

  • Name
  • Project role
  • Number of calendar months or percent effort per year
  • Base salary
  • Total salary requested
  • Cost of living increases- Must be Justified 

Note: be aware of the NIH salary cap and the NSF two-month salary limitation (section 2.C.2.g on the current version of the NSF PAPPG). 

Fringe Benefits 

Fringe benefits are the associated employee costs such as health plan expenses, pension plan expenses and workman's compensation expenses, among others. The University has negotiated fringe benefit rates with its cognizant federal agency (DHHS). 

Resources 

Graduate Students 

When graduate student salaries do not have an associated fringe rate, commensurate tuition is many times included in the budget. Tuition must be listed in the “other direct costs” category.   

NIH: 2.3.7 Policies Affecting Applications  

The maximum amount NIH will award for the support of a graduate student on a research grant or cooperative agreement is tied to the National Research Service Award (NRSA) zero-level stipend for postdoctoral fellows in effect at the time the grant award is issued on the Federal award date. Stipend levels are updated periodically in conjunction with an NIH annual appropriation and are published in the NIH Guide for Grants and Contracts. Consistent with cost principles for Institutions of Higher Education (IHEs) described in 2 CFR Part 200.431(j) and N 200.466, the compensation of graduate students supported by research grants must be reasonable. The amount provided for compensation includes salary or wages, fringe benefits, and tuition remission. 

Equipment 

Equipment is defined as tangible personal property (including information technology systems) that have a useful life of more than one year and a per-unit acquisition cost which equals or exceeds: 

  • For all awards beginning June 30, 2025, and earlier, $5,000
  • For all awards beginning July 1, 2025, and later, $10,000 

These items should be included as equipment in the budget and excluded from [MTDC]. 

  • List each piece of equipment individually
  • Describe the equipment and the application to the project
  • Provide prices and vendor quotes for each piece of equipment
  • If equipment is to be fabricated, itemize the individual component parts and labor costs, explain the basis for calculations, and file supporting documentation. 

Resources 

Travel 

Outline details for each trip: 

  • List the number of individuals who will be traveling
  • Names of travelers
  • Purpose of the trip
  • Destination
  • Per diem rates for meals and number of days needed
  • Per diem rates for lodging and number of days needed
  • Ground transportation 

Resources 

Participant/Trainee Support Costs 

Participant support costs cannot be budgeted if they are for Harvard employees. This section is only for budgeting costs for trainees or conference/workshop participants from outside the University. 

  • Tuition/Fees/Health Insurance
  • Stipends
  • Travel
  • Subsistence
  • Other
  • Number of Participants/Trainees 

Resources 

Materials and Supplies 

Supplies are items priced under the equipment threshold: 

  • For all awards beginning June 30, 2025, and earlier, $5,000
  • For all awards beginning July 1, 2025, and later, $10,000
  • List each item
  • Provide an estimated cost of each item 

Resources 

Publication Costs 

Publication costs may include: 

  • Costs of documenting, preparing, publishing
  • Making publications available to others
  • Findings and products of the work conducted under the award 

Resources 

Consultants 

Consultants are paid only to individuals who are not employed by Harvard University or have any other institutional affiliation. 

  • Name
  • Daily rate of pay
  • Number of days each consultant is intended to be paid 

 Resources 

Computer Services 

Include any computer-based costs and internal computer service rates. 

Subagreements 

Each subrecipient should appear in the Harvard proposal budget as a separate line item that includes both the subrecipient’s direct and indirect costs. 

  • Separate subawards should be issued for each scope of work, even if they are at the same institution. 
  • If an award has more than one subaward, Harvard’s indirect costs are applied to each separate subaward once during the subaward’s period of performance, even if there is more than one subaward at the same institution.   
  • HUIDC applications:
    • For all awards beginning June 30, 2025, and earlier, HUIDC is applied to the first $25K for each Subaward.
    • For all awards beginning July 1. 2025, and later, HUIDC is applied to the first $50K for each Subaward
  • 2 CFR 200.414 allows for the application of a 15% indirect cost rate for entities that do not have a Negotiated Indirect Cost Rate Agreement, except for foreign organizations under NIH funding for which an 8% de minimis rate applies. 

Resources 

Equipment or Facility Rental/User Fees 

List the total funds requested for equipment or facility rental/user fee 

  • Describe user fee
  • Justify the use of the facility and/or equipment 

Resources  

Alterations and Renovations 

  • Itemize by category
  • Justify the costs of alterations and renovations, including repairs, painting, and removal or installation of partitions, shielding, or air conditioning
  • Where applicable, provide the square footage and costs 

Other Direct Costs 

  • Publication costs. This category includes expenses for publication in established journals. Costs for publication of a book, monograph, or other publication usually cannot be charged without prior approval from the sponsor.
  • Communication fees
  • Equipment maintenance
  • Rental costs
  • Tuition remission 

Indirect Costs 

These are also commonly referred to as Overhead, Facilities and Administrative Costs (F&A), IDC, or Indirects. Overhead rates are typically negotiated with the Department of Health and Human Services (DHHS) every 4-5 years. The indirect cost rates are applied to either a Total direct cost or a modified total direct cost amount. 

Total Direct Cost (TDC) 

Total direct cost is the sum of all direct costs listed in the budget. When applying to a non-federal sponsor, including industry sponsors, use the total direct cost base unless the NOFO or sponsor guidance do not permit. 

Modified Total Direct Cost (MTDC) 

Modified total direct cost is used for all federal proposals. MTDC is the sum of all direct costs excluding the following line items: 

  • For all awards beginning June 30, 2025, and earlier, subaward budgets (inclusive of direct and indirect costs) in excess of the first $25,000.
  • For all awards beginning July 1, 2025, and earlier, subaward budgets (inclusive of direct and indirect costs) in excess of the first $50,000.  
  • Hospitalization and other fees associated with patient care whether the services are obtained from an owned, related or third party hospital or other medical facility
  • Rental/maintenance of off-site activities; student tuition remission and student support costs (e.g. student aid, stipends, dependency allowances, scholarships, fellowships.)  
  • Capital expenditures (buildings, individual items of equipment; alterations and renovations) 

 Resources