Budget and Application Tools

DIRECT COSTS

Budgetary Considerations:

• In completing the budget, it is necessary to review the elements of the project as well as the sponsor guidelines. 
• It is important to be cognizant of any sponsor restrictions regarding specific budgetary allowances or disallowances (e.g., one sponsor may allow the PI to charge salary, another may not). 
• It is important to substantiate your budget with an explanation or a budget justification. 

What are the common budgetary categories?

Salaries and Wages

All personnel are listed, along with their percentage of effort for the project, PI/PD first and students or clerical personnel last.  If the amount of salary requested does not represent the percentage of effort, an explanation should be included on the budget justification.

Clerical Staff

If you intend to include clerical staff on your budget for a federal sponsor, one of the following reasons, or one similar in nature, must be included in your justification.  These examples are not exhaustive nor are they intended to imply that charging of administrative or clerical salaries would always be appropriate for the situations illustrated:

Fringe Benefits

Unless specifically called “stipends” by the sponsor (as in most fellowships), all salaries must be accompanied by fringe benefits, whether the individuals are working full or part time on the project.  The most current fringe benefit rates can be found on the Office of Sponsored Programs website.  Please note that there are different rates for Research Foundation employees, State employees, graduate students, undergraduate students and summer only appointments.

For a student to be eligible for the student rate, the following must apply:

Equipment

Equipment is defined as having a useful life of at least one year and an acquisition cost of  $5,000 or more.  Items not meeting this definition are considered supplies.  Some sponsors may have their own definitions of equipment.  Generally, we would subscribe to the sponsor’s definition.  If you have any questions, please contact your Grants Administrator at 632-9949.

Travel

Domestic and foreign travel should be listed as two line items, unless specified otherwise by the sponsor.  The purpose of the trips, the destinations, number of travelers, number of trips and other costs should be discussed in the budget justification.   It is a requirement on federal awards to use U.S. flag carriers to foreign destinations or, in the absence of through service, to the farthest interchange point.

Participant Support Costs

For programs relating to conferences, symposia, meetings, training activities or workshops, include costs of transportation, per diem, stipends and other related costs for participants or trainees.

Patient Care Costs

Routine medical costs that would normally have taken place and are now within the scope of the research, i.e., x-rays, blood tests, EKG, travel costs associated with diagnostic testing, personnel cost for medical procedures (i.e, technician or nurse).

Alterations and Renovations

Alterations and renovations required for project performance and having a cost of $15,000 or more per alteration or renovation.

Materials and Supplies

The costs of materials or supplies needed to do the project.

Publications

The costs of disseminating and sharing research findings in the process of documenting, preparation, and publication.

Consultants

List the name and daily amount for each consultant.  Any travel for the consultant is listed in the this category. Some federal sponsors have established daily rates. Stony Brook faculty cannot be paid as consultants on a Stony Brook award.  They are considered collaborators. (see Section V, Consultants).

Computer Services

Costs of computer time and related support services, calculated according to an approved rate schedule for the facility concerned.

Subcontracts

Costs for performance and completion of a designated portion of project objectives executed by an organization other than Stony Brook.  The total amount (direct and indirect costs) of the subcontractor budget are listed as direct costs on the Stony Brook budget.  The amount is to be documented by the subcontractor's institutionally endorsed letter of intent (use the Stony Brook Letter of Intent Form found on the Office of Sponsored Programs website), scope of work,  and budget with justification, which is to be included in the application. (see Section VI, Contractual/Consortium Arrangement Requirements).

Tuition

Unless prohibited by sponsor policy, all proposals which budget support for a graduate student must also budget tuition costs of $4,188 for each academic year.  More information and instruction can be found on the The Graduate School website.  

Other

This category is used for items that are not suitable for any other category.  A detailed list should be included in the budget justification.

FACILITY & ADMINISTRATIVE COSTS (F&A)

The latest policy and rates can be found at http://www.stonybrook.edu/research/osp/resources/IDCRateAgreement.pdf or call 632-9949

What are Facility and Administrative Cost, also known as IDC Cost?

F&A or IDC Costs are real costs incurred by the University/Center and Institution in support of research/sponsored activities but cannot be identified with a specific award.  The cost result from shared services such as libraries, utility costs, general departmental, unit/school and sponsored program’s administrative expenses and depreciation for buildings and equipment.

Who sets the IDC/F&A rate?

SUNY Stony Brook in conjunction with The Research Foundation of State University of New York applies each year for rate renewal and approval through its cognizant agency.  Currently SUNY Stony Brook’s cognizant agency is The Department of Health and Human Services  

How can I find a listing of SUNY Stony Brook’s current approved rates?

An up to date listing on the SUNY Stony Brook approved IDC/F&A rates are listed on this web site or you can contact your Sponsored Program representative.

What types of rates are there?

There are many different types of rates the most common are: Total Direct Cost (TDC), Modified Total Direct Cost (MTDC), Sponsor Set, Administrative, Evaluative and Testing and Other Sponsored Programs.  The most common is MTDC.

What does MTDC mean?

Modified Total Direct Cost is calculated by excluding alterations and renovations having a cost of $15,000 or more, in/out patient care, rental maintenance of off-site activities, student tuition, participant support cost (student aid, stipends, travel, etc.), amounts over the first $25,000 of each subcontract and equipment over $5,000. Most federal programs use this rate.

What is the difference between MTDC and TDC?

Total direct cost include all cost associated with a sponsored project including those items excluded in Modified Total Direct Cost  

Are these rates prorated if I am not doing all of my work on campus?

Yes, There is also a rate for work totally done off campus.  To determine the off and on campus rate, only the Stony Brook personnel effort is considered (effort on any subcontract is excluded).  After determining the amount of all effort, ascertain the effort that is only for off campus.  The effort for off campus is divided by the total effort.  The closest increment to 25%, 50%, 75% or 100% is considered as the off-campus percentage.

What is an Administrative rate used for?

Administrative rates applies to funds received in support of research or training activities where the sponsor provides the funds in advance and without further obligation on the part of the institution: no constraints on how the funds may be used, no financial or technical reporting requirements, no claims to copyright nor other claims to the ownership or licensing of intellectual properties.

This rate should also be used for:

• Income from external sources deposited to Service and Facility Accounts and Copyright and/or licenses not flowing through the Campus Royalty distribution policy and other authorized income accounts.
• Fellowship awards from sponsors who do not have their own policy.
• Awards made specifically and solely for support of a conference, seminar, or workshop to be held at the Stony Brook campus.

What is an Evaluative Testing rate used for?

The Evaluative Testing rate is used for agreements with companies providing a specific company-issued protocol to be used in testing and evaluating a new or investigational device, drug, or compound that they own.  Such testing must be required to obtain or maintain federal government approval.

What is a Sponsor Set rate?

Some sponsors may have their own policy on these types of costs all.  If you run across a situation like this make sure to include documentation on the rate allowed in COEUS. 

Unless there is a written Facility and Administrative (F&A) sponsor policy, full F&A recovery must be included in your budget.  Institutional support for Facility & Administrative cost is   orchestrated in advance by the Office of the Vice President for Research, however, is fully funded by departments, chairs or deans and not by the Office of the Vice President for Research.  Efforts to waive a sponsor’s share of F&A costs to enhance competitiveness remain the fiscal responsibility of the unit(s) benefiting by the waiver.  (See Section VII, University Support)

The Research Foundation has been notified that the fringe benefit rates for FY 2014 (7/1/13 - 6/30/14) (fixed) have been approved by DHHS. The updated rates are attached below and are to be effective immediately in proposal budget creation.

Memo updated March 2013. The entire memo can be accessed here.

¹ Applies only to full time SUNY undergraduate students who meet the criteria for and are appointed to one of the following titles: Research Aide, Senior Research Aide or Camp Counselor. All other undergraduate student salaries will be charged the regular employee rate.

² Applies only to full time SUNY graduate students who meet the criteria for and are appointed to one of the following titles: Project Instructional Assistant, Research Project Assistant, Research Graduate Assistant, Research Aide or Senior Research Aide. All other graduate student salaries will be charged the regular employee rate.

³ Applies only to employees whose appointments fall wholly within the summer and who meet the criteria set forth by Employee Services and Human Resources, some of which appear on the reverse of this advisory.

⁴ A breakdown of the fringe benefits components can be found on the reverse side of this sheet.

⁵ Pending DHHS Approval.

⁶ Fringe Benefit Rate for Transfers to NY State Salary Offset accounts and Cost Sharing Budgets. This is the actual NY State rate, and is no longer included in the Fringe Benefit Pool.

⁷No fringe is associated with the cost sharing of undergraduate or graduate students as defined above.

⁸Pending approval of NYS Office of State Controller.

⁹The NYS Office of State Controller has not issued any information relating to future years. We are suggesting you use the rate pending approval of the NYS OSC for FY12.

F&A (IDC) RATES

Research	Year	On Campus	Off Campus
	7/1/12 - 6/30/13	57%	26%
	7/1/13 - 6/30/14	57.5%	26%
	7/1/14 - 6/30/15	58%	26%
Instruction	Year	On Campus	Off Campus
	7/1/12 - 6/30/13	53%	26%
	7/1/13 - 6/30/14	53%	26%
	7/1/14 - 6/30/15	53%	26%
DOD Contracts	Year	On Campus	Off Campus
	7/1/11 - 6/30/15	59.5%	30%
Other Sponsored Programs	Year	On Campus	Off campus
	7/1/11 - 6/30/15	35%	26%
Interpersonnel Agreement	Year	On Campus	Off campus
	7/1/11 - 6/30/15	8.5%	8.5%
Clinical Trials	Year	On Campus	Off campus
	7/1/11 - 6/30/15	25.0%	25.0%
Administrative	Year	On Campus	Off campus
	7/1/11 - 6/30/15	15.0%	15.0%

Memo and Policy

The F&A (IDC) Rates memo dated January 31, 2013 can be accessed here.

The F&A (IDC) Campus Policy can be accessed here.

F&A (IDC) Waivers

The campus does not waive F&A (IDC)  costs. Since they are a legitimate expense to the campus in support of sponsored project activity, F&A costs must be recovered from sponsored projects in accordance with the campus' F&A cost policy.  Any indirect costs not recovered become cost sharing on the part of the campus. The campus policy provides for F&A cost recovery at less than its audited rate provided the rate in question is the formal, uniformly applied rate of the sponsor or a special campus rate. In the absence of a specified formal lower rate, the appropriate Federal rate must be requested. If the request for recovery of indirect costs at the sponsor's formal rate will affect the competitiveness of a proposal to a given sponsored program, the proposal may be submitted with reduced indirect costs as long as the proposing unit agrees, in writing, to reimburse the campus for lost F&A revenue  from resources under its control. 

F&A (IDC) RATE BASICS

The total cost of a sponsored program (be it research, education, or public service based) consists of both direct and indirect costs. Direct Costs are specifically and clearly identifiable to the specific project. At Stony Brook, direct costs include, but are not limited to, salaries and wages for project personnel, associated fringe benefits, equipment, consumable supplies, travel, technical services, etc. Direct costs are incurred at the discretion of the investigator, in accordance with sponsor regulations and University/Campus and Research Foundation policies and procedures.

Facility and Administrative Costs (sometimes referred to as indirect costs, overhead, administrative allowance, or occasionally, institutional allowance) are costs incurred in support of sponsored programs, in general, but not identifiable with any single project. Facility and Administrative Costs generally consist of sponsored program and general administration such as payroll and purchasing, and general institutional support services such as building maintenance, libraries, etc.

Reimbursement of Facility and Administrative Costs to educational institutions is predicated upon use of an indirect cost rate. This rate is developed in accordance with the cost principles specified by the Federal Government in OMB Circular A-21. The rate is reviewed and approved every three years by our cognizant audit agency, the U.S. Department of Health and Human Services (DHHS).

The Facility and Administrative Cost rate is applied across a base consisting of all direct project costs (other than equipment, rental of outside facilities, amounts over the first $25,000 of each sub-contract, participant support, and alterations/renovations totaling $15,000 or more). The rate is termed a Modified Total Direct Cost (MTDC) rate. Separate rates are developed for grants, contracts, and cooperative agreements that (1) support research and/or clinical activities and that (2) support training and other educational activities.

The following special rates may be used when the below criteria(s) apply:

Organized Research Rate¹ will be applied to contracts/cooperative agreements and grants in support of Evaluative Research, as defined below, and Organized Research activities such as basic, applied, developmental, or other scientific research sponsored by federal and non-federal agencies and organizations, including federally-sponsored Clinical Trials.

7/1/10 – 6/30/13             57.0% MTDC²  On Campus                          26% MTDC2 Off Campus⁴

 7/1/13 – 6/30/14             57.5% MTDC²  On Campus                           26% MTDC2 Off Campus⁴

 7/1/14 – 6/30/15             58.0% MTDC²  On Campus                           26% MTDC2 Off Campus⁴

An evaluative research agreement for which the Organized Research Rate applies is defined as any agreement with a private sponsor with a protocol developed by either Sponsor, University Principal Investigator, University Principal Investigator with direction from Sponsor or Sponsor with direction from University Principal Investigator; the protocol is moderately specific and leaves room for the University Principal Investigator to experiment or interject his or her own ideas; where the type of work required is characterized as testing of the private sponsor’s proprietary product (e.g. a new or investigational device, drug, material or compound) and the deliverable will be provided to sponsor in the form of expert data analysis and interpretation from University. 

Other Sponsored Programs Rate will be applied on both federal and non-federal projects for which the activity is other than research and instruction such as Evaluative Testing, as defined below, General Administration, Operations and Maintenance, Sponsored Projects Administration and other public service projects.

7/1/11 – 6/30/15    35.0% MTDC²  On Campus   26% MTDC² Off Campus⁴

An evaluative testing agreement for which the Other Sponsored Programs Rate applies is defined as any agreement with a private sponsor providing a company-developed protocol that specifies all procedures in detail and leaves no room for the University Principal Investigator to experiment on his or her own; where the type of work required is characterized as testing of the private sponsor’s proprietary product (e.g. a new or investigational device, drug, material or compound) and the deliverable must be raw data which cannot include any interpretation. Such testing or studies cannot involve contact with human subjects.

Instruction Rate will be applied to both federal (including federal flow-through) and fon-federal sponsored projects for programs whose principal purpose is instruction.

7/1/11-60/30/15  53%   MTDC² On Campus               20% MTDC²  Off Campus

Clinical Trials Rate will be applied to all Clinical Trials, as defined below, funded by private sponsors.

25% TDC³

A clinical trial agreement for which the Clinical Trial Rate applies is a controlled, clinical testing in human subjects of investigational new drugs, devices, treatments, or diagnostics, or comparisons of approved drugs, devices, treatments, or diagnostics, to assess their safety, efficacy, benefits, costs, adverse reactions, and/or outcomes.  Such studies may be conducted under an industry-developed protocol or an investigator-developed protocol.

1. The objective of the study is either:
   1. testing of a drug, device, diagnostic, treatment, intervention, or preventive measures  including testing for an unapproved indication or
   2. data collection, or review of data generated or acquired in a clinical setting, to increase knowledge that would lead to enhanced safety and efficacy of a drug or device.
2. The study must involve contact with human subjects or the review of patient care clinical data
3. The study must be performed primarily in patient care or clinical space
4. The study must be industry-funded.

Administrative Rate will be applied to unrestricted gifts and other funds received in support of organized research or training activities where the sponsor provides the funds in advance and without further obligation on the part of the institution: i.e., no constraints on how the funds may be used, no financial or technical reporting requirements, and no deliverables. 

This rate will also be applied to funds from:  External Sources deposited to Service and Facility Accounts;  Materials Transfer Agreements; NYS Industrial Contracts affiliated with Centers for Advanced Technology, Center for Biotechnology and the SPIR  Program; Phase 1 subcontracts as part of STTR/SBIR awards; Fellowship Awards unless a rate is specified by the sponsor; and awards made specifically and solely for support of a conference, seminar, or workshop to be held at the Stony Brook Campus.

15% TDC³

Interpersonnel Agreement (IPA) Rate will be applied to federal funds received to support expenses incurred by institution when faculty are involved in an assignment to that federal entity. These awards typically reimburse the institution for salaries, fringe benefits and travel expenses.

8.5% MTDC²

 

¹ Rates approved by DHHS in an agreement dated 2/9/12.

² MTDC = Total Direct Costs less equipment, tuition/fees, participant support, in/out patient care costs, rental of outside facilities, amounts over the first $25,000 of each subcontract, and alterations/renovations. Alterations/Renovations are defined as having a cost of $15,000 or more per alteration or renovation. Cost of less than $15,000 are considered a miscellaneous expense.

³TDC= Total Direct Costs

⁴ Projects conducted in whole, or in part, off campus may apply the off-campus rate to that percentage of the project that is performed off campus. Percentages shall be rounded to the nearest 25%. No greater level of refinement is permitted. 

Projects conducted in whole at the following Stony Brook locations are considered off campus:  Hospital, Technology Park, Cancer Center, GCRC, and off-site clinical offices.

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