Budgets
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Project cost centers are established using the budget approved by the sponsor.  Some sponsors allow considerable latitude to the PI's in revising budgets.  Others require prior approval from the sponsor for changes.  There are 9 major categories:

1. Personnel

   Salary and fringe benefits.  Fringe benefits are budgeted as a percentage of estimated actual salary costs but are charged as actual direct costs.  IMPORTANT: These rates are for BUDGETING PURPOSES ONLY.  All grants will be CHARGED FOR ACTUAL fringe benefits incurred.

   A fringe benefit calculator is available at http://www.uh.edu/hrms/trainingmaterials.htm.  Fringe benefits are the most difficult category to properly budget.  it is very important for good project management to closely monitor the fringe benefit account.  It often results in a large surplus which can be moved to other budget categories, while in other cases, it may be necessary to increase this category.

2. Equipment

   Equipment is defined by the State of Texas as any single item costing over $5,000.  the federal definition of equipment is an article of nonexpendable, tangible personal property having a useful life of more than one year and an acquisition cost of $5,000 or more per unit.  General purpose equipment and all items over $1,000 need to be specifically identified in the budget.  (General purpose items are items useful for purposes other than scientific research.  Computer equipment is considered general purpose equipments by some sponsors.)

3. Travel

   If foreign travel is anticipated it must be specified in the budget.  Travel costs expected to exceed institutional guidelines must also be specified.  Contact the Travel Office for the questions regarding per diem rates outside of the state of Texas.  Federal funds cannot be used to make trips for the purpose of securing additional funding.  Travel vouchers should be completed for reimbursement of travel expenses. 

4. Consultants

   This category should be itemized and detailed in the proposal to the sponsor.  Some agencies require prior written approval for all consultants.

5. Subcontracts

   In most cases, subcontracts must be approved by the sponsor.  they are reviewed and negotiated by the Office of Sponsored Projects.

6. Publication Costs

   Publication costs are for publication of journal articles.

7. Expendable Equipment and Supplies

   These are items costing less than $5,000 per unit or with a life expentancy of less than one year.

8. Other Direct Costs

   Include services, participant costs, communications, etc.

9. Facilities and Administrative Cost Rate (Indirect Costs)

The current on-campus rate is 50% direct salaries & wages excluding fringe benefits.  This rate will remain in effect until a new agreement is negotiated.

Re-budgeting

Transfer of funds between the budget categories is accomplished by contacting the Grant Accounting office.  Minor changes between categories are allowed by almost every sponsor, but some require prior written approval.  When transferring funds to salaries, the PI must also transfer funds into fringe benefits.  Transfers can only be made prior to 90 days after the incurrance of the cost.

Up to Grant Accounting

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