Administrative Support

Salaries of administrative and clerical staff should normally be treated as indirect costs (Uniform Guidance 200.413(c)). However, the Uniform Guidance provides outlines the criteria under which administrative and clerical salaries may be directly charged to federal awards. If the Principal Investigator deems administrative support as a necessary component of the budget, then the budget justification should provide a strong explanation for the request. 

Justifying Administrative/Clerical Support

Under 200.413(c), Uniform Guidance states that administrative and clerical salaries may be included as direct charges on federal awards ONLY when they meet the following criteria:

• Administrative or clerical services are integral to a project or activity;
• An individual or specific role can be specifically identified with the project or activity; AND
• Such costs are explicitly included in the budget or have the prior written approval of the sponsor.

Sample 1:

$25,000 is requested to support a Project Coordinator at 50% effort over 12 calendar months. The nature of the project requires a significant time commitment of a Project Coordinator to perform support services beyond routine administrative duties of institutional support staff. The Project Coordinator will be responsible for coordinating teams of investigators from consortium institutions including making travel and meeting arrangements; processing travel reimbursements as necessary; entering significant amounts of data collected throughout the project; and managing material transfer between consortium institutions.

 

Computer and Electronic Devices

Changes in federal regulations have made computing devices allowable as direct costs on Federal awards if they meet certain conditions.

Background

Prior to the release of Uniform Guidance (2 CFR 200) in December 2014, the Federal government considered computing devices as general-purpose equipment unallowable on Federal awards. Principal Investigators were required to demonstrate an extraordinary need for computing devices and that the devices were not administrative in nature. However, technological improvements have helped to lower the costs of computing devices below the Federal equipment threshold of $5,000 enabling these devices to be treated as supplies. Uniform Guidance, 2 CFR §200.453, part (c), states that in the specific case of computing devices, charging as direct costs is allowable for devices that are essential and allocable, but not solely dedicated, to the performance of the Federal Award.

What is considered a computing device?

As defined in Uniform Guidance, 2 CFR §200.20 and 2 CFR §200.94, a computing device is:

• a machine used to acquire, store, analyze, process, and publish data and other information electronically, including accessories (or “peripherals”) for printing, transmitting and receiving, or storing electronic information, and
• categorized as a supply if the acquisition cost is less than $5,000, regardless of the length of its useful life

Examples of computing devices include but are not limited:

• if the acquisition cost is less than $5,000, regardless of the length of its useful life
• tablets, iPads, e-readers
• printers and external hard drives

Justifying Computing Devices

Your budget justification must explain why a computing/electronic device is essential and allocable to a project. Do not simply state, “The budget requests funds for a laptop computer which is essential to the project.” Include in the budget justification:

• Quantity and unit price, if appropriate
• A detailed description of WHY the device is essential and necessary to the performance of the project (Consider how the project would be negatively impacted without the device.)
• Describe WHO will be using the device and WHAT they will be doing with the device

Sample 1:

Funds are requested to purchase a laptop computer that will be used by a Research Associate for experiment design, analytical software interface, and data collection, storage, and analysis.

Sample 2:

We request funds to purchase five tablet computers estimated at $300 per tablet. GRAs will use these tablets to collect data from human subjects in the field as necessary for completion of Specific Aim 1. 

 

Cost of Living Adjustments / Merit Increases

Note: Not all sponsors allow cost of living adjustments and merit increases. Check opportunity guidelines and sponsor policy guidance to confirm allowability of such an increase.   

Sample 1:

All salaries and wages were estimated using the University's academic and staff salary scales. The anticipated cost of living increase is [___%] per year for the PI. Where appropriate, merit increases are included in the calculations. Merit increases for other personnel are estimated at [___%].

Fringe Costs

Fringe benefits are a direct cost to a sponsored project, charged as a percentage of the salaries and wages to be paid, and are shown as a separate entry in internal budgets. Occasionally, a sponsor's budget format will combine salary and fringe costs.

Background

Historically, sponsored projects have been billed for the actual cost of fringe benefits. Effective September 1, 2018, the University transitioned from the actual cost model to a flat rate model for fringe costs. Under the flat-rate model, sponsored projects will be billed a flat percentage of each salary to cover employee benefits according to pooled rates. Effective September 1, 2019, the University moved from three pooled rates (full-time, part-time, and benefits ineligible) to two pooled rates (benefits-eligible and benefits-ineligible). The flat rates are established by agreement with the US Department of Health and Human Services. 

Budgeting Policy 

In conjunction with your department's budgeting practices and sponsor guidelines please use the fringe rates published at https://research.utexas.edu/osp/prepare-submit-proposal/fringe-rates-guidelines/

Fringe will be charged at the applicable rate at the time the cost is incurred. 

Additional information is available via OSP's Fringe Rates & Guidelines webpage and Payroll Services Fringe Benefits webpage. 

Sample 1:

Fringe benefits rates are based on The University of Texas at Austin's current federally negotiated rates for the appropriate employee benefits level at the time of proposal submission. Fringe benefits rates for benefits eligible employees for Fiscal Year ____ are calculated at __%. In accordance with University budgeting policy, future fiscal years are escalated by 0.5% for fringe benefits eligible full-time and part-time for anticipated increases. Fringe benefits rates for benefits ineligible employees are calculated at __%. Negotiated fringe rates are available via https://research.utexas.edu/osp/prepare-submit-proposal/fringe-rates-guidelines/.

Sample 2:

Fringe benefits rates for benefits-eligible employees are calculated at [%; average of fringe rates across the proposed period of performance]. Fringe benefits rates for benefits ineligible employees are calculated at __%.

Indirect Costs (IDC)

Guidance:

Indirect Costs, frequently referred to as Facilities and Administrative (F&A) costs or Overhead, are real costs to the University that support sponsored activities. Budgets of proposed sponsored projects must include Indirect Costs (IDC) at the University's federally-negotiated rates unless otherwise specified by the sponsor via published solicitation or statutory policy requirement, or a waiver of IDC has been approved by the Vice President for Research. Review our Cost Sharing, Matching, and Indirect Cost Waivers webpage for more information about IDC reduction requests. 

The current negotiated rate agreement is effective September 1, 2018 thru August 31, 2022 or until amended by DHHS. Refer to the full rate agreement for current and future rates and rates applicable to other and off-campus activities. Visit OSP's F&A or IDC webpage for additional information.   

Sample 1: 

The indirect cost rate of ___% of modified total direct costs is based on the University’s negotiated F&A rate as anticipated at the time of award. The rate memo can be viewed at https://research.utexas.edu/osp/resources/fa-memo/.

Sample 2:

Per sponsor policy, facilities & overhead is calculated at __% of modified total direct costs.

Salary Exceeding Sponsor Mandated Cap

 

Some sponsors, such as NIH and CPRIT, have a mandated limitation to the direct salary an individual may receive under a grant. Carefully review sponsor-specific guidance to ensure you've budgeted correctly. Often, PIs whose salary exceeds the cap elect to budget using the salary cap while explaining in the budget justification that their salary in excess of the cap will be covered by an alternative source. It is important to confirm that the alternative source is accessible to the PI.

Sample 1:

Dr. Einstein will serve as the Principal Investigator and will contribute 1-month effort to the research activities of the project. Dr. Einstein's annual salary from The University exceeds the FY ____ NIH Salary Cap. Therefore, funds are requested from NIH at the current maximum rate; Dr. Einstein's salary in excess of this rate will be provided by the institution.  

Salary Requested in Hourly Rates

Salary costs are normally written as person-months (2 calendar months) and a percent of full-time effort (10% effort). Occasionally, a sponsor will request cost per hour. Because the university does not track expenses on a time and materials basis, it should be made clear that any hourly breakdown is done so for the sponsor's convenience.  

Sample 1: 

The hourly breakdown in the spreadsheets is provided solely for the convenience of [sponsor name]. Salary costs are calculated using a percentage of effort based on employee contracts; faculty appointments at UT are based on a 9-month academic year; and full-time staff appointments are based on a 12-month calendar year. As an institution of higher education subject to 2 CFR 200 and the University Accounting Standards, we cannot certify to any effort expressed in the number of hours and/or hourly rates.