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GIM 1
Section III
Budget

  1. SALARIES

    This section should include a list of names and titles of personnel with an estimate of the number of months and percentage of time each will devote to the sponsored activity, the salary rate, and the total amount of salaries to be paid to each from the grant or contract. (See GIM 21 if cost-sharing is required). Names and titles of all senior professional project staff should be shown, whether a part of their salary is to be charged to the project account, or pledged as University cost-sharing.

    Salary rates included in proposal budgets are approved by the University as estimates only. Actual salaries are set at the time of appointment, or extension, in accordance with then current salary scales and relevant University policies. University of Washington Physician (UWP) and children's University Medical Group (CUMG) salaries should be included in proposals.

  2. SUMMER SALARIES

    Most sponsors permit compensation of faculty during the summer at their regular University salary rates. The statement of University policy on summer appointments is found in University Handbook, Vol. IV, Part II, Chapter 4, Section 1,F,3. Transmittal by the University of a proposal which provides for summer appointments of more than 2.5 months' duration does not assure University approval of these appointments; each case is considered separately, in the light of project needs and the spirit of University policy, at the time the summer extension of appointment is initiated.

    Salary Certification
  3. EXCESS COMPENSATION TO FACULTY

    It is expected that the working time of University faculty is to be devoted to the duties which may be assigned them by the University. Every effort is made to schedule all University-related faculty work as a part of normal duties. Excess compensation to University faculty for work not represented by regular salary may be paid only under exceptional circumstances, and must be approved in advance by the Dean. In no case shall such additional compensation exceed 25 per cent of a faculty member's regular monthly salary in any month. This limitation applies to compensation for all University services, except that excess pay for direct services on research grants or contracts is not permissible (from University Handbook, Vol IV, Part IV, Chapter 3).

  4. PROVISION FOR ANTICIPATED SALARY INCREASES

    Provision for anticipated salary increases should be made in grant and contract budgets. These increases should be considered for any program extending through the summer or for more than one year, thus involving more than one University year. There are two types of salary increases, which should be shown as follows:

    1. Cost of Living Increases - These increases should generally be in accordance with GIM 25. If unusual circumstances are involved, discussion with the chairperson of the department and Office of Sponsored Programs is advised.
    2. Mandatory Step Increases - Projected step increases should also be provided in accordance with the HEPB schedule for the within range increases for classified staff. If the individual to fill a particular position has not yet been identified through the formal recruitment process, the position budget generally should be at the middle step in the range for that title.

    The salary budget should be properly footnoted to explain the types of anticipated salary increases, the rate of increase, and the period to which the increases apply.

  5. EMPLOYEE BENEFITS

    Employee benefits are treated as direct costs at the University and generally includes contributions to state retirement or TIAA, social security, medical aid and industrial insurance, life insurance, and health and accident insurance. These benefits represent significant amounts, and it is important to provide for the expense in grant and contract budgets whenever salaries are budgeted. The current rates to be used for budgeting are provided in GIM 3.

  6. DIRECT OPERATIONS COSTS

    1. TRAVEL - Indicate the number and estimated cost of trips as well as the destination of each trip (if known) and the number of individuals on each trip. If the exact location is not known, the general geographic location should be specified. The estimated cost should normally include and itemize air fare or other mode of transportation, the number of days of per diem, and ground transportation in accordance with University policy. Most sponsors require a statement about the purpose of the proposed travel and its relevance to the sponsored program, especially in connection with foreign travel.
    2. EQUIPMENT (PURCHASED) - When budgeting equipment in proposals, please use $2,000 as the threshold for the equipment category. If an item is less than $2,000 per unit, it should be budgeted as supplies. Each equipment item should be listed by type, model number and manufacturer. Catalog prices should be listed plus any anticipated price increases (with justification) and Washington sales tax (sales tax is applicable to all purchases of equipment). Catalogs should be retained as supporting documentation or if catalogs are not available, written vendor quotes should be obtained and retained. If equipment needs are not definite, probable choices may be listed on a separate sheet and an estimated total shown on the budget page. Where it is difficult to predict the types and quantities, or where unusual items are required, the circumstances should be fully explained.

    3. EQUIPMENT (FABRICATED) - The nature of the equipment to be fabricated should be shown along with a breakout of the items that are being fabricated (e.g. materials, cost center services, etc.). If the cost estimate is based on recent historical experience in fabricating similar items, the documentation to support this should be available. For agreements where the entire award is for fabrication of equipment, the budget will not have indirect costs applied to the direct costs. When fabricated equipment accounts for only a portion of the total cost of an agreement, indirect costs will be assessed on materials and services at the indirect cost rate identified in the agreement and reversed upon reclassification to 06-xx-xx. A separate budget number may be established for the fabrication costs if the agency is unwilling to pay indirect costs on an interim basis and if the fabricated equipment budget is definite enough at the time of proposal to segregate from the rest of the budget.

    4. EQUIPMENT (RENTAL) - Each equipment item to be rented should be shown by type, model number, and manufacturer along with the current rental rate of each item. Vendor catalogs or written quotes should be retained as support documentation. If inflationary factors are included, they should be explained. The University Purchasing Department can assist comparing rental versus acquisition alternatives. Equipment rental is considered a "service" charge.

    5. SUPPLIES - Supplies should be listed by major types, e.g., glassware, reagents, chemicals, etc., along with the estimated cost of each subclass. An indication of how the estimates were arrived at should be provided. Prior year accounting records or other documentation may be used to support these estimates.

    6. OTHER DIRECT COSTS - This category includes items such as books and periodicals required for the sponsored activity, exclusive on-campus and off-campus telephone charges, publication costs, computer services, animal purchase and boarding costs, alterations and renovations. Each of the items listed should be separately coded by class with the estimated cost justified. For example, publications costs should list the number of pages to be published and the cost per page. Any other direct costs should be supported in as much detail as possible. Documentation should be kept by the department.

      "Miscellaneous" and "Contingency" categories should be avoided on the budget page.

      The operating fee portion of graduate student tuition for Research and Teaching Assistants budgeted as "salaries" in the proposal is a separate direct cost to the proposal budget. It should not be included in the salary category but instead listed among the "Other Direct Costs" as "Graduate Operating Fee". Facilities & Administrative Costs (Indirect costs) are not applied to this category.

  7. COST-SHARING

    Some Federal sponsors require cost sharing on research grant awards. Contracts, training grants, and certain special-purpose grants are usually exempt from this restriction. Since Federal sponsors have implemented cost-sharing in a variety of ways, attention is invited to GIM 21. Presentation of cost-sharing in a sample budget where a government agency has not prescribed a printed form is shown in Appendix III.

  8. FACILITIES & ADMINISTRATIVE COSTS (F&A or formerly known as INDIRECT COSTS)

    University expenditures for departmental administration; for building operation and maintenance, e.g., heat, light, electricity, and janitorial services; for general expenses, e.g., recurring telephone, mail service, and services of administrative offices such as Purchasing, Accounting, Payroll, and Personnel Offices, are included in Facilities & Administrative Costs(indirect costs). Information about F&A cost rates and their application is given in GIM 13 and an explanation about indirect costs is given in GIM 22.

    Wherever possible, proposals to outside sponsors should request full reimbursement of F&A costs. When a proposal provides for less than full F&A cost reimbursement, the circumstances should be discussed in advance with Office of Sponsored Programs.

  9. UNEXPENDED BALANCE

    Proposals for the extension or renewal of existing sponsored activities should include an estimate of the unexpended balance anticipated upon expiration of the current grant or contract budget period. With some sponsors, the unexpended balance is applied as partial funding for the next budget period.