GIM 22
Attachment A
A Primer on Facilities and Administrative Costs
8. What are the typical elements of a research grant?
Chart III outlines the budget
for a typical
research project in the sciences. Salaries and benefits often constitute 50% or more
of the project budget. The supplies and services component is often 10% or less of
the total. These budgeted items are then added together to determine the Modified
Total Direct Costs of the grant, a sum which forms the basis for calculating the
grant's F&A costs. Multiplying the project's MTDC by the institution's F&A rate for
that year yields the grant's F&A cost amount. The F&A costs and the MTDC together
typically comprise about 90% of the total award. Usually the remainder involves
various items of equipment that might be needed to carry out the research but which
are excluded from the MTDC calculation. If graduate students are supported, the
graduate operating fee (tuition) is also excluded from the MTDC calculation.
Although the chart represents a typical project, the character of projects varies
enormously across the institution. Some grants can be as small as $500 and some can
be as large as $5 million, or even more. Moreover, it is clear that each grant will
use different resources and therefore have a different F&A cost impact within the
institution.
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