Building the Budget
The budget for your proposal is the financial expression of the statement of work. As you prepare your project’s budget, please be sure to read the proposal guidelines carefully. Your research administrator in the Office of Sponsored Research and Programs can assist you. If you need assistance with re-budgeting after your project has been awarded, please contact research administration services.
Budget and budget justification templates available. An overview of the budget process is also provided.
- Budget Template (Including revised budget template)
- Budget Template: NIH Modular
- NSF Budget Justification Template
- RR Budget Justification Template
- Budget Basics
- Quick Reference Guide: Allowable and Unallowable Costs for Federally Sponsored Projects
- NSF Cost Sharing FAQ
- Domestic Per Diem Travel Rates
- Foreign Per Diem Travel Rates
For budgeting purposes proposals with a start date beginning June 1, 2022 or later, the fringe benefit rates will be:
Academic Year: Faculty: 20.9%, Summer, 8.50%
All full-time staff: 24.9%
All part-time faculty and staff: 8.50%
Note: For expenditure purposes, fringe benefit rates are charged at the rate that is in effect when the expense is incurred.
For a detailed breakdown of fringe benefit rates, contact OSRP at firstname.lastname@example.org.
Indirect costs represent those expenses not readily allocable to any single research or training project, but which represents the costs for the University in carrying out research, training activities and other sponsored programs. Illinois Institute of Technology (IIT) requires all grant applications for external funding include an indirect cost rate (also known as the F&A cost reimbursement rate) :
Applications to Federal Sponsors
All applications to federal sponsors must use our federally negotiated rates as stated in our indirect cost agreement which can be found here.
Applications to Industry and Other for-Profit Entities
Indirect cost rates for work with Industry sponsors are as follows: On-Campus Research, 60%, Off-Campus Research, 30%, IPRO projects, 8%.
Applications to Other Entities Such as Non-profit Organizations or Foundations
The indirect cost rate used will be defined by the policy of the organization or foundation.
Request for a Waiver or Reduction of Indirect Costs
Waivers or reductions of indirect costs are not encouraged. Any request for a waiver must be reviewed and approved by the Dean or Academic Unit Head via the Internal Processing Form (routing sheet) prior to the submission of the proposal.
In any instances where an indirect cost rate is not defined by the sponsor, will be reviewed by the Office of Sponsored Research and Programs (OSRP). The appropriate Dean or Academic Head will be contacted for additional review and approval. Approval may also be required by the Vice Provost for Research. All approvals must be in place prior to the submission of the proposal.
For those grants where indirect costs are not allowable by the sponsor, please contact the Sponsored Research and Programs.
Any questions on which indirect cost rate should be used should be directed to the Sponsored Research and Programs (OSRP)
Federally Negotiated F&A Cost-Reimbursement Rates
Categories of Sponsored Projects
The Federally Negotiated Rate Agreement identifies five categories of projects: Organized Research, All Programs (off-campus only) Instruction, Other Sponsored Activities, Non-FDA (Moffett/IFSH only) FDA (Moffett/IFSH only)
This includes all federally funded research activities, both basic and applied, and all development activities which is performed at facilities owned by IIT, including but not limited to the following campuses: Mies (Main), Chicago-Kent College of Law, Institute of Design, Rice Campus. This also includes activities related to the training of individuals in research techniques (commonly called research training) where such activities utilize the same facilities as other research and development activities.
This includes all federally funded research activities, both basic and applied, and all development activities which is performed at a facility that is not owned by IIT. This also includes activities related to the training of individuals in research techniques (commonly called research training) where such activities utilize the same facilities as other research and development activities.
This includes all teaching and training activities, except for research training, whether they are offered for credit toward a degree or certificate, on a non-credit basis, or through regular academic departments or by separate divisions, such as summer session.
Definition of Off-Campus
A project, or part of a project, is considered to be performed off-campus for all activities: a) is performed in facility that is not owned by IITand where these facility costs are not included in the F&A pools (calculations) b) or where rent is directly allocated/charged to the project(s) (i.e., a national lab) Grants or contracts will not be subject to more than one F&A cost rate. If more than 50% of a project is performed off-campus, the off-campus rate will apply to the entire project. The classification of off-campus is for the purpose of applying the correct indirect cost rate and will need to be certified by the PI through the routing sheet.
Indirect Cost Rates for Sub-recipients
Under Federal Uniform Guidance, a sub-recipient may budget and charge any of the following as an allowable indirect cost rate. The University will not negotiate an indirect cost rate with the subrecipient on behalf of the Federal Government. The de minimis does apply to for-profit organizations. For-profit organizations should provide supporting documentation which reflects their indirect cost rate calculations.
- An approved federally negotiated indirect cost rate negotiated between the subrecipient and the Federal government. A copy of the current indirect cost rate agreement must be provided to, or, if no such rate exists,
- A de minimis indirect cost rate (currently 10% of Modified Total Direct Costs) as defined in 2 CFR 200.414 Indirect costs, paragraph (f).
Exceptions to Federally Negotiated F&A Cost-Reimbursement Rates
There are other common types of sponsored projects that result in F&A rates that are lower than the federally negotiated rates.
Training Grants supported by federal agencies generally allow an indirect cost rate of 8%. This 8% rate only for programs officially designated as "Training Grants" by the granting agency and formally capped by governmental or non-profit sponsor policy.
Bases for Calculating Facilities & Administrative Costs
As per the indirect cost agreement for IIT, the base is defined as:
Modified Total Direct Costs (MTDC)
The F&A rate is applied to all direct costs minus the following:
- Equipment (an article of nonexpendable, tangible personal property having a useful life of more than one year and an acquisition cost of $2,500 or more per unit).
- Capital expenditures
- Patient care costs
- Student tuition remission
- Scholarships and fellowships
- Participant support costs
- Rental costs of off-site facilities
- Subcontracts over $25,000
Other items may only be excluded when necessary to avoid a serious inequity in the distribution of indirect costs, and with the approval of the cognizant agency for indirect costs.
Total Direct Costs (TDC)
For sponsors that publish and reimburse indirect cost rates (F&A) lower than IIT's established rate, a TDC approach should be used, unless an MDTC approach, or specific individual cost exclusions, is specifically identified in the sponsor’s soliciation or policy. The F&A rate is applied to all of the direct costs,.
Contact the Office of Sponsored Research and Programs at 312-567-3035 or email@example.com if you have any questions.