Glossary of Budget Terms

A

Allocable Costs Those allowable costs that actually benefit the grant or contract to which they are being charged

Allowable Costs Those categories of costs that can be charged to a grant, such as salaries and equipment. Certain types of costs, like alcoholic beverages, are not allowable and may not be charged to a contract or grant

Audit A formal examination of an organization's or individual's financial status. Individual or organization compliance with applicable terms, laws and regulations may also be examined

Authorized Signature The signature of a university official who is designated to give assurances, make commitments, and execute documents on behalf of the University of Central Florida. Faculty members are not authorized to commit the university to any project

B

Budget The detailed statement outlining estimated project costs available, or required, to support work under a funded project

Budget Adjustment The act of changing or amending a budget by moving funds from one category or line item to another

Budget Justification Normally a maximum of three pages, a budget justification is a description of how line item costs in the budget were estimated. A justification may be prepared for each year or as an overall summary

Budget Narrative See Budget Justification

Budget Period The interval of time, specified by the agency or investigator, into which the project period is divided for budgetary purposes. Expenditures or charges made toward the grant before or after these dates is not permitted without written approval from the agency

C

Capital Expenditures See Equipment

Capital Outlay See Equipment

Computer Services Cost of computer-based retrieval of scientific, technical and educational information. Also includes the cost for leasing automated data processing equipment

Conferences Activity in which payment for facility/conference rental, participant attendance and meal expenses are proposed. The applicant must identify the conference/meeting purpose and number of estimated attendees. If attendee conference fees are proposed, please contact the Office of Research to discuss university requirements

Conflict of Interest University regulations state if any investigator has direct or indirect financial interest in the sponsor of research, this must be disclosed prior to proposal submission

Consultants Includes all fees, honoraria and expenses paid for consulting and professional services of individuals or organizations not employed by the university. Each consultant and all anticipated costs must be clearly identified within the budget. The maximum daily fee for NSF projects can be found at http://www.nsf.gov/bfa/cpo/ppolicy/faqs.htm#1 (scroll to "consultant rate)

Cost Sharing A general term that describes any arrangement in which more than one party funds a research project. Cost sharing may be required by the sponsor or provided voluntarily by UCF. Voluntary cost sharing is provided as an institutional commitment in support of the project. (See Matching Funds)

D

Direct Costs Clearly identifiable costs related to a specific project, instructional activity or other institutional activity. General categories of direct costs include, but are not limited to: salaries and wages, fringe benefits, subcontract expenses, equipment, travel expenses, consultant expenses, supplies, duplication, and student tuition

Dissemination The act of making the results of a project widely available to the general public so that others may learn from the results

Duplicating The cost of photocopying. Some agencies will require a cost breakdown of cents per copy

E

Effort The amount of activity for which a professional is compensated. Effort is usually expressed as a percentage of time (X% FTE). A fall or spring semester class is equivalent to 25 percent effort. A summer class is equivalent to 33 percent effort

Equipment An article of nonexpendable, tangible personal property with a life of more than one year that costs over $500. The budget should detail each item to be purchased with grant funds and its estimated cost. Most agencies require prior approval for equipment purchases over $1,000 and may elect to retain its title. Some federal agencies require only equipment costing $5,000 or more listed under the "Equipment" category. However, current university policy requiring all eligible items over $500 be listed as equipment takes precedence over the agency requirement. Price quotes should be provided by fax, written quote, or documented phone call, and included as an attachment to the Proposal Transmittal Form (PTF). Some common terms include:

• Capital Expenditures: the cost of the asset and putting it into place. This can include the cost of any modifications, attachments, accessories or auxiliary apparatus to make it useable for the purpose it is acquired.
• Special Purpose Equipment: Used only for research including medical, scientific or other technical activities.
• General-Purpose Equipment: Use is not limited to research, medical, scientific or other technical activities. Examples of general-purpose equipment include office equipment and furnishings, air conditioning equipment, reproduction and printing equipment, motor vehicles and automatic data processing equipment.

The following rules apply to the acquisition of equipment and capital expenditures:

• Expenditures for general-purpose equipment, buildings and land are unallowable as direct costs unless approved in advance by sponsoring agency.
• Expenditures for special purpose equipment are allowable as direct charges with approval from the sponsoring agency.
• Expenditures for improvements to land, buildings or equipment, which increase their value or useful life, are unallowable as direct costs unless approved in advance by sponsoring agency.
• Expenditures are unallowable as F&A costs (facilities & administrative formerly indirect costs). (See OMB Circular A-21 Section J.12 for allowabiltiy of depreciation or use allowances on buildings, capital improvement and equipment. See OMB Circular A-21 Section J.38 for allowabiltiy of rental costs on land, buildings and equipment).

Escalation The act of increasing costs by a predetermined percentage to account for cost of living increases and inflation. Generally applies to salaries and wages, student tuition and travel

F

Facilities and Administrative Costs (F&A) - (Formerly Indirect Costs or Overhead) Costs incurred for common or joint objectives and therefore cannot be identified readily and specifically with a particular sponsored project, instructional activity, or any other institutional activity. The university's negotiated F&A rate must be used on all proposals unless otherwise limited by the sponsoring agency. Rates may vary depending on the place of performance and/or project type. At UCF, F&A cost is not charged on equipment acquisition, the portion of each subcontract award in excess of $25,000, student tuition, and student support costs (student aid, dependency allowances, scholarships, fellowships)

Fringe Benefits Employee benefits paid by the employer. At UCF, the fringe benefit rate is based on the cost of: FICA, Retirement plans, State Health Insurance, State Life Insurance, Worker's Compensation, General Liability, Unemployment Compensation, DOA Personnel Assessment, and Annual & Sick Leave Pool

G

General Purpose Equipment See Equipment

I

IDC Indirect Costs. See Facilities and Administrative Costs

In-Kind Contribution Contributions or assistance in a form other than money usually consisting of donated personnel services, materials or equipment. In-kind contributions must benefit and be specifically identified with the project. In-kind contributions must receive fair market valuation and be adequately supported by auditable records maintained by the contract/fiscal area at UCF. All contributions are subject to the guidelines and provisions of the sponsoring agency

Indirect Costs See Facilities and Administrative Costs

Indirect Cost Rate The rate, expressed as a percentage of a base amount, established by negotiation with the Department of Health and Human Services on the basis of the institution's projected costs for the year and distributed as prescribed in OMB Circular A-21. At UCF, indirect costs are applied to a modified total direct cost (MTDC). The university's current rate is available at http://www.finacctg.ucf.edu/intro.htm (select Contracts & Grants)

K

Key Personnel The personnel considered of primary importance to the successful conduct of a research project. The term usually applies to the senior members of the project

M

Maintenance and Repair Costs Costs incurred for necessary maintenance, repair or upkeep of property (including Federal property unless otherwise provided for) which neither add to the permanent value of the property nor appreciably prolong its intended life but keep it in efficient operating condition

Matching Funds Funds raised from other sources to increase the level of support provided by the granting agency. Federal funds may not be used for matching on another federal project. The funding agency may require the university to match funds for a portion of the project budget. The guidelines will stipulate the amount or percentage UCF must match (i.e.: dollar-for-dollar, or 25%, 30%, etc.). Matching funds may be obtained from a number of sources: a portion of the investigator's salary and fringe benefits, wages for students working on the project, contributions toward equipment, travel, or other expenses

The principal investigator must first consult with their Department Chair and/or College Research Coordinator to determine the availability of matching funds. If help is needed to prepare a budget with matching funds, or determining possible sources for matching funds, contact your College/Institute Research Coordinator or a Proposal Administrator in the Office of Research

Matching Grant A grant requiring a specified portion of the costs for a project be obtained from other sources. The required match may be more or less than the amount of the grant. Some matching grants require the additional funds be obtained from sources outside UCF. Many matching grants are paid in installments, the payments coinciding with the attainment of pre-specified levels of additional funding. Matching grants are very common in the sciences, especially for equipment. They are standard practice in some government agencies

Materials Costs Costs incurred for purchased materials, supplies, and fabricated parts directly or indirectly related to the sponsored agreement. Purchases made specifically for the project should be charged at their actual prices after deducting all cash discounts, trade discounts, rebates, and allowances received by UCF. Withdrawals from general stores or stockrooms should be charged at their cost per UCF standard accounting practice. Incoming transportation charges are part of material cost. Direct material costs should include only the materials and supplies actually used for the performance of the project, and due credit should be given for any excess materials retained or returned to vendors. Due credit should also be given for all proceeds or value received for any scrap resulting from work under the sponsored agreement. Where federally donated or furnished materials are used during project performance, such material will be used without charge

Material Transfer Agreement A contract governing the transfer of tangible research materials (usually biological) between two institutions

Memberships, Subscriptions and Professional Activities The following are allowable direct costs:

• Cost of UCF's membership in business, technical and professional organizations.
• Cost of UCF's subscriptions to business, professional and technical periodicals.
• Cost of meetings and conferences where the primary purpose is the dissemination of technical information. This includes the cost of meals, transportation, rental of facilities, and other incidental items

MFFA Matching funds provided by the Office of Research for projects funded directly by federal agencies. Funds are available up to 12 percent of the collectible facilities & administrative (F&A) costs (formerly indirect costs) and must be matched dollar-for-dollar by the investigator's College/Institute/Department. The Office of Research must approve MFFA funding prior to proposal submission. Contact the Office of Research for additional information

Modified Total Direct Cost (MTDC) At UCF, facilities and administrative costs are calculated on a subset of direct costs called MTDC. MTDC is figured by subtracting the cost of equipment, student tuition, and subcontract costs in excess of the first $25,000 from the project's total direct costs

N

New Award An award not previously awarded or a renewal or continuation award treated as a new award by the sponsor and given a new account number

New and Competing Proposals Proposals that are submitted for the first time or ongoing projects that must compete again for funding prior to expiration of the original award

No-Cost Extension An extension of the period of performance beyond the contracted end date to allow a principal investigator to complete a project. Usually, no additional costs or funding are provided. Also called No-Cost Time Extension

O

Other Costs Budget category that usually includes all items not listed in any other line category. These costs should be listed individually with clearly identified costs. If agency budget forms are not available, label these costs under a separate budget category titled "Other"

Overhead See Facilities and Administrative Costs

P

Participant Support Costs of transportation, per diem, stipends and other related costs or trainees (not UCF employees) in connection with conferences, meetings, symposia, training activities and workshops. Facilities & Administrative costs are generally not allowed on participant support

Patent Costs Costs of preparing disclosures, reports, and other documents required by the sponsored agreement, and of searching the art to the extent necessary to make such invention disclosures. Also includes costs in accordance with the clauses of the sponsored agreement relating to patents, costs of preparing documents and any other patent costs, in connection with filing of a patent application where title is conveyed to the Federal Government. (See OMB Circular A-21 Section J.39)

Per Diem See Subsistence

Personnel Cost of salaries and wages for participating project personnel including faculty, staff, OPS personnel, and undergraduate and graduate students. Each position, salary amount and the percentage of time (or Effort) devoted to the project should be identified

Postage Cost of all delivery expenses

Preliminary Proposal A brief description, usually between two and ten pages, of research plans and estimated budget that is submitted to determine the interest of a particular sponsor prior to formal proposal submission. Also called a pre-proposal

Principal Investigator (PI) The individual responsible for the conduct of research or other activity described in a proposal for an award

Printing/Publication Cost for production of all printed materials of the proposed project. Specific publications, number of copies planned and anticipated size of each publication run should be included

Program Announcement Notification of a research funding opportunity. It may describe a new or expanded interest in a particular program, or be a reminder of a continuing interest program

Project Director The individual responsible for the conduct of research or other activity described in a proposal for an award. Also called Principal Investigator

Proposal An application for funding that contains all information necessary to describe project plans and funds requested. Proposals are approved by UCF's Office of Research and submitted on behalf of the Principal Investigator

Proposal Transmittal Form (PTF) UCF form for institutional approval for submitting proposals. PTFs must be included with the proposal and given to the Office of Research proposal department prior to submission

R

Rebudget The act of amending the budget by moving funds from one category or line item to another

Rental Cost of Buildings and Equipment Cost to rent building and equipment are allowable if the rental is necessary for the operation of the project and are consistent with UCF policies and practices. Rental arrangements should be reviewed periodically to determine if the rental is in the project's best interest or if other options are available

Request for Applications (RFA) Announcements that indicate the availability of funds for a topic of specific interest to a sponsor. Specific grant announcements may be published in the Federal Register and/or specific sponsor publications

Request for Proposal (RFP) Announcements that specify a topic of research, methods to be used, product to be delivered, and appropriate applicant sought. Notices of federal RFPs are published in the Commerce Business Daily

Request for Quotation (RFQ) A formal request to vendors for a price quotation on equipment or supplies to be purchased

Revision A modified and resubmitted request for funding for a project that was previously not funded either because it was denied by the sponsor or withdrawn by the principal investigator. A revision may be completed on the principal investigator's initiative or on request of the sponsoring agency

S

Salaries and Wages Payment made to employees of UCF for work performed. Salaries charged to sponsored projects are permitted only at the employee's base rate. If an employee performs activities during summer months, and those months are not included in the base pay, salary will be weighted to compensate the employee for work performed

Salary Escalation Salaries should be escalated three percent each project year effective October 1. Some agencies allow for higher escalations, however UCF limits all escalations to three percent. Because circumstances may vary, the College/Institute/Department must document exceptions prior to proposal submission

Scope of Work The description of the work to be performed and completed on a research project. Also called Statement of Work

Senior Personnel Professional personnel responsible for the scientific or technical direction of a project

Special Purpose Equipment See Equipment

Statement of Work The description of the work to be performed and completed on a research project. Also called Scope of Work

Stipend A payment made to an individual under a fellowship or training grant in accordance with pre-established levels to provide for the individual's living expenses during the period of training. Stipends are not used to pay a student's regular salary

Subcontract A contractual agreement that assigns a portion of the project to another institution or organization. Each subcontract must be supported by a statement of work and a budget signed by an authorized representative of the organization. The State of Florida requires subcontracts in excess of $1,000,000 receive approval by the Board of Regents and/or its assigns or successors before placement. Subcontracts must abide by the Purchasing Office requirements for informal/formal bids. UCF charges facilities and administrative costs (F&A) on the first $25,000 of each subcontract through the life of the project period

Subsistence Cost of reimbursable meals for an individual on travel. The daily subsistence rate is limited. Please contact your College/Department or the Office of Research for current rates

Supplemental Proposal A request to the sponsor for additional funds for an ongoing project during the previously approved performance period. A supplemental proposal may result from increased costs, modifications in design, or desire to add a closely related component to the ongoing project

Supplies General types of expendable materials and supplies

T

Telephone All telecommunications including facsimiles

Total Direct Costs (TDC) The sum of all direct costs for a project

Total Project Costs The sum of all direct costs and facilities and administrative costs (F&A) incurred by the institution to carry out an approved project or activity

Training Costs See Participant Support

Transportation Costs Costs incurred for freight, express, cartage, postage and other transportation services relating to goods purchased, in process or delivered. If transportation costs cannot be readily identified with a specific item, the costs will be charged to the appropriate facilities and administrative cost account. Outbound freight, if permitted by the sponsoring agency, should be included in direct costs

Travel Costs for transportation, lodging, subsistence and related items incurred by employees traveling on official UCF business. Such costs may be charged on an actual basis, on a per diem or mileage basis in lieu of actual costs, or on a combination of the two. The method used must be applied to an entire trip and not to selected days of the trip, result in reasonable charges, be in accordance with UCF's travel policy and practiced consistently to all UCF travel activities. Foreign travel rates can be found at http://www.state.gov/www/perdiems/2000/0009bperdiems.html

Tuition Cost of instruction expressed as fees per credit hour. A student may not receive more than 100 percent (full-time) tuition per semester. Full-time undergraduate credit hours are as follows: Fall-12 hours; Spring-12 hours; Summer-9 hours. Full-time graduate hours are: Fall-9 hours; Spring-9 hours; Summer-6 hours. Undergraduate and graduate tuition rates are located at http://pegasus.cc.ucf.edu/~irps/character/0001tuition.html

U

Unsolicited Proposal Proposal submitted to a sponsor that is not in response to and RFA, RFP or agency program announcement

W

White Paper Proposal A proposal submitted to a sponsor that does not include budgetary figures