Breaking down research costs
One of the most challenging aspects of budget development is identifying relevant costs. Remember, this financial plan quantifies only the expenses incurred while conducting research. It is not the organizational budget.
Begin by assessing the costs associated with the research essentials, i.e., the study design, study settings, testing procedures, and sample and data collection methods. These expenses can be divided into direct and indirect expenses.
Direct expenses
Direct expenses are costs arising solely from performing research. They must be allowable, allocable, reasonable, and consistent. Examples include:
- Personnel expenses: The salary and any benefits associated with the human resources necessary to conduct research, such as site managers, research assistants, research associates, data entry operators, etc.
- Recurring expenses: Costs that will continue throughout the study period, including consumables, materials, food, and medical charges
- Nonrecurring expenses: Single expenses incurred once during the study, such as the cost of equipment, instruments, software programs, computers, and electronic accessories
- Travel expenses: Costs incurred while traveling to collect data or visit other centers in cases of multicenter research. They may also include costs to attend meetings or conferences relevant to the research project.
Indirect expenses
Also known as overheads, these costs are not directly attributed to your specific study but are incurred while performing research. They include electricity and water bills, accommodation charges, administrative fees, library memberships, etc. Generally, these expenses make up 5-15% of a proposal budget.
The proposal budget should also include any direct or indirect expenses already covered. This means identifying any material or equipment previously paid for or made available by other sources.
Drafting the proposal budget
With all the relevant expenses identified, revisit the funding agency’s guidelines. Study each budgeting instruction line by line to ensure you understand the rules and limitations, from the maximum amount of funds you can request to any expenses not allowed. With this information, you now have a framework to build your grant budget.
Next, chronologically categorize each expense as direct or indirect, as well as weekly, monthly, or yearly, depending on your research project’s timeline.
With each item, justify the expense with specified rates and calculations. If the cost of an item is already covered, include the pertinent information. This meticulous approach demonstrates you will value any funding provided and will not splurge on unnecessary particulars.
Consider the example below of a sample travel budget illustrating this methodology:
| Year 1 Itemized Trips | |||||
| Purpose | Destination | Item | Rate* | # of persons | Cost |
| Travel to XY conference to share findings from the research project | TBD | Airfare | $774 per person | 2 | $1,548 |
| Lodging | $225 per night x 2 | 2 | $900 | ||
| Meals | $75 per day x 3 | 2 | $450 | ||
| Registration | $310 per person | 2 | $620 | ||
| Taxi/shuttle | $50 per person | 2 | $100 | ||
| Trip Total | $3,618 | ||||
* These rates are examples and will vary from actual rates.
Base all expense calculations on true costs quoted from trusted sources. Sponsors know overestimations when they see them. Underestimations also raise suspicion and may appear under-researched. Therefore, be as reasonable and accurate as possible.
Finally, include your methodology for tracking expenses throughout the research period, highlighting any tools or technologies to be used. This reassures sponsors you have all your bases covered.
Using integrated technology
Given the complexities of a grant proposal budget, traditional enterprise resource planning (ERP) platforms cannot support the level of precision and collaboration necessary for adequate budgeting. But by integrating advanced technology, such as Cayuse’s Fund Manager and Sponsored Projects, you can upgrade these legacy systems for optimized budgeting and proposal development.
Fund Manager allows for granular accounting and is accessible to all stakeholders through a customizable dashboard. Not only does it manage internal expenses and faculty salary splits, but it also supplements what-if planning and average monthly projections on a grant-by-grant basis.
With Sponsored Projects, administrators can track proposals, awards, contracts, and agreements via a user-specific dashboard. Its modern, user-friendly interface provides instant access, full visibility, and a collaboration workspace, relieving administrative burdens.
Boost your budgeting accuracy
Regardless of how appealing or innovative your research project might be, without justifiable numbers to back it up, it may be tossed aside. Don’t take this risk. Instead, leverage integrated technology, such as Cayuse’s Fund Manager and Sponsored Projects, to develop more accurate proposal budgets and maximize your chances to win funding.
