Direct costs are requested to cover costs that can be identified with a specific sponsored project, or that can be directly assigned to such a project with relative ease and a high degree of accuracy. These costs must be allowable by both the University and the sponsor. For further information on allowable costs, please review the Direct Charging Policy (PDF) located on the Grants Fiscal Administration website.
Follow the links below for more information about the different categories of direct costs:
Salaries or wages actually paid by a grant, fellowship, or contract must be consistent with University policy and with the practices of the departments, divisions, or colleges involved. Future budget years should generally include an increase to account for inflation. In view of the current economic climate and anticipated levels of state funding support, OSP recommends estimating an increase of no more than 2% for fiscal years 2011 and 2012, and a 4% increase thereafter.
When requesting salary support from a sponsor, or providing effort on a sponsored project, the anticipated effort is calculated based on the individual's Institutional Base Contract Salary (IBS). The IBS is the annual compensation that NIU pays for an employee's appointment, whether that employee's time is spent on research, teaching, or other activities. The IBS does not include additional pay or extra compensation.
The portion of effort multiplied by the IBS determines the appropriate dollars to request from the sponsor, or to be approved by the University if in the form of cost-sharing.
For example: $50,000 (IBS) X 15% (effort) = $7,500 Salary Request
Please note that some sponsors may have a salary cap rate. The sponsor's proposal guidelines should be reviewed carefully.
When salary support is requested for retired faculty, the SURS earnings limitation or total annual compensation that can be received by NIU is used for the IBS. Retired employees are responsible for notifying SURS of their re-employment with NIU and for ensuring that NIU payments do not exceed their SURS annual earnings limitation.
Click here for more information on requesting salary for the following personnel:
In addition to salary, the associated fringe benefits are also charged to sponsored projects. Fringe benefits include Medicare, retirement, health, dental, and life insurance. Fringe benefit rates vary depending on (1) the employee's salary amount, (2) the type of salary requested, and (3) the benefits choices made by the employee.
Fringe benefits on grant budgets should be calculated as follows:
For all other categories of personnel, including release time (for faculty course buyouts and for salaries of deans, directors and department chairs), the full normal fringe (see the NIU Estimated Fringe Benefit Chart, FY2012) rate is used.
In cases where a grant-funded position is to be filled by an individual not already employed by NIU, we must budget fringe benefits for that position according to the applicable salary level and assuming maximum benefits usage.
NIU defines equipment as costing $5,000 or more per unit, and having a useful life of more than one year.
This category refers to travel by project staff (NIU employees) and includes the cost of transportation, lodging and meals. State of Illinois rates apply. Foreign travel is considered travel outside the United States, its possessions and territories, excluding Canada and Mexico. Most sponsors, including federal, stipulate that travel must be on a U.S.-flagged carrier.
Effective January 1, 2010, the State of Illinois is allowing a mileage reimbursement rate of 50 cents/mile. To access other State of Illinois travel rates, please visit the Travel Regulations section of NIU's Business Procedure Manual.
Materials and supplies consist of laboratory supplies, animals, instructional materials such as tests and manuals, software, and equipment costing less than $5,000. Requests should be itemized as much as possible.
A consultant is not an NIU employee. This individual is hired to give professional advice or perform professional services for a fee. This line should also include any travel costs incurred by the consultant. Some sponsors may limit the amount of compensation for consultants. Please refer to the sponsor guidelines for further information.
NIU faculty who perform professional services on a grant or contract held by NIU should not be listed as consultants; they should instead appear on the personnel line as an expert or specialist and any travel they undertake should be listed on the travel line. Generally, these individuals will receive compensation in the form of course buyouts, summer salary, or release time. Please visit the Personnel section for more information.
Faculty may request funds for the costs of preparing and publishing the results of research conducted under the project, including costs of reports, reprints, page charges, or other journal costs, and necessary illustrations.
The term "subaward" is used when the prime funding mechanism is a grant, while the term "subcontract" is used when the prime funding mechanism is a contract. Both represent a legal agreement between the primary contractor or grantee (NIU) and another party and are used when a major portion of the work may be performed by another party. The term subcontract is used interchangeably throughout these budget pages.
When NIU is a subcontractor, OSP will prepare a consortium agreement, including a description of the subcontract work to be performed, and a line-item budget. This consortium agreement is signed by NIU's Authorized Organizational Representative (AOR) and is sent to the organization submitting the proposal.
When NIU proposals include subcontracts, OSP requires a consortium agreement from the subcontracting organization.
NIU consortium agreement templates:
This category may include costs for payment to human subjects, animal care costs, equipment repair services, other project related expenses and space rental. If there is no specific line required by the agency for participant stipends, travel, fees, tuition and materials, these costs are also included in this category.
It is current policy (updated 1/29/09) that funds for tuition costs (tuition remission) for graduate research assistants (GRA) included in all grant proposals and contracts be requested from all sponsors unless the sponsor expressly does not allow tuition remission.
Full in-state tuition (18 credit hours for combined fall/spring semesters, 6 credit hours for a summer semester) should be budgeted for each GRA involved in the project for a full academic year. Tuition costs may be pro-rated for GRAs involved on projects for less than a full academic year. In-state tuition is calculated based upon NIU Office of the Bursar's rates.
2011-2012 Academic Year
$320 per credit hour
$7,680 full in-state tuition
The tuition rate should be inflated by 10% for each subsequent year.
Requests for the university to cover all or part of the tuition costs will be considered when inclusion of such cost places a hardship on the PI in completing the proposed project. To request such a waiver, fill out a waiver request form at least 15 business days prior to the submission deadline, and submit it to David Stone, Director, Office of Sponsored Projects, for consideration. Please contact your Research Development Specialist to address questions concerning the completion of the form.