Budget Development

Items to Consider When Developing a Budget

When cost sharing is being requested, complete the pre-award cost sharing process.

Types of Costs

Budgets generally include two basic categories of costs: 

  • Direct Costs – Costs identified specifically with the sponsored project or that can be relatively easily assigned to it with a high degree of accuracy. Examples of direct costs may include salaries, fringe benefits, consultants, equipment, materials and supplies, travel and subcontracts.
     
  • Facilities and administrative (F&A) Costs - Costs incurred for common or joint objectives and not readily or specifically identified with a particular sponsored project, or any other institutional activity. Examples of F&A costs may include building & equipment depreciation, operations and maintenance, costs of University’s libraries, materials, supplies and services of a more general nature, such as routine administrative support, office supplies and office equipment.

For additional information regarding direct costs and indirect costs (F&A) please refer to Charging Sponsored Projects. For information on what may be exempt from F&A in your budget, refer to the F&A page or the most recent DHHS rate agreement.

Limitations

Sponsors may impose limitations on the total costs (such as a total funds-per-year ceiling), the direct costs (such as a salary cap or maximum travel costs) or the F&A costs.  The FOA or agency guidelines as well as university policies should be reviewed for those limitations.

Examples of limitations include:

Northwestern University - Office for Research

Contact :
Chicago
Arthur Rubloff Building
750 N. Lake Shore Dr., 7th Floor
Chicago, IL 60611
Phone: (312) 503-7955
OSR-Chicago@northwestern.edu
Evanston
1801 Maple St.
2nd Floor, Suite 2410
Evanston, IL 60208-1110
Phone: (847) 491-3003
OSR-Evanston@northwestern.edu