The budget is a detailed statement outlining estimated project costs to support work under a grant or contract. The preparation of a budget is an important part of the proposal preparation process and should be considered as you are developing the project itself. This is important for two reasons:
Research expenses can be divided into direct costs, which are specific line items in a budget such as salaries and fringe benefits, equipment and travel, and indirect costs (Facilities and Administrative costs), which are broad costs incurred for common or joint objectives, such as building/equipment depreciation and general administrative costs. Indirect costs are paid as a percentage of direct costs, with the amount negotiated by the University and the sponsor.