Budget and Faculty Compensation

Developing a Budget

Developing a budget requires diligence and attention to detail, but also must comply with the sponsor's budgetary restrictions.

Most sponsors require you to submit a budget justification (sometimes also called a budget narrative) in addition to an itemized budget. This allows you to explain the need for each line item in the budget, as well as show the breakdown of calculations used to arrive at the amount in each line of the budget.

• When constructing a budget justification, follow the same order as that in the itemized budget or sponsor's budget form, so reviewers can easily compare the two documents.
• Check to see if the sponsor limits the page length for the justification. Be sure everything in your budget and budget justification is referenced in your proposal description/narrative as well - and be sure everything mentioned in your proposal description that would incur cost is explained in the budget and budget justification.
• Double-check what expenses the sponsor will and will not allow, as these differ from sponsor to sponsor.
• Remember, all costs must be Reasonable, Allowable, and Allocable!
  • Reasonable - refers to actions a prudent business person would employ
  • Allowable - refers to cost that may be charged to a grant or contract
  • Allocable - refers to costs that are necessary for the success of the project

Grant Budget Development Tips

General Budget Template

Faculty Compensation 

There are several types of positions and appointments at SRU, and different offices are involved in making them. Contact the Office of Grants, Research and Sponsored Programs to determine the most appropriate course of action to ensure the project hires are done in compliance with SRU, Federal and state regulations. 

Project directors on grants are responsible for arranging the appointment of faculty to externally funded positions. The academic department of the project director initiates the paperwork, in most cases, that often requires the approval of the Dean's and Provost Offices. Project directors must follow the policies of the Human Resources Office who, in turn, are governed by the APSCUF (collective bargaining unit) guidelines for hiring faculty. Time logs must be submitted to Payroll, the Grants Office and Grants Accounting for work done on a grant. 

Types of Faculty Appointments:

• Dual Employment - this assignment shall not interfere with the employee's primary job duties. In order to be paid, this additional work must clearly be outside the employee's normal duties and responsibilities. In most cases, payment will be made following completion of work. The dual employment form must be completed and signed before the work has begun. Fringe benefits must be paid from the grant unless the University committed to cost share on the grant application.
• Release Time/Alternate Workload Assignment - releasing faculty from academic year duties in order to devote time to an externally funded project usually involves two steps: (1) releasing the faculty member from teaching through an Alternate Workload Equivalency; and (2) hiring a faculty replacement to assume those academic assignments for a designated period. The process for hiring faculty replacements is the same as for hiring temporary faculty, although some departments may choose not to hire faculty replacements.
• Summer Employment – hiring faculty on summer contracts is often included in externally funded projects. Note that one credit hour of work = one week of pay, and that total summer contract employment cannot exceed 12 credit hours, including all work done in the summer, not just grant work. If work will be completed after graduation, a summer contract must be submitted. 

The following table outlines some of the key elements project directors must know in order to be compensated on grant funded projects: