Sample Budget Justification

Personnel

Dr. Jim Smith will serve as the Principal Investigator, and 20% of his academic year effort will be contributed to this project at a cost of $10,573. Dr. Smith will also contribute one month during the summer to this project at a cost of $5,874. Salary calculations are based on Dr. Smith’s current academic year salary of $52,864.

Tim Johnson will contribute 50% of his calendar year effort to this project as a Research Associate at a cost of $18,240. This salary calculation is based on Mr. Johnson’s current calendar year salary of $36,480.

Jane Lawson will serve as an Analysis Consultant on a part-time basis. Her commitment to this project is estimated at 100 hours. She is currently filling this role for a similar project at the University, and her hours will be expanded to account for work performed on this project. At $25 per hour, her total compensation is budgeted at $2,500.

A Lab Technician will be hired with 100% effort dedicated to this project at a cost of $26,910. The technician will be responsible for preparing samples for analysis and recording results. This salary calculation is based on the rate of $13.80 per hour for 1950 hours during the calendar year and is comparable to the salaries of other individuals on campus holding similar positions.

Student research assistants will play an important role in the project by collecting samples under the supervision of the Principal Investigator. Research assistants will be selected based on their academic programs, research experience, and interest in this particular project and will be required to complete a research orientation provided by the Principal Investigator. Two graduate research assistants will be committed to this project during the academic year. Each individual will work twenty hours per week at a cost of $11,200 each for a total cost of $22,400. One undergraduate student research assistant is also included in the project budget. This individual will be compensated at a rate of $9 per hour for 15 hours per week during 40 weeks of the project at a total cost of $5,400.

Fringe Benefits

Fringe benefit rates are based on composite rates calculated by employee class from the University’s financial management system. Jim Smith’s (faculty) benefits are calculated at 33.4%. Tim Johnson’s (exempt staff) benefits are calculated at 34.8%. Jane Lawson’s (part-time employee) benefits are calculated at 8.10%. The benefits for the lab technician to be hired as non-exempt staff are calculated at 69.6%. Benefits for the graduate and undergraduate students are calculated at 0.9 %.

Travel

As specified in the program guidelines, the Project Director will attend the required five-day workshop in Washington, D.C. Travel expenses associated with this trip include mileage from the University to the airport in Lexington, KY (60 roundtrip miles at $.47 per mile); airfare to Washington, D.C. ($450); lodging for four nights ($189 per night); per diem for five days ($36 per day); airport parking for five days ($7 per day); and shuttle transportation from the airport to the hotel in Washington, D.C ($36). An additional $470 is requested for in-state mileage reimbursement to allow for data collection at various locations throughout the state. This expense is estimated based on 1,000 miles at $.47 per mile.

Equipment

Equipment costs are requested to purchase a petrographic microscope that will be used exclusively on this project at a cost of $7,500. This item will play a critical role in the project with its capability for providing the level of high-quality, strain-free images and interference figures that will be required in locating and isolating minerals from field samples. The cost of the microscope is based a quote from the manufacturer and reflects a discounted rate available to educational institutions.

Supplies

Chemicals, glassware, and consumable lab supplies needed for this project are requested at an estimated cost of $248 per month for a total of $2,976 during the project period. These research supplies will be used exclusively for project activities.

Contractual

Dr. Mary Jones at the University of Kentucky will serve as the Co-Principal Investigator on this project. Dr. Jones will contribute 20% of her academic year effort and one summer month to this project. A total of $26,419 is budgeted for the subaward to the University of Kentucky and includes salary ($14,596), fringe benefits at 30% ($4,379), and indirect costs at 51% of modified total direct costs ($7,444).

Analysts, Inc. will provide specialized statistical analysis work in connection with this project. At a cost of $2,500, this contractor will be paid for work upon the satisfactory completion of project deliverables. Experience with this type of statistical analysis is not available from an EKU employee. Analysts, Inc. was selected because of the unique experiences of the company’s staff, and their close proximity to Richmond makes them a cost efficient service provider.

Other

A total of $2,800 is requested for image recording and processing equipment, and $950 is requested for programming software. This equipment and software will allow for efficient collection and analysis of research data. Funds are also requested for tuition costs for the graduate research assistants. These costs are based on a per-credit hour rate of $500 for 6 hours during each semester for both students; total tuition costs are calculated at $12,000

Indirect Costs

Indirect costs are based on the University’s federally-negotiated rate agreement, which specifies a rate of 42% of Modified Total Direct Costs for organized research. This rate was approved by the University’s federal cognizant audit agency, the Department of Health and Human Services, with an effective period of July 1, 2014 through June 30, 2017 or until amended. The rate is applied to an MTDC base of $159,100, which excludes the portion of the subaward to the University of Kentucky that exceeds $25,000, the cost of capitalized equipment, and the cost of graduate student tuition. Indirect costs total $66,822.

Total Costs

The total cost of this project is $246,841. Costs reflected in this budget are reasonable and necessary to effectively conduct this project.

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