Sponsored Projects Budget Preparation

I. Policy Summary

Principal Investigators (PIs) are responsible for the preparation and justification of the fiscal budgets of their sponsored project proposals. Academic leadership at the departmental, college, and institute levels has the responsibility of approving budgets. The Office of Research provides financial and administrative support for the management of these activities.

II. Policy Purpose

The purpose of this policy is to outline institutional expectations for the budgeting of sponsored projects and ensure alignment with federal cost principles.

III. Policy Scope and Applicability

This policy is in effect for all units of NJIT and applies to all sponsored project budgets.

IV. Definitions

• Allowable Costs: Expenses that meet the specific criteria for federal reimbursement (200.403).
• F&A Costs: Facilities and Administrative costs, often referred to as overhead (200.414).
• Streamlyne: The institutional system of records for grant management and budget approvals.

V. Policy Statement

PIs must develop budgets that respond to the specific scope of work proposed. In preparing these budgets, the institute requires adherence to the following federal and institutional standards:

1. Cost Principles: All budget expenses must be allowable (200.403), reasonable (200.404), and allocable (200.405).
2. Consistency: Costs must be treated consistently across the institution as either direct or indirect (200.403(d)).
3. Overhead & Fringe: F&A and fringe costs will be charged in accordance with the institute’s current rate agreement with the Department of Health and Human Services (200.414).
4. Exceptions: F&A may only be reduced if the sponsor has a non-negotiable, publicly published limit (200.414(c)).
5. Graduate Support: Budgets should prioritize full-year stipend and tuition support for PhD students.

VI. Budgeting Guidelines (Priority Framework)

Budgets must be developed in consideration of the proposed deliverables and funding caps. PIs should prioritize personnel funding within the following hierarchy:

• Priority 1: Full support for a PhD student (tuition and stipend) (200.466).
• Priority 2: One month of faculty summer salary (200.430).
• Priority 3: Academic year salary release (1/8 of AY salary) where allowed by the agency.
• Priority 4: Second full summer month of faculty salary.
• Priority 5: Full support for a second graduate student. If not requested, prioritize post-docs or technicians.
• Priority 6: Additional academic year salary release (second course release).
• Priority 7: Third summer month of faculty salary (not to exceed 3 months total).

Note: Salary release funds may be redirected to research support (e.g., student funding) with Chair/Dean approval but cannot be converted to faculty summer salary.

VII. Procedures

1. Direct Charges: Administrative and clerical salaries should typically be treated as indirect costs unless they meet the specific criteria for direct charging (200.413(c)).
2. Equipment: Items over $5,000 must be justified as essential to the project (200.313 / 200.439).
3. Computing Devices: Devices under $5,000 are treated as supplies and are allowable if essential and allocable (200.453).
4. Institutional Match: Any mandatory institutional matching must be approved by the Senior Vice-Provost for Research before submission (200.306).
5. Approval Workflow: All budgets must be approved by the Chair and Dean within Streamlyne. Delegation of this authority must be filed with the Director of Pre-Award Services.

VIII. Roles & Responsibilities

• Principal Investigators: Developing and justifying budgets.
• College Directors of Research: Assisting with budget development and guaranteeing compliance with sponsor and institutional expectations.
• Chairs/Deans: Approving budgets for consistency with the scope of work and local expectations.
• Office of Research: Maintaining institutional authority over cost interpretation and final submission. If you have any questions, please contact the Director of Sponsored Research Administration. 

Related Policies and Regulations 

Principal Investigator Eligibility
Policy on Cost Sharing