Introduction

• You should include full salary and benefits for all Appalachian employees' participation on a sponsored project as direct costs or cost share commitments in the proposal budget.
• Salaries and wages are determined by the amount of time spent by each person on the project (time and effort).
• For faculty, calculate a dollar value for each person's time and effort using his/her current 9-month base salary (which does not include compensation for administrative duties, summer teaching, etc.). Sponsored Programs' budget templates will help you calculate this appropriately and accurately.
  • Example: If the project requires 25% effort of a faculty member during the academic year, you should include 25% of his/her current base salary in the budget.
• For further explanation of time and effort, view the videos at the end of this page presented by the National Council of University Research Administrators (NCURA).
• Section 4.1.1 of Appalachian's Supplemental Pay Policy states,

  "For a full-time member of the faculty or EPA staff, the salary approved by the Chancellor, Board of Trustees, or Board of Governors is the base salary to be paid during the contract period. No additional compensation may be paid for University duties that are generally related to the position to which the individual is appointed during the Contract Period."

• To help you calculate the amount of supplemental compensation faculty are eligible to earn outside the contract period (i.e., the summer) or, in rare exceptions, during the academic year, you may use the Supplemental Pay Tracking Template (XLSX).
• Keep in mind sponsors must provide written approval of any supplemental compensation to be paid during the academic year before it occurs.
• Be sure to discuss academic year effort on sponsored projects with your chair and dean well in advance of preparing to submit your proposal. They will need to know if they should plan for a replacement instructor for classes you normally teach.
• Remember, any payments to Appalachian personnel will be processed through Payroll; therefore fringe benefits (FICA, unemployment, medical, and retirement) need to be calculated on all salaries for people employed at the University.

Hiring Postdoctoral Scholars

For guidance on salaries for postdocs you wish to include on your sponsored project, please contact Mrs. Talana Bell in Academic Affairs at 828-262-2070, or email her at belltj@appstate.edu.

Time and Effort Reporting

• All individuals working on sponsored projects must report their time and effort whether or not they are paid.
• For further explanation of time and effort reporting and certification, view the following videos:
  • Effort Certification
  • Effort Certification is Just 2 Things
• Also for further information, view the Reporting Your Time and Effort on Sponsored Projects section of this website.

Relevant Policies for Calculating Salaries and Time & Effort

• Conflicts of Interest and Commitment for Faculty and EPA Administrative Personnel
• Supplemental Pay Policy

Video Guides to Time & Effort Reporting Presenting by NCURA

Undergraduate Students

• Must be enrolled at Appalachian either part-time or full-time
• Are paid an hourly rate as a student temp
• Must at least be paid at current minimum wage**
• Salaries must include payroll deductions***

Graduate Students

Graduate students may be paid as a student temp or via a graduate assistantship.

** Payment for students varies from department to department; you should consult your chair or undergraduate and graduate program directors in your department for what is acceptable and usual payment for student temps and graduate assistantships.

*** RE: Payroll Deductions/Fringe Benefits: Depending on the level of enrollment (minimum of 6 credit hours) a student may not be exempt from FICA and disability tax. Additionally, student workers are subject to income tax reporting and taxation.  Lastly, student employees may now be eligible for health care benefits under the Affordable Care Act, depending on the total number hours worked in the UNC system; the fringe benefits rate listed here for students accounts for this possibility. 

Tuition 

Enter the tuition (including out-of-state rate when appropriate) under Other Direct Costs unless instructed otherwise in the sponsor's guidelines.

You may wish to include other professionals not currently employed at Appalachian, but whom you would like to hire as a temporary employee if your project is funded.

• Examples: technicians, physicians, veterinarians, systems experts, computer programmers, site/program coordinators or managers, design engineers
• Consult with Human Resource Services to verify the appropriate salary and fringe benefits for new positions that would be classified as SPA (Employees Subject to the State Personnel Act).
• Be sure to discuss with your chair and/or dean any space and/or equipment new personnel will need to do their work, if your project is funded. You should do this well in advance of your project being funded.

Fringe benefits for faculty, staff, and students working on your sponsored project are allowable as direct costs in proportion to the salaries charged to the grant.

Generally, sponsors will allow you to list a single, flat percentage for fringe benefits. Here are the current rates:

• 32.26% for 9-month faculty
• 44.63% for 12-month Staff and EPA Administrative (Employees Exempt from the State Personnel Act) personnel
• 9.15% for students
• 23.07% for non-student temps
• Note: Depending on the level of enrollment (minimum of 6 credit hours) a student may not be exempt from FICA & Disability tax. Additionally, student workers are subject to income tax reporting and taxation. 
• Inflate the fringe rates by 0.5% for each subsequent year for all personnel on multi-year projects.
• Always check this page for the current fringe benefits rates for Appalachian personnel, as they change over time (and not necessarily on a regular schedule).

Here is a breakdown of what is included in fringe benefits; use these percentages if a sponsor requires you to break out individual fringe benefits:

• Social Security: 7.65%
  • Apply the Social Security rate to all Appalachian personnel in your budget.
• Medical: 9.653% for faculty; 11.943% for staff (SPA and EPA Administrative); 14.424% for non-student temps
  • Apply the medical insurance rate to all persons in your budget who are at least 75% FTE (3/4 time employees).
  • Note: student and non-student temporary employees may now be eligible for health care benefits under the Affordable Care Act, depending on the total number hours worked in the UNC system
• Retirement: 13.96% (Optional Retirement Programs, TIAA-CREF, Prudential, etc., for Faculty); 24.04% (State retirement system for Staff)
  • Apply retirement to all persons in your budget who are at least 75% FTE (3/4 time employees).
  • Do not apply retirement to employees hired on a temporary basis.
  • If uncertain about the status of temporary employees, contact Human Resource Services (HRS).
• Reserve for Unfunded Benefits: 1.0%
  • Includes workers compensation, unemployment, and other terminal benefits. 
  • Apply the rate for the Reserve for Unfunded Benefits to all Appalachian personnel in your budget.

If allowed by the sponsor, you may include people who are not employed at Appalachian for their participation on your sponsored project. You would pay them as a consultant or contractor via a work order—as opposed to paying them via a subrecipient agreement with their institution—when:

• They provide professional services (defined as unique, technical, and/or infrequent functions performed by an independent contractor qualified by education, experience, and/or technical ability to provide services);
• They need little or no oversight or direction;
• They are not involved in the overall project design and/or development;
• They are not listed as co-authors on publications reporting project results;
• They do not use their institutional resources but instead conduct work on their own time (evenings, weekends, vacation/holidays), using a home office and personal equipment (such as a personal computer).

Examples of professional services consultants/contractors might provide include marketing analysis, auditing, statistical analysis, project/program evaluation, translation services, website and software development/design, and editing services.

When including consultants/contractors in your proposal budget, keep in mind:

• You should obtain a letter of intent from each individual that includes:
  • Services to be performed;
  • Period of time in which those services will be performed;
  • Daily rate of compensation.
• Payment for a consultant's services may not exceed the daily equivalent of the current maximum rate paid to an Executive Schedule Level IV Federal Employee.
• You may need to include his or her CV or resume in the proposal so the sponsor can verify skills and credentials.

You may wish to pay a colleague(s) at another university or institution for their participation on your sponsored project. You would pay them via a subrecipient agreement with their institution—as opposed to paying them individually as a consultant or contractor—when:

• They are collaborating with you on the scope and direction of the whole project;
• They are involved in the overall project design and/or development;
• They would be listed as co-authors on publications reporting project results;
• They would be using institutional resources, such as offices, office computers, labs, etc.;
• They would be overseeing students at their institution;
• They would be conducting project activities as part of the research/scholarly endeavors expected of them in their position at the institution.

Note: There may be times when it is more appropriate to pay another institution/organization via a professional services agreement, rather than a subrecipient agreement. Learn more about the difference between a professional services agreement and a subcontract. 

When including subrecipients in your proposal, keep in mind:

• In your proposal budget and budget justification, you will need to break out all costs for the subrecipient separately just as you do for the overall project: salaries and wages, student salaries, fringe benefits, travel, supplies, F&A costs, etc.
• You will probably need to include your colleague's CV/ biographical sketch and list of current and pending grants, the same as you will do for yourself and any colleagues from your own institution; so request that information from your colleagues well in advance.
• When including a subrecipient in a proposal, your colleagues' institution's sponsored programs office will need to provide the following items to Sponsored Programs here at Appalachian before the proposal is submitted to the sponsor:
  • Subrecipient Commitment Form (PDF) signed by that institution's authorizing official;
  • Scope of work;
  • Budget for the subrecipient's costs only;
  • Budget justification for the subrecipient's costs only.

Under reporting requirements mandated by the Federal Funding Accountability and Transparency Act (FFATA), Appalachian must now verify that all subrecipients and vendors paid a cumulative amount of $25,000 or more in federal funds have both a:

• Valid CCR registration (Central Contract Registration);
• DUNS number (Dun and Bradstreet Universal Numbering System). 

Please note: The University cannot issue a subrecipient agreement or purchase order until these requirements are met. Effective October 1, 2010, a DUNS number and CCR CAGE Code (a 5-digit federally assigned identifier) are required at the point of proposal submission.

CCR

Central Contractor Registration (CCR), the primary registrant database for the U.S. Federal Government, collects, validates, stores, and disseminates data in support of agency acquisition missions. Any institution or entity conducting business with the U.S. Federal Government, including subcontractors or subawardees, must be registered in the Central Contractor Registration.

DUNS Number

The Data Universal Numbering System (DUNS) number is a unique nine-digit identification number provided to a registered entity by Dun & Bradstreet. The federal government requires that all applicants for grants and contracts have a DUNS number. The federal government will use the DUNS number to better identify related organizations that are receiving federal funding. The DUNS number assignment is FREE for all businesses required to register with the US Federal government for grants and contracts. 

See Institutional Data for Grant Forms for information on Appalachian State University's CCR or DUNS number. 

If you have human subjects involved in your sponsored project, you may wish to compensate them for their participation.

The total cost is usually entered in the budget under the section for Other and should be detailed in the budget justification (ex: $100/participant for 50 participants).

• Guidelines on payment to human subjects
• Policies and guidance on human subject research

If you will be holding a workshop, conference, or institute as part of your sponsored project, you may wish to include payment to those who attend (i.e., participants) as an incentive for their participation, if such costs are allowed by the sponsor.

The total cost is usually entered in the budget as Participant/Trainee Stipends and should be detailed in the budget justification (ex: $100/participant for 50 participants).

Note: Fees for instructors at a workshop, seminar, institute, etc. should not be included with stipends for the participants—since they are leading and not participating in those sessions. They should be paid separately as a consultant and listed as such in your budget and budget justification.

Equipment is tangible, nonexpendable property having a useful life of more than one year and costing $5,000 or more per unit. Each piece of equipment should be listed separately in the proposal budget and budget justification.

Things to keep in mind when including equipment in your project:

• The sponsor may require you to include quotes from one or more vendors; check the sponsor's guidelines/RFP (Request for Proposal) for their requirements.
• Review the Purchasing Equipment page in the Start and Manage Projects section of this website for more information on procedures you will be expected to follow when your project is funded.
• Check the guidelines/RFP to see if the sponsor will pay for maintenance and service of the equipment during the project period; some will not. If not, talk with your chair and dean about who will fund these costs.
• Check with your chair and dean to see who will pay for the long-term maintenance and service of the equipment after the funded project period ends.
• Check with your chair and dean about whether or not space and infrastructure (structural support, electrical, etc.) will be available for the equipment if your project is funded. You may also need to consult with the Physical Plant and/or Planning, Design and Construction to assess space and infrastructure needs.
• Check with the Physical Plant and/or Planning, Design and Construction to determine their costs for installing the equipment and/or any supporting infrastructure, and include those costs in your proposal budget (as Other Direct Costs).
• Obtain approval from the appropriate department chair if you propose to use a resource that is not a standard facility, e.g., an expensive microscope in someone else's lab where there is no reason to expect that you would necessarily be given free access, because the person who runs that instrument is not a named co-investigator or collaborator on your project.

If allowed by the sponsor, you may include expenses for transportation incurred by project personnel at Appalachian (i.e. principal investigator, co-principal investigators, graduate and undergraduate students, etc.). Enter the total amount for all such expenses on the line for travel in your proposal budget, which may include:

• Mileage reimbursement;
• Airfare;
• Baggage fees;
• Daily parking at airport;
• Ground travel, such as airport shuttles, taxis, etc.;
• Per diem for meals
• Lodging***

***Federal per diem rates by city for lodging

Calulating Federal Per Diem by Location

Per diem for the entire day (breakfast, lunch, and dinner) is to be calculated based on where the traveler stays overnight. If it is the last day, the location that the traveler is returning to (home or duty station) is used for each meal on that day. Capturing the exact time that a person transitions from one location to the next is not necessary for per diem purposes

A few other things to keep in mind when budgeting for travel:

• Costs for travel related to sponsored projects must conform to Appalachian's current travel policies (see section 510, Travel and Transportation, in the Policy Manual).
• Depending on the sponsor's guidelines/RFP (Request for Proposals), you may need to break out the costs for each trip in the budget justification, including the location (if known), purpose, number of persons traveling, and expenses included.
• Travel for consultants should be included in their consulting fee.
• Travel for colleagues at other institutions who are included as subcontractors should be included in the separate subcontract budget.
• Conference registration fees should typically be budgeted under Other Direct Costs.

Materials and supplies are expendable items that cost less than $5000 per unit (tangible, nonexpendable property having a useful life of more than one year and costing $5,000 or more per unit should be listed in your budget as equipment).

Provide a breakdown of the materials and supplies you need, a description of them, and why they are necessary in your budget justification. Also show how you calculated the cost of the items.

A note about computers: Only computers that are necessary for carrying out the work of the proposed project should be included in your budget (for example, a laptop for a grad student to use doing field work). Office computers should not be charged to a grant.

Other direct costs include items that cannot be attributed to any other budget category. This line item in your budget should not include unexplained "miscellaneous" items. Be sure items are detailed and justified in the budget justification.

Items may include:

• Marketing or advertising costs;
• Space or equipment rental;
• Insurance for shipping equipment;
• Fees for use of labs or other campus services (for fees to use Appalachian's Dewel Microscopy Facility, please see https://casmifa.appstate.edu/facility/access-fees);
• Fees for professional services provided by other institutions/organizations (See when it is more appropriate to pay another institution/organization via a professional services agreement, rather than a subcontract.)
• Publication costs (which may be its own separate line item depending on the sponsor's budget form/guidelines), which include the costs of documenting, preparing, publishing, disseminating and sharing research findings and supporting material; consider both page charges and reprint costs.
• Costs for communication/postage (which may be its own separate line item depending on the sponsor's budget form/guidelines), including long-distance phone charges. For the most current U.S. Postal Service rates, please see https://postoffice.appstate.edu

There may be times when it is more appropriate to pay another institution/organization via a professional services agreement, rather than a subcontract. If the former situation applies, the institution/organization is called a vendor. In your budget and budget justification, list this payment under Other Direct Costs rather than on the line for subcontracts.

What is the definition of a professional service?

Professional services can be defined as unique, technical, and/or infrequent functions performed by an independent contractor/vendor qualified by education, experience, and/or technical ability to provide services.

• In most cases, these services are of a specific project nature, and are not a continuing, ongoing responsibility of the institution.
• The services rendered are predominately intellectual in character, even though the contractor may not be required to be licensed. 
• Examples of professional services typically utilized include laboratory analyses, project/program evaluation, marketing analysis, auditing, statistical analysis, translation services, website and software development/design, and editing services. 

Subcontractor vs. Vendor

An organization is considered to be a subrecipient of an award (or subcontractor) when it:

• Determines who is eligible to receive financial assistance;
• Has its performance measured against whether the objectives of the program are met;
• Has responsibility for programmatic decision-making; 
• Has responsibility for adherence to applicable program compliance requirements;
• Uses the funds to carry out a program of the organization as compared to providing goods or services for a program of the pass-through entity.

In contrast, an organization is considered a vendor when it: 

• Provides goods and services within normal business operations;
• Provides similar goods and services to many different purchasers;
• Operates in a competitive environment;
• Provides goods or services that are ancillary to the operation of the program; 
• Is not subject to compliance requirements of the program.