Overview. The pre-award stage of grant proposal preparation begins with identifying a suitable funding opportunity that aligns with the researcher's project goals. Next, the researcher develops the proposal narrative, budget, and supporting documents in accordance with the funder's guidelines and institutional policies. The proposal must then be reviewed and approved internally, often through a routing process involving department chairs, deans, and the Office of Research and Sponsored Programs. Finally, the complete and approved proposal is submitted to the funding agency by the institutional authorized official, before the deadline.
Grant Budgeting - Read Me First
The ORSP encourages faculty and staff at the university to work with us from the outset in developing your grant budget. It is a key element of your proposal and will influence all that you do in designing a project. All of our staff have specialized training and years of experience in the rules, requirements, and formats of the major federal and state agencies, the CSU, CSUSB, and the local County and City governments. Moreover, all budgets must be reviewed by our office before they are submitted. Working with us in the development of your budget will prevent unnecessary delay and problems in submitting your work for funding.
Allowable Costs - Key Definitions
The guidelines at 2 CFR Part 200 – Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards will be followed.
- Reasonable: An expense is reasonable if the purchase is necessary, allocable, appropriate in quantity and fairly priced. Occasionally, a purchase, which on its own may look unreasonable, may be reasonable when examined in context with its necessity.
- Necessary: An expense is necessary if the purchase is needed to carry out the project. Will the project be harmed if this purchase is not made? The sponsor considers all expenses specifically identified in the approved budget necessary expenses.
- Allocable: A cost is allocable if the goods or services involved are chargeable in accordance with benefits received, or if it is incurred solely to advance the work under the project. Costs that benefit more than one project are not allocable when it cannot be determined how much each project benefits. Allocable costs may not be shifted to other sponsored projects to meet deficits caused by overruns. Nor may those costs be shifted to avoid restrictions imposed by law of the sponsored project. Allocable funds may not be shifted for reasons of simple convenience either.
Preliminary Budget Planning
CSUSB Internal Budget Calculation Template
Types of Costs
- Direct costs are expenses that can be specifically and clearly attributed to a particular project, such as salaries for project staff, equipment, materials, travel, and participant support.
- Indirect costs (also known as Facilities & Administrative (F&A) costs) are expenses that support the overall infrastructure and operations of an institution but cannot be directly linked to a single project—such as utilities, administrative support, building maintenance, and compliance services.
Personnel Effort Projections and Fringe Benefits
- Salaries. For University professional and research staff, graduate and undergraduate students, and casual or part-time workers, salary figures should be based on the percentage of effort by each individual on the project applied to his/her annual salary.
Fringe Benefits. The fringe rate is expressed as a percentage of salary. The rate may vary depending on personnel classification.
Summary table: Fringe, milage and wage: Sponsored Programs - Summary Table providing current minimum wage, breakdown of fringe benefits, mileage reimbursement, student pay ranges/descriptions and tuition rates.
Major Equipment Needs and Supply Costs
- Equipment and Supplies. The CSUSB procedure 1103-013.01 outlines the management of acquired through externally funded awards, ensuring compliance with CSU systemwide policies, federal regulations, and sponsor requirements. It defines equipment as tangible property with a useful life over one year and a cost of $5,000 or more, requiring prior approval for purchase and stipulating its use for the intended project or related federally sponsored activities. Vendor quotes and/or screenshots are needed to substantiate costs for equipment; these are usually provided to agency at submission. Supplies, including computing devices under $5,000, are also governed by specific guidelines, especially when their residual value exceeds $5,000 at project end. Sensitive equipment, valued between $500 and $5,000, must be tagged and tracked. The policy also details procedures for transferring equipment titles from UEC to CSUSB and outlines roles and responsibilities for principal investigators, research analysts, property management, and financial services in managing, tracking, and disposing of such assets.
- Materials and Supplies: Itemize supplies in separate categories, such as glassware, chemicals, radioisotopes, etc. If animals are to be purchased, state the species and the number to be used.
Travel, Publication, Subawards, and Contractual Agreements
- Travel. Domestic and foreign travel should be shown separately. List the names of individuals traveling, destination, purpose of trip, and estimated dates (if known). Include transportation costs (coach airfare), registration fees, accommodation fees, and other related expenses.
Travel Policy
International Travel Considerations
Publication Costs. Estimate the number of pages, page charges, and names of journals if possible.
The CSUSB Publishing Guide offers faculty and researchers comprehensive resources on the academic publishing process, including guidance on selecting journals, understanding open access, and managing author rights. It serves as a centralized hub to support scholarly communication and enhance the visibility of research outputs.
Publishing resources at John M. Pfau Library
- Consultants. List each consultant, their specialty or service to the project, and their daily, weekly or monthly rate of reimbursement, and show the consultant's total projected cost on the project. Include in the proposal a letter of collaboration and the consultant's curriculum vitae or biographical sketch (in agency format if listed as key/senior personnel).
- Subrecipients. Any subrecipient should be identified at proposal stage, the main proposal, the subrecipient's authorized proposal, letter of intent, statement of work, and budget with justification.
- Other. Other costs typically include items such as participant incentives (not support), long distance telephone charges, fees, animal per diem costs, or other project related costs.
- Confirm the performance location (on-campus vs. off-campus). Off campus rate requires justification and prior internal approval
- Refer to your institution’s most recent F&A rate agreement.
- Apply the rate to the Modified Total Direct Costs (MTDC)base, unless otherwise specified. MTDC typically excludes certain items like equipment over $5,000, participant support, and subawards beyond the first $25,000.
- Always consult ORSP when preparing a budget to ensure the correct rate and base are applied, and to account for any sponsor-specific limitations or exceptions.
- Confirm the performance location (on-campus vs. off-campus). Off campus rate requires justification and prior internal approval
The F&A Rate
The “F&A rate”, also known as indirect cost rate, represents the percentage of a grant's direct costs that an institution is allowed to recover to cover overhead expenses like utilities, administrative support, compliance, and facility maintenance. These are costs necessary to support the project but not easily assignable to a specific activity. CSUSB has a federally negotiated F&A rate agreement, which specifies the allowable rates for different locations (on-campus vs. off-campus).
IDC Form
Steps to apply the correct F&A rate:
The IDC Policy Overview
The Indirect Cost Funds Policy outlines that the University Enterprises Corporation (UEC) will distribute indirect cost recovery funds from grants and contracts to the university after covering approximately 6% in administrative costs. These recovered funds are intended to support discretionary institutional development, stimulate further grant-funded activities, and enhance educational, research, and community service initiatives.
IDC reduction or waiver requests can be submitted using the F&A Off Campus and Waiver Form+
Cost Sharing or Matching Funds
Overview. The 1103-007.01 Cost Sharing Procedure outlines the policies and responsibilities for managing cost sharing in externally funded projects at CSUSB, administered by the University Enterprises Corporation. It distinguishes between mandatory and voluntary cost sharing and details the pre- and post-award processes for documenting, approving, and tracking these contributions. The procedure assigns specific roles to the PI, administrators, and SPA staff to ensure compliance with institutional and federal regulations. A summary of the Cost Sharing Procedure is below.
Key Terms
- Cost Sharing/Matching is defined as University contributions (non-federal cash or in-kind) to support sponsored projects.
- Mandatory: Required by the funding agency.
- Voluntary Committed: Offered by the institution and included in the proposal, making it binding.
- Voluntary Uncommitted: Extra contributions not included in the budget or required documentation.
Process Overview
I. Pre-Award (ORSP)
- Cost sharing must be identified in proposals and approved through internal review.
- Voluntary committed cost share is generally discouraged in federal proposals.
- Proposals to non-governmental sponsors may reference leveraged institutional resources like personnel or equipment.
II. Post-Award (SPA)
- SPA Research Analyst (RA) sets up cost share budgets and documents commitments.
- The PI (or designee) must identify and verify allowable cost-shared expenditures.
- SPA records and reports cost share as required by the sponsor.
Roles & Responsibilities
- Principal Investigator (PI)/Project Director (PD): Secure funding sources, document expenditures, and monitor compliance.
- Dean/Administrator: Approve commitments and ensure departmental ability to fulfill them.
- SPA Research Analyst (RA): Communicate requirements, validate documentation, and maintain records.
- ORSP (Pre-Award): Review and approve cost share proposals for compliance with policy.
Internal Guidelines
- Continuous review of cost share progress and compliance.
- Reporting to sponsors is based on their requirements, using internal financial statements.
- Only mandatory and voluntary committed cost share must be tracked; voluntary uncommitted contributions are not documented.
Subrecipient Budgets and Subaward Agreements
Overview. The “1102-006.01 Subrecipient Monitoring Procedure” (updated December 2021) outlines how California State University, San Bernardino (CSUSB), through the University Enterprises Corporation (UEC), ensures compliance with federal regulations when issuing and managing subawards under federally funded projects.
Brief Summary.This procedure applies to all subrecipients of federal funding and sets the requirements for subrecipient identification, risk assessment, monitoring, and invoice review. It outlines a collaborative process involving the Principal Investigator (PI), Office of Research and Sponsored Programs (ORSP), and Sponsored Programs Administration (SPA) to determine subrecipient status, assess risk levels (low, medium, high), and implement appropriate monitoring strategies, including random audits and documentation reviews.
SPA is responsible for FFATA compliance, annual audits, and maintaining a Subrecipient Review Log, while the PI must ensure the subrecipient's work aligns with project goals and approve invoices accordingly. Subawards within the CSU system are considered low risk and are not subject to additional monitoring. The procedure emphasizes documentation, transparency, and adherence to federal guidelines (2 CFR 200) and CSU policies.
Distinction between SUBRECIPIENT, VENDOR and CONSULTANT
The following are general characteristics of a SUBRECIPIENT (i.e. Subaward or Subcontract) under a sponsored project. The main awardee institution is considered the Prime Recipient.
- Subrecipient generally has a specific scope of work to conduct in conjunction with the proposed project; an identified Subrecipient Principal Investigator is responsible for the Subrecipient’s scope of work
- Subrecipient’s scope of work/services is uniquely designed in response to the proposed project, and these services are not provided commercially
- Subrecipient’s technical lead is usually a scientific collaborator (may even serve as co-Principal Investigator or Co-investigator) on the project
- Subrecipient’s performance is measured against meeting the objectives of the project.
- Subrecipients have the authority for their administrative and programmatic decisions.
- Subrecipient can provide on-going service for the life of the program/project.
- Subrecipient carries out a portion of a program/project.
- Subrecipient is required to meet various federal regulatory and compliance regulations in accordance with Office of Management and Budget regulations
- The terms and conditions of the Prime Recipient’s award are flowed-down to the Subrecipient
- Unless specifically stated in the prime funder’s agreement, Subrecipient generally retains rights to intellectual property
Characteristics of a VENDOR under a sponsored project:
- A Vendor does not have any input into the specific aims of the project.
- A Vendor provides ancillary goods or services that the principal investigator needs to conduct the research or project.
- A Vendor is a dealer, distributor, merchant or other seller that provides goods or service as part of its normal business operations; Vendor’s goods or services are commercially available on the open market.
- A Vendor generally operates in a competitive environment (i.e. competes with other organizations who can provide similar goods/services).
- A Vendor’s program compliance requirements do not pertain to the service provided.
- A Vendor is not responsible for the results of the research or project.
- A Vendor is only required to meet the terms of the procurement contract (such as the Office of Sponsored Programs commercial purchase order terms) and the OMB Circular A-110 requirements specified in the vendor subcontract; the terms and conditions of the award are not flowed down to a Vendor.
- A vendor does not retain any rights to intellectual property
Characteristics of a CONSULTANT under a sponsored project:
- A consultant is a member of a particular profession or who possesses a special skill or expertise to serve as “expert advisor” for a specific project.
- A consultant usually provides input into the specific aims of the project in his/her area of expertise.
- A consultant is not an officer or employee of the prime institution.
- A consultant works independently from his/her own place of business or home institution and does not use the resources, personnel or equipment of the home institution.
- A Consultant performs services on a “work for hire” basis and, therefore, is not eligible to share IP developed under the program.
- A Consultant is paid at a fixed rate of compensation (daily, hourly or per project)
- The terms and conditions of the award are not flowed down to a Consultant.
A Consultant is an Independent Contractor and FormW-9 is required and a 1099 will be issued.
Characteristics of a CONSULTANT SUBCONTRACTOR/SUBRECIPIENT CONTRACTOR/VENDOR - Performance represents an intellectually significant portion of the overall programmatic effort and is measured against the objectives of the program.
- Will use the funds to carry out a program for a public purpose, as opposed to providing goods or services for the benefit of CSUSB/UEC.
- Is responsible for adhering to applicable program requirements specified in the prime award.
- There is usually an identified principal investigator/project director for the subrecipient who is responsible for making programmatic decisions.
- Provides goods or services that are ancillary to the operation of the program identified in the prime award.
- Provides the goods or services purchased with the funds within normal business operations.
- Provides similar goods or services to many different purchasers.
- Is not subject to the compliance requirements of the program as a result of the agreement with CSUSB.
- Normally operates in a competitive environment.
Adequate Budget Justification Narratives
A clear and detailed narrative explains how each budgeted item directly supports the objectives and scope of the proposed work, helping reviewers understand the necessity and rationale behind the funding request. Justifications are used to show that costs are allowable, allocable, reasonable, and consistent with federal rules (e.g., 2 CFR 200). This protects the applicant from audit issues or budget rejections. A well-written budget justification reflects an understanding of sponsor expectations and it is important to consider that reviewers often read budget justification narratives!