Budget Preparation: Direct Costs

Within the University of Idaho, principal investigators (PIs) and/or departmental grant administrators (DGAs) usually prepare proposal budgets, though the exact role that an administrator plays in the preparation of the budget may vary. Typically, the PI will create a list of personnel, travel, supplies, equipment and other needs for the entire project, including costs to be covered by mandatory cost sharing and any anticipated program income. From this list, the administrator (or the PI) calculates the salaries and fringe benefit costs, and any nonpersonnel costs, and calculates the indirect costs to arrive at the total project budget and budget narrative.

Direct costs are those costs directly identifiable with a project. Major categories include:

• Personnel
• Supplies
• Equipment
• Travel
• Subcontracts and subawards
• Participant support costs
• Tuition remission
• Other direct costs