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Budgets and Expenses
A good budget will account for all the costs of a sponsored project, subject to any limitations of the sponsor's policies and/or the award.
In proposals, a budget justification or budget narrative is routinely required to provide the sponsor with detail regarding the request and an understanding of how the proposed costs will support the aims of the project. An essential part of managing an award is oversight of expenses charged to the award.
Direct costs are costs that are specifically identifiable and which can be charged directly to the contract or grant.
Indirect costs — sometimes referred to as Overhead, IDC, or Facilities and Administrative Costs (F&A Costs) — are costs not specifically identifiable for any one project or program but are valid expenses of conducting research, instruction, and other sponsored activities at UMB. Examples are building use, equipment depreciation, operation and maintenance of UMB facilities, student services, departmental administration, or administrative support offices.