5.2 Proposing Administrative Costs

1. The PDRF will Guide You

The Proposal Development and Routing Form (PDRF) will include this question for those sponsors coded as FEDERAL in our sponsor database (it will not appear where the concept of integral does not apply, e.g., non-fed sponsors:

Is this a Integral as defined by the Uniform Guidance, allowing administrative and clerical salary expenses to be charged (Federally-Funded Projects only)?

In addition to answering “yes” to that question, you must also use language about “integral to project” in the Budget Justification section of the proposal.

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2. A Budget Justification Is Required

When proposing administrative salaries, write a budget justification for each administrator or clerical staff member included in the proposal budget. The purpose of the justification is to increase the likelihood that the sponsor will award the administrative cost and to ensure adequate funding. 

An adequate budget justification helps administrators, auditors, and sponsoring agencies to easily understand the nature of the costs and why they are allowable under the regulations. 

The justification should include the following.

  • A description of the administrator’s role tailored to sponsor specific requirements and the specific project or activity.
  • Explain why the activity that qualifies as integral to the project. 
  • How the administrator’s effort relates to and benefits the project
  • The level of effort expressed as a percentage FTE or person months per sponsor instructions
  • The time period(s) in which the person will be working
  • Any other information that will aid the sponsor in evaluating and funding the proposed salary
  • In addition, you must establish that the project being proposed meets the Stanford policy requirement for integral costs

NOTE: Although NIH modular grants or similar grant instruments do not require line-item justifications, the personnel, including administrative salaries, do need to be described in a modular budget justification. 

Sample Budget Justification

The PI has included effort for administrative salary that is integral to the project, and not for general support of the academic activities of the faculty or department.  Effort charged to this project can be specifically identified to the project.

Proceed to describe how the administrative role is integral to the project.....

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