Budget and Budget Justifications

The budget is a line item account of the costs required to conduct the services, activities and/or research of the proposed project. The budget includes direct costs related to the project, facilities and administrative costs (F&A a.k.a. indirect costs) and committed cost-sharing.

Costs must be directly related to the performance and activities of the project and deemed allowable by the sponsor, Norco College policy and OMB Circular A-21.

Cost estimates should be based on real-time estimates from bids/quotes, catalog prices, online retailers/services, Norco College vendor agreements and/or historical or current costs. For multi-year budgets, escalation costs for non-personnel expenditures should be calculated at three percent per year.

Salaries and Wages

Project Personnel

Follow the sponsor's guidelines and Norco College policies when calculating the salaries and wages of personnel who will be paid by the project. The salary section should include only existing college employees and new positions resulting from the award. Salary and wage costs associated with non-Norco College personnel must be treated either as consultant costs or as a subcontract.

All grant awards will abide by Norco College fiscal policies and procedures regardless of increases which may have been projected for multiple year awards. For example, if the college implements cost of living and merit salary freeze due to budget constraints, all grant funded projects will abide by this policy even if the project budget allows for increases. Primary contact/project directors may reallocate unused funds to other budget categories at the discretion of their supervisor and the sponsoring agency.

For management, faculty, confidential and classified employees in a step-based pay plan, budget for annual range adjustments first, and merit increases where applicable.

Management

Annual Range Adjustment	2%
Merit Increase	5% if applicable

Faculty

Annual Range Adjustment	2%
Merit Increase	5% if applicable

Confidential

Annual Range Adjustment	2%
Merit Increase	5% if applicable

Classified

Annual Range Adjustment	2%
Merit Increase	5% if applicable

Part-Time/Hourly

Annual Range Adjustment	2%

Benefits

If a proposal budget includes salaries, it must also include the cost of benefits associated with those salaries. Benefit rates are expressed as a percentage of the salary or wage, plus the annual cost of health and welfare. The standard benefit rates include either State Teachers' Retirement System (STRS) or Public Employees Retirement System (PERS) contributions, Federal Insurance Contribution Act (FICA), Medicare, State Unemployment Insurance (SUI) and Workers Compensation.

Benefit Rate Projections

For multi-year budgets, salaries in years beyond budget year one should include range adjustments and merit increases as applicable. Benefits rates should reflect salary increases as appropriate. Benefits rates included in grant proposal budgets are estimates based on actual benefits costs adjusted for anticipated projected annual increases. Please note, the benefits rates included in a grant proposal may differ from the actual rates. Only the actual benefits costs will be charged to a grant award.

Please contact the Grants Office and/or payroll for assistance in calculating specific salary and benefit rate projections.

Materials and Supplies

Materials and supplies are consumable items (e.g., books, chemicals, laboratory glass, brochures, handouts, etc.) used to carry out the services, activities and/or research described in the proposal narrative.

Materials and supplies should be categorized into broad categories. For example, a single line item for glassware may be used to describe the total cost for sets of beakers, microscope slides and petri dishes. The description of the number and types of glassware should be included in the budget justification.

Costs for supplies should include the purchase price for the items, applicable sales tax and shipping & handling. Appropriate methods for estimating costs include price quotes, catalog pricing or historical costs for similar projects.

Costs for materials and supplies must be specific to the project and should not include general or miscellaneous items.

Equipment

The federal government defines equipment as any non-expendable item, unit or system costing more than $5,000 and with a useful life of more than one year. Individual sponsors may apply additional restrictions on the purchase of equipment or supplies. For example, some sponsors may disallow the purchase of personal computers or office furniture or may impose a unit cost different from the federal definition. If no additional restrictions are published in the request for applications, adhere to the federal definition.

The cost for equipment includes item cost, tax, shipping & handling, delivery and installation. Appropriate cost estimates include vendor quotes and catalog pricing.

To allow for greater flexibility in purchasing equipment, it is best avoid listing specific manufacturers, makes or model numbers. If it is not possible to describe the equipment without referencing specific models or manufacturers, be certain to add the phrase "or equivalent" at the end of the description.

Do not include general office equipment (i.e. computers, laptops, printers, etc.) in this category.

Travel

Travel costs must be directly related and beneficial to the proposed project. Appropriate costs for travel may include fieldwork, site visits or travel to related conferences and workshops.

According to Norco College policy, all travel must receive prior approval. Contact your department chair or supervisor to obtain a Travel and Conference Request Form.

Please refer to the Norco College travel guidelines for additional details.

Travel includes attendance at workshops, seminars, conventions, conferences, or other meetings, which are a requirement of the position and of interest to the district.

Employees must obtain approval by the appropriate administrator prior to registering or prepaying for any travel related expenses. Estimated travel expenses over $1,000 and/or out of state travel must be approved by the appropriate administrator and the superintendent/president.

Approved travel and conference requests should be submitted to accounting services at the earliest time possible, but no later than ten working days prior to registration deadlines or any other prepayment deadline to provide sufficient time for processing. The district will prepay for registration fees, hotel, and airfare if the airfare is booked through the district’s designated travel agency. The travel and conference form must include a copy of the brochure, flyer, agenda or some type of communication which includes date, location, cost, itinerary, vendor name, address and contact person. If hotel prepayment is requested, include the room rate, tax, and to whom the check should be made payable and hotel address. Also, include a copy of the registration form and/or confirmation number if available.

Employees are required to submit completed travel and conference forms to accounting services no later than 30 days after travel is concluded. Any form submitted after July 15th for prior year travel will not be reimbursed. The travel and conference form must be completed, signed, and accompanied with all the appropriate documentation and original receipts to receive timely reimbursement. Receipts are required for all prepayment expenses and reimbursable expenses with the exception of meals. For liability reasons, all employees are required to complete and submit a travel and conference form even if there is no cost to the district or a reimbursement owed to the employee.

Salary enhancement shall not be authorized for travel purposes when it would exceed the normal working day(s).

Air Travel

When scheduling air transportation for district travel, it is preferred that all reservations be arranged through the district’s designated travel agency. The accounting office will provide information on the current agency. If an employee chooses to personally purchase airfare, the employee will be reimbursed upon completion of the travel and submittal of the travel and conference form with all of the appropriate documentation/receipts. The employee shall request a standard or coach airfare. The district will reimburse the employee for one baggage at the standard rate (receipt required). Additional baggage and/or overweight fees will be the responsibility of the employee.

Mileage

Employees performing authorized travel involving the use of their own vehicle shall be reimbursed for mileage at the current IRS official rate. Employees must possess a valid California driver’s license and provide the district with proof of personal automobile insurance coverage. Acceptable documentation is a copy of the employee’s insurance card. When computing mileage, the shortest distance should be used between home and the travel destination, or between Norco  College and the destination. If the employee does not both leave and return to his/her regular work location, the total miles driven less regular commute miles will be reimbursed.

A copy of the driving directions printout must accompany any travel and conference request which includes mileage reimbursement.

When more than one employee attends the same event, carpooling is encouraged. If an employee chooses to use a personal vehicle in lieu of air travel, the reimbursement request cannot exceed the cost of the lowest coach airfare and a copy of the airfare quote should be included in the travel and conference document packet prior to travel. The total cost of transportation will be considered and reviewed on a case-by-case basis.

Gas and mileage for personal vehicles should be calculated at $ .67 per mile effective January 1, 2024.

Meals

Employees shall be reimbursed when on approved travel and conference for the district for actual and necessary meal expenses for an amount not to exceed $55 a day according to the following breakdown: breakfast $15, lunch $15, and dinner $25. If meals are included in the cost of a conference, workshop or other travel event, the meal reimbursement will be reduced accordingly. No receipts are required for meal reimbursement.

Banquets

Banquet meals that are an official part of the conference and have prescribed fees which exceed the meal limitation amount as previously designated may be reimbursed at actual cost. No reimbursement shall be allowed for costs of meals substituted for the banquet meals for which fees have been paid.

Lodging

Lodging shall be reimbursed for authorized overnight travel. Reimbursement shall not exceed the rate for a standard room. Room upgrades will be the responsibility of the employee. Conference/government rates shall be requested upon reservation.

Car Rental/Airport Shuttle/Taxi

Employees are required to use the most cost-effective method of transportation. The actual cost of taxi service, shuttle service, and parking will be reimbursed upon submission of completed travel and conference forms along with original receipts. Reasonable and customary tips are acceptable but cannot exceed 20 percent. If a car rental is necessary, please provide a written justification upon completion of travel.

Incidentals & Miscellaneous Expenses

Other business-related expenses incurred while on approved travel may be reimbursed, depending on the facts and circumstances related to the necessity of the purchase. At a minimum, the expense must be directly related to the travel event. Any additional gratuities that are not previously addressed will be the responsibility of the employee.

Participant Support Costs

Participant Support Costs, such as travel for field trips, workshops or conferences, are allowable. Participant support costs may include stipends, meal allowances, travel allowances, bus rental and registration fees paid on behalf of participants engaging in the activities. Participant support costs should be included in the appropriate line item. For example, the costs for bus rental, lodging and related meals should be included in Travel. The cost for stipends or registration fees should be included under other direct costs, and so on.

Some sponsors exclude participant support costs from the modified total direct cost (MTDC) calculation for facilities and administrative costs (F&A). Therefore, it is important to verify sponsors' policies regarding whether or not these costs should be treated as direct costs.

Other Direct Costs

Other direct costs include costs items such as human subject honoraria, consultants, subawards, equipment or space rental, service agreements, renovations, etc.

Consultants

Consultants are persons or experts contracted by a grant to perform a service or activity (i.e. expert speaker, external evaluator, etc.). They are not employees of the college but are responsible for performing a portion of the work described in the proposal narrative. Paid employees of Norco  College are not eligible to serve as consultants on grant projects.

Consultants should not be accounted for in the Personnel section, but listed in the Consultant or other direct cost category.

Estimates for consultant costs should be documented in a written quote or letter and include the total cost for services along with a description of the work that will be performed.

Subawards

Subawards are issued as part of a grant proposal when Norco College partners with another institution that will perform a portion of the work on a grant project. Subawards should be included as a line item under the Other Direct Cost category. If more than one subaward will be issued, a total for all subawards (including direct and indirect costs) should be included and the individual awardees and amounts should be described in the Budget Justification.

Facilities and Administrative Costs

 

Definition
Facilities and administrative (F&A) Costs, also referred to as indirect costs, overhead, overhead costs or administrative costs. Reimbursement for actual college expenses that support extramural activities but cannot be directly charged to a specific grant or contract. F&A costs result from shared services such as libraries, plan operations and maintenance, utility costs, general department and sponsored projects administrative expenses and deprecation or use allowances for buildings and equipment.

Rate
Norco College has a federally negotiated F&A Cost rate of 30 percent.

How to Calculate
When developing a proposal budget, the F&A rate of 30 percent should be applied to the modified total direct cost (MTDC) and included as a line item. The MTDC includes all costs for the project minus the cost for equipment, i.e. single items costing more than $5,000 and with a useful life of more than one year as per the example below.

Line Item	Cost
Salaries	20,000
Benefits	10,000
Travel	500
Equipment	5,000
Supplies	500
Contractual	1,000
Construction	0
Other	5,000
Total Direct Costs (TDC)	42,000
Modified Total Direct Cost (MTDC)	37,000
F&A Rate 30% x $37,000	11,100
Total Costs (TDC plus F&A)	53,100

Exceptions
Some sponsors and programs restrict or prohibit applicants from recovering F&A costs. Sponsor F&A restrictions must be clearly documented in the request for proposals, proposal guidelines, application guidelines, federal register, sponsor's website or another official document. If the sponsor has no official policies regarding F&A costs, applicants must apply the full F&A rate to the proposal budget.

Partner Proposals and Subawards

Norco College may participate in proposal applications with partnering institutions where each of the partners receives a portion of the total award in order to conduct the activities and services detailed in the program narrative. There are two situations under which Norco College may engage in partner proposals. Firstly, the College may serve as the lead institution. As the lead institution, Norco College is the primary recipient of the total award and is responsible for the administration and reporting requirements of the grant. The College distributes grant funds to each partner by issuing subawards. Secondly, Norco College may agree to partner with an institution that will serve as the lead institution. Under these circumstances, Norco College receives a subaward from the lead institution in return for the work conducted by our campus. In both scenarios, the College requires specific documentation for the application.