Budget preparation is part of the protocol development process and pre-award phase of the grant life cycle. The budget should match the planned activities of the research project or program.
A budget is the estimated schedule of income and expenditures based on the activities of a research project or program within a specific time frame. The most common budgeting process used for research is line-item budgeting or traditional budgeting, which produces a document called the Line-Item Budget (LIB). This process makes use of discreet line-items to describe allocation for different types of expenses and focuses on the purchase of goods and services, rather than the objective of the purchase.
During the process of developing the LIB, the Researcher must take into consideration the grant guidelines and pertinent laws of the Philippines and of the foreign country, if the funding agency is from a foreign government institution. In the event that the funding agency does not have its own grant guidelines, or the guidelines are insufficient, the Researcher will use Philippine government standards as sole or supplemental guide for budgeting and disbursement of funds. The standards are set by the following agencies:
- University of the Philippines
- Office of the President of the Philippines
- Bureau of Treasury
- Commission on Audit
- Department of Budget and Management
- Department of Science and Technology
General Categories of Expenses
- Direct Costs are expenses incurred by the implementing agency in the execution of the program/project considered indispensable to its operations. Direct costs are further categorized into three major expenses:
- Personnel Services (PS) are the provisions for the payment of salaries, wages, honoraria and other types of compensation of the personnel who will be working for the research project or program.
- Maintenance and Other Operating Expenses (MOOE) refers to the expenditures to support the operations of the research project or program, such as, but not limited to supplies and materials, transportation, travel, utilities, repair, etc.
- Capital Expenditures or Outlay refer to appropriations for the purchase of goods and services, the benefits of which extend beyond the fiscal year and which adds to the assets of the University.
- Indirect Costs are overhead expenses incurred by the implementing agency in the management, evaluation and monitoring of the program/project. Also classified as indirect costs are costs incurred in abiding by government requirements.
Allowable Direct Costs
|Expense Item||Expense Details|
|Personnel Services||a. Salaries and wages, honoraria, fees and other compensation to consultants and specialists. These personnel undertake specific activities that require expertise or technical skill.
b. Payment of salaries of project personnel and honoraria of investigators and co-investigators
|Capital Expenditures or Outlay||Commonly refers to equipment but may also refer land, infrastructure, facilities and stocks.|
|Maintenance and Other Operating Expenses|
|Traveling Expenses||Cost of (1) movement of persons locally and abroad, such as transportation, travel insurance for researchers exposed to hazard/risks, subsistence, lodging and travel allowances, fees for guides or patrol; (2) transportation of personal baggage or household effects; (3) bus, railroad, airline and ship fares, trips, transfers, etc. of persons while traveling; (4) charter of boats, launches, automobiles, etc. non-commutable transportation allowances, road tolls; and (5) parking fees and similar expenses.|
|Communication Expenses||Include costs of telephone, telegraph, mobile/wireless and tolls, fax transmission, postage and delivery charges, data communication services, internet expenses, cable, satellite, radio and telegraph messenger services among others.|
|Repair and Maintenance of Facilities||Include costs of repair and maintenance of office equipment, furniture and fixtures, machinery and equipment, IT equipment and software, building, office and laboratory facilities and other structures directly needed by the research project or program.|
|Repair and Maintenance of Vehicles||Include costs of repair and maintenance of vehicles directly needed by the project except for cost of spare parts, gasoline and oil that shall fall under Supplies and Materials|
|Transportation and Delivery Services||Include the costs of commercial transport of mail, hauling of equipment or materials, including porterage, if any.|
|Supplies and Materials||Include costs of consumable and semi-expendable items to be used during the implementation of a research project or program. These include, but are not limited to, office supplies, accountable forms, zoological supplies, food supplies, drugs and medicines, laboratory supplies, gasoline, oil and lubricants, agricultural supplies, text books/instructional materials, etc.|
|Utilities||Include costs of water, electricity or gas for illumination and cooking gas expenses consumed by the implementing agency in connection with the project.|
|Training and Scholarship Expenses||Include training fees and other expenses, and scholarship expenses such as tuition fees, stipends, book allowance, and other benefits.|
|Advertising Expenses||Include costs of authorized advertising and publication of notices in newspapers and magazines of general circulation, television, radio and other forms of media.|
|Printing and Binding Expenses||Include costs of producing, printing and binding materials such as books, reports, catalogues, documents and other reading materials.|
|Rent Expenses||Rental fees for the use of facilities, equipment and vehicles.|
|Representation Expenses||Include costs of meal/food for the conduct of workshops, meetings, conferences, field work and other official functions related to the project.|
|Subscription Expenses||Include costs of subscription to library materials, such as magazines, periodicals, journals and other reading materials.|
|Survey Expenses||Include costs incurred in the conduct of survey related to a research project or program.|
|Professional Services||Include costs of services such as legal, auditing, consultancy, environment/ sanitary, general, janitorial, security and other professional services (laboratory services, pharmaceutical services, etc).|
|Taxes, Insurance Premiums and Other Fees||Include costs of taxes, duties and licenses, fidelity bond premiums, and insurance expenses of equipment acquired under the project.|
|Daily Subsistence Allowance/Per Diem||Daily subsistence allowance is the provision for lodging, meals, gratuities, transport cost from place of lodging to the first place of official business, and vice versa, and other payments for personal services rendered. DSA can be claimed by any authorized research staff on official travel.|
|Subject Remuneration||Includes the cost of travel, accommodation and representation/meal allowances.|
|Other MOOE||Other costs as dictated by the sponsor or funding agency|