Project Budgets

Monitoring Project Budgets

As part of its overall system of internal controls, MIT requires that a person familiar with activity on an MIT cost object review the monthly transactions on that cost object. Follow VPF's Approach to Monthly Review.

Your actual expenses may not correspond to the General Ledger (G/L) categories shown in the budget. Some G/Ls in the budget are for budget purposes only and cannot be used for expenses. Others may be general catch-all categories. Spend and classify charges by assigning them to the most appropriate G/L. 

Salary

The principal investigator (PI) is responsible for reviewing salaries charged to projects, and for validating and certifying percentages of salary charged to a project. The percentage of salary is based on an individual's Institutional Base Salary. 

Most salary certification questions are addressed by VPF's Salary Certification Policy. Contact your RAS CA if a change in effort will affect the salary charged to a project, or if you have questions about charging summer salary. 

Rebudgeting

Often, PIs must rebudget funds to complete their research, which may require prior approval from the sponsor. 

• Federal sponsors: The Research Terms and Conditions Prior Approvals Matrix lists which sponsors require or waive prior approval for rebudgeting. Refer to the award for specific guidance.
• Federal cooperative agreements and contracts: May contain terms requiring prior approval for rebudgeting. Review contract information for federal sponsors, and review individual awards for unusual terms.
• Industry, foundation, and non-federal sponsors: Refer to the award for specific guidance. Depending on the terms of the award the PI may be required to submit a revised budget to the sponsor, explaining the need for rebudgeting project costs.

Requesting Budget Changes

For budget changes requiring prior approval:

1. DLCI submits a proposal with a revised budget using KC, using the sponsor’s preferred format. 
   • If no change/reduction in total funding level: Use the Progress Report proposal type.
   • If requesting additional funding: Use the Supplement proposal type, and include only the new funding in your proposal budget. 
   • If requesting additional funding and revising the existing budget: Use the Supplement proposal type, and include only the new funding in your proposal budget. Upload an attachment including the entire budget (revised existing, proposed supplement, and total combined).
2. If approved, the sponsor will issue an amendment or other approval document.
3. RAS processes the update to award in KC and award budget. 
4. RAS notifies the DLCI of the change. 

Master agreements follow a different process; contact your RAS CA.

Interest Income

For awards with interest income, if sponsor requirements include deposit of payments into interest-bearing accounts, DLCIs should notify their RAS CA when interest income posts to the account and advise RAS on updated obligated and anticipated total budgets.

^{Updated September 30, 2024}