Melbourne ResearchResearch Grants and Contracts

What is a research budget?

A budget ensures that sufficient resources (financial, personnel, and infrastructure/equipment) are available to complete the research work that is being undertaken on behalf of the University. It should be based on a full analysis of research project costs, and aim to get the sponsor to pay for as many of those costs as possible, while ensuring that both the sponsoring agency and University guidelines are followed.

The price that the sponsor is charged for the grant/contract must be decided on the basis of: an analysis of direct costs; an understanding of what the sponsor will fund in terms of direct and indirect costs; and good practice in the context of Competitive Neutrality guidelines.

Definitions

Cost: The sum of all costs, direct and indirect, associated with a research project.

Direct costs: Costs incurred specifically to carry out a project, such as salaries and on-costs of staff employed to work on the project, student stipends, computing costs, materials and supplies, equipment, brokerage and freight, communications, services (photocopying etc), rent or facility charges, workshops and travel/accommodation.

Indirect costs (overheads): Costs which are not necessarily directly related to a project, but which are nonetheless incurred by the University, such as access to University research equipment and facilities, administrative support costs, the cost of supervising students, etc.
Price: The amount that is charged to a sponsor for the research contract. The cost includes all direct costs, indirect costs, plus university overheads and infrastructure costs. The price that is levied on a customer may involve all these charges, but generally only includes direct costs plus the University’s cost recovery factor (plus GST).
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