Revised November 2007, Georgia Tech developed and implemented a plan in 1996 named the Graduate Student Tuition Remission Plan (GSTRP). This plan was reviewed and approved by the Office of Naval Research (ONR). Since that time annual rate studies have been provided to ONR that are audited by the Defense Contract Audit Agency (DCAA) to produce approved rates for each fiscal year. The key features of this program are:

1. The Tuition Remission Award is managed through our graduate coordinators in each academic department. Upon approval of the appointment as a Graduate Research Assistant or Graduate Teaching Assistant (GRA/GTA) the home department of the student will enter a waiver code into the student system and then a credit is processed to the student's account for the fee reduction for the academic term (set on an annual basis). All GRA/GTA appointments are processed in this manner. The fee reduction is charged against one of two ledger accounts based on whether the reduction is for in-state or out-of-state tuition.
2. Part of the requirement for the appointment as a GRA/GTA includes the appointment to provide services to GIT at 33% to 50% time, registered for at least 12 credit hours of which 9 are letter grade/pass/fail. GRA/GTA's must be hired in the appropriate job code for a GRA/GTA in Human Resources. These appointments are made by the academic departments and the charges will be made against appropriate benefiting activity.
3. On a monthly basis, the Salary Planning and Distribution (SPD) System identifies the GRA/GTA payroll charges to sponsored projects and charges the sponsored project the approved monthly rate. If the student provides services to multiple projects, the charge is prorated. The charge to the sponsored project is offset by a credit to a Revenue Account- Sponsored Funded Fees.
4. Waivers of GSTRP charges to sponsored projects are considered by the Office of the Provost when required. Any such request should identify the unique features of the sponsored project that might warrant this special accounting treatment.

Tuition Remission Escalation Factor

Based on the proposed Fiscal Year (FY) 2013 Graduate Student Tuition Remission Program (GSTRP) rate proposal, please continue to use the 8% tuition remission escalation factor for fiscal years beyond FY2013.

Direct costs are those that can be specifically identified with a single sponsored project. These costs usually include salaries/wages, fringe benefits, contracted services, supplies, equipment, travel, communication*, tuition remission and participant support costs. In most instances the direct costs should be reflected by major budget categories with an attached narrative detailing how the costs were calculated. The budget narrative should contain enough detail for the sponsor to verify the appropriateness of the costs. (*see definition of communication costs listed below.)

1. Salaries and Wages – The budget detail should include the title, name and percentage of time/number of months summer or academic for each person listed on the budget. If a specific technician, graduate student or other student worker has not been identified at the time of budget preparation the salary amount for those categories should be consistent with those normally paid by the department or if you are unsure of the rate then use the Institute average category.

   ESTIMATING YOUR BUDGET: Salary compensation should be based on the percent of time the employee will spend on the project.
   Example: (monthly salary rate) x (___% of effort) x (no. of months).

   If the project is multi-year, most people include at least a 3% annual increase effective July 1 of every year. Salaries posted to a sponsored program will be based upon actual salaries not projected salaries. All budgets have their limitations! If you budget for a graduate student and end up hiring a post doc instead; keep in mind that there are additional fringe benefits that you MUST pay out of the budget for a post doc!

2. Fringe Benefits (Current Rates) – Ineligibility for Fringes: Undergraduate Students* and Graduate Students.* Fringe Benefits are calculated according to the Rate Agreement for the Georgia Tech Research Corp. negotiated with our cognizant federal agency, the Office of Naval Research and include FICA, unemployment and workman’s compensation, retirement and group health insurance. [*Note: Salaries and wages of employees who participate in all or part of the social security program but do not participate in retirement or group health and life insurance plans. This rate covers (i) temporary classified persons, (ii) temporary academic or research professionals not eligible for the retirement programs or group health or life insurance coverage, (iii) student employees who are registered for less than a full academic load and (iv) part-time employees employed for less than 50 percent of a full work schedule.]
3. Equipment – Only items costing $5,000 or more with a useful life of two years or more should be listed here. Cost estimates should include any installation, tax and shipping costs associated. The need for the equipment should be adequately justified on the budget explanation page. General purpose equipment, such as computer equipment, is not eligible for support unless primarily or exclusively used in the actual conduct of scientific research. [Note: Restriction on General Purpose Office Equipment - The Office of Management and Budget does not allow purchase of general purpose office equipment. According to OMB Circular A-21, "'General purpose equipment' means equipment, the use of which is not limited only to research, medical, scientific or other technical activities. Examples of general purpose equipment include office equipment and furnishings (chairs, file cabinets, etc.), air conditioning equipment, reproduction and printing equipment, motor vehicles, and automatic data processing equipment." These are only allowable if they have been specifically identified and approved by the sponsoring agency in advance of purchase.]
4. Travel – Proposed travel should include number of trips planned, number of persons for each trip, conference name, location, purpose and cost. The purpose of the travel should be adequately justified on the budget explanation page. Many federal agencies require utilization of U.S. Flag Carriers on international flights. Be sure to check your guidelines for details. URL for Federal Per Diem Rates:http://www.state.gov
5. Participant/Trainee Support Costs – Typically used on federal awards for the costs of the travel, meals and lodging of project participants (not GaTech employees); i.e., the trainees at a science education conference or a stipend for participants who complete project survey. Facilities and administration costs are not charged on participant support costs on federal awards.
6. Other Direct Costs – Other Direct Costs include materials and supplies, publication costs, consultant services, long distance telephone/fax and subcontracts. All direct costs should be itemized. The following list explains the most commonly requested ‘other direct costs.’
   1. Materials And Supplies – Indicate in general terms the type of expendable materials and supplies required along with their estimated costs. The breakdown should be more detailed when the cost is substantial. General purpose office supplies are not to be included in this category as they are covered by indirect costs. i.e., local phone calls!
   2. Publication Costs – Funds may be requested for the costs of preparing, publishing, or otherwise making available the findings and products of the work conducted under the research project, including costs of reports, reprints, or page charges.
   3. Consultant Services – Anticipated consultant services should be justified and information furnished on each individuals’ expertise, primary organizational affiliation, daily compensation rate, and number of days of expected services. We recommend that a letter be included in the proposal from the consultant stating their willingness to participate, as well as their actual daily rate with proper documentation. Some federal agencies will limit the maximum daily compensation rate paid to off-campus consultant services – check with your Contracting Officer to verify limitations.
   4. Subawards – Subawards should be disclosed in the technical section of the proposal to show a clear delineation of the work to be performed by each organization. The total amount for proposed subawards should appear under “Other Direct Costs” in the master budget for the project. Each “sub” should follow the following guidelines:
      F&A is charged on the first $25,000 of each subaward.
      Formal proposal signed by authorized representative with a statement of work and budget are required to be submitted to the Contracting Officer. See Interdivisional Transfer for information on issuing subprojects between Georgia Tech Departmental Units & GTRI.
7. Cost Sharing – If cost sharing is to be included in a proposal then the sources of cost sharing and matching must be identified at the proposal stage with appropriate forms identifying such.  Only mandatory cost sharing is tracked by OSP and G&C accounting.
8. Tuition (Link to F&A Rates) – Tuition for graduate students is normally included in the budget.
9. Communication – This includes telephone communication, postage, FedEx, advertising and associated costs that are non-routine and pose an extraordinary need (i.e., a phone bank for a project that includes a survey administered via the telephone.)
10. Repairs and Maintenance – This includes costs of maintaining property, i.e., maintenance contracts for office equipment and repairs of that equipment.
11. Interdivisional Transfers – Interdivisional Transfer is utilized when subprojects are established between Georgia Tech and GTRI. The subproject recipiant details their portion of work and the cost associated with it (both direct and indirect). The cost is then loaded into an “other” category and added to the total budget. Because it is an internal transfer, these costs would not be included in the F&A cost calculation.

Unallowable Costs may not be charged as direct costs on sponsored projects including cost share accounts or as indirect costs. Certain costs incurred by higher education institutions cannot be charged to federally sponsored research projects, either as a direct or F&A cost. These costs are referred to as unallowable costs. The Uniform Administrative Requirements (2 CFR 200), Subpart E - Cost Principles, provides guidance for determining basic considerations such as allowability of costs. The following specific items cannot be included in the F&A rate calculation or charged as direct costs to federal research:

• Advertising (displays, exhibits),
• Alcoholic Beverages,
• Alumni Activities,
• Bad Debts (noncollectable invoices),
• Commencement costs, Donations and Contributions,
• Entertainment Expenses,
• Fund Raising,
• Fines and Penalties,
• Goods and Services for Personal Use,
• Housing and Personal Living Expenses,
• Memberships in Social Organizations,
• Lobbying, Selling/Marketing of Goods and Services

Federal agencies awarding projects to institutions may apply further restrictions on the allowability of certain costs.

Other Unallowable Costs

Trafficking in Persons
In compliance with the International Trafficking in Persons Act, no sponsor funds may be used to engage in or support trafficking in persons, procurement of sexual acts, or forced labor.

Lobbying
No sponsor funds may be used to effect any oral, written or electronic communications to a covered Legislative or Executive Branch Official in an attempt to influence the formulation, modification, or adoption of Federal legislation; the administration or execution of a Federal program or policy; formulation, modification, or adoption of a Federal rule, regulation, Executive order, policy or position of the United States Government; or the nomination or confirmation of a person subject to confirmation by the Senate.

Subrecipients, including subcontractors and consultants, must be identified in the proposal budget to ensure that costs are calculated correctly and so that appropriate documentation can be included in the proposal. Sponsor approval is required prior to entering into a subcontract. If it is a vendor relationship, no sponsor approval is required unless specified in the award terms and conditions.

It is the policy of Georgia Institute of Technology to recover Facilities & Administrative costs on all of its sponsored programs. When estimating the proposal cost of a sponsored activity, the appropriate Facilities and Administrative (F&A) rate is applied. This provides a means for Georgia Tech to recover the F&A (indirect) costs which are incurred by the total sponsored activity but which cannot be directly assigned to an individual project. Georgia Tech and GTRC negotiate Facilities & Administrative Costs rates for research performed by Resident Instruction with the Office of Naval Research which is the cognizant audit agency for the institution. Rates are based on an audited cost proposal. Facilities & Administrative Costs are consistently applied to sponsored projects in accordance with the requirements of the Uniform Administrative Requirements (2 CFR 200), Subpart E.

Except as noted 2.5.3 below, any request to cost share F&A costs either fully or partially must be approved by the Executive Vice President for Research. A justification must be provided for consideration. Cost share request forms can be found at http://www.osp.gatech.edu/forms/costshareform.pdf.