For today’s research-intensive university or institution, tracking personnel costs for sponsored research is a major factor. That’s because the majority of project costs stem from research personnel required to complete the project. Many departments, institutes and universities we speak with are challenged with fully capturing the true costs of projecting and tracking personnel costs associated with sponsored research.
Why is this area of grant management so challenging? Two areas which add to the complexity of projecting personnel costs include: difficulties calculating salaries and fringe benefits distributed across multiple grants and projecting these costs on individual grant budget periods which may not align with an institutional fiscal year.
Projecting personnel costs is critical and should begin at the outset of a project during proposal development. Calculating the amount of salary to be paid during specific budget periods is fundamental to recovering the true cost of the research. Additionally, as the project gets underway, accurately evaluating the cost of research personnel helps ensure a successful and cost-effective project. For these reasons, many institutions utilize grant management software systems that include functionality for both pre and post-award administration.
Infographic Looks at Personnel Costs for Sponsored Research
The Infographic below illustrates key advantages institutions can achieve when they effectively track and monitor these expenses. From ease of management to accurate budgeting and proactive salary management, an institution receives the most benefit through the use of a grant accounting software system to track, monitor and manage costs of research personnel.