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MSU International Budget Preparation Considerations

MSU has a strong record with international projects with a vast majority of the knowledge being spread in different units across campus. This webpage has been created in an effort to provide a centralized repository of information related to international projects. This page contains guidance and references in order to assist faculty and staff with international proposal preparation and project management for cost reimbursable projects. The review and approval process for international projects is important due to the numerous components that make-up successful proposals and projects. Therefore, to develop an administratively sound international project, the PI and their administrator should work closely with the applicable departments (OSP, CGA, MSU General Counsel, Finance, Human Resources, Export Control, ISP, etc.) to develop an administratively comprehensive and manageable international project.  Frequently check for any travel warnings or alerts and check the list of sanctioned countries which identifies countries or entities with U.S. Government restrictions maintained by the Office of Foreign Assets Control.  The Office for International Students and Scholars at MSU also has provided information and resources on Executive Orders that could affect international students and scholars.

Below are items to consider including in budgets for international projects. They are not applicable to all projects, and the list is not all inclusive. The attached checklist has been created to use with budget preparation, condensing the items below. Additionally, another considerations checklist was created from the items below to assist with MSU employees living overseas, combining overseas allowances, insurance, and travel expenses.  

Visit this webpage for information on How to Pay for International Activities.  The Controller's Office has provided the options at MSU for methods of payment for Payroll, Purchasing, Services, and Travel, Direct Deposit for Employee Salaries and Expense Reimbursement, MSU Check and Foreign Currency Draft, and Wire Transfers. 

For information on how to install the VIP Mobile Phone App for two-factor athentication, read this article.  The app is especially helpful for travelers internationally where connectivity may be limited.

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MSU Personnel

Include all salaries for the MSU Program Director, Chief of Party, Key Personnel, Project Administrator, Graduate Assistant(s), or any other personnel that may be working on the project. For large USAID projects, the MSU Chief of Party is usually based in-country leading the technical direction.  For medium to large projects, budgeting for a Project Manager is encouraged to leverage the faculty members’ time and increase resource management which could include managing budgets, personnel, resources, and subawardees, monitoring and complying with performance schedules, plus understanding and using a myriad of systems and completing reports.

The USAID Maximum Daily Rate may be found at here.  For overall guidance for including MSU personnel in a budget, see our website.

  1. MSU Program Director
  2. Chief of Party
  3. Key Personnel
  4. Project Administrator
  5. Graduate Assistant
  6. Other Personnel
  7. EBD-Employee Biographical Data Sheet/AID 1420-17

  • The Employee Biographical Data (EBD) Sheet, AID Form 1420-17, is used frequently by USAID to justify employee and consultant pay levels. The required data includes nationality, accompanying family members, education and salary history. The salary history presented on the “biodata” is used to establish a comparable rate for the proposed person. The rate is then presented for approval to USAID, in accordance with the companion clause AIDAR 752.7007 “Personnel Compensation.”
  • The MSU department preparing the proposal, not the individual employee, should complete the fields for the contractor’s name, contract number,  position under contract, proposed salary, and duration of assignment (#s 2, and 4-7).  The individual employee must complete all other fields and sign the certification (#16)
  • For EBD “salary history” (#14) list each year of employment (for the last three years, NOT the last three positions) on a separate line.   If the individual has held the same position for the last three years, list the position on each of the three salary history lines, with the corresponding annual salary for each year.  For current salary, leave the “to” date blank if the form will not allow you to write “current” or “present.”  List salary history in the currency in which it was actually paid.  Do not convert foreign currency to USD.  Be sure to indicate what currency is used.
  • Only authorized officials for the university may sign EBDs. If a signature is required, the department must verify one of the previous salaries listed and initial next to it before submitting the EBD to OSP/CGA for signature.
MSU Short Term Technical Assistance (STTA)

This personnel category refers to technical project personnel (e.g. faculty, specialists, etc.) who will work on a project for brief periods of time, as opposed to consistently over the life of the project. It is specific to USAID projects, and does not include PIs, project directors, personnel living in the project host country, local staff, or administrative personnel. Salary (and fringe benefits) for STTA are budgeted in the same manner as for other types of personnel, and should normally be included in Personnel budget category.

  1. Faculty (AN, AY, SU)
Fringe Benefits

Include the fringe benefits for all of the personnel listed in the MSU Personnel and STTA sections of the budget.  For overall guidance for including fringe benefits in a budget, see our website.

  1. MSU Program Director %
  2. MSU Chief of Party %
  3. Key Personnel %
  4. Project Administrator %
  5. Graduate Assistant (Health Benefits)
  6. STTA Faculty (AN, AY, SU) %
Overseas Allowances (includes pre and post award considerations)

Overseas allowances are intended for employees who are stationed overseas.  Rates are set by the U.S Department of State and based on a percentage of income and the country of service.  All allowances are not a guaranteed option and may depend on employment status.  Also note, if a sponsor will not support the cost of allowances, budgeting for allowances is not a required MSU cost.  A budget may also include one allowance or a combination of some, so long as the employee accepts the terms of the employment.  The rates for the allowances can be found here.

The general types of allowances and benefits that impact MSU faculty and staff include:

Post allowance, also referred to as cost of living or COLA, is granted to an employee stationed at a post in a foreign area where the cost of living, exclusive of quarters costs, is substantially higher than in Washington, D.C. The post allowance is designed to permit employees to spend the same portion of their salaries for their standard living expenses as they would if they were residing in Washing, DC. (DSSR, Chapter 220)

  1. Eligibility: employees become eligible upon arrival at the new post.
  2. Budgeting post allowance
    1. The first step in budgeting is to determine the “Annual Spendable Income” by using the table found at https://aoprals.state.gov/Content/Documents/SpendableIncome.pdf.  The “Number of Persons in Family” is the number who will be residing at the post. 
    2. The second step is to determine the percentage of spendable income for the country using the table found at https://aoprals.state.gov/Web920/cola.asp. (DSSR 220)
    3. The total annual post allowance multiplies the spendable income with the post allowance percentage.
    4. Example: Dr. Smith, her spouse and three children will be residing in Zambia. Dr. Smith’s annual salary totals $126,000.
      1. Spendable income based on family size and salary = $58,800
      2. Post allowance = 20%
      3. Annual post allowance equals $11,760
    5. NOTE: Post allowances shall be computed and paid at annual rates, derived by the number of days in the calendar year to obtain a daily rate.
  3. Processing post allowance
    1. Post Allowance is processed on a Disbursement Voucher, using Payment Reason Code O – Travel Reimbursement and object code 6489 – contractual services.
    2. Supporting documentation should be attached to the Disbursement Voucher to demonstrate the period covered by the amount and how the amount was determined (i.e. copy of appropriate Department of State COLA rate).
    3. Post Allowance should be allocated to project accounts based on employee effort for that period.
  4. Things to consider when paying post allowance
    1. Post allowance is not taxable income.
    2. Post allowance is granted to new employees the date the employee arrives at the new post, except that no post allowance shall be paid during any period when an employee or family member is receiving payment of a temporary quarters subsistence allowance.
    3. Post allowance grant shall terminate as of the date the employee commences travel which authorizes payment of travel per diem allowance.
    4. Post allowance grant shall continue while the employee remains in the country of assignment or is outside the country of assignment for short periods of absences (up to 30 consecutive calendar days) unless the officer designated to authorize allowances determines that the grant should not continue. On the 31st day of absence, the grant is to be terminated. (If the employee’s family remains at post during this time, the post allowance grant will be reduced by one family member on the 31st day of absence.)

The purpose of the education allowance is to assist employees in providing adequate elementary and secondary education for a child or children (grades K-12) at an overseas post of assignment. (DSSR, Chapter 270)

  1. Eligibility: children of employees stationed overseas who are eligible for education at the elementary or secondary school level except that such child must have attained the age of four years and must not have reached his/her 21st birthday. A child with special needs is considered to be covered by these regulations from birth.
  2. Budgeting education allowance
    1. The annual education allowance may be found on the “Education Allowance” table at https://aoprals.state.gov/Web920/education_all.asp?MenuHide=1
    2. Find the post location.
    3. Choose the rate based on the grade of the child and whether the child will be attending school at or away from post.
    4. Example: Dr. Smith has one child in 6th grade and one in 10th grade in Sydney, Australia. The sixth grader will be attending school at post and the 10th grader away from post.
      1. Allowance for the 6th grader at post is $25,050.
      2. Allowance for the 10th grader away from post is $55,700.
  3. Processing education allowance
    1. Education Allowance is processed on a Disbursement Voucher, using Payment Reason Code O – Travel Reimbursement and object code 6489 – contractual services.
    2. Supporting documentation should be attached to the Disbursement Voucher to demonstrate the period covered by the amount and how the amount was determined (i.e. tuition receipt).
    3. Education Allowance should be allocated to project accounts based on employee effort for that period.
  4. Things to consider when paying education allowance
    1. Education allowance is cost reimbursable up to the maximum location amount and is not taxable income.
    2. The DSSR includes a variety of information for differing circumstances. Any individual being stationed overseas and bringing school age children should read this section of the DSSR to better understand what is allowed for his/her particular situation.
    3. A school is deemed "adequate" if, upon completion of a grade at the school, a child of normal ability could enter the next higher grade at a public school in the US.
    4. When a school is "adequate", the rates for attending a school “at post” and attending a school “away from post” will be the same.
    5. The “away-from-post” education allowance can be used to pay for tuition, room and board, unaccompanied air baggage and periodic transportation between the post and the designated boarding school.

Recruitment and retention incentives are allowances designed to recruit employees to posts where living conditions may be difficult or dangerous. Those applicable allowances impacting MSU faculty and staff include: Post Hardship Differential and Danger Pay. These types of allowances are included in taxable income.

The purpose of post hardship differential is to provide additional compensation to employees for service in foreign areas where conditions of environment differ substantially from conditions of environment in the United States. (DSSR, Chapter 500 and 3 FAM 3260)

  1. Eligibility: hardship differential shall commence as of the date of employee's arrival at a new post.
  2. Budgeting post hardship differential
    1. The first step in budgeting is to determine the basic compensation (salary only, no fringe, living costs or allowances should be included).
    2. The second step is to determine the percentage of basic compensation used in calculating the hardship differential by using the table found at https://aoprals.state.gov/Web920/hardship.asp.
    3. Multiply the basic compensation amount with hardship differential percentage.
    4. Example: Dr. Smith is at post in Dhaka, Bagladesh where her annual salary equals $126,000.
      1. Basic compensation = $126,000
      2. Hardship differential = 30%
      3. Annual post hardship differential equals $37,800
    5. NOTE: Post differential should not be paid while the employee is away from post.
  3. Processing post hardship differential
    1. Post hardship differential is processed on an Additional Pay Form using wage type code 1270.
      1. The completed form should be sent to CGA either as a paper copy or as a pdf to transactions@cga.msu.edu. CGA will forward the approved form to Payroll, if applicable.
      2. Please note the university deadline for each payroll cycle. Additional Pay Forms should be submitted to CGA three business days prior to the payroll month’s deadline. Off cycle check fees are typically unallowable on RC accounts.
    2. Supporting documentation should be included with the pay form to demonstrate the period covered by the amount and how the post hardship differential amount was determined (i.e. copy of appropriate Department of State rate).
    3. Post hardship differential should be allocated to project accounts based on employee effort for that period.
  4. Things to consider when paying post hardship differential
    1. Post hardship differential is taxable income.
    2. Differential begins the day the employee arrives at post and continues while the employee remains at post. (For temporary employees, differential begins after 42 days at post.)
    3. For an employee who leaves post for "leave," differential stops the day he/she leaves post for the US. If the employee spends some days in a foreign non-differential area en route to leave in the US, then the differential stops on the day of arrival in the US.
    4. Post hardship differential will not stop when the employee enters the US as long as he/she is only transiting the US. If the stay in the US is greater than 24 hours, the post hardship differential must terminate upon entry to the US.
    5. For an employee without family members who leaves post for "leave" or orders to a non-differential post in a foreign location, differential stops after 42 days.
    6. If an employee leaves post under official travel orders to go to the US (e.g. medical evacuation, training, consultations, etc.)
    7. For additional scenarios, see the Frequently Asked Questions section on the U.S. Department of State website under the Office of Allowances.

The purpose of danger pay allowance is to provide additional compensation above basic compensation to employees serving at places in foreign areas where dangerous conditions that could threaten the health or well-being of an employee exist.  (DSSR, Chapter 650 and 3 FAM 3270)  Eligible countries are set by the US Department of State.  To search authorized allowances by country, see this website.  For more questions related to danger pay, refer to the following link.

  1. Eligibility: danger pay is payable beginning the first day the employee enters the country. Employees qualify for Danger Pay Allowance after being in the country for at least four cumulative hours in one day.
  2. Budgeting danger pay allowance
    1. The first step in budgeting is to determine the basic compensation (salary only, no fringe, living costs or allowances should be included).
    2. The second step is to determine the percentage of basic compensation used in calculating the danger pay by using the table found at https://aoprals.state.gov/Web920/danger_pay_all.asp
    3. Multiply the basic compensation amount with danger pay percentage.
    4. Example: Dr. Smith is at post in Bujumbura, Burundi where her annual salary equals $126,000.
      1. Basic compensation = $126,000
      2. Hardship differential = 30%
      3. Annual post hardship differential equals $37,800
    5. NOTE: Danger pay should be paid only during the time at post or on travel status to that particular location.
  3. Processing danger pay allowance
    1. Danger pay is processed on an Additional Pay Form using wage type code 1270.
      1. The completed form should be sent to CGA either as a paper copy or as a pdf to transactions@cga.msu.edu. CGA will forward the approved form to Payroll, if applicable.
      2. Please note the university deadline for each payroll cycle. Additional Pay Forms should be submitted to CGA three business days prior to the payroll month’s deadline. Off cycle check fees are typically unallowable on RC accounts.
    2. Supporting documentation should be included with the pay form to demonstrate the period covered by the amount and how the danger pay amount was determined (i.e. copy of appropriate Department of State rate).
    3. Danger pay amount should be allocated to project accounts based on employee effort for that period.
  4. Things to consider when paying danger pay allowance
    1. Danger pay allowance is taxable income.
    2. Danger pay may also be paid to employees on temporary duty to the post.
Leave Benefits

The purpose of home leave is to allow employees who are US citizens on long term overseas assignments to undergo a periodic reorientation and re-exposure to their home country. (3 FAM 3430)

  1. Eligibility: home leave is typically available for US citizens who have completed 18 months of continuous services at post. Family members may also qualify for home leave based on the eligibility of the employee.
  2. Budgeting home leave: the only allowable expense is the cost of airfare for the employee and other eligible travelers to the location of their address record. Applicable travel costs should be included in the budget.
  3. Processing home leave: airfare costs should be processed according to university travel regulations, with consideration of award specific restrictions.
  4. Things to consider for home leave: keep in mind that airfare costs may increase over time.

The purpose of rest and recuperation travel (R&R) is to give employees relief from their post assignment overseas. (3 FAM 3720)

  1. Eligibility: R&R is typically available for US citizens who have completed 24 months of continuous services, unbroken by home leave, at post for some locations overseas. Family members may also qualify for R&R. Refer to 3 FAM 3720 and 3 FAM 3722 for restrictions.
  2. Budgeting R&R: allowable travel expenses should be included in the budget, as applicable for the employee and other eligible travelers.
    Allowable R&R locations may vary based on award. In general, travel is only allowable to either the designation overseas relief point or any US city or its Commonwealths, territories or possessions. Other locations may be chosen if specific criteria are met. Refer to 3 FAM 3720 for specific information.
  3. Processing R&R: allowable travel costs should be processed according to university travel regulations, with consideration of award specific restrictions.
  4. Things to consider for R&R:
    1. Keep in mind that travel costs may increase over time.
    2. Reference agency specific guidelines for allowable R&R locations.

Quarters allowances are intended to reimburse employees for substantially all housing costs at overseas posts where government housing is not provided. Those applicable allowances impacting MSU faculty and staff include: Living Quarters Allowance and Temporary Quarters Subsistence Allowance.

Living quarters allowance (LQA), is an allowance granted to an employee for the annual cost of suitable, adequate, living quarters for the employee and his/her family. (DSSR, Chapter 130)

  1. Eligibility: LQA will be paid to employees who have obtained residence quarters and are not receiving Temporary Quarters Subsistence Allowance.
  2. Budgeting LQA (DSSR, Chapter 135.2)
    1. The annual living quarters allowance may be found on the “Annual Living Quarters Allowance in U.S. Dollars” table at  https://aoprals.state.gov/Web920/lqa_all.asp?MenuHide=1
    2. Determining which group is not easy and may require information from the agency administrative/contract officers for the RFA/RFP. The table found in DSSR, Chapter 135.2 provides the government level that corresponds with each group in the table.
    3. All allowable living costs listed under "What costs are allowable under LQA?" below will be reimbursed up to the maximum amount allowed as per the table.
  3. Processing living quarters allowance
    1. LQA is processed on a Disbursement Voucher, using Payment Reason Code O – Travel Reimbursement and object code 6489 – contractual services.
    2. Supporting documentation should be attached to the Disbursement Voucher to demonstrate the period covered by the amount and how the amount was determined (i.e. receipts).
    3. LQA should be allocated to project accounts based on employee effort for that period.
    4. Advance payments for rent may be allowable
      1. Please review DSSR, Chapter 113.
      2. Refundable security deposits cannot be included in the advance.
  4. Things to consider when paying living quarters allowance
    1. LQA is cost reimbursable and is not taxable income.
    2. Allowable costs
      1. Basic annual rent, plus any costs not included therein for heat, light, fuel, gas, electricity, water, taxes levied by the local government and required by law, insurance required by local law to be paid by the lessee.
      2. Rental of garage space for one car only for each employee, not to exceed 25% of the employee’s applicable maximum annual quarters allowance rate, regardless of whether such space is included with the quarters
      3. Separate rental of necessary furniture, not to exceed 25% of the employee’s applicable maximum annual quarters allowance rate, meaning rental of necessary basic furniture and/or equipment, but exclusive of radios, television sets, musical instruments, etc. from source other than landlord (rental of furniture and/or space from the same source under two agreements or contracts is considered to be rental of “furnished quarters”).
      4. Insurance on property and/or furnishing, if such insurance is required by local law to be paid by the lessee.
      5. Agent’s fee with authorizing officer certifying that fee is customary, reasonable, and legal under local law.
      6. Interest on a loan from an American institution to finance “key money” paid to a landlord.
      7. Garbage and trash disposal.
      8. Mandatory as opposed to optional fees required for maintenance of common areas (“condominium fees”).
    3. Unallowable costs. The following are costs that may NOT be included in rent:
      1. Concierge or notary’s fees
      2. Agent’s fee except under conditions stated above
      3. Telephone installation or maintenance
      4. Deterioration of property or furnishings
      5. Servant’s wages or maintenance
      6. Tips
      7. Cleaning
      8. Storage
      9. Garden or lawn service (except as stated above)
      10. Servants’ quarters, unless considered part of the same property with the living quarters
      11. Any other extraneous expenses not directly related to rent as such.

Temporary quarters subsistence allowance (TQSA) is an allowance granted to an employee for a period not to exceed 90 days after first arrival at a new post in a foreign area or for a period not to exceed 30 days immediately preceding final departure from the post subsequent to the necessary vacating of residence quarters. NOTE: Post allowance shall not be paid for any period during which the temporary quarters subsistence allowance is paid. (DSSR, Chapter 120)

  1. Eligibility:
    1. The TQSA begins upon first arrival at a new post.
    2. The location of the temporary quarters must be within reasonable proximity of the post.
  2. Budgeting TQSA: the costs reimbursed vary by the number of days staying in temporary quarters. Please see DSSR 123.3 for details concerning the amount allowable.
  3. Processing temporary quarters subsistence allowance
    1. TQSA is processed on a Disbursement Voucher, using Payment Reason Code O – Travel Reimbursement and object code 6489 – contractual services.
    2. Supporting documentation should be attached to the Disbursement Voucher to demonstrate the period covered by the amount and how the amount was determined (i.e. receipts).
    3. TQSA should be allocated to project accounts based on employee effort for that period.
  4. Things to consider when paying temporary quarters subsistence allowance
    1. TQSA is cost reimbursable and is not taxable income.
    2. Allowable TQSA costs
      1. Total amount of the reasonable and necessary expenses for the employee and family members for:
        1. Meals, including tax
        2. Service charges and tips
        3. Laundry/dry cleaning
        4. Temporary lodging (including room and bath, heat, light, fuel, water and the cost of service fees and taxes imposed by the management or local government
        5. Or, the total of the maximum rates for such period, whichever is less.
      2. Supporting receipts or other appropriate documentation for the daily cost of temporary lodging shall be provided.
      3. Only actual subsistence expenses incurred, which are reasonable in amount and incident to the occupancy of temporary quarters, shall be reimbursed.
    3. Unallowable costs. The following are costs that may NOT be included in rent:
      1. Concierge or notary’s fees
      2. Agent’s fee except under conditions stated above
      3. Telephone installation or maintenance
      4. Deterioration of property or furnishings
      5. Servant’s wages or maintenance
      6. Tips
      7. Cleaning
      8. Storage
      9. Garden or lawn service (except as stated above)
      10. Servants’ quarters, unless considered part of the same property with the living quarters
      11. Any other extraneous expenses not directly related to rent as such.

The U.S. Internal Revenue Services (IRS) considers “incentive” allowances such as Post Hardship Differential and Danger Pay as additional compensation and therefore are included in gross income for U.S. federal income tax purposes. Other allowances such as Quarters Allowances are considered “reimbursements” and therefore are not required by the IRS to be included in gross income. This distinction is referred to as “taxable” and “not taxable” throughout the document.

SPECIAL NOTE for USAID projects (ADS Chapter 477):

  • The Mission Director or designee is responsible for:
    • Authorizing, granting, revising or terminating, in accordance with applicable regulations, the following allowances for employees stationed overseas: temporary lodging, living quarters, post, supplementary post, foreign transfer, danger pay, education, post differential and educational travel.
  • Resident hire employees shall be granted only post allowance and danger pay allowance.
  • No allowances shall be granted to employees when they are in non-pay status in excess of fourteen consecutive days.

Acronym Key

  • ADS – Automated Directives System (USAID)
  • DSSR – Department of State Standardized Regulations
  • FAM – Foreign Affairs Manual
  • FAH – Foreign Affairs Handbook
Domestic Travel

For overall guidance for including domestic travel in a budget, see our website.  Costs for domestic travel may include mileage, car rental, airfare, railway, per diem (M&IE, lodging), ground transportation/airport parking, and other miscellaneous travel costs (communication, etc.).

  1. Mileage
  2. Car Rental
  3. Airfare
  4. Railway
  5. Per diem (M&IE, lodging)
  6. Ground transportation/Airport parking
  7. Other miscellaneous (communication, etc.)
International Travel

Follow the same guidance provided for Domestic travel on our website.  Additional items that are typically budgeted for international travel include international airfare (consider Fly America restrictions), per diem (M&IE, lodging), ground transportation/airport parking, local in-country transportation, passports  and visas (consult with RFP for allowability), medical costs (country specific medication required for travel), vaccines/immunizations, HTH insurance (for non-MSU travelers), DBA insurance, and visa costs.  Note that agency approval may be needed for international travel post award.

International Studies and Programs (ISP) provides some information to help you get prepared for traveling internationally (not with a Study Abroad program), including registering in the Travelers Abroad Database.

  1. Airfare: US-XXXX
  2. Per diem (M&IE, lodging)
  3. Ground transportation/Airport parking
  4. Passports (usually not allowable-refer to RFP)
  5. Medical (country specific medication required for travel)
  6. Other miscellaneous (communication, in-country transportation, etc.)
  7. DBA insurance (2% on salaries, if applicable)
  8. HTH insurance (if applicable)
  9. Vaccines/Immunizations

    The Centers for Disease Control and Prevention (CDC) provides recommendations for vaccines when traveling.  The MSU Travel Office provides information about MSU travel policies and procedures, rates for reimbursement, etc.

  10. Visa Costs

    Visa requirements are specific to the destination country. All required costs and fees associated with obtaining a visa for project travel, such as photo costs and shipping, should be included in the budget. Special handing and rush fees are generally unallowable as they represent optional, convenience costs.  Visa information may be found here.

Participant Support Costs

For participant support costs guidance, see our website.

Chief of Party/Key Personnel
  1. Home Leave (after 18 months of continuous service at post)

    Click here for more information on home leave

  2. R&R (serve at post min. two years unbroken by home leave)

    Click here for more information on rest and recuperation

Subcontracts

See the International Subrecipients webpage for detailed information including the de minimus facilities and administrative rate.

  1. Budget
  2. Budget Justification
  3. Statement of Work
  4. Signed Sub-Recipient Commitment Form
  5. Copy of Negotiated Indirect Cost Rate Agreement, or de minimus rate
  6. Current Audit Report (within last 21 months)
  7. Check in System for Award Management (debarred/excluded party)
In-Country Office (if applicable)

If allocable and allowable, it may be necessary to budget for costs associated with an in-country office. Typical items to budget are salary for in-country office or field staff, office space rental, telephone/fax, internet, express mail service, photocopy (monthly), miscellaneous office supplies including detergents, office computers, printers, and fax machine, in-country consultants, in-country travel for field staff (including per diems, lodging).

See the Subject Matter Expert list for people to contact for in-country assistance.

For information relating to Imprest Advance Procedures, please visit this webpage.

  1. In-country Office Director
  2. In-country staff or field staff
  3. Office space rental
  4. Telephone/fax/internet
  5. Express mail service
  6. Photocopy (monthly)
  7. Misc. office supplies including detergents
  8. Office computers, printers, fax machine
  9. In-country consultants
  10. In-country travel for field staff (per diems, lodging)
Equipment

See our website for general information on budgeting for equipment. 

When budgeting large equipment items such as passenger vehicles, trucks, tractors, bulldozers or other large items.  Your budget should include all related costs, such as shipping, insurance, licenses and other fees, as well as vehicle maintenance costs (e.g. fuel, oil changes, tires replacement, repairs, etc.).  The PI should work with MSU Purchasing to obtain purchase and operational guidance. The PI should also work with MSU Risk Management and Insurance to obtain insurance guidance or see the International Insurance Requirements and Resources page on this website.

Awards may require prior approval agency approval for equipment purchases. Terms and conditions can be found listed in the award document, or by reference in the award. Clarification requests can be directed towards OSP Contracts Groups during award negotiation or to CGA’s Transactions Group after award execution.

Award terms and conditions will also include information regarding ownership of equipment purchased. If the agency retains title to equipment purchased, MSU may request the transfer of the title to the university, or to a separate in-country party that was involved in the project, as part of the closeout process. Title transfer requests should be directed towards Contract and Grant Administration. Specific information regarding how equipment is logged in MSU’s system can be found through MSU’s Capital Asset Management department.

Other Direct Costs

Other Direct costs may include materials and supplies, copy/print services, publication costs, international consultant/contractors (translators, field workers, etc.), costs of vehicle rentals or purchases (maintenance, insurance, shipping cost, licenses, gas, other fees), foreign auto physical damage insurance, and workshop/facility cost (food, room rental).  For a listing of other common direct costs, please see our website.

  1. Materials and Supplies
  2. Copy/Print Services
  3. Publications
  4. Consultants/Contractors (translators, field workers, etc.)

    The considerations for international consultant costs are the same as for domestic consultant costs. The Federal Government requires that the University carefully select consultants to ensure that they are well qualified, essential to the project and that such service is not available at the University.  Departments are required to maintain records documenting the reasonableness of the cost of the service obtained, for USAID awards this often includes completion of an EBD/ 1420 form, and the selection process utilized to choose the Nonresident Alien Independent Contractor. It is the PI’s responsibility to ensure that the consultant’s service quote or other written cost documentation, the consultant’s resulting intellectual work or report, and all internal approvals are obtained and available for review and audit purposes.  Hiring an international Independent Contractor must be done by the Nonresident Alien (NRA) Independent Contractor form. This form as well as additional information related to IRS and payments for an NRA Independent contractor can be found in Section 77 of the Manual of Business Procedures (MBP).

  5. Vehicle, long-term rent or own
    • Maintenance (oil change, tires, brakes, etc.)
    • Insurance
    • Shipping cost (if applicable)
    • Licenses
    • Gas
    • Other fees
  6. Foreign auto physical damage insurance
  7. Workshop/facility cost (food, room rental)
Facilities and Administrative Cost (F&A)/Indirect Costs

Please see our website for more information on F&A.

Budget Justification

For information on budget justifications, please visit our website.

Category:     Subcategories: Budget, International

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