ECE Budget Guidelines
When applying for external funding, always pay close attention to the specific details of the funding call. The call description will clearly outline what you can and cannot apply for. Even within the same grant source, different instruments often have their own set of rules, so don’t assume that one size fits all.
That said, some general principles tend to be consistent across most grant sources’ instruments, and these ECE guidelines are intended to help you create a healthy budget that sets your project up for success and ensures ECE can host the project without concerns about its financial feasibility.
When preparing your budget, keep these points in mind:
- Ensure the budget aligns with the specific goals and requirements of your project.
- Always optimize your budget, no matter how favorable or unfavorable the grant’s financial terms might appear.
- Only by optimizing budgets for all projects can ECE continue to support applications to any grant source, including those with strict requirements for substantial co-financing, minimal overhead, or limited coverage options.
General Principles to keep in mind when preparing your budget
Read the Call Description Thoroughly:
Each funding call has unique rules. Ensure you understand what can and cannot be applied for within the scope of the call.
Each funding call has its own set of rules and restrictions. Always check what costs are eligible and ensure your budget aligns with the specific call requirements.
Recognize Instrument-Specific Variations:
Even within a single grant source, different instruments may have distinct criteria for what you can and cannot apply to.
Even within the same grant source, different funding instruments may have distinct guidelines. Do not assume that the same rules apply to all applications under a single funding body.
Coverage:
You should check whether coverage for fixed VIP and fixed TAP is possible. This is one of the best options of ensuring the financial feasibility of your project.
For coverage to be counted positively, it must reflect salary paid to permanent VIP/TAP staff—i.e., those whose salaries are funded directly by ECE. When applying for their salary, make sure to select Coverage. Staff who are hired and fully funded through external projects do not count as coverage. Their salaries should be categorized as External Funding in the Tech Budget template.
If you are unsure about what to select, both the RSO and Nat-Tech Finance can assist you. You are also welcome to contact ECE’s scientific coordinator, Rasmus Nielsen, at rani@ece.au.dk.
Co-financing:
While cofinancing should generally be kept to a minimum, some level of cofinancing is expected for certain calls and grant sources. For instance, the Innovation Fund requires 10% Co-financing from AU. If co-financing is necessary, always co-finance using permanent VIP or TAP staff time before considering other sources.
Operation cost and miscellaneous expenses:
Be sure to include operational costs in your budget. These are sometimes overlooked expenses that may seem less critical compared to allocating additional time for a Post Doc or PhD. However, if not accounted for, these costs will fall back on ECE to cover, and reviewers may question the feasibility of your project if they are missing.
While the list below is not exhaustive, it provides examples of typical operational and miscellaneous expenses to consider:
- Software licenses
- Workstations
- Online Storage
- Books, tools etc.
- Travel costs associated with the project
- Conference fees
- Tuition fee (usually 80.000 DKK pr. Year)
- Local transportation and meeting expenses
While the above principles provide general advice, always cross-reference them with the specific rules of the funding call. When in doubt, seek support and advice.
Specific guidelines
To complement the general guidelines, specific guidelines have been created for a few of the largest grant sources for ECE. These guidelines are accompanied by an example Excel budget file to provide a practical reference. The examples serve as inspiration, showcasing what is possible in terms of structuring budgets that significantly exceed the expected coverage percentages.
Innovation Fund Denmark – Grand Solutions
Overhead: Innovation Fund Denmark provides 44% Overhead.
Coverage: If you are a project coordinator, you should keep in mind that the role as extremely time consuming. For this reason alone, you should cover 3-12 months of your own time pr. year, depending on the size of the project.
IFD allows coverage for both permanent VIP and TAP staff. If you or other permanent VIP colleagues contribute to the project, make sure to include coverage for the time. Similarly, if TAP staff, such as workshop personnel, assist with the project, ensure their time is appropriately covered in the budget as well.
As a side bonus - Having permanent VIP and TAP staff allocated to your project is positive in the eyes IFD.
Co-financing: ECE is required to deliver 10% cofinancing for the project. Even though IFD only covers a maximum of 75% of the total budget, ECE’s co-financing contribution must not exceed the required 10%.
The remaining co-financing must be provided by your project partners. For this reason, it is important that you communicate this expectation to your partners as early as possible.
Below is an example of a fictitious budget with 10% co-financing from ECE. In this example, AU partners with an SME and a large enterprise:
In the example above, IFD would need to finance 13.4 million DKK out of a total project budget of 16 million DKK. This corresponds to (13.4 million DKK / 16 million DKK) × 100 = 83.75%.
However, since IFD can only finance up to 75% of the project budget, and ECE's contribution should not exceed the required 10%, the project budget must be adjusted.
75% of 16 million DKK equals 12 million DKK, meaning 4 million DKK must be co-financed.
If ECE keeps a total share of the budget of 10 million DKK, co-financing for ECE would be 10% of the total budget, or 1 million DKK.
This leaves 3 million DKK that must be co-financed by the other project partners.
Various ways exist to achieve this. Below is an example of how the budget could be adjusted.
In the example above, the total budget remains at 16 million DKK. AU – ECE’s share stays at 10 million DKK, while the co-financing contributions from both the SME and the Large Enterprise increase. At the same time, the IFD-funded portion decreases for both the SME and the Large Enterprise. This way IFD funds a total of 75% of the budget, while AU – ECE’s co-financing is kept at the required 10%.
PhD/Postdoc: IFD will not cover tuition fees.
Operation cost and miscellaneous expenses: Be sure to include operational costs in your budget. A list of common operational expenses can be found further up on this page under the general guidelines.
Horizon Europe (RIA)
Overhead: EU Horizon Europe RIA provides 25% Overhead.
Coverage: For EU projects, salaries for permanent VIP and TAP staff are eligible expenses. If you are a project coordinator, you must account for the substantial administrative and coordination efforts required. The larger the consortium, the more coordination is needed, demanding more of your time. As a minimum, you should allocate 2 months/year for your own time or that of another permanent VIP to cover this administrative work. Additionally, it is advisable to apply for coverage for a project manager from RSO, secretary time or something similar to help you with the administrative work.
Co-financing: Should be avoided. EU Horizon RIA projects require no cofinancing.
PhD/Postdoc: Tuition fee is not an eligible cost for EU projects.
Operation cost and miscellaneous expenses: Be sure to include operational costs in your budget. A list of common operational expenses can be found further up on this page under the general guidelines. Specifically for EU Horizon projects: If your budget accumulates to 430,000 EUR and above, remember to include 5,000 EUR for a mandatory audit.
Novo Nordisk Fonden
Project Supplement: Instead of Overhead, Novo Nordisk Foundation provides a project supplement of 250.000 DKK pr. Full Time Equivalent per Temporary VIP assigned to the project (PhD, Postdoc, Research Assistant, etc.). Always ensure you apply for the maximum amount of 250,000 DKK per Temporary VIP per year when submitting a Novo Nordisk application.
Coverage: Always be sure to check the most recent guidelines of the call, but in general you can cover technician salary and administrative staff. Aim for 10% coverage of the total project budget covered as permanent TAP staff time (this includes the workshop).
Co-financing: While cofinancing should generally be kept to a minimum, some level of cofinancing is accepted if coverage of PI time is not an eligible expense. For a Natural and Technical Sciences Novo Nordisk project, PI coverage is not an eligible cost. This means for the project’s three-year duration; two to three months of co-financing can be allocated in total.
PhD/Postdoc: For Novo Nordisk calls, opting for a PhD over a Postdoc will result in a healthier project budget. This is due to the lower salary costs for PhD students and the ability to apply for tuition fees. Always apply for the maximum allowable tuition fee (typically 80,000 DKK per year per PhD). Be sure to refer to the specific call text for details on the exact maximum amount of tuition fee permitted.
Operation cost and miscellaneous expenses: Be sure to include operational costs in your budget. A list of common operational expenses can be found further up on this page under the general guidelines.
Contact
Seeking support?
If you are uncertain about what expenses you can include and what expenses you are expected to include in your budget, both Tech Research Support (TRS), AU’s Research Support Office (RSO) and ECE's research coordinator are available to help.