Guidelines for drawing up budgets

in respect of applications for the financing of projects

1. The following items may be included in a budget and must be specified on a separate list:
   • Travelling and subsistence expenses – indicate tariff and period
   • Transport cost – indicate tariff and kilometers
   • Laboratory analysis costs
   • Fodder, seed
   • Experiment animals *
   • Insurance (of PRF apparatus/equipment on loan)
   • Chemicals
   • Glassware
   • Consumables
   • Stationery and printing
   • Services that are contracted out
   • Maintenance, repairs and assizing of equipment/apparatus – specify and motivate
   • Minor equipment – motivate
   • Fertiliser
   • Lease of land/equipment/glasshouse
   • Sundry – this item must be limited to the absolute minimum
   • Technical/research assistance

   All items exceeding R2 000 must be specified, e.g. Glassware R2 000 (petri dishes, test tubes, pipettes, etc.).

2. If stock/poultry * are purchased with PRF funds the income resulting from the sale thereof must be paid pro rata to the PRF. Expected income must therefore be indicated in the budget and the funds applied for must be decreased accordingly, or the income may be paid pro rata to the PRF when realised.
3. Research institutions should make their own provision for basic equipment that can be utilised for a wide range of purposes. Computers and standard software are viewed as basic research equipment (for capital items, see below).
4. Foreign tours that hold direct benefits for the PRF-financed project may be financed and must be fully motivated.
5. Funds allocated by the PRF may only be used for the approved project.
6. No overhead costs are paid by the PRF.
7. VAT must not be included in the budget.
8. Details of alternate sources of funding must be revealed. If the other sources attach any conditions to their contributions, these must also be stated.
9. Exceeding a budget and/or movement between budget items may not take place without PRF approval. The PRF can be approached timeously if a budget is likely to be exceeded. Requests must be authorised by the Director (ARC Institute), Departmental Head (University) or Chief Executive Officer of the relevant organisation.
10. Financial statements for a calendar year must be submitted to the PRF annually by 20 January, before the first installment will be paid. Funds are paid out in four installments. Invoices for the advanced payment for each quarter must be received at the end of January, April, July and October.
11. If it becomes apparent that approved funds will not be spent before the end of December special arrangements can be made. A request from the Director (ARC Institute), Departmental Head (University) or Chief Executive Officer of the relevant organisation to the Board will be considered if well motivated.

Capital items

12. Capital items that are specifically required for projects that are submitted for PRF funding may be submitted for consideration as a part of the budget of the project. Such items must be mentioned in the long-term budget submitted with the initial project application. Motivations for such capital items must be submitted according to business principles by clearly stipulating their economic justification. Capital items that are funded exclusively by the PRF remain the property of the PRF. It is expected of the institution to accept responsibility for the maintenance and insurance of such equipment. The institution may budget for this in its project proposal to the PRF for the duration of the project.
13. The PRF does not normally finance major capital items such as glasshouses or expensive equipment that have a useful life of several years and that can also be used for other purposes. Under exceptional circumstances the PRF may purchase capital equipment for use in a project. In cases of large capital items, as well as in cases where the life span of the financed asset is longer than the duration of the research project itself (but also capital assets in general), such assets, if purchased by the PRF, will remain the property of the PRF. At the termination of the project the contractor may negotiate with the PRF to take ownership of such equipment by making a financial contribution to its purchase. The PRF retains the right to make a decision regarding the sale of such equipment/apparatus after completion/termination of the project.
14. The PRF may decide to hire rather than to purchase capital items for a specific project if this is to its advantage. The onus rests on the researcher to determine in advance the most cost effective way in which equipment can be acquired. At least two quotations must be obtained from suppliers or lessors of the equipment. The rental for such equipment may then be included in the budget.
15. Where the PRF has agreed to purchase capital equipment the researcher is requested to negotiate in advance for quotations to limit any increase in the cost of the item(s).
16. Invoices for the purchase of capital items must be forwarded to the PRF immediately after each purchase. If the purchase price is less than the budgeted amount, the balance, together with the invoices, must be returned to the PRF.