Applications for contracts and grants are required to include, for awards to be in place or to be renewed as of the beginning of the Fall Quarter 2004, a separate direct cost budget item for "Fee and Tuition Remission." This item includes all fee remission charges for which a qualifying appointment is expected to be eligible, including nonresident tuition, if nonresidents reasonably can be expected to be funded on the contract or grant. Nonresident tuition remission is budgeted and expensed on Sub 6, attached to a new object code 8970 created specifically for this benefit. The amount budgeted for nonresident tuition remission should be the estimated cost of nonresident tuition for the coming fiscal year, as indicated in the fee schedule from the Office of Resource Management and Planning.

This expense is treated as a direct cost, but is generally not part of the direct cost base upon which the budget must calculate indirect costs.