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GUIDE FOR BUDGET PREPARATION INTRODUCTION An important part of the grant application process is the preparation of a detailed budget and an accompanying narrative. The Louisville Institute closely reviews the information you provide and analyzes what you anticipate the proposed activities will cost. We encourage you to give careful consideration to these costs and when appropriate to work with those in your organization who are responsible for its accounting procedures. In the budget review process, the Executive Director may question and negotiate items outlined in your proposed budget. During such discussions, the budget may undergo revisions. If the Institute funds your request, your organization will receive a grant agreement with a request that the appropriate administrative officer sign it and an “official” budget. You will need to share this document with those responsible for finances in your institution because it outlines your financial responsibilities. The grant agreement and attachments contain the following information:
BUDGET LINE
ITEM BUDGET Your
line item budget should list all the appropriate accounts where money will
be spent (e.g., Personnel, Travel, etc.) and the anticipated costs of the
project in each of these accounts. When
appropriate, we encourage you to work with those responsible for accounting
in your organization and to develop the budget based on your
organization’s chart of accounts, which will enable both the Institute
staff and your organization’s staff to
monitor the budget easily. If
you are requesting funds for more than one year, please arrange the budget
in a calendar-year format, even
though your own fiscal year may be different. Each right-hand column should
show the total of each line item for the duration of the project for the
calendar year, and the last right-hand column should show the grant total of
the budget. The Institute staff uses this information to determine tentative
payment schedules. The
Institute receives two types of requests for funding: one seeking entire
support for a project and another seeking support for a portion of a
project. If you are requesting support from the Institute to fund 100% of
your project’s costs, your budget should reflect all anticipated
expenditures. If you seek support from the Institute for a portion of a
project, your budget should include anticipated sources of income as well as
anticipated expenditures. These other funding sources may include your own
organization’s support, other grant support, income from registration
fees, and/or other contributions to the project. If
you would like the Institute to consider funding specific line items within
a larger budget, please include two budgets with your proposal:
SAMPLE
BUDGETS THE
BUDGET NARRATIVE This
section should include a written justification for each line item in your
budget. Each narrative statement should briefly describe:
Here
are some specific narrative guidelines for frequently-used items. 1. Personnel A. Salaries/Wages Here
list the position and the salary or wages requested for each person’s work
in the proposed project. If you would like the Institute to fund a
percentage of someone’s salary, note that percentage. Next to each listing
(if not clear from the title), state what that person’s activities are
with regard to the proposed project. B. Fringe Benefits Indicate the percentages of salaries your organization charges to fringe benefits. If you use different rates for different individuals, your narrative should contain a table summarizing calculations for each person.
Included in this category are general expenses directly related to performing the proposed grant project. Such items as supplies, printing, postage, and telephone are typical entries in the “administrative support” category. There may be others as well. These items need not be separately identified in the proposed budget, but should be explained in the budget narrative. If
your project requires purchasing books for seminar attendees, producing and
printing brochures, generating mailings, or performing telephone surveys or
large item charges, please include, large expenditures as separate line
items, such not under the “administrative support” category. Please
provide a brief justification of your calculations for each line item. Sometimes
organizations will charge percentage allocations for administrative support.
If you use percentages, please indicate that percentage and how it was
calculated. 3. Equipment Although
the Institute does not ordinarily award grants for capital expenditures,
some project may require the purchase of equipment for the achievement of
project goals. Please list equipment requests, with estimated purchase
prices, separately from administrative support, and document why you need
this equipment. If the Institute awards equipment purchases, the equipment
becomes the organization’s property, not the property of the individual.
However, the organization must provide the equipment for the grant purpose
for the duration of the project. 4. Travel Please
indicate your projected travel expenses and document your calculations. You
should estimate travel expenses based on your organization’s standard
travel policies. If the Institute funds your proposal, we request that the
supervisors of the individuals traveling note their written authorizations
on expense reports. The project director must authorize all travel expenses
charged to the Institute grant funds; the project director’s supervisor or
board member must approve the project director’s travel. If
your organization specifies a per diem amount for travel, please indicate
this amount and note what the figure includes. For instance, some per diem
amounts include hotel expenses and others do not. If
the Institute funds your request, we require that your organization retain
ticket stubs and itineraries to document air travel. We also require that
someone other than the person charging items for grant purposes on a
corporate credit card authorize corporate credit card expenses. 5. Consultants If
you plan to hire consultants, describe the purpose, expected duration of the
consultant’s work, and the daily/hourly rate you expect to pay. Please
note that consultants’ fees and travel should be on separate lines unless
fees include travel costs. When
you hire consultants, you should initiate and retain in your files a
contract that includes the following:
6. Conferences If
your project includes a conference, please list all costs directly related
to the conference, using separate line items, e.g., travel, food, lodging,
honoraria, etc. 7. Indirect Costs The
line item titled “indirect costs” is intended to cover grant-related
costs that are not itemized above and are not easily identified, but may be
necessary to conduct the project. Ordinarily, the Institute will allow up
to 10% for indirect costs. In order for the Institute to consider
indirect cost allocations, you must explain the types of items/activities
you intend the indirect costs to include. If
you would like additional information, please contact the Institute’s
Executive Director. To
assist you to make sure you have a complete proposal, we include the
following checklist of necessary items:
© 2004 The
Louisville Institute.
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