A budget is a key element of most grant proposals and serves as a blueprint for spending the project’s funds. The budget should be derived from the objectives, tasks, and activities expressed in your proposal/program. 

An effective proposal budget outlines the proposed project in fiscal terms and helps reviewers to determine how the project will be conducted. Budget information about activities planned and personnel who will serve on the project provides reviewers with an in-depth picture of how the project will be structured and managed. Budget details usually reveal whether a proposed project has been carefully planned and may ultimately be feasible.

Often required with the budget is a narrative justifying budgeted items. This budget justification will vary depending on the sponsor's budget format.

Direct Costs

Direct costs are costs that can be identified specifically with a particular sponsored project, an instructional or institutional activity, or one that can be directly assigned to such activities relatively easily with a high degree of accuracy. These costs include project personnel base salaries and employee benefits, supplies, travel, equipment, telephones, and postage. Base salary is calculated as direct salary and wages including vacation, holiday, sick pay and other paid absences but excluding all other fringe benefits. It is important to ensure that all costs meet the criteria of allowable, allocable, and reasonable expenditures as defined by Federal Cost Principles (OMB Circular A-21) — a 30-page document of very detailed information. We strongly suggest that you work with us and/or the assistant controller to fully understand these definitions.

Airfare

Fare Compare is a database of historical airfare prices to help you budget travel

Mileage

Current IRS rate is 56 cents/mile (2021)

If a single piece of equipment is under $5000, it should be placed under “supplies”

 

Base

Direct salary and wages including vacation, holiday, sick pay and other paid absences but excluding all other fringe benefits

Fringe Benefits

Annual finge is estimated at 35% of your base salary.

Summer fringe

Typically estimated at 17.15% (7.65 FICA & 9.5 TIAA match) of your base salary.

You are required to work with the assistant controller on all matters related to salary/wages for accuracy.

Related Links

Indirect Costs

Indirects are often referred to as the “cost of doing business,” business overhead, or facilities and administrative costs (F&A), and include many of the services the college provides (procurement, administrative, library/technology, SRO, custodial, accounting/finance, and security) as well as building maintenance and depreciation, utilities, and the like. Kenyon is required to periodically negotiate our Indirect Cost Rates (ICR) with the Department of Health and Human Services. Currently, our ICR is based on a percentage of salary and wages in the proposal. ICR is an additional budget line item and should not reduce the sum necessary for you to conduct your proposed program. The following predetermined rates should be used:

On campus: 51.50%

Off campus: 16.30%

There can be great variety in how private funding agencies, such as foundations or associations' after agencies, handle indirect costs. There is no single accepted standard percentage. Many foundations have unwritten policies not to fund overhead at all. 

Budget Narrative

• Does the budget justification follow the same order as the budget?

• Does it give additional details to explain the costs included in the budget, such as quantity and price, if appropriate?

• Does it include only items that are allowable, reasonable, & allocable?

• Are items/services clearly documented as essential and, when appropriate, the proportionate benefit can be allocated to the project relatively easily and with a high degree of accuracy?

• Is it easy to read (short paragraphs, headings to separate different budget categories, etc.)?

• Do the numbers in the budget justification match those in the budget?

• Follow sponsor proposal instructions, providing as much detail as needed;

• Approach the budget from the perspective of what the sponsor needs to know, not from the perspective of what the PI wants;

• Explain why each of the requested items is necessary to accomplish the proposed research — don’t leave the reviewer wondering why an item was requested;

• Unless required by the sponsor, do not include dollar amounts in the budget narrative.

• Think of your budget narrative as telling the fiscal story of your project.

All proposals for outside funding must be certified by the assistant controller.