PreAward Budget Development

Budget Development

A proposal to an outside funder normally includes a detailed budget. The grants administrator can assist with budget development. Sponsor guidelines should always be consulted for specific directives on budget preparation. The following represents general guidance.

The budget should include both the sponsor and non-sponsor share of the total project cost. Proposed project costs are comprised of allowable direct costs, indirect costs (also known as facilities and administrative or F&A costs), and cost sharing. Allowable costs are those that are reasonable and allocable to the sponsored project and allowable under Georgia Tech and sponsor policy.

A budget narrative/justification should be prepared to explain how the budgeted costs relate to the project.  It should provide sufficient detail to allow the sponsor to determine whether the proposed costs are reasonable and appropriate. Key elements to include in the budget justification are:

  • A detailed justification of the expense or service
  • How the expense relates to and benefits the project
  • The anticipated cost
  • The time period in which it will be used
  • Other information that will aid the sponsor in evaluating the proposed item

AE References, Guides, and Sample Docs

Informative Links!