Budget Development & Award Management

A proposal budget is a careful calculation and documentation of all the funds needed to conduct a proposed project. It has two parts: budget and budget justification. Both are important elements of a persuasive proposal.

Request Budget Assistance 

Budget Details

• A budget should flow logically from the proposal's research and methods. It is broken into one-year segments and presents each line item separately.
• A budget should accurately reflect the activities in the proposed project. A budget that seems skimpy or padded can count heavily against the project. An unrealistic budget suggests that the investigators don't know what they're doing.
• A budget is both an estimate and a firm offer on the part of the University. Once an award has been made, changes to the budget must be renegotiated based on the funder's guidelines. 
• Some sponsors establish dollar limits for first-year direct costs, with maximum increases for the following years. Proposals that exceed these limits may be rejected.
• A budget must comply with the sponsor's guidelines. For example, a sponsor may not allow office equipment purchases, or may limit costs for travel or publication support. Follow the sponsor’s budget instructions and only ask for what is allowed.
• Be sure to include indirect costs. Check the F&A (indirect) Cost Rate Chart for current rates. If the sponsor only allows a certain rate, get a written document or web page listing that rate and submit it to SPA with your proposal.
• Use current inflation and fringe rates. MN-GEMS will automatically calculate correct rates for budgets prepared online.
• Budget Templates are available to help get you started.

Costs to include in your project budget may include:

• Personnel (position title, % effort or person-months, name of each person if known)
• Fringe benefits (provides rates used)
• Honoraria (by name of each person, if known)
  • Traveling on University Business
  • Per Diem - Lodging, Meals and Incidentals
  • U of M Travel Services - Contains rates and policy information
• Equipment (individual pieces listed separately)
• Materials (specific types)
• Subcontracts (name of company/institution, tasks, duration)
  • Sub-award proposal development materials
• F&A (indirect) cost rates and base
• Special categories related to the project, such as photocopying or reproduction, fees (for example, at archives), consultants, participant incentives, permits or visas, Compensation for Community Partners, etc.
• U of M Policy Library

Request budget assistance from the CLA Grants Team to refine and finalize your budget and to submit your full proposal to SPA.

Budget Justification

Most sponsors require applicants to justify the need for each budget line item. To identify which items must be justified and what information to include, read the grant application instructions carefully. The budget justification is usually a stand-alone document. 

Award Management & Post-Award

The Sponsored Projects Administration (SPA) is the only institutional unit legally able to submit proposals to external entities for financial support in the form of a contract, grant, or agreement, and legally able to commit the University on behalf of the Board of Regents in the event an award is made. 

Once a proposal is awarded, SPA provides resources and services related to notice of award and account establishment, award management, managing sponsored awards, and post award & close out procedures.