Explain budget in detail

Budget is the sum of money allocated for a particular purpose and the summary of intended expenditures along with proposals for how to meet them. It may include a budget surplus, providing money for use at a future time, or a deficit in which expenses exceed sisyphe - honoré daumier (brooklyn museum). Budget (derived from old french word bougette, purse) is a quantified financial plan for a forthcoming accounting period. Budget is an important concept in microeconomics, which uses a budget line to illustrate the trade-offs between two or more goods. Budget helps in planning actual operations by forcing managers to consider how the conditions might change and what steps should be taken now, and by encouraging managers to consider problems before they arise. Other essentials of budget include:To communicate plans to various responsibility center motivate managers to strive to achieve budget evaluate the performance of provide visibility into the company's summary, the purpose of budgeting tools:Tools provide a forecast of revenues and expenditures, that is, construct a model of how a business might perform financially if certain strategies, events and plans are carried enable the actual financial operation of the business to be measured against the , tools establish the cost constraint for a project, program, or budget of a company is often compiled annually, but may not be a finished budget, usually requiring considerable effort, is a plan for the short-term future, typically allows hundreds or even thousands of people in various departments (operations, human resources, it, etc. To list their expected revenues and expenses in the final the actual figures delivered through the budget period come close to the budget, this suggests that the managers understand their business and have been successfully driving it in the intended direction. On the other hand, if the figures diverge wildly from the budget, this sends an 'out of control' signal, and the share price could suffer. Budget is a fundamental tool for an event director to predict with a reasonable accuracy whether the event will result in a profit, a loss or will break-even. A budget can also be used as a pricing are two basic approaches or philosophies, when it comes to budgeting. The focus is therefore in engaging the managers in the business more fully in the budget process, and building accountability for the results. While many companies would say that they do both, in reality the investment of time and money falls squarely in one approach or the r information: government budget of a government is a summary or plan of the intended revenues and expenditures of that government. There are three types of government budget : the operating or current budget, the capital or investment budget, and the cash or cash flow budget. Budget is prepared by the treasury team led by the chancellor of the exchequer and is presented to parliament by the chancellor of the exchequer on budget day. Minor changes may be made however with the budget being written and presented by the party with the majority in the house of commons (the government), the whips will ensure that it is passed as written by the article: united states federal federal budget is prepared by the office of management and budget, and submitted to congress for consideration. Nearly all american states are required to have balanced budgets, but the federal government is allowed to run article: union budget of first budget of india was submitted on 18 february 1869 by james wilson. The budget is prepared by the budget division department of economic affairs of the ministry of finance annually. This includes supplementary excess grants and when a proclamation by the president as to failure of constitutional machinery is in operation in relation to a state or a union territory, preparation of the budget of such present indian finance minister is arun philippine budget is considered the most complicated in the world, incorporating multiple approaches in one single budget system: line-item (budget execution), performance (budget accountability), and zero-based budgeting. The department of budget and management (dbm) prepares the national expenditure program and forwards it to the committee on appropriations of the house of representatives to come up with a general appropriations bill (gab). The gab will go through budget deliberations and voting; the same process occurs when the gab is transmitted to the philippine both houses of congress approves the gab, the president signs the bill into a general appropriations act (gaa); also, the president may opt to veto the gab and have it returned to the legislative branch or leave the bill unsigned for 30 days and lapse into law. There are two types of budget bill veto: the line-item veto and the veto of the whole al or family[edit]. Personal budget or home budget is a finance plan that allocates future personal income towards expenses, savings and debt repayment. There are several methods and tools available for creating, using and adjusting a personal budget. For example, jobs are an income source, while bills and rent payments are are many informational sites and software available for use in personal and family budget – an estimate of future sales, often broken down into both units.

It is used to create company and sales tion budget - an estimate of the number of units that must be manufactured to meet the sales goals. The production budget also estimates the various costs involved with manufacturing those units, including labor and material. Created by product oriented l budget - used to determine whether an organization's long-term investments such as new machinery, replacement machinery, new plants, new products, and research development projects are worth flow/cash budget – a prediction of future cash receipts and expenditures for a particular time period. The cash flow budget helps the business to determine when income will be sufficient to cover expenses and when the company will need to seek outside ing budget – an estimate of the funds needed for promotion, advertising, and public relations in order to market the product or t budget – a prediction of the costs associated with a particular company project. The project budget is often broken down into specific tasks, with task budgets assigned to each. A cost estimate is used to establish a project e budget – consists of revenue receipts of government and the expenditure met from these revenues. Tax revenues are made up of taxes and other duties that the government iture budget – includes spending data items.. Flexibility budget - it is established for fixed cost and variable rate is determined per activity measure for variable cost. Appropriation budget - a maximum amount is established for certain expenditure based on management mance budget - it is mostly used by organization and ministries involved in the development activities . Process of budget takes into account the end based budget - it has clear advantage when the limited resources are to be allocated carefully and objectively. Encyclopedic dictionary of public administration, [online], http:///dictionnaire/en/y resources ces in your ces in other dictionary definition of budget at related to budget at wikimedia ions related to budget at ries: budgetshome economics21st-century american politicianshidden categories: articles needing additional references from march 2017all articles needing additional referenceswikipedia articles needing style editing from august 2013all articles needing style editingarticles with multiple maintenance logged intalkcontributionscreate accountlog pagecontentsfeatured contentcurrent eventsrandom articledonate to wikipediawikipedia out wikipediacommunity portalrecent changescontact links hererelated changesupload filespecial pagespermanent linkpage informationwikidata itemcite this a bookdownload as pdfprintable dia ansአማርኛالعربيةasturianuazərbaycancaбеларускаябеларуская (тарашкевіца)‎българскиbosanskicatalàčeštinadanskdeutscheestiελληνικάespañolesperantoeuskaraفارسیfrançaisgalego한국어հայերենहिन्दीhrvatskiidobahasa indonesiaitalianoעבריתbasa jawaಕನ್ನಡქართულიқазақшаkiswahililatviešulietuviųмакедонскиമലയാളംमराठीမြန်မာဘာသာnederlands日本語norskoʻzbekcha/ўзбекчаਪੰਜਾਬੀپښتوpolskiportuguêsromânăрусскийsimple englishکوردیсрпски / srpskisrpskohrvatski / српскохрватскиsuomisvenskaதமிழ்türkçeукраїнськаtiếng việt粵語žemaitėška中文. Tanding the out you begin to develop a budget for your research grant application and put all of the relevant costs down on paper, many questions may arise. Note: these tips do not supersede the budget instructions found in the relevant application instruction guide found on the how to apply - application guide applicant's budget request is reviewed for compliance with the governing cost principles and other requirements and policies applicable to the type of recipient and the type of award. Any resulting award will include a budget that is consistent with these cost principles address four tests that nih follows in determining the allowability of costs. All the costs that are necessary and reasonable to complete the work described in your hout the budgeting process, round to whole dollars and use only u. F&a (indirect) cost pools should must be distributed to benefitted cost objectives on bases that will produce an equitable result in consideration of relative benefits total costs requested in your budget will include allowable direct costs (related to the performance of the grant) plus allowable f&a costs. If awarded, each budget period of the notice of award will reflect direct costs, applicable f&a, and in the case of sbir or sttr awards, a "profit" or fee. For more information, see nih guide notice many sbir/sttr grantees, 40% of modified total direct costs is a common f&a rate, although rates at organizations may r versus detailed nih uses 2 different formats for budget submission depending on the total direct costs requested and the activity code application forms package associated with most nih funding opportunities includes two optional budget forms—(1) r&r budget form; and, (2) phs 398 modular budget form. Nih applications will include either the r&r budget form or the phs 398 modular budget form, but not both. To determine whether to use a detailed versus modular budget for your nih application, see the flowchart uses a modular budget format to request up to a total of $250,000 of direct costs per year (in modules of $25,000, excluding consortium f&a costs) for some applications, rather than requiring a full detailed budget. Sbir and sttr applicants must complete and submit budget requests using the sf424 research and related (r&r) budget form. See the nih modular research grant applications page and the nih grants policy statement for more ng a modular budget:Select the phs398 modular budget form for your submission package, and use the appropriate set of instructions from the electronic application user's guide. You do not need to submit the sf424 (r&r) budget form if you submit the phs398 modular budget er creating a detailed budget for your own institution's use including salaries, equipment, supplies, graduate student tuition, etc. While the nih will not ask for these details, they are important for you to have on hand when calculating your f&a costs base and writing your justification, and for audit order to determine how many modules you should request, subtract any consortium f&a from the total direct costs, and then round to the nearest $25,000 increment.

Modular budget justification should include:Personnel justification: the personnel justification should include the name, role, and number of person-months devoted to this project for every person on the project. Do not include salary and fringe benefit rate in the justification, but keep in mind the legislatively mandated salary cap when calculating your budget. When preparing a modular budget, you are instructed to use the current cap when determining the appropriate number of modules. Also, this section should describe any direct costs that were excluded from the total direct costs (such as equipment, tuition remission) and any work being conducted off-site, especially if it involves a foreign study site or an off-site f&a ed budget: personnel (sections a & b). All personnel from the applicant organization dedicating effort to the project should be listed on the personnel budget with their base salary and effort, even if they are not requesting salary /key personnel: the senior/key personnel section should include any senior or key personnel from the applicant organization who are dedicating effort to this project. Of the budget (for consultants) or in section a of the consortium/subaward budget page (for collaborators). If listed in section b, include the individuals' names and level of effort in the budget justification personnel: other personnel can be listed by project role. Direct charging of these costs may be appropriate where a major project or activity explicitly budgets for administrative or clerical services and individuals involved can be specifically identified with the project or activity [see exhibit c of omb circular a-21 (relocated to 2 cfr, part 220)]. Be specific in your budget justifications when describing other personnel's roles and ed budget: equipment, travel, and trainee costs (sections c, d, and e). You request equipment that is already available (listed in the facilities & other resources section, for example), the narrative justification must explain why the current equipment is insufficient to accomplish the proposed research and how the new equipment's use will be allocated specifically to the proposed research. Otherwise, nih may disallow this l purpose equipment, such as desktop computers and laptops, that will be used on multiple projects or for personal use should not be listed as a direct cost but should come out of the f&a costs, unless primarily or exclusively used in the actual conduct of the proposed scientific the application does not require you to have a price quote for new equipment, including price quotes in your budget justification can aid in the evaluation of the equipment cost to support the : in the budget justification, include the destination, number of people traveling and dates or duration of your stay for all anticipated travel. Graduate student tuition remission can be entered in section ed budget: other direct costs (section f). And supplies: in the budget justification, indicate general categories such as glassware, chemicals, animal costs, including an amount for each category. Categories that include costs less than $1,000 do not have to be costs: while included under "materials and supplies", it is often helpful to include more specific details about how you developed your estimate for animal costs. For example, if you plan to follow your animals for an abnormally long time period and do not include per diem rates, the reviewers may think you have budgeted too much for animal costs and may recommend a budget ation costs: you may include the costs associated with helping you disseminate your research findings from the proposed research. If this is a new application, you may want to delay publication costs until the later budget periods, once you have actually obtained data to tant services: consultants differ from consortiums in that they may provide advice, but should not be making decisions for the direction of the research. Where applicable, provide the square footage and a&r costs are in excess of $300,000 further limitations apply and additional documentation will be ch patient care costs: few budgets contain patient care expenses, however if inpatient and/or outpatient costs are requested, the following information should be provided:The names of any hospitals and/or clinics and the amounts requested for both inpatient and outpatient costs are requested, provide information for each e cost breakdown, number of days, number of patients, costs of tests/y the costs associated with standard care or research care. In your budget justification, for any graduate students on your project, include what your school's tuition rates are. Depending on your school stipend and tuition levels, you may have to budget less than your school's full tuition rate in order to meet the graduate student compensation limit (equivalent to the nrsa zero-level postdoctorate stipend level). You are using the detailed budget format, each consortium you include must have an independent budget form filled the rare case of third tier subawards, section f. The $500k prior approval policy does not apply to applications submitted in response to rfas or in response to other funding opportunity announcements including specific budgetary limits above $500k. See the division of financial and accounting services (dfas) at nih to set up a rate: http:///dfas/indirect-cost-branch/tiums should each provide a budget justification following their detailed budget. The justification should be separate from the primary grantee's justification and address just those items that pertain to the tanding the out do not expect your budget to predict perfectly how you will spend your money five years down the road. Be thorough enough to convince the reviewers that you have a good sense of the overall large year-to-year variation should be described in your budget justification.

For example, if you have money set aside for consultants only in the final year of your budget, be sure to explain why in your justification (e. General, nih grantees are allowed a certain degree of latitude to rebudget within and between budget categories to meet unanticipated needs and to make other types of post-award changes. In other cases, nih prior written approval may be required before a grantee makes certain budget modifications or undertakes particular activities (such as change in scope). See nih grants policy statement - changes in project and resources to help you create your 's "create a budget": https:///grants-contracts/'s "tips for new nih grant applicants": http:///research/application/pages/'s "common mistakes in writing applications": http:///funding/grant-writing-and-application-process/'s "frequently asked questions" (especially relevant to applications that involve foreign components): http:///grants/pages/. It is a plan for saving and spending for the near purpose of a budget, generally speaking, is to:A) provide a forecast of revenues and expenditures, and. Enable the actual financial operation of the business to be measured against the a detailed budget is created, it makes it easier to follow up on what had gone as expected and what hadn’ implies that one makes an assessment of expected income and expenses. Budgets are typically based on its results for the corresponding period a year earlier (small firms). Many companies base their budget on the outcome from the same period a year earlier. Many service providers therefore choose to budget specific projects that are currently in the addition, a budget may be created of anticipated projects. With an overview of the various projects, budgets will then portray a picture of the expected revenue. Often both income and expenses are taking into account in each budget before creating an overview of its total st is usually recognized as an adjusted budget. Preparing a forecast includes adding the results from another period, and reporting those in the budget for the remainder of the way you get a more realistic picture of the outcome for the full year. This is called an adjusted y important as an outcome budget is a cash budget. A cash budget covers a forecast for how the cash is included in the cash flow budget is a prediction of future cash receipts and expenditures for a particular time period. The cash flow budget helps the business determine when income will be sufficient to cover expenses and when the company will need to seek outside reviso for free for 14 is a cloud accounting platform providing efficient online collaboration between small businesses and between two different trials, both containing all the core features of our accounting system. One of the trials is without data and can be upgraded to a subscription within the 14 days r credibility, accuracy, practical ng the business large entities, the budget office director and staff work with individual managers and others seeking funding approval. And, the entire proposal package aligns with group  business, budget can be defined as a plan for an organization's outgoing expenses and incoming revenues for a specific time is the purpose of budgeting? Most entities create budgets to:plan, track, and control purpose is to ensure that spending follows a plan, supports business objectives, stays within preset limits, and does not exceed available t funding requests. The purpose is to justify funding requests by showing how funds will be ing explained in ns below further define and explain budget and budgeting. Budget examples appear in context with related terms from the fields of budgeting, accounting, and business-analysis. The following budget issues receive special focus:Defining budgeting terms, including variance, opex, capex, zero-based budgeting, static and flexible planning and the budget l budgeting and capital planning . Budget, budget variance and flexible -base budgeting and incremental ning the the meaning of budget and budgeting. Cash budgeting illustrated with ning budgetary planning and the budget is zero base budging and how does it compare to incremental budgeting? Fiscal year for more on defining the budgeting and reporting in-depth explanation of expense, see article operating expenses explains opex budgeting and article capital expenditure explains capex budgeting and more on prioritizing capital spending, see capital review its simplest form a budget is a plan or forecast in the form of a list.

The purpose of the budgeting process is to provide a budget figure for each time passes, actual spending and revenues enter the list to compare with original budget figures. Where budget and actual figures differ, the difference is called a ng budget variancea firm's operating budget, for instance, may forecast spending for "employee training. Later, the firm will break down the annual figure into monthly or quarterly e that two quarters into the budget cycle, the item "employee training" looks something like exhibit 1:Exhibit 1. Budget variance is the difference between these two budget analysts calculate a variance by subtracting the budget figure from the actual spending figure. And, they normally report variance both as an amount and as a percentage of the budget figure. This is because both figures are helpful, later, for variance and minus conventions for by the way, this example uses a convention common in finance, budgeting, and accounting. This shows variance asactual spending less the budget tion 1:variance =actual spending – budgeted a result, a positive variance means spending is over budget while a negative figure means spending is under ly, note that some people instead show variance as the budget figure less the actual tion 2:variance = budgeted spending –actual that case, overspending results in a negative ss people use both conventions, and neither is more correct. What matters is that everyone in the firm uses the same practice, ding to budget the real business world, small differences between actual and budget figures are normal and expected. In any case, they can respond with one or both of these actions:adjust the forecast to reflect the new response is known as flexible l actual spending in the future, so as to bring the annual variance closer to planning begins with high level budgets, primarily the entity-wide capital and operating firms plan the capital budget on a company-wide basis, choosing not to further specify individual department budgets. The other hand, large firms almost always plan spending and revenues for the operating budget in the framework of a budget dual line items in the top level operating budget may carry the names of departments or groups, such as "marketing. The budgeting process, senior managers first set spending levels for higher level categories such as the "marketing budget. Then, marketing managers further apportion this into lower level budgets for areas such as market research, advertising, and two top level budgets together essentially cover spending for the entire firm. Other, budgets may exist for areas such as investments, contingencies, or sinking funds, but these are normally quite small relative to the capital and operating t 2 shows a few of the levels in one firm's budget hierarchy:Exhibit 2. Budget office staff and senior leaders then make spending decisions for the highest levels, and then move major kinds of plans normally stand at the top of the budget hierarchy. Those preparing funding requests should keep in mind these points: firstly, capital and operating budgets usually apply different criteria for prioritizing requests and deciding ly, many proposals include both capex and opex spending. As a result, those asking for funding in such cases must state specifically what they need from the capital budget and what they need from the operating y, as a result, the wise manager therefore writes the funding request and its business case with an eye on both sets of decision brief, those who submit funding requests are asking their employers to spend. Those that do not are, as a result, opex l budgets forecast spending for capital expenditures (capex). Additions that meet the entity's criteria for "capital" items are almost always long lasting, expensive items, which contribute to the value of balance sheet large entities, capital budget planning is normally the responsibility of a budget office. Or, in some settings, the budget office shares that responsibility with a capital review committee. These groups establish their own criteria for prioritizing proposals and for setting a capital spending limit, the capital budget ceiling. Funds designated for the capital budget are called, not surprisingly, capital l capital budget itemscapital expenses (capex) cover purchases that meet company and government criteria as capital assets. By contrast, proposals for opex funding normally compete only against others in the same budgetary unit (e. Here, services such as systems integration consulting, are viewed as legitimate capital surprisingly, the operating budget covers operating expenses (opex) for normal operations. The operating budget therefore covers spending on items that do not part of balance sheet assets.

Opex also include, of course, items purchased irregularly, such as outside consultant services or employee es typically develop the operating budget using a process different from the capex budgeting process. In other words, opex budgets are usually static budgets, not flexible l operating expense spending itemstypical opex budget items include, for example:Employee wages executive salariescontractor laboremployee overheadoffice space suppliestelephone charges utilities costsemployee travelemployee nce costsoutside consultant feesproduction printing machinesutility towers and polesrailroad y towers and polesutility towers and polesdays sales in ial reporting and spending on operating expensesopex spending impacts the income statement directly. Opex spending "goes straight to the bottom line," impacting the earnings report only in the same reporting ng on operating expenses does not bring depreciation ing expenses as a budgeting term vs. The term operating expense therefore has one meaning for budgeting and a slightly different meaning for income statement statement operating expense items appear below the gross profit line and therefore have no impact on reported gross profits or gross used in the budgetary sense, however, the term operating expense can include expense items above the gross profit line. In business, cash budgets are like the check register that individuals use to manage a personal checking account. The cash budget and the check register both record incoming and outgoing transactions, as they occur. As a result, the owner can see immediately the level of cash on budgeting vs. Accrual budgets typically have a series of months in view, although they can also show cash revenues and spending for weeks, quarters, or years. In all cases, however, the cash budget shows actual cash flows, only, in the period they occur. Accrual systems report receivables and liabilities for the period they occur, but cash flows that follow may occur in another budget examplea small firm's monthly cash budget may look like the example in exhibit 3:Exhibit 3. The same firm may use accrual accounting for financial reporting, as well, but leaders probably refer first to this cash budget when dealing with cash flow example cash flow budget shows the budget as it stands in mid-february. Actual" figures for february are current as of mid-month, but these may change by the end of the budget variancesthis example cash budget includes three kinds of figures:forecast inflows and outflows,actual inflows and outflows. When large variances appear between forecast and actual inflows or outflows, the cash budget helps identify the source of the variances. For future months, the manager has two kinds of responses available: take action to increase incoming revenues lower the forecast revenues and spending es normally develop and use budgets on a periodic basis at fixed intervals. Some government groups also prepare annual plans, but two-year (biennial) budgets are also common in the budget cycle is underway, the normal practice is to leave budget forecasts intact (static). Usually, entities change forecasts only in response to exceptional events or cycle and budget process the period of time between issuance of one budget and the next, planning-related decisions and activities are referred to as the budget cycle or process. In large entities, the process normally extends across months, if not the entire period between those involved in budgeting, the process calls for many specific steps and requirements to meet. In any case, those setting out to prepare a funding request for the first time normally begin by accessing this in the budget gh specific steps and timing vary from entity to entity, the budgeting process everywhere almost always includes steps for:assessing variances between actual and budgeted figures in the previous period's fying and then prioritizing business needs and objectives for the forthcoming sting and evaluating the following: incoming t trends or changes that have spending or revenue implications. The budget, in other words, may need to anticipate events such as labor action, competitor action, or natural ng that :individual funding proposals in the complete plan are consistent in format. As a result competing proposals can be compared g proposals align with strategic ures and methods are in place for implementing monitoring the ing and communicating funding requests to those responsible for reviewing and approving budget large entities, responsibility for driving and managing the budgeting process belongs to a budget office. The result is that all budget proposals are developed according to local policies and rules, and that the entire proposal package is reasonable and aligned with entity base budgeting is an approach requiring justification for every expenditure. The zero base approach can be very effective, for instance, in finding and trimming inflated budgets. It can be effective for exposing budgets that include obsolete or wasteful base budgeting vs. End of period based budgeting also helps avoid a practice for which the incremental approach is notorious.

Under zero base budgeting, however, this tactic would be a large entity, however, the zero based approach may call for very substantial research and analysis in order to justify every funding request—an investment in time and organizational resources that is not, in its own right, justified. Variance analysis attempts to find the reasons that actual figures were over or under forecast so that eithercorrective action can be taken to reduce variances in the future, (an exercise in static budgeting) orfigures for future spending can be adjusted as necessary (the practice of flexible budgeting). Under this approach, a positive variance always means the actual result was greater than the budgeted tion 2 some entities (such as the project management institute), however, recommend using the above convention for revenue, but reversing the order for expense items:incoming revenue variance = actual – forecastexpense spending variance = forecast – actual   under this convention, positive variances are always "good things" (more revenue or less spending than expected), and negative variances are always "bad things. Managers will probably call for variance analysis when a large budget item turns out substantially over budget. Over budget, variance analysis will have to consider the interrelationships among all budget items in "manufacturing overhead. Budget variance presents leaders with two alternatives:Either adjust the budget in future periods to conform with revenue or spending ,  take actions to impact future spending and revenues, so as to bring forecast and actual figures closer former option (adjusting the plan) is called flexible budgeting. For a department budget or for an operational area such as "advertising") have the ability to adjust their own plans "in real time" by moving planned levels from one category to another. Note, however, that movements from "capital spending" authorizations to "operating expense" is not always easily r, if a manager needs to increase his or her overall spending total above plan, that normally requires the use of a process called  "emergency funding" or "request for non-budgeted funds. It also tends to minimize the chances that sponsors will arbitrarily reduce or eliminate budget categories. Sponsors have a good idea of what a project should cost, and generally know when you are over or under budget is reviewed by ogca and the sponsor to verify that costs are reasonable, allowable, allocable and necessary to carry out the proposed project, and if it conforms to the sponsor's instructions. During award negotiations a budget is sometimes subjected to further analysis by the sponsor's audit staff. Thus it is important to maintain all the documentation and justification you can assemble for each cost element and category, in case the sponsor questions items and newcomers to the process, consult with experienced faculty or staff within your department for advice, or contact the ogca pre-award administrator assigned by sponsor to discuss potential budget justification is a categorical description of the proposed costs. Generally, it explains staffing and supply/service consumption patterns, the methods used to estimate/calculate (including escalation or inflation factors) and other details such as lists of items that make up the total costs for a category. The budget justification should address each of major cost categories (salaries, fringe benefits, equipment, travel, supplies, other direct costs and indirect costs), as well as any additional categories required by the sponsor. Thoroughly written justification that explains both the necessity and the basis for the proposed costs must accompany the budget. A budget that is adequately and appropriately justified is the best way to assure a positive cost analysis by the are some helpful tips:Organize the budget justification listing items in the same order and format as the sponsor’s budget include budgeted items. Do not list cost-shared items unless cost-sharing is mandated by the narrative must match the budget in terms of dollar amounts and language – double check n why items are essential in relation to the aims and methodology of the project as well as meeting the goals of the n the line items. Do not merely restate the proposed e detail sufficient to justify the rationale for acquiring the item under the proposed see budget development: personnel all personnel and positions to be paid with project funds and briefly describe their role in the list paid personnel unless cost-sharing is mandated by the addition to how the sponsor requires effort to be shown, also always list effort in person months for faculty and staff. Currently for example, umass budgets only 2% with the see budget development: consultant name and describe in detail the services to be e number of days, rate of compensation, and total amount per year. This must be corroborated in a letter provided by the see budget development: tion of equipment:  a unit cost of $5,000 or more and a useful life of at least one accurate price n why the equipment is needed in support of the project m equipment is dedicated to the project. If equipment is shared with other projects, budget an amount that corresponds to expected project use and verify the rationale. Split funding of equipment should only generally occur with large equipment als and see budget development: materials and request supplies directly relevant (allocable) to the research n in detail why specific supplies are not request general office supplies if federal (allowability). Where large amounts of supplies or expensive items are budgeted, specify items and justify their see budget development: for reasonable te basis of cost (historical, quotes, etc. Some sponsors like nsf will reject a proposal if insufficient details are e number of people, number of days, purpose and location of ing should be based on actual experience or an inflation factor (cola) for future partial financing of travel also budget development: other direct -for-service: justify use; show the university approved rate, or if an external vendor, their published rate.

Use the graduate student fringe and tuition tractors/ also budget development: y identify subcontracting organizations and their key y explain their scope of n the need to contract with a particular organization, expertise of subcontractor pi, institutional in mind that subcontractors will provide their own detailed budgets and corresponding budget justifications. These should be separate and distinct from the umass budget and budget justification and follow the umass budget and budget justification.