Sample Budget Justification The purpose of a budget ...

1 Sample Budget Justification The purpose of a Budget Justification ( sometimes also called a Budget narrative ) is to explain and justify all expenses required to achieve project aims and objectives. The following is a general guide for writing a Budget Justification . Some sponsors require that you show dollar amounts in the Justification , and some do not. For this example, dollar amounts are included always check sponsor guidelines. Budget categories in the Justification should appear in the same order as in the Budget . Numbers in the Justification must match exactly those in the Budget . A. Personnel Key/Senior Personnel For each PI, Co-PI, or Project Director, list name, title, amount of time to be spent on the project and what s/he will accomplish. Example: Dr. Smith will serve as principal investigator and will commit two summer months of effort to this project.

2 She will primarily be responsible for .. Total salary requested for Dr. Smith is $11,111, calculated from a base academic salary of $50,000. Other Personnel Include Research technicians, lab managers, students any other personnel being paid out of the grant. List name (if known), title, amount of time to be spent on the project, and what s/he will accomplish. Example: One undergraduate student will commit 10 hours/week at $10/hour for 30 weeks, and will be responsible for .. Total requested for Other Personnel is $3,000. Total Personnel: $14,111. B. Benefits Benefits must be calculated for any personnel proposed to be paid from the grant. Benefit rates for faculty, staff, and students are different. MSUB's rates are available here: Example: Fringe benefits are calculated using current approved institutional rates of for faculty and.

3 440% for students. Key/Senior personnel benefits: $11,111 x = $2,113 + two months health insurance at $1,054/month. Student benefits: $3,000 x .440% = $13. Total Benefits: $4,233. C. Travel Explain the need for travel (how it will benefit the project's aims) and your calculations of travel costs. Break down by airfare, hotel, per diem, etc. Allowable hotel and per diem rates are available here: Example: Travel costs are based on established MSU Billings guidelines. Dr. Smith requests funds to attend the Society of XYZ annual conference in Dubuque, Iowa, for the purpose of disseminating project results. Conference fee is $1,500. Travel costs are estimated at $750 for airfare, three nights' lodging at $150/night, $30 for local transportation, and $46 per diem for three days. Total Travel: $4,236. D. Equipment Equipment is an item of lasting value with a cost of over $5,000.

4 List the equipment you are requesting, including model name/number, and price quotes from a vendor. Explain the necessity of the equipment to the project. Example: In order to complete Aim #2, a high power microscopy lens is required. This lens will enable researchers to detect the presence of damaged protons. MSU Billings requests funds to purchase one XYZ Microscope, Model #123, at $2,355. Total Equipment: $2,355. E. Other Direct Costs (note: sometimes Supplies and Contractual Services are listed as separate categories). Supplies Supplies are non-durable goods with an individual value of less than $5,000. List supplies in general categories ( , office supplies, lab consumables, etc.). Example: Test tubes, beakers, chemicals, assay kits and lab consumables are required for this project to complete blood tests and analysis, estimated at $3,000.

5 Contractual/Consulting Services It may be necessary to contract with an external expert to assist with a portion of the project. Before including contracted individuals in your proposal, complete the Independent Contractor Checklist, . available here: This checklist will help you determine whether MSUB and state policies will allow you to hire the proposed individual as a contractor, or if they will need, instead, to be hired by MSUB and paid through payroll (in which case they will be personnel, and will need to be assigned fringe benefits). Provide the consultant's name, company/organization, and purpose to the project. List individual costs for consultant: travel, per diem, compensation/fee. Example: Funds are requested to contract with Dr. Sandra Brown of GreatLabs in San Antonio, TX. Dr. Brown is a leading expert in damaged proton detection, and has significant experience with clinical trials and participant recruitment.

6 Dr. Brown's consultant fee will total $2,000. Additionally, Dr. Brown will travel once during the project period to MSU Billings: Airfare, $530, two days' per diem, $92, and two nights of accommodation, $200. Total Other Direct Costs: $5,822. F. Total Direct Costs Total from all categories above Total Direct Costs: $30,757. G. Indirect Costs ALL Federal grants must include Indirect Costs (IDC) unless they are explicitly disallowed in the proposal guidelines. State agencies and private grantors may or may not allow Indirect Costs to be charged to a grant check the proposal guidelines. Proposals that do not request Indirect Costs will not be submitted unless the PI can provide proof that Indirect Costs are disallowed (provide a copy of the guidelines). MSU Billings' federally-negotiated IDC rate is 51% of salaries and wages (not including benefits).

7 Department of Education training grants have an IDC rate of 8% of total direct costs. Example: Indirect costs are calculated at MSU Billings' federally-negotiated rate of 51% of salaries and wages. $14,111 x .51 = $7,197. Total Indirect Costs: $7,197. TOTAL REQUESTED AMOUNT = $37,954.