Step 3: Prepare the Final Budget and Budget Justification
7 Prepare the Final Budget
Think ahead
- Don’t forget inflation or increases in costs
- rent or annual salary increases
- A certain degree of variation is acceptable
- However if there’s no way of knowing how much something is going to cost — tricky!
Terminology Head’s Up
- Grants language
- Honorarium, stipends, scholarships
- FHSU
- Employee, independent contractor, scholarships
This becomes relevant after you have received your grant award!
Pre agreement Costs
Costs incurred prior to effective date are not allowed.
Budget Revisions
- Before issuing an award, the agency may reduce or increase the amount of support for the proposed project.
- A change in budget should lead to a change in scope of work and vice versa.
- Requires FHSU approval of a revised budget.
What happens after the proposal is approved?
- Required to report back to the funder on a line item basis.
- Track expenses in WorkDay – time and effort
- Shifting money
- 10% rule
- Good communication with grants officer
Prepare the Final Budget
- Use the agency’s form, if they have one.
- Keep careful track on a spreadsheet of all calculations and rationales for budgeting decisions – you will be glad you did when you receive the award!
