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 is a categorical description of the proposed costs. 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 estimates.įor newcomers to the process, consult with experienced faculty or staff within your department for advice, or contact the OPAS pre-award administrator assigned by sponsor to discuss potential costing. During award negotiations a budget is sometimes subjected to further analysis by the sponsor's audit staff. The budget is reviewed by OPAS 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. Sponsors have a good idea of what a project should cost, and generally know when you are over or under budgeting.

It also tends to minimize the chances that sponsors will arbitrarily reduce or eliminate budget categories. A complete and realistic budget justification demonstrates that your project is well conceived. A well-developed budget is accompanied by a budget explanation or narrative, also known as a budget justification.

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