Module 7 - Budget

Overview | Direct Costs | Proposal Steps | Resources

Overview

This module will cover the details of developing a budget that aligns with the scope of work you are proposing. A proposal to NSF must include a budget for each year of support requested as well as a budget justification that describes the intended use of every line item of the budget. The budget justification cannot exceed 5 pages within the finance, contracts management, and office of sponsored research departments at your institution can assist you with budget preparation and in accessing institutional and financial information you will need, such as indirect cost rates and staff salaries (described later in this module).

NOTE: This module is not intended to provide exhaustive detail into the budgeting process, but rather to provide an overview of the key areas you should consider as they align with your scope of work. For complete details on NSF budget requirements, including what are allowable and unallowable costs, you must reference NSF Proposal & Award Policies & Procedures Guide (PAPPG). Budget information can be found in the PAPPG section on Budget and Budget Justification.

Some key components or sections of a budget include:

• Staff time and salaries - for personnel performing the proposed work
• Travel costs - for travel by staff and/or non-staff individuals (e.g., advisors) related to the proposed work
• Participant support costs (e.g., teachers or others who might participate in the proposed work)
• Direct costs for partners (sub-awards to proposed partners, costs for consultants and other entities performing proposed work)
• Other direct costs - other anticipated costs not covered under the items above
• Indirect costs - costs related to your institution’s general, financial, and administrative costs

When submitting a proposal to a program, you must first determine what category/type of proposal you are submitting using the program solicitation as your guide. The ITEST solicitation provides information on the maximum award amount allowable and the maximum duration for the type of proposal selected. As you conceptualize and describe your proposed work, you will need to determine what the costs associated with the work will be in order to develop a budget. Your budget request does not have to be the maximum allowable as outlined in the program solicitation. Instead, your budget should align with the scope of work you are proposing, and the budget narrative should justify why the required amount is needed and how it will be used in the proposed work.

Objectives of this Module

When you have completed this module you will understand:

• the components of a budget
• the relationship between the proposed work and the cost for carrying out that work
• how to describe the components of the budget in the budget narrative

Module Format

Each module has the following sections, organized into tabs:

• Overview provides module objectives.
• Topics cover specific module content. This module has one topic tab:
  • Components of a Budget and Budget Justification (Direct Costs)
• Proposal Steps for this module do not include specific tasks, as budget development processes vary greatly from institution to institution. Instead it includes reminders for you to keep in mind as you develop your budget.
• Resources provides general and specific resources.

Module Review Video