The budget you develop for your grant or contract will not directly determine whether you are awarded the grant or are offered a contract. Don't rely on the budget to do something that your proposal is required to do. The budget must accurately reflect the resources necessary to support the proposed project, nothing more. Don't use the budget as a marketing tool to sell your proposal, you will sell yourself out and mortgage the grantee institution at the same time.

The budget for your project should be developed along a parallel tract with the proposal, this will allow the Principal Investigator (PI) and support staff to deal with costing of individual line items as the goals and objectives are formulated. You should not complete the proposal and then drop it in the lap of your administrator. This methodology leaves the administrator with few options and ultimately shortens the time available to complete the budget.

Before you get started here are some factors you should consider:

• Know what the sponsor wants! If the funding opportunity is for a small pilot study, don't submit a multi-project full-scale research program.

• If your institution has previously submitted an application to a sponsor, you should get a copy of the application/budget particularly if the project was funded.

• Know what the sponsor's guidelines and budget limitations, along with the indirect cost rate.

• Know the type and format of the budget and the level of detail required.

• Make sure you can complete the proposed scope of work given the sponsor's funding level.

• Does the sponsor require cost sharing as part of the proposal?

• A budget must be consistent with both the sponsor guidelines and the institutional guidelines, consistent with the goals and objectives of the project, justifiable financially and programmatically, and last but not least accurate. (See the related links at the bottom of this article for links to the institutional guidelines.)

Personnel	The salaries reflected must be the current actual salaries. Time and effort should be reasonable estimate of level necessary to complete the project. Fringe benefits should be accurate and consistent with a negotiated federal agreement or institutional policy.
Consultant Costs	Cost should be consistent with institutional guidelines as well as market value of the services. The terms and conditions for the consultant should be determined upon submission of the proposal.
Equipment	Each item must be fully justified and consistent with the goals and objectives of the proposal.
Supplies	Itemize supplies in separate categories and provide justification for those, which have a major impact on the protocol, for example, when animals are to be purchased, you must identify the species and the number to be used.
Travel	Identify the purpose and the individuals involved in the trip. Don't add travel funds just for the sake of having it available.
Patient Care	Provide specific information on the type of costs and the basis for the cost estimates.
Alterations and Renovation	This category requires strong programmatic support and unless the sponsor specifies that these costs are acceptable, you should contact the program office to discuss the inclusion of the costs in your proposal.
Other Expenses	Itemize any other expense by category and unit cost. These might include publication cost, dues, memberships, service contracts, and equipment maintenance.
Consortium and/or Contractual	Each collaborating organization must submit a separate detailed budget utilizing the same categories outlined above. Indirect costs should be included.

Do not hesitate to contact the sponsor's program officer to discuss the goals and objectives of the project and the potential budget request prior to and during the application development process. In addition, you should determine the terms and conditions for carrying unobligated funds forward and no-cost extensions.

Finally you should clearly understand the reporting requirements, both financial and scientific. When these requirements are fulfilled the project loop is completed and all terms and conditions of the sponsor are satisfied. This will also ensure that any future applications will be not be rejected-based non-compliance on the part any previous investigator.

• Office of Scientific Affairs
• National Institutes of Health Grants Policy Statement -- includes a glossary of commonly used terms.
• TJU Policy and Procedure Manual (Blue Book) and the OSA web site -- covers grant administration, Institutional Review Board (IRB), and Institutional Biosafety Committee (IBC) issues.
• Investigators whose research involves animals -- can access the Office of Animal Resources web site for their policies and procedures.