Developing a Budget for a Grant Application
Fiscal Department

Depending upon the type of agency, the presentation and the level of detail required for the budget will vary from one application to another. In all cases, the instructions provided with the application kit should be followed and any forms provided completed.

Beyond the specific requirements, however, all funding sources expect the same basic principles to apply as you prepare this part of the application.

1) All items requested in the budget should be justified elsewhere in the application. Reviewers should find no surprises or unexplained items once they arrive at the budget section.

2) All expenses should be reasonable, realistic and directly related to the activities that will be conducted as part of the proposed project.

3) Estimates of costs should be based on actual rates at the time of the application. Reviewers will know enough about costs to know when a budget is 'padded' or matching contributions inflated. Remember, they are reading applications from a number of others at the same time.

4) Carefully consider all areas of the project that will require expenditures whether grant funds will pay the cost or they will be part of the matching or in-kind contribution to the project. A budget that is not comprehensive makes reviewers wonder if the entire proposal has been well thought out.

Determining the cost of individual items should be based, when possible, on the existing rates and costs in the Trial Court for equivalent goods and services.

Salaries

Whether or not positions will be funded as part of the grant, it is often necessary to determine the value of time spent by personnel on grant projects as part of the in-kind matching contribution to the project. All salaries should be calculated using Massachusetts Trial Court personnel rates in effect at the time of the application. For multi-year projects, salaries in the second or third year should include any step increases that may apply.

Fringe Benefits

Rates for all fringe benefit costs are determined annually. For FY2008, the rate is 38.32% of regular employee compensation, i.e. salaries expensed under object code AA. An additional 1.33% for payroll taxes must also be budgeted.

Travel

Rates for in-state travel are the same as those in effect for Trial Court employees. Auto travel is calculated at the rate of 40 cents per mile with tolls and parking at the actual cost. Out-of-state travel costs should be based on actual rates at the time of application. Airlines and hotels should be contacted for general information on costs. Do not base your estimates on any special rates or offers since they are not likely to be available at all times. If conferences or attendance at other training events will be included in the budget, check if there are registration or other fees involved. For out-of-state travel, the Trial Court will reimburse meals at the rate of $24.50 /day. If you are applying for federal funds, hotel rates must be based on the per diem allowed for the city you will be traveling to as set by the federal government (see http://www.gsa.gov).

Equipment

Depending upon the type of equipment, base your estimate on several estimates or on state contracts. If computer equipment will be purchased, IT will provide an estimate for the equipment as well as for installation and any networking requirements. In deciding what type of computer equipment will be requested, it is very important to understand for what purpose the equipment will be used in relation to the activities of the project. If data is to be collected and/or shared, there should be sufficient funds requested to ensure that it will be possible to accomplish this with the requested equipment as well as staff.

Materials And Supplies

It is always a sign to reviewers that all of the costs of a project have been well thought out if even the small things are considered. Although materials and supplies are often a very minor expense in most projects, they are still needed to accomplish most tasks. If appropriate, include in the budget costs for duplicating, publishing brochures/flyers, disseminating information, reports or evaluations, etc. This part of the budget is often a good one for matching contributions as well. In any case, it should not be omitted from the total expenses of the project.


Contractual

Included in this category are the costs for hiring individuals who are not going to be involved with the project on a continuing basis, but rather will be providing a specific area of skill or expertise that is needed to accomplish the goals of a project. These may include trainers, researchers, evaluators, etc. Also included in this category would be any services that might be required to complete the project that cannot be performed by existing personnel. Some examples are conference coordination, substance abuse treatment, case management, videotape production, design services for various publications, etc. Costs of contracts should be based on actual estimates from various vendors based on specific deliverables expected.

Indirect Costs

Most funding sources will indicate if indirect costs are an allowable expense. Indirect cost rates are predetermined annually with an agency of the Federal Government and cover expenses incurred by the applicant as a result of administration of a grant but that are not directly attributable to that grant. For FY2007 the Indirect Cost rate for the Trial Court is 21.44% with a proposed increase to 23.09% for FY2008. This rate is assessed on personnel and contractual related costs in subsidiaries AA, CC, HH, JJ, and UU. Indirect costs are always paid with grant funds. If your grant involves a contract for case management or other direct services to clients from a treatment provider rather than a particular individual, it should be expensed under the MM subsidiary and no indirect will be charged. If, however, an individual will be paid through the contractor payroll, it is a CC expense and indirect will be charged and should be budgeted.

Matching Funds

If the grant program to which you are applying requires a portion of the total project costs be matched with local funds, contact the Grant Specialist for guidance on how to determine what costs may be used to meet this requirement.

REMEMBER: Comprehensive and reasonable budgets play a critical part in the planning process for a grant and in the justification for why a reviewer will recommend funding one applicant and not another. At the same time, grant awards are seldom increased so it is important to be sure that the project can be accomplished with the funds requested or maybe less.

Contact Sandy Souza, Grant Specialist, souza_s2@jud.state.ma.us for help in preparing your budget and application.