Budget Justifications

What is the purpose of the budget justification?

ÌÒÉ«ÊÓƵ has fiduciary responsibility as a steward of federal and other sponsored funding that requires us to demonstrateÌýon all proposals submitted and awards receivedÌýthat the costs budgeted are allocable, allowable, and reasonable. A Budget Justification:

  1. Provides details that demonstrate adherence to these critical qualifications and assures that, if awarded, a submitted budget will be charging against costs meeting those standards.
  2. Allows for sponsors to provide pre-approval for certain costs that require it, like administrative salaries, equipment, travel, and participant support.
  3. Is used at the end of a project for award closeout to confirm that all costs charged are allowable and, as needed, had prior approval from the sponsor.Ìý

Instances where a sponsor does not require a Budget Justification at proposal phase are rare; however, when not required by the sponsor the Office of Contracts and Grants (OCG) will not require a Budget Justification as part of the internal proposal record.Ìý

In some cases, sponsors require additional budget information after the proposal has been submitted, which could include further justification of costs.ÌýIn these instances the justification of applicable budget items will be requested from the Principal Investigator (PI), submitted to the sponsor as required, and will become a permanent part of the proposal record.

OCG provides aÌýBudget Justification template for PIs to use to develop a complete Budget Justification for inclusion with their proposal. Please contact yourÌýOCG Proposal Analyst with any questions.Ìý

Even if a sponsor does not require a Budget Justification at proposal or award, costs supported by sponsored funding must still be allocable, allowable, reasonable, and abide by University policy. See the Cost Principles for more details.