A proposal's budget describes the costs to be incurred by the program and includes an explanation of why each expenditure is necessary. Reviewers use the budget as a mutually reinforcing summary of the entire proposal, so considerable thought should go into its preparation.
- Budget requirements may vary widely by type of award (i.e., cost reimbursement or fixed price) or by sponsor (i.e., federal or private).
- Most sponsors provide detailed instructions and printed forms for budget preparation.
- Pre-award sponsored project administrators have expertise in the development of budgets and can assist in their preparation or provide templates.