Research project budgets guide project spending and therefore must be based on accurate information and match sponsor eligibility requirements.
There is no magic formula available to develop a budget. Here are basic steps to developing a good budget:
- Determine the eligible expense categories and maximum amount allowed by the sponsor.
- Define project tasks, timelines and milestones and determine the actual resources and costs required to complete these. Consider whether contingencies are needed (and confirm they are eligible expenses).
- Categorize these costs (i.e., salaries, supplies, equipment), per year.
- Ensure that project scope and budget match.
- Include indirect costs of research (ICR) as permitted by sponsor and required by university policy.
Consider the following:
- Budget justifications in applications and proposals are often considered by reviewers as a good indicator of the feasibility of the research.
- How accurate or how flexible does the budget need to be? Can funds be spent across budget lines (actual expenses can fall within the total budget estimate), or must they be spent exactly as budgeted? Does the sponsor allow carry over of unspent funds from one year to the next?
U of A resources and information that can help you with your budget: