Developing and Preparing a Budget

A well-prepared budget is a critical component of a competitive grant proposal. It serves as the financial blueprint for your project and must align with your goals, funding agency requirements, and university policies. The Office of Sponsored Projects (OSP) is here to assist you throughout this process.

General Budgeting Tips

  1. Start early.
    Begin your budget planning alongside your project narrative. Don’t wait until the final draft—early budgeting helps ensure your project goals are achievable within the funding limits.

  2. Use Excel, not Word.
    Always use an Excel spreadsheet to develop your budget. Contact OSP if you need a template with built-in formulas for salaries, fringe, and inflation.

  3. Know your sponsor’s requirements.
    Most public funders require budgets with standard line items (e.g., Salaries, Benefits, Travel, Supplies, Other Direct Costs, F&A). Even if a detailed budget isn’t required by the sponsor, WIU still needs one for internal setup and tracking.

  4. Accuracy matters.
    Avoid padded or bare-bones budgets—these can lead to underfunded projects or disallowed costs. OSP templates help ensure accuracy and include estimated annual salary increases when appropriate.

  5. Include F&A (Indirect Costs).
    WIU’s federally negotiated rate must be included unless the funder specifically disallows it. F&A recovers real costs associated with administering and supporting your project.

  6. The university is the grantee.
    Grant funds are awarded to WIU, not to individuals. All funds must be used in accordance with university and sponsor policies.

  7. OSP review is required.
    All budgets must be reviewed and approved by OSP at least two weeks prior to the sponsor deadline. Email your draft budget and budget justification, along with funder guidelines, to OSP for feedback.

Building Your Budget: Key Categories

Below are the primary budget components used in most proposals. Always refer to the funder’s guidelines and consult OSP for clarification or support

Date Ranges

  1. The Project Period represents the period of time in which the entire project will be executed.
  2. Budget Periods represent the periods of time – often in 12-month increments – that expenses are calculated in the budget and disbursement of the grant funds are expected.
  3. If you must determine your own project period, it is recommended that it begin with the Academic Year (Aug 1st), the Calendar Year (Jan 1st), or the University Fiscal Year (July 1st). It is recommended that you begin a project period with the Federal Fiscal Year (Oct. 1st) only when required by the funder.

Personnel

Include salaries for all WIU employees, including faculty, staff, graduate assistants, and undergraduate student workers.

  • Use current salary rates and estimate effort based on % of time and duration.
  • Apply a 2% annual increase (if allowable).
  • Use standard titles: Principal Investigator (PI), Project Director, Project Manager, etc.
  • Consult the Graduate Studies Office for current stipend rates and setup guidance.

Fringe Benefits

Must be included separately from salary.

  • Rates vary by employee classification and appointment period (AY vs. summer).
  • GAs and hourly students are not eligible for fringe.
  • Current fringe rates are listed on the OSP Commonly Needed Info page.

Equipment

Defined as items over $5,000 with a useful life of more than one year.

  • Include the full cost: item, modifications, transport, and installation.
  • Check WIU inventory before requesting new equipment.

Travel

Covers transportation, lodging, meals, and registration fees.

  • Include travel for personnel, consultants, and participants (if allowed).
  • Use WIU travel rates unless the sponsor specifies lower rates.
  • Check whether participant travel should be listed under “Participant Support.

Participant Support

Used for training or workshop participants—not employees or consultants.

  • Includes stipends, subsistence, travel, and registration fees.
  • Treated as incentives, not compensation.
  • Not subject to F&A unless otherwise stated.

Materials and Supplies

Consumable items needed for the project.

  • Includes lab materials, office supplies, software, etc.
  • Classify correctly—some items may fall under “Other Direct Costs” if they’re service-based (e.g., software subscriptions, printing).

Other Direct Costs

Miscellaneous expenses like:

  • Postage, telecommunications, printing
  • Conference fees, room and board for events
  • Honoraria (must follow salary/wage standards)
  • Parking for guests and event participants

Contractual

Covers formal agreements with third parties contributing to the project.

  • Subawards: For substantive work done by another institution/organization.
  • Consultants: Individuals providing expert advice or services for a fee.
  • Use a separate Excel budget for each subrecipient.
  • OSP can provide templates for both subawards and professional service agreements.

Facilities & Administrative Costs

Also called Indirect Costs, these support shared university resources like:

  • Office space, administration, IT support, electricity, etc.

WIU’s current F&A rates (effective July 1, 2021 – June 30, 2025):

  • 36% of Modified Total Direct Costs (MTDC) for on-campus projects
  • 17% of MTDC for off-campus projects
    (MTDC excludes equipment, subawards beyond $25K, participant support, tuition, and scholarships.)

Use the sponsor’s F&A rate if they have a published policy that differs. Provide documentation when applicable.