PKG00287769.pdf

This document is NOAA Grants Management Division's Budget Narrative Guidance for federal grant applications. It provides comprehensive instructions for preparing detailed budget narratives that explain and justify all federal and non-federal expenditures organized by object class categories on the SF-424A form (or SF-424C for construction awards). All proposed costs must be reasonable, allowable, allocable, and necessary to the supported activity, following 2 CFR §200 requirements. The budget narrative submitted must match dollar amounts on all required forms and provide detailed justification for each calculation.

The guidance covers eight primary budget categories with specific requirements for each: Personnel (including salaries, percent of time, and months paid, with guidance that administrative and clerical staff are typically indirect costs unless integral to project activities); Fringe Benefits (requiring fringe benefit rates with detailed breakdowns if exceeding 35% unless a Negotiated Indirect Cost Rate Agreement exists); Travel (distinguishing between domestic travel within U.S. territories and foreign travel, requiring detailed justification of origin, destination, purpose, and costs, with foreign travel subject to Fly America Act compliance); Equipment (defined as tangible property with useful life exceeding one year and per-unit cost exceeding the lesser of $5,000 or the entity's capitalization threshold, requiring lease-versus-purchase analysis for items over $5,000); Supplies (requiring itemized breakdowns for expenses exceeding $5,000 or five percent of the award); Contractual (requiring separate budgets per contract with detailed scope, selection method, and accountability measures); Construction (only when authorized by program legislation, requiring supporting documentation including drawings and estimates); and Other (including subawards and miscellaneous expenses). The guidance also addresses Indirect Charges (Fixed, Provisional, or Pre-determined rates based on Negotiated Indirect Cost Rate Agreements), Cost Share or Match requirements, and the requirement to show total direct costs summarizing all categories. For multi-year awards, applicants must provide separate budgets and justifications for each year with match funds shown in separate columns.