NOAA Grants Management Division's Budget Narrative Guidance

This document is NOAA's budget narrative guidance for federal grant applicants. All applications must include a detailed budget narrative explaining and justifying federal and non-federal expenditures by object class category as listed on the SF-424A (Section B) for non-construction awards or SF-424C for construction awards. The budget narrative must match dollar amounts on all required forms and explain each calculation and cost justification. For multi-year awards, applicants must provide separate budget and justification for each year. NOAA prohibits expending federal or non-federal grant funds for in-kind goods or services, transportation, travel, or expenses for any federal employee.

The guidance covers eight budget categories with specific requirements: Personnel must include position names, annual/total salary, percentage of time, months employed, and justification relating positions to program objectives; Fringe Benefits must show the applicable rate and computation method, with detailed breakdowns if exceeding 35%; Travel must separately account for domestic and foreign travel with itemized costs, origin/destination, number of trips, lodging, per diem, and ground transportation details; Equipment requires justification, lease versus purchase analysis for items over $5,000, and relation to program objectives; Supplies must list items by unit cost and quantity with justification for costs exceeding $5,000 or five percent of the award; Contractual expenses require separate budgets for each contract with contractor name, selection method, performance period, scope of work, and accountability measures; Construction costs apply only when authorized by program legislation and require supporting documentation; and Other costs include subawards, conference costs, and miscellaneous expenses not fitting other categories. Indirect costs must use the organization's current negotiated indirect cost rate agreement (NICRA) or the de minimis rate of 10% of modified total direct costs for eligible entities without a negotiated rate. The match or cost share, if required, must meet the same level of detail as the federal share and be subject to the same regulations.