NOAA Grants Management Division's Budget Narrative Guidance

This document is NOAA's budget narrative guidance for federal grant applications requiring detailed budget justifications aligned with SF-424A forms for non-construction awards and SF-424C for construction awards. All applications must explain and justify federal and non-federal expenditures by object class category, with budget narratives matching dollar amounts on required forms and supporting each budget category calculation.

The guidance covers eight primary budget categories with specific documentation requirements. Personnel costs must include position names, annual/total salaries, percentage of time allocation, months employed, and justification relating positions to program objectives, with administrative staff typically treated as indirect costs unless conditions for direct charging are met. Fringe benefits require detailed rate calculations and documentation, with rates exceeding 35 percent requiring breakdown unless a Negotiated Indirect Cost Rate Agreement (NICRA) exists. Travel expenses must distinguish between domestic travel (U.S. territories and possessions) and foreign travel, requiring detailed justification including origin, destination, trip purpose, transportation costs, and per diem calculations, with foreign travel subject to Fly America Act compliance. Equipment requests exceeding $5,000 require lease-versus-purchase analysis and objective justification related to program goals. Supplies costing over $5,000 or five percent of the award need itemized breakdowns by quantity and unit cost with program objective justification. Contractual expenses require separate budgets per contract detailing contractor selection method, performance period, scope of work, and accountability measures. Construction activities are only allowable with specific legislative authority, requiring supporting documentation including drawings and estimates. Indirect costs must reference the most recent NICRA or utilize applicable de minimis rates, with calculations applying negotiated rates to approved direct cost bases. Cost sharing or matching requirements must be documented with sources and adequate detail matching the federal share breakdown across all categories.