The budget can be a complicated part of preparing a proposal. It should be done carefully and accurately as it is a direct reflection of the work being proposed - and of your knowledge of what is required to accomplish that work.

Most sponsors provide guidelines for budget preparation and many provide forms for the submission of budget information. The guidelines in this section provide general criteria for budget development and highlight specific budgetary restrictions and requirements, both Duke and federal.

For multiple-year proposals, a budget for each year is usually expected, as well as a cumulative budget. Consideration should be made for cost increases and inflation from one year to the next. Research Support suggests that unless the principal investigator has access to exact costs for the "out" years of a project, an inflationary factor of 4% be used. (In the absence of exact cost figures, NIH and DOD will not award a cost-of- living increase greater than 3% unless there is a compelling - and justified - need.) If the NIH Modular Grant Application and Award process is applicable, inflationary factors are not used.

SPS NOTE: For anyone preparing a budget using NIH forms, the Standard Form 424 or a proposal for which no forms are supplied, SPS automatically creates all the required budget forms in their most current versions, calculates fringe benefits and prorated salary amounts, provides an inflator tool for the budget out-years and calculates all F&A costs.