The level of justification required in a proposal varies among sponsors. Generally speaking, the least detail is required by foundations and the most detail is required by the federal government when the award will be in the form of a contract.

Regular Budget Justifications

Principal investigators must be prepared to explain to the sponsor how they arrived at their cost estimates. If a sponsor decides to fund a project, they may ask for further budget detail or verification of certain costs. There are generally three ways to describe the basis for a cost: actual cost (for items such as salaries), vendor price lists or quotes (equipment, airfare, lodging), or prior experience (supplies). When the required documentation is ready, your ORS contact should transmit all the documentation to the sponsor under his or her signature as certification that the documents are true and accurate.

Modular Budget Justifications

For a modular budget the narrative justification is provided only for personnel and, when applicable, consortium or contractual costs.
Additional narrative budget justification is required only if there is a variation in the amount of requested in each module. There is no routine escalation for future years. In determining the total for each budget year, applicants should first consider the direct cost of the entire project period. Well-justified modular increments or decrements in the total direct costs for any year of the project that reflect substantial changes in expected future activities may be requested. For example, purchase of major equipment in the first year may justify a higher overall budget in the first, but not in succeeding years.