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Office of Sponsored Programs (OSP)

Budget Development


The budget is a detailed statement outlining the estimated project costs that support a sponsored project. A budget should include all the Direct Costs as well as the calculated Facilities and Administrative (F&A) costs required to carry out the project objectives. The proposal budget should be derived directly from the project description and serves as the financial expression of the project.

Follow sponsor guidelines for requirements, allowability, and budget format. The costing principles found in the Uniform Guidance apply to all sponsored programs at UW - costs must be allowable, reasonable, allocable and given consistent treatment. See GIM 23.

Direct Costs

Direct costs are expenses that are specifically associated with a particular sponsored project or activity or can be directly assigned to that project or activity with a high degree of accuracy (e.g. space allocation).

Facilities & Administrative Costs

Also referred to as IDC or overhead, Facilities & Administrative costs are institutional expenses that cannot be specifically identified with a particular project or activity (e.g. utilities).

Cost Share

Cost Sharing occurs when an application commits allowable expenses (i.e., personnel, tuition, equipment or services) for which the grant will not be charged and quantifies them in the budget and/or budget justification.

Budget Justification

The Budget Justification provides specific details about how the sponsor's funds will be spent. It demonstrates the expertise of personnel, explains the use of supplies and equipment for the scope of work, and assists reviewers in understanding how line items will benefit the project.

Program Income

Income generated by a supported activity or earned as a result of an award must be properly recorded and accounted for. Review guidance on program income from Grant and Contract Accounting (GCA).


SAGE Budget enables you to create accurate, detailed budgets for your grant and contract proposals. An easy-to-use wizard expedites budget set-up; the comprehensive budget worksheet minimizes errors and improves data quality. SAGE Budget automatically populates your budget with real-time salary and benefits information, calculates budget totals for each period, and identifies the correct F&A rate.