Management Minute: Four Best Practices when Creating a Budget Narrative
Shandra Davis: Here are four best practices that I would recommend when preparing the budget detail and narrative.
First, you want to be as detailed as possible. Provide a breakdown of expenses in each category. Don't simply provide summary numbers, provide detail.
Second, from an accounting standpoint, make sure that all the numbers reconcile in every part of the application, from the SF-424A to the budget detail and narrative. Even if it's $1 off, the application will be returned.
Third, not only should the numbers match, but the narrative details should match as well. For example, if adding mentor coach positions, this increases your budget. Therefore, you should explain in your narrative that you added those positions. This gives a picture of how your programs operate and financially how you will be supporting your operations.
Fourth, when forecasting, forecast each quarter separately. Use your past expenditure reports to accurately forecast expenses for the current year.Close
A grants management specialist shares four best practices when creating a budget narrative. These include being detailed, reconciling all amounts across the application, making sure the narrative and numbers match, and forecasting each quarter separately. Learn more about this topic in the iPD course Financial Essentials 2: Phases of Budget Development.