How to prepare the detailed budget of the project

22-06-2019

Budget

Donors use different forms of budget preparation, although they are similar in the key components, but we have to use the same donor’s form when preparing the project budget.

No

Item

Unit

Cost in Dollars

No. of units

Duration by (month)

% of coverage

Total

 

 

 

 

 

 

 

 

 

The budget’s main components

1- Project staff salaries and other related costs
This component includes all the jobs the project will need to cover and the coverage percentage.

2- Activities, materials, goods and supplies
This includes all activities that will be implemented by the organization. This component includes all the activities in which awareness materials printing, supplies and equipment are purchased and distributed to targeted facilities such as medical equipment and water pumps, etc. 

3- Hardware
All the equipment needed by the project management staff is added such as computers, a camera for documentation and some office furniture.

4- Contracts with suppliers and contractors
In case the project will provide beneficiaries with cash assistance or purchase vouchers, we usually put the budget of cash transfers or purchase vouchers in this component. 

5- Travel and transportation
Any required budget for vehicle’s rental for the movements of the project team, in addition to the daily allowance costs for field visits and residence in other governorates.

6- Transfers and grants of the partner organizations in the implementation 
In case there are implementing partners in the project such as the local organization, we put their budget in this component.

7- Operational expenditure
By operational expenditure, we mean everything the organization needs to cover such as the monthly rent, stationery, project team communications, payment of water and electricity bills and internet and purchase of fuel for the operation of the organization's own generators.

No

Item

Unit

Cost in Dollars

No. of units

Duration by (month)

% of coverage

Total

1-      Project staff salaries and other related costs

1.1

Project manager

Person

500

1

12

100%

6000

1.2

M & E officer

Person

400

1

12

100%

4800

1.3

Program officer

Person

700

1

12

25%

2100

1.4

Accountant

Person

400

1

12

100%

4800

1.5

Executive manager

Person

850

1

12

25%

2550

Total:

20250

2-      Activities, materials, goods and supplies

 

2.1

Training 24 health workers in IMCI

Training

3800

1

1

100%

3800

2.2

Provision of medical equipment for the targeted medical facilities

Total

28000

1

1

100%

28000

2.3

Designing, printing and distributing awareness  brochures and posters

Total

4600

1

1

100%

4600

2.4

Training 12 community volunteers for 4 days

Total

2060

1

1

100%

2060

2.5

Community awareness sessions

Session

10

300

1

100%

3000

2.6

Medicine purchase and distribution for targeted health facilities

Total

72000

1

1

100%

72000

2.7

Provision of monthly incentives for health workers

Month

200

24

12

100%

57600

2.8

Rehabilitation of 8 health facilities

Facility

8000

8

1

100%

64000

2.9

Provision of solar system for health facilities

Facility

1800

8

1

100%

14400

Total:

249460

3-      Hardware

3.1

Laptop for project team

Laptop

400

4

1

50%

800

3.2

Printer

Printer

200

1

1

100%

200

Total:

1000

 

4-      Contracts with suppliers and contractors

4.1

4.2

Total:

5-      Travel and movement

5.1

Per diem for monitoring and evaluation

Total

100

1

12

100%

1200

5.2

Car renting

Car

600

1

12

100%

7200

Total:

8400

6-      Transfers and grants of partner organizations in the implementation

6.1

Transfer of partner organization

Total

18000

1

1

100%

18000

6.2

Total:

7-      Operational expenditure

7.1

Office renting

Month

300

1

12

25%

1050

7.2

Stationary

Month

100

1

12

25%

300

7.3

Communications

Month

60

1

12

100%

720

7.4

Electricity, water, internet

Month

120

1

12

25%

360

Total:

2430

Direct costs total:

297110

Indirect costs total:

2430

Administrative expenditure: ( do not exceed 7% of the direct expenditure):

20797.7

The project’s total budget:

320337.7

The project’s budget preparation model[1]


[1] The simplified project budget preparation model is used by humanitarian funds administered by the United Nations Office for the Coordination of Humanitarian Affairs (OCHA)


Preparing one activity budget

Donors emphasize the importance of including details of all items over US $ 3,000 at the time of submitting the budget, but may also request details of items under US $ 3,000. 

The following table provides details of one 4-day training activity for 12 trainees.

No

Item

Unit

Cost in Dollars

No. of units

Duration by (month)

Total

1.1

Trainer

Person

100

4

1

400

1.2

Facilitator

Person

20

4

1

80

1.3

Hall renting

Hall

50

4

1

200

1.4

Stationary

Person

10

1

12

120

1.5

Break

Person

5

4

15

300

1.6

Lunch

person

10

4

15

600

1.7

transportation

Person

10

4

10

400

1.8

Per diem

person

30

4

2

240

1.9

Documentation

Person

10

4

1

40

1.10

Banner

Banner

30

1

1

30

1.11

Media coverage

-

50

1

1

50

Total

2460

Budget model for one training activity 


Another example of a budget of designing and printing awareness materials that contain several detailed activities.

No

Item

Unit

Cost in Dollars

No. of units

Duration by (month)

Total

2.2.1

Designing awareness materials 

Person

100

1

4

400

2.2.2

Printing brochures

Brochure

0.2

5000

1

1000

2.2.3

Printing posters

Poster

0.4

5000

1

2000

2.2.4

Printing awareness toolkit

Toolkit

4

300

1

1200

Total

4600

 

Allowed costs

In addition to the budget items mentioned above in the budget components, there are allowed costs by most donors as follows:
1. Indirect Costs: it is customary of donors especially in Europe and America that the organization can add an item in the budget with no more than 7% of the agreed project budget. This item is added in the end of the budget before the final total. Some organizations put 7% and some put less if not needed. This item is one of the traditions that donors and organizations are accustomed to, which is important as it helps in the sustainability and it covers the costs the organization needs that are not included in the project budget. The organization doesn’t require the donor’s permission to spend this amount and usually doesn’t need to tell the donor for what it is spent.

2. Contingency Costs: many donors agree to add the item of contingency costs in the budget with no more than 5% of the total agreed budget. However, this amount cannot be spent unless suitable justifications were provided to the donor during project implementation and the donor’s consent was obtained.

Non-allowed costs

Not all of what comes to mind can be funded; therefore, most invitations to submit proposals clarify things that cannot be funded by the donor. The following are some costs that donors refuse to fund, which are taken from European Union standards:

• Pay debts of the organization or debts' interest.
• Provisions for potential future losses or liabilities.
• Any costs for beneficiaries that are funded by another work or program.
• Buy lands or buildings, except where necessary for the direct implementation of work. This exception is very rare.
• Losses arising from exchange differences.
• Credit to third parties.
• Salaries for government employees



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