Budget establishment

How to budget grant/contract indexes

Original budget

Each grant or contract has a budget that has been negotiated with the awarding agency by Sponsored Programs Administration. The Office of Grants and Contracts Accounting is responsible for entering the authorized original budget in Banner.

Generally, due to sponsor reporting requirements, each budget period of sponsored programs must be reported as a separate unit. Budget periods are on an annual basis for many sponsors. Expenses incurred or obligated under one budget year must be reported against the same year's budget. To achieve this matching of budget year and expenditures, each budget year of a project is assigned a unique Banner index number. Many sponsors will permit the unobligated balance for the budget period to be carried to the continuation budget period.

Sub-index budget

An original budget may be distributed among multiple indexes for managing the project more efficiently. The budget may be distributed among various schools, departments, co-principal investigators or for different phases of the project which require several indexes. For reporting purposes, these indexes are summarized into one index call the "home index. 

Sub-award budget

Sub-award budget is entered based on the executed sub-award. The dollars associated with the sub-award are transferred from the original Banner index budget per the award notice and entered into the sub-award index using Banner account 636000 on both the home index and the sub-award index. The sub-award may often be referred to as the sub-award index. 

Cost sharing budget

The department will submit the budget reallocation document to the appropriate Finance and Administration Department (depending on the ledger) to enter the budget for the cost sharing index. Budget may be entered as needed to ensure that the index does not have a deficit balance.

Budget transfers from designated or gift funds (ledger 6) to the cost sharing supplemental index may be on a project period basis, but budget transfers of Educational and General (E&G) Funds may only be on a fiscal year basis. It is preferable that transfers from gift funds be handled on a fiscal year basis. It is also preferable that cost sharing for a given fiscal year be identified at the beginning of the year when possible. The University Procedures on "Cost Sharing" will provide additional information (see left menu item).

Program income budget

Program Income accounts will not have an original budget. Principal investigators should monitor progress against the budget monthly. When a change in plans necessitates an expenditure pattern that varies significantly from the original budget, a Grant Budget Reallocation Request (revision) should be prepared. Variances are dependent upon the sponsors’ requirements.