Successfully Managing a Grant Contract End-to-End with Practical Tips

Session layout

Budget basics

The purpose of budget is to:

Pre requisites

Types of Budgets:

Activity budget

Activity based budget as the name suggests, covers the costs required for implementing a project activity. In ABB, one looks at resources required for completing an activity and the resources cost

For example, if project strategy is to build capacity of civil society leaders, workshops is an activity. Workshops costs would be towards hiring resource persons, booking a venue, transportation cost, food, lodging and materials and handouts.

Activity Budget for Conducting a Workshop
Particular of Expense Rate per unit No of Units Total in Rs
Trainer Fees @ Rs 1000 per day 3 days 3,000
Venue @ Rs 500 per day 3 days 1,500
Rental for Furniture @ Rs 500 per day 3 days 1,500
Rental for Equipment @ Rs 100 per day 3 days 300
Catering Exp for Lunch and tea two times @ 100 per person 55 persons X 3 days = 165 16,500
Conveyance paid to attendees

@ Rs 50 per person per day

50 attendees x 3 days = 150

7,500
Printing of handouts @ Re 1 per page 50 pages x 50 copies = 2500 pages 2,500
Grand Total

32,800

Line Item Budget

Line Item Budget
Expenses Unit # of Units Unit rate ($) Cost ($)
Human Resources:



CEO Per day 3 350 1050
Trainer Fees Per day 2 200 400
Subtotal Human Resources


1450





Travel:



Trainer Airfare Per person 1 300 300
Participant Transportation Per person 30 10 300
Subtotal Travel


600





Equipment and Supplies:



Materials and hand-outs Per person 30 15 450
Subtotal Equipment and Supplies


450





Other Costs and Services:



Venue Per day 2 300 600
Catering Per person 30 15 450
Subtotal Other Costs and Services:


1050





Subtotal


3550
Overhead (10%)


355
Total


3905

Other Types of Budget

Incremental budget: Next year’s budget prepared by making marginal changes to the current year’s budget. The current budget is used as a base to which incremental assumptions are added or subtracted from the base amounts to determine new budget amounts.

Value Proposition Budgeting focuses on allocating the ideal amount of financial resources that provides the highest value to the customer. Another name for Value Proposition Budgeting is Priority Based Budgeting or value based budgeting.

Zero-based budgeting (ZBB) based on efficiency and need at that point rather than budget history. Formulation starts from scratch that only includes operations and expenses essential, no expenses are automatically added to the budget. Cost rationalization

Performance based budget (PBB) considers input of resources and the output of services. The goal is to link funding to results delivered, thus called Outcome based budgeting

Fixed Budget: not modified for variation in actual activity and costs.

Flexible budget: budget changes in response to activity level and costs.

Budget Justification Note

Separate word document to explain the budget nos

Balanced, Surplus and Deficit budgets

Budget Monitoring & Budgetary Control

Budget Monitoring is the process:
Budgetary Control is the process to:

Interest apportionment

HR cost allocation

Robust Grant Monitoring System

Grant monitoring is a process to measure/review performance during grant period. It assesses physical & financial progress, identify risks and corresponding mitigation measures, ensure that funds are used as intended and programs achieve desired outcomes and impact.

Important Tools and Process:

Grant Contract: General Conditions

MOU versus grant contract/agreement distinction

Grant Contract: Operational Conditions

Grant Management Challenges

How to manage grant effectively

Managing grant is about maximising impact through

Please note: Information is for reference only. Read our disclaimer here.


Revision #10
Created 23 January 2025 07:07:31 by Pooja
Updated 26 February 2025 06:40:00 by Pooja