Management Minute: Common Budgeting Mistakes in the Grant Application Process
Arnold Ramirez: Let's discuss some of the common errors that recipient organizations make in developing and submitting their budget in the grant application process.
One of those areas is in in-kind contributions, or non-federal match, specifically related to volunteers. Keep in mind that you should value the service provided and not the volunteer.
In other words, if a dentist comes in to read to a classroom, value that service as a teacher or a teacher assistant position, but not as a dentist.
The other area is related to cost categories. Some recipient organizations may value a laptop in an equipment category, but from the federal perspective, it is actually a supply.
Make sure that, as you're developing the budget, you keep those cost categories within the federal definitions of that particular item.
A Head Start fiscal specialist identifies common budgeting mistakes in the grant application process. These include how to value in-kind contributions and how to assign expenses to their appropriate cost categories. Learn more about best practices in budgeting in the iPD course Financial Essentials 2: Phases of Budget Development.
