This section has no page limit, and it is about the explanations in details for each item on the form SF424A when requested. The virtual project of “A Network to Improve the Maternal Health in Delhi” is taken as an example. According to the orders of the form, you should start from the activity cost, and explain how much budget will be used on each activity and how it will be used. For example, one of the activities is a survey, and the budget narrative should be “$3,000 will be used for a survey to collect the data of infection rate before the network setup, in which $500 will be used for the preparations of the paper work, $500 will be used for the transportations and mail fees of the release and the collection of the paper work, and $2,000 will be used for the collected data organization, statistical analysis and summaries.”
The next two items on the form is personnel, and you should give the name, position, percentage of effort, salary rate and benefit rate for each person who will be hired for the project. If the name is not available, it can be left empty. You should put a total number either at the beginning or at the end of each section in the budget narrative. And the travel budget should be kept simple in which you will describe the destinations, the costs and the reasons.
The next will be the equipment and supplies, and you will need to describe the use of each piece of equipment and each category of supplies. For example you may write “$5,000 for ten PC computers for the setup of headquarter of the network, and $10,000 for the software required by the network (software names and functions should be mentioned).”
The contractual and construction parts mean those jobs you will not be able to perform but are needed to be assigned to other organizations or companies, and the costs and reasons are needed to be explained in details. At the end of cost, give a brief explanation of the indirect cost indicating the reasons that it will be paid for and what spaces and facilities will be offered from the unit where the indirect cost will be given to. Finally, you will give explanations to the income, in which you may refer to the section of “How to Prepare the Budget Overview for Transition Grants upon Request.”
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