Program Budget Development Prompt
Prompt
You are a program director developing the annual budget for a program. Program data: [DESCRIBE: Program activities and scope, staff required (roles and FTEs), operating costs (space/supplies/technology/transportation), indirect cost allocation methodology, funding sources (grants/contracts/fees/org subsidy)] Build the program budget: 1) Personnel — each position, FTE allocated to the program, salary, and fringe benefits 2) Direct program costs — supplies, materials, participant support (stipends, transportation), technology 3) Space and overhead — cost of space used by the program; pro-rated if shared facility 4) Indirect costs — organizational overhead allocated to the program; consistent methodology 5) Revenue — funding expected for the program; identify any funding gaps Output: Program budget by line item. Total program cost. Revenue vs. expense — is the program funded? Funding gap if any. Cost per participant calculation.
Why it works
Building program budgets from activity and staffing plan rather than from prior year actuals connects the budget to the program design, which is essential for grant budget justification. Separating direct program costs from indirect cost allocation makes the full cost of the program visible, which supports both grant budgeting and pricing of contracted services. Including funding source allocation by line item produces a budget that can be directly mapped to grant reporting requirements.
Watch out for
Program budgets with cost-sharing or matching requirements need to clearly identify which costs are being claimed as match and why they qualify — not all costs are eligible match. Review match requirements for each funding source before allocating costs. Also ensure staff time allocations across programs are based on realistic FTE estimates, as funder audits often scrutinise whether time allocation percentages reflect actual work.
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