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2.3 Standards for Financial Management Systems

Total Project Cost Budgeting and Accounting

To ensure adequate fiscal administration, accounting, and auditability of all Federal funds received, records should be established using the Federal agency “total project cost”. This includes all of the following types of funding sources:

  • Federal funds
  • State funds
  • Match
  • Program income
  • Any other funds received for the program

Budgets should be based upon the total estimated costs for the project including all funding sources. List anticipated expenditures according to the funding source from which they will be paid. The example below displays one sheet of a sample budget; additional back-up pages will further break out personnel and other costs, as well as the anticipated source(s) for match and program income.

Sample Budget
Budget Categories Federal Award Non-Federal Amount Total
Personnel/Direct Labor $69,732 $22,145 $91,877
Fringe @ 33% Actual $23,012 $7,308 $30,320
Subtotal $92,744 $29,453 $122,197
Travel $4,620 _ $4,620
Equipment —  _
Office Supplies $2,970 _ $2,970
Contractual $4,000

_ $4,000
Other $2,618 _ $2,618
Total Direct Costs $106,952 $29,453 $136,405
  _ _ _
Indirect @ 10% Modified Total
Direct Costs (MTDC)
$10,695 $2,945 $13,640
Total Project Costs $117,647 $32,398 $150,045