Department: Finance & Accounting Process Owner: Senior Accountant Last Updated: January 2026
1. Overview and Purpose
Objective: To outline the procedures for preparing grant budgets, submitting grant applications or funding requests, and maintaining consistent internal documentation. This SOP ensures that all submitted budgets reflect accurate cost assumptions, align with organizational financials, and follow internal approval workflows.
2. Scope
This SOP applies to all public and private grant proposals requiring a budget submission. It includes preparation of internal templates, entering budgets into funder portals or grant management systems, routing for internal review, and archiving submission documents.
3. Step-by-Step Process
3.1 Draft Grant Budget Using Standard Template
- Open the latest Grant Budget Template (Excel) from the document management system
- Build out line items using most recent salary data, program cost assumptions, and shared allocations
- Estimate fringe, indirect cost rates, and non-personnel expenses based on historicals or program guidance
- Best Practice: Maintain a current salary and fringe rate table in a designated location within the document management system (e.g., Grant Documents → Budget Resources). Reference this file when building budgets to ensure rates are up-to-date. Update this table at least annually or when organizational rates change
- Confirm budget period aligns with grant dates and matches narrative
Reviewer / Back-up: Accounting Coordinator
3.2 Coordinate with Program and Development Teams
- Review draft budget with program lead to ensure accuracy of activities, staffing, and deliverables
- If required, revise line items based on updated scope or funder feedback
- Route draft to Development Director or Grants Manager for internal coordination
Reviewer / Back-up: Program Lead / Grants Manager
3.3 Review and Approve Internally
- Submit draft budget to Controller and Senior Accountant for financial review and compliance check
- Verify indirect cost rates, match requirements, and cost allowability
- Once approved, save final version in "Approved Budgets" folder under grant directory
Reviewer / Back-up: Controller
3.4 Enter Budget into Grant Management System / Grantor Portal
- Log into Grant Management System or external portal
- Enter budget figures as required, ensuring total and categories match approved internal budget
- If attachments are required, upload PDF version of budget or budget narrative
- Save a screenshot of submission screen or confirmation
Reviewer / Back-up: Accounting Coordinator
3.5 Log Budget Submission and Archive
- Record grant name, submission date, period covered, and amount in the Grant Budget Tracker
- Save final Excel file and any submission confirmations to the document management system:
- Grant Documents → [Grant Name] → Budget folder
- Best Practice: Use a consistent file naming convention for grant budget files:
- Draft budgets: GrantName_Budget_Draft_YYYY-MM-DD
- Final budgets: GrantName_Budget_Final_YYYY-MM-DD
- This ensures version clarity and creates a clean audit trail for funders and auditors
Reviewer / Back-up: Accounting Coordinator
4. Key Roles and Responsibilities
| Role | Responsibilities |
|---|---|
| Accounting Coordinator | Draft budget, enter into portals, maintain archive |
| Grant Budgeting Support | Assist with Excel prep & assumptions |
| Controller | Review for financial compliance and final approval |
| Senior Accountant | Coordinate cross-department review and finalization |
| Program Leads | Confirm scope, staffing, and cost assumptions |
| Development Systems Manager | Confirm funder requirements and coordinate submission |
5. Key Files and systems
- Grant Budget Template (Excel) – Standard format with fringe and indirect rate logic
- Indirect Cost Rate Documentation – Board approval, rate calculation methodology, or federal agreement (if applicable)
- Document Management System – Grant Folder > Budget Subfolder – Stores all final and draft budgets
- Grant Management System – Tracks status and uploads of grant budgets
- Grant Budget Tracker (Excel or within Grant Management System) – Logs submitted budgets and key data
- Grantor Portals – For online submissions
6. Exceptions and Special Cases
- Rapid Response Grants: May require abbreviated internal review if deadlines are less than 48 hours; Controller must approve. If Controller is unavailable, Finance Director may approve with notification to Controller upon return
- Multi-Year Budgets: Separate tabs or versions may be needed for each fiscal year
- Match or In-Kind Contributions: Clearly distinguish in templates and note match sources
- Budget Revisions: All resubmissions or post-award budget modifications follow this same SOP
7. Risks and Controls Summary
| Process Step | Risk | Control |
|---|---|---|
| 3.1 Draft Grant Budget | Budget errors or omissions may lead to funding shortfalls or rejected proposals | All grant budgets are based on standardized templates and pulled from verified cost data |
| 3.2 Coordinate with Program and Development | Misalignment between budget and program scope may cause downstream compliance issues | Each draft is jointly reviewed with program and development staff before submission |
| 3.3 Review and Approve Internally | Submitting unapproved budgets may expose organization to compliance risk or inaccurate reporting | No budget is submitted externally without internal approval from Controller or Finance Director |
| 3.4 Enter Budget into System | Entry discrepancies between Excel version and system entry may result in funding mismatch | Budget entry is cross-checked against approved file and archived with submission evidence |
| 3.5 Log and Archive | Lack of documentation may make it difficult to track assumptions or reconcile future changes | Each budget is logged and archived with standardized file structure and naming |
