BUDGETING
GUIDELINES
By
Alex Mchawe Mkandawire
Fund/Finance Manager
© Tilitonse 2014
Budget Guidelines
Necessity of Cost
Estimated Budget for entire Project
Salaries for project staff
Direct Project Costs
Other Costs
Procurements
© Tilitonse 2014
What makes up a budget?
• Value for Money
• Link to Results to be delivered
• Lump sum amounts versus standard price
lists
• Contribution to project staff salaries
• Other funding partners (Matching Funds)
© Tilitonse 2014
What makes up a budget?
• Budget in MK
• Consider all estimated costs of
implementing the project
• Project Costs versus administration
Costs
• Allocation of budget among coalition
partners-critical for implementation.
© Tilitonse 2014
What makes up a budget?
• Monitoring and evaluation budget at least
between 5% and10% of total direct costs
(Monitoring, Surveys & Evaluations)
• Audit Budget (Contributory – Ring-fenced)
• Budget Limit of £20,000 BUT consider
experience in managing grant size being
applied for
© Tilitonse 2014
Costs not allowed
•
•
•
•
•
•
•
•
Alcoholic beverages
Debts
Contingency provisions
Entertainment costs
Fines/Penalties
Fringe Benefits
Social club membership
Land Acquisition
© Tilitonse 2014
Avoid these temptations!!!
• Temptation to fund all organisational costs through
Tilitonse Funding
• Avoid double-funding
• Meetings and Travel Budget overshadowing the
entire Budget
• Don’t list activities as a way of budgeting
• Inconsistent use of standard Unit Costs across the
entire Budget
• Budget not adequate to cover entire project period
© Tilitonse 2014
Status of Funding as at Dec 13
Approved (£) Disbursed (£) Balance (£)
Accelerated Grants
1,027,833
1,009,009
18,824
General Open Call 1
3,408,189
2,393,777
1,014,412
General Open Call 2
1,043,392
365,187
678,205
Thematic Call
1,925,958
674,085
1,251,873
Total
7,405,372
4,442,058
2,963,314
© Tilitonse 2014
Thank you very much!
© Tilitonse 2014