The NOAA Grants Management Division provides detailed guidance for creating budget narratives in grant applications, emphasizing the need for clarity and alignment with the SF-424A or SF-424C forms. Applicants must itemize federal and non-federal costs, ensuring accurate justifications for expenses, which should be reasonable and necessary for the project. Key components of the budget narrative include personnel details, fringe benefits, travel costs, equipment, supplies, contractual obligations, and other expenses. Each category requires specific justifications and documentation, including calculations and narratives supporting the financial requests. The document stresses compliance with federal regulations such as 2 CFR §200 and encourages separate budgets for subawards and contracts. Indirect costs must be calculated based on negotiated rates or the de minimis rate for those without established rates. Furthermore, any required non-federal cost-sharing must be documented in a similar detailed manner. This guidance aims to ensure transparency, accountability, and proper utilization of funds within federal grant processes.