The document provides comprehensive guidance for preparing the budget narrative and estimate required for federal grants and RFPs. It outlines stringent compliance with 2 CFR Part 200 cost principles, detailing the categories of allowable costs, including personnel, fringe benefits, travel, equipment, supplies, contractual, construction, and indirect costs. Each budget category includes specific guidelines and examples for presenting expenses in a clear and acceptable manner. Key elements include the necessity for thorough explanations of personnel roles, compensation rates, and the basis for travel and equipment costs. The narrative emphasizes cost-sharing and acknowledges third-party contributions. A rigorous approach is advocated for ensuring that all costs are reasonable, allowable, and allocable to the agreement. The document serves as a critical resource for applicants in structuring their budgets to meet federal standards, promoting fiscal responsibility and transparency in project funding requests.