The document provides guidance on preparing a budget narrative for federally funded projects, in compliance with federal regulations outlined in 2 CFR Part 200. It details required budget categories including personnel, fringe benefits, travel, equipment, supplies, contractual, construction, and indirect costs. Each category needs a thorough narrative explaining the expenses and justifying their necessity for project execution. Cost-sharing requirements are also emphasized, detailing that contributions should encompass both cash and in-kind support. The guidance stresses that all costs must be allowable, allocable, and reasonable, in accordance with federal cost principles. Additionally, specific narrative instructions highlight the importance of clearly defining roles, rates, and justifications for costs within each category. This document serves as a critical resource for entities seeking federal grants or responding to RFPs, ensuring compliance and clarity in budget submissions to facilitate project funding and oversight.