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Budgets are generally computed on a 12-month basis, but please defer to the requirements outlined in the sponsor solicitation. The proposal budget should be aligned with the project description and follow the sponsor guidelines for format. Above all, costs should be allowable, allocable and reasonable [PDF]. Be sure to include enough funds to cover likely cost increases both before the project is funded and in subsequent years. Consider facilities and administration (F&A) costs and the costs of employee fringe benefits.