A grant budget template built around cost, eligibility, match funding and monthly cash

A grant budget should connect each cost to a project activity, eligibility rule, funding source, payment month and evidence record. A spreadsheet total without those links is difficult to defend and harder to manage after an award. No downloadable template file is provided here.

Build the template below in a controlled workbook. Do not copy example categories into a claim until the live programme confirms that they are allowed.

What to take away

• A grant budget must link each cost to activity, eligibility, funding source, payment month and evidence.

Project cost sheet

Use one row per cost item and these columns:

Innovate UK, which funds England-based businesses, uses a project finances workbook for its Smart grants.

Keep formulas visible and protect formula cells. Give every quotation a date and file reference. Where a rate is estimated, record the assumption and review date.

Eligibility sheet

Add the cost ID, scheme category, proposed eligible value, proposed ineligible value, rule reference, explanation, evidence requirement and reviewer. Include an unresolved status so uncertainty is not silently treated as eligible.

The Cabinet Office Model Grant Funding Agreement illustrates how eligible expenditure can be tied to funded activities and evidence. The applicant must use the wording of its own programme and agreement.

Do not delete rejected lines from the full project cost. Move their value to the ineligible column so the business can see what it must still finance.

Funding sheet

For every cost, show the proposed grant share, applicant cash, permitted match funding and any other approved source. Add evidence, status and availability date for each source.

Check that funding shares add to the gross or net requirement used by the scheme. Confirm how VAT is handled. Flag any source that depends on an unsigned loan, investor decision or separate application.

For a 20,000 pound project, 16,000 pounds may be eligible and 4,000 pounds ineligible. At a 50 per cent grant share, the grant is 8,000 pounds and the applicant funds 12,000 pounds. If the lowest monthly closing balance is 3,000 pounds, the business must cover that gap until grant payment.

Monthly cash flow

Create columns for each month from planning through the final expected payment. Rows should include opening cash, trading receipts, grant receipts, other project finance, supplier payments, payroll, tax, adviser fees and closing cash.

Business.gov.uk recommends a 12-month cash flow forecast for funding preparation and says figures should reflect when cash reaches or leaves the bank. Extend beyond 12 months when delivery or final reimbursement requires it.

Add a late-grant scenario and a cost-overrun scenario. Display the lowest monthly closing balance. The person approving the application should see the temporary funding need, not just the final surplus or deficit.

Evidence register

Create a row for each cost ID with procurement evidence, approval, contract, delivery record, invoice, payment evidence, accounting entry and claim reference. Add retention date and storage owner.

Government grant-agreement guidance expects financial and delivery reporting, audit and assurance in central government agreements. The signed award may demand more or less, so turn its clauses into the register before spending.

Control totals

At the top of the workbook, reconcile:

The first five figures should match the application narrative and funding table. The full cost should equal eligible plus ineligible expenditure. Investigate every difference rather than adding a balancing line.

Change log

Record the date, requested change, reason, value, affected milestone, requester, internal approval, funder approval and workbook version. Do not overwrite the submitted baseline.

Reforecast after supplier, timing or scope changes. Ask the funder before moving expenditure between headings when the agreement requires written consent.

Review before use

Have a second person test formulas, totals, dates and source documents. Ask a qualified accountant to assess tax and VAT assumptions. The GOV.UK VAT rates page confirms current headline rates, but it does not determine recoverability or eligibility for an individual project.

This template is a structure, not an official form. Use the funder's required workbook where one exists.

Before you act

Common questions

This draft contains no live internal links and remains on hold for finance review.