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Budget Modifications

Published: August 31, 2012
Audience:
All
Topics:
Grantee Resources
Types:
Form, Guide

Budget Modifications

In general, grantees are allowed a certain degree of latitude to rebudget within and between budget categories to meet unanticipated needs and to make other types of post-award changes. These budget modifications are allowed without formal approval, provided they are for activities detailed in the approved OWP for that budget period and do not meet one or more of the below prior approval requirements.

When do you need to request approval for a revision to your project’s budget?

The 45 CFR Part 74.25 and 45 CFR Part 92.30 state that written approval is required from ACF/ANA prior to grantees implementing a budget modification that does one or more of the following:

  • Changes the scope of the project. For ANA’s purposes, a change in scope may result from a significant alteration of the approved project activities, change in the direction of the project, the type of services delivered, the number of beneficiaries to be served, or training provided.
  • Exceeds the threshold for significant re-budgeting. This occurs whenever a grant with a Federal share exceeding $100,000 makes cumulative transfers among direct cost budget categories for the current period that exceeds 25% of the total approved budget.
  • Changes the salary in an amount greater than or equal to 25% or equivalent to a three month absence for any key personnel position.
  • Adds new line items that fall under the prior approval cost principals according to the OMB Circulars. For federally recognized tribes the relevant circular is OMB Circular 87 and for native non-profits the relevant circular is OMB Circular 122.  
  • The sub award, transfer, or contracting of any work under an award, unless approved in the application.   
  • Results in a need for additional federal funding.
  • Moves funds from direct costs to indirect costs and vice versa.
  • Involves the transfer of funds allotted for training allowances (this is a direct payment to trainees) to other budget categories.
  • Please ensure your ANA program specialist has a copy of your current working budget. For further guidance and information, please contact your Office of Grants Management (OGM) specialist and ANA program specialist.

What is the timeline for making a budget modification request?

There is no specific timeline for making a budget modification request; however, it must be approved prior to implementing the requested changes. The ACF/ANA review of a budget modification request can take time to process; therefore requests should be submitted as soon as a need has been identified.

What should my budget modification request include?

A request sent on letterhead identifying the reasons for the modification. Include:

  • A revised SF-424 signed by the authorized organizational representative.
  • A revised SF-424A with the new budget category amounts.
  • A revised line item budget showing the approved budget, what is requested to be revised, and the new amounts.
  • A new line item budget narrative that inserts the revised amounts and justifications into the approved budget narrative.
  • Any additional information the grantee believes is relevant to the request (e.g., price quotations).
  • Current indirect cost rate agreement if the budget is changed due to an increase or decrease in indirect costs.

Note: Modifications to the non-federal share must adhere to the same instructions as the Federal share budget.

Where do I submit the request?

Complete all necessary documents and submit them electronically via Grantsolutions.gov.  These can be uploaded to GrantSolutions as .pdf or other file types.  The forms and certifications can be completed and submitted through GrantSolutions by the Authorizing Official or the Principal Investigator/Project Director.
Grantees may always contact their program specialist or TA provider to review their budget modifications before submission.
See the attached Budget Modification request with budget template.