Increasing the Capacity of Individuals, Families and Communities

Managing Public Grants

Financial Management | Financial Reporting

Revisions in Budget and Program Plans¹⁰

The budget plan is the financial expression of the project or program as approved during the award process. You must report deviations from budget and program plans and request prior approvals for budget and program plan revisions. Direct all requests for prior approval for program-related changes to your program officer. Your grant management officer must give prior approval for budget-related changes. Request prior approvals for any of the following program or budget related reasons:

• Change in the scope or the objective of the project or program (even if there is no associated budget revision requiring prior written approval).
• Change in a key person specified in the application or award document.
• The absence for more than three months (or a 25% reduction in time devoted to the project) by the approved project director or principal investigator.
• The need for additional Federal funding.
• The transfer of amounts budgeted for indirect costs to absorb increases in direct costs.
• The inclusion of costs that require prior approval in accordance with the governing OMB cost principles circular.
• The transfer of funds allotted for training allowances (direct payment to trainees) to other categories of expense.

The Federal awarding agency may not permit any budget changes in a recipient's award that would cause any Federal appropriation to be used for purposes other than those consistent with the original purpose of the authorization and appropriation under which the award was funded.

The Federal awarding agency may also restrict the transfer of funds among direct cost categories or programs, functions and activities for awards. If you have a surplus of funds (but have applied for continuation funding) you do not have to submit notification.

How to Request Changes
When requesting approval for budget revisions, you must use the budget forms that were included in the application—unless the Federal awarding agency indicates a letter of request is sufficient. Generally, the Federal awarding agency will review your request and provide notification of approved changes within 30 calendar days, or they will notify you in writing of a date when a decision can be expected.

Negotiating the Process
Negotiating changes to the project is another area where good communication with your Federal program officer and grants management officer are especially critical. Be certain that your proposed changes are well thought out and carefully described, and that they do not change the scope of the project or alter the original intent of the funding. Include detailed justifications for any budget revisions. Good communication will facilitate the process for reaching agreement about changes to the project

Financial Management | Financial Reporting