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Carryover Budget

Published: May 1, 2013
Audience:
All
Topics:
Grantee Resources
Types:
Form, Guide

A carryover budget is when unobligated balances from a budget period that has ended are carried forward into the current budget period to support incomplete activities from the budget period in which funds were originally awarded.

Who can request spending authority for a COB?

Grantees with multi-year grants may request a carryover budget (COB) from one year to the next if the funds are for project activities that were not accomplished during a previous budget period. Prior to submitting a request, the grantee must ensure that the amount requested for the COB is still available in their Payment Management System account. The draw-down and charged amount in PMS must reconcile with one another, as this will confirm the unobligated balance amount. Grantees shall not have outstanding or delinquent financial and program (OPR) and (ADR) reports. If unsure, the grantee should contact their OGM grants management specialist for financial reports and their program specialist for the OPRs and ADRs.

When can you request a COB?

A COB request should be submitted as early as possible in the subsequent budget period once the incomplete activities and the unobligated balance have been identified. The annual financial report for the previous budget period should also be submitted.  Un-obligated funds can only be carried over to complete activities or objectives that were not finished in the original budget period for which the funds were awarded.

What should be included in the COB request?

  • A Cover letter written on letterhead requesting the Carry-Over Budget. The Authorizing Official must sign the cover letter. This letter should include the following:
    • The exact dollar amount of the request (unobligated federal amount or less)
    • A detailed description of approved incomplete grant activities from the budget period corresponding to un-obligated funds
    • Status of Non-federal share contribution during the previous budget period – was it met or not?
    • An explanation of why these activities were not completed
    • A specific plan for completing these activities in the current budget period.
  • A SF-424 including the COB request amount only. The COB request amount includes the federal carryover amount plus 20% of the total COB budget for the Non Federal Share contribution. The 20% NFS match should be included on the SF-424 even if it was met in the previous budget period.
  • A SF-424A which breaks down the COB amount per budget category. The SF-424A should also include 20% of the total COB for the Non Federal Share (NFS). If NFS was previously obligated, please include it in “Other”.
  • A line item budget (See the template COB request for an example of the preferred format for the line item budget) that includes the following:
    • A column with the current budget period’s approved federal budget, this includes the title and amount for each approved line item before carryover funds are added.
    • A column demonstrating the carryover request. This should identify the line item(s) where carryover funds will be added and the amount.
    • A column with the new federal request (current federal budget + carryover amount)
    • A column with the current budget’s non-federal share (match) before carryover funds are added.
    • A column demonstrating the carry over request for the non-federal share (match).
    • A column with the new non-federal share match (current match + carryover match amount)
      • If NFS match has been met in the previous budget period, please identify the 20% of the COB amount in “Other” category.
    • A column for the total year budget (adding the all the lines across)
  • A Budget Justification Narrative that justifies the increase to approved line items for COB amounts only.
  • An updated SF-425 that shows the un-obligated balance is equal to the amount that is being requested. This SF-425 should be marked Annual and will most likely be from the 4th quarter of the budget period that resulted in the carryover amount.
  • A revised OWP that includes incomplete activities from the previous budget period along with revised expected completion dates assuming the COB is approved.

Additional Requirements:

The grantee must ensure that the COB amount is still available in their Payment Management System (PMS) Account. If unsure, they should contact their OGM Specialist.

The grantee must identify the incomplete activities in the previous year’s OPR in OLDC and mark them “Delayed” and indicate a new completion date, assuming the COB has been approved.

Where do I submit the COB 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 carryover budget before submission.

          See the attached Carryover Budget request example with the line item budget template.