Budget Modifications Tip Sheet

Publication Date: May 1, 2012

Written approval is necessary for:

  • extension of budget or project period
  • change in scope of work or objectives of the project (even if the budget does not change)
  • change in the Project Director (PD) or Principal Investigator (PI) or other key personnel specified in the grant application
  • purchase of equipment
  • travel

Request for budget modifications should include the following information:

Cover Letter Signed by Authorizing Official

Provide the amount of the request. If you are writing to inform ACF of a budget revision that does not require prior approval, clearly indicate that the funds will be used to complete activities which have already been approved. If you are writing to request a budget revision that includes a change in scope of activities, clearly indicate the proposed activities. Requests must be initiated prior to the end of the budget period for which you are requesting the revision.

424a – Complete the form, giving special attention to the following:

  • Section A, columns a, b, e (box 16 of FAA), f, g (box 16)
  • Section B, columns 1 (federal) and 5 (total)
  • Fill out each line item, even if unaffected by revision
  • The total should add up to your original total

Budget and Budget Narrative

  • The Budget should be in a spreadsheet or table format. Both the federal and non-federal budget items should be clearly marked. When making your budget, reflect the budget categories outlined in the 424a (i.e. Personnel, Benefits, Travel, Equipment, Supplies, Contractual, Other, Indirect Costs) and identify all line items within each category. Be specific and comprehensive.
  • The Budget Narrative is a justification supporting the need to expend funds for items in your spreadsheet or table format budget. It should provide a clear description of how the budget items directly relate to the overall completion and success of the project.
  • The Budget Narrative should address any line item in which funds are being shifted to or from.


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