Budget Revision
A budget revision occurs when a Section 1115 grant recipient requests to move funds between direct-cost categories in an approved budget. A written request for budget revision approval should be directed to the ACF Office of Grants Management within 30 days of the proposed change. Tell your Grants Management Specialist right away if you are thinking of modifying your budget. They will walk you through the process.
The process for budget revision depends on the details of the request. For instance, a budget revision is needed when a project has a change in scope. This occurs when the grant recipient wants to change the objectives or purposes identified in the approved application. Examples include:
- Shifting the research emphasis from one focus area to another
- Changing the service area
- Applying a new technology
- Making budget changes that cause a project’s scope to change substantially from what was originally approved
Note: Budget revision requests should only include prospective costs and activities (i.e., ones that will be incurred or undertaken after ACF reviews and approves the request).
Additionally, there must be a bona fide justification for the rebudgeting of funds. As mentioned above, the grant recipient should ask for the change in budget at least 30 days before needing the funds.
A grant recipient must contact the OCSS project officer if the budget revision will also change the project scope.
Other Considerations
When considering a budget revision, ACF approval is required when the expenditures in a single direct-cost category changes from the approved budget amount for that budget period by 10% for awards that exceed the simplified acquisition threshold, or 25% for awards that are below the simplified acquisition threshold ($250,000).
Required Documents
- Dated cover letter signed by the Authorized Organizational Representative (AOR) that includes:
- Grant Award Number and Grantee Organization Name
- Written justification stating the need for the budget revision
- Completed SF-424 signed by the AOR
- Completed SF-424A listing the proposed new budget category totals
- Budget narrative and justification detailing the proposed charge allocations in each budget category
How to Submit a Budget Revision
Grant recipients must submit the budget revision request in the GrantSolutions Grants Management Module as an amendment:
- Under Actions, select “Manage Amendments”
- Select “New”
- Select “Budget Revision (Type 6)”
- Click “Create Amendment”