CED Budget Modification Request Process

This page provides Community Economic Development (CED) grantees with the information and instructions for submitting a budget modification request.

What is a Budget Modification Request?

A budget modification request, the most common type of grant amendment, occurs when a grantee, after consulting their OCS Program Specialist and OGM Grants Management Specialist, determine they need to make changes to the project budget due to the following:

  • Significant change of the scope of the project needed to achieve project outcomes.
  • Modifying the budgets for the following line items: contracts, travel, construction, and indirect costs.
  • Moving expenditures in a single direct cost budget category to other budget line items. A budget modification is required when expenditures in a single direct cost budget category, increases or decreases from the approved budget amount for that budget period by 10 percent for awards that exceed the simplified acquisition threshold, or 25 percent for awards that are below the simplified acquisition threshold. The Simplified Acquisition Threshold is $250,000. If there is no budget modification, file applications separately.

Note: If a grantee is considering a change of scope, the grantee should consult with their OCS Program Specialist and OGM Grants Management Specialist to determine if they may also require the grantee to modify the project budget. Often, a change of scope may also require a change of budget. In that case, a change of scope request and budget modification request may be submitted concurrently. For more information, refer to the Change of Scope Request Process resource.

When Should a Budget Modification be Requested?

A grantee may submit a request for a budget modification at any time during the project period. In some instances, the Office of Grants Management (OGS) may request a grantee submit a budget modification upon award and before grant funds can be accessed.

A budget modification can be requested if a project is in a no-cost extension year, as project may still have funds that need to be expended and all previously issued terms and conditions remain in effect. Please note, there are no additional funds provided.

What Should I Consider before Submitting a Budget Modification Request?

If a grantee is making changes to their CED project as outlined earlier, the grantee should contact their OCS Program Specialist to determine if a budget modification is needed to ensure the project meets its proposed goals and objectives. The Program Specialist will consider and discuss the following questions with a grantee when considering a budget modification:

  • Are the proposed changes to the budget allow the grantee to meet the objectives of their grant?
  • Are all project-related activities to be funded by CED funds are allowable, allocable, and reasonable?
  • Does the newly proposed project still meet all eligibility criteria included in the Funding Opportunity Announcement (FOA) under which the grantee originally applied for this project?
  • Is the grantee aware there will be no additional CED funds available later to supplement the current CED grant?
  • Is the activity the grantee wished to move funds from still be completed successfully with the remaining budget?

Note: All amendments require prior approval, first by the OCS Program Specialist and then by the OGM Grants Management Specialist.

The simplified acquisition threshold is subject to change and grantee should always consult OCS and OGM prior to submitting a budget amendment. while under the grantees can move money between different budget line items without prior approval from OGM as long as it is within 25% of the budget category. Exceptions to this policy include the following budget line items which always require prior approval from OGM: contracts, travel, construction, and indirect costs.

A budget modification may be denied for the following:

  • A budget modification that was submitted without prior approval, as all amendments require prior approval.
  • The proposed budget modification is for an unallowable item or activity.
  • The budget modification will not result in the completion of the project’s goals and objectives within the project period.
  • There is no need to submit a budget modification.
What Do I Include in my Budget Modification Request?

The budget modification request must include the following:

  • Cover letter with signature of the authorizing official. The letter must include:
    • Grant Number
    • Remaining grant balance (include total funds not expended — including drawn down and not drawn down)
    • Supporting reasons for request
    • Outline of the proposed budget changes
    • Description of the approved grant activities that remain unmet as they relate to approved goals and objectives
  • SF-424 cover sheet signed by the authorized official
  • SF-424A — Budget Information and a Budget Narrative: There is a column for the current budget levels for each category that is on your Notice of Grant Award (NOA). This is where grantees will reflect budget changes.

A downloadable template that grantees may use to complete the cover letter is available at the bottom of this page.

How is a Budget Modification Request Submitted?

To request a budget modification, a grantee is required to prepare and submit a formal Budget Modification Request through the Manage Amendment section in GrantSolutions.

For instructions on how to submit an amendment in GrantSolutions, refer to the following resources:

Who Approves a Budget Modification Request?

The assigned OCS Program Specialist and Office of Grants Management (OGM) Grants Management Specialist review the budget modification request submitted in GrantSolutions and will approve or deny the request.

If the budget modification is approved, new Notice of Grant Award (NOA) is generated by OGM and the grantee will be notified via GrantSolutions. Grantees can review GrantSolutions or follow-up with their Program Specialist to check in on the status of their budget modification request.

What if the Budget Modification is Not Approved?
If the budget modification request is denied, the assigned OGS Grants Management Specialist and the OCS Program Specialist will contact the grantee to discuss how to move forward.

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