CGU Procedures for Rebudgeting under Sponsored Awards
During the life of a sponsored project, there may arise a need to revise the approved financial plan (budget) for the project. These procedures will describe the processes involved in requesting approval of such budget revisions.
Budget revisions under Federal awards will be processed in compliance with 2 CFR 200.308 [“Revision of budget and program plans”]. Many federal agencies have waived a number of the prior approvals required for budget revisions under research awards using the principle of “expanded authorities.”
The following rebudgeting actions normally require prior approval of the sponsor for Federal awards:
- Reduction of amounts budgeted for Participant Support Costs.
- Changes in the amounts of approved cost sharing/matching.
- Increases in the amount of F&A (indirect) costs.
- Budget revisions which result in significant changes in the scope of the project; or
- Budget revisions which result in a 25% or more reduction of effort for the PI/PD.
- Budget revisions which result in a 10% overall change in the budget last approved by the federal sponsor
Unless stricter guidelines are detailed in the award documentation, for all sponsored projects, no modification is necessary if costs do not exceed a specific expense category by more than ten percent. For example, the budget for supplies is $10,000. As ten percent of the $10,000 is $1,000, the project could incur additional costs of $999 in this line item for a total of $10,999 without having to request a budget modification. Federal agencies apply this 10% rule to the cumulative total award rather than specific line item categories and only for awards that exceed $100,000 in funding.
Revision Request Procedures
All requests for budget revisions should be initiated by the Principal Investigator/Project Director (PI/PD) and/or the associated departmental business administrator. The request should be sent to the Office of Research, Sponsored Programs & Grants, Senior Grants and Contracts Analyst and/or the Director of Research Administration for review and processing. The request must include a summary of requested rebudgeting by budget line items along with justification for the proposed revision.
The Senior Grants and Contracts Analyst and/or the Director of Research Administration will review the request for compliance with sponsor’s normal rebudgeting policies and regulations and the specific terms and conditions of the project award. If required by sponsor policy or award terms and conditions, the Senior Grants and Contracts Analyst and/or the Director of Research Administration will prepare and submit a request for prior approval of rebudgeting to the appropriate sponsor contact(s).
If sponsor allows approval by the university or when prior approval is granted by the sponsor, the Senior Grants and Contracts Analyst will send an NOA – Budget Modification to CGU’s Post Award Office to initiate the budget revision in the university accounting system. Budget revision requests will be denied if the requested revision is not in compliance with university policy, state law, federal funding policy (2 CFR 200) and funding agency policy and regulations.