**INACTIVE POLICY**

For Current Policies:
Policy Table of Contents

 



                      UNIVERSITY OF VIRGINIA
           FINANCIAL AND ADMINISTRATIVE POLICIES MANUAL



TITLE:  GRANT AND CONTRACT CHANGES                POLICY:  VIII.A.5x

                                                          
                                                                   
Budgetary Changes

Purpose & Background  This policy provides general information
about budget category restrictions and outlines the procedures for
requesting changes. THIS POLICY APPLIES ONLY TO AWARDS WITH
EXPENDITURE RESTRICTIONS. Unanticipated rebudgeting requirements or
changes are permitted within the sponsor's and University's
limitations.

Overview  The University permits the principal investigator or
project director to deviate from the approved budget if:

The rebudgeting is in accordance with sponsor and University
requirements.

The departure will enhance and not impede the progress of the
project toward its stated objectives.

General Limitations on Rebudgeting  Specific limitations may appear
in the sponsor's award document and/or University's official
"Notice of Award." Limitations under OMB Circular A-21 and general
sponsor requirements are outlined below:

For budget categories restricted by the sponsor, PRIOR APPROVAL is
required before rebudgeting.  Restricted budget categories include,
but are not limited to, the following:

      Domestic Travel  Domestic travel exceeding $500 or 25% over
      the sponsor approved budget, whichever is greater.

      Special Purpose Equipment  Equipment (property which has an
      acquisition cost of $2000 or more and an expected life of one
      year or more) which will cause the amount awarded in the
      approved budget for equipment to be exceeded by $1,000 or 25%
      of the budgeted amount, whichever is greater.  EQUIPMENT
      FUNDS SPENT ON OR REBUDGETED TO OTHER LINE ITEM CATEGORIES
      REQUIRE AN ACCOMPANYING INCREASE IN INDIRECT COST.

      General Purpose Equipment  General purpose equipment
      (includes office equipment, air conditioning,
      reproduction/duplication equipment, etc.) requires approval
      according to sponsor regulations.  Automated data processing
      equipment may require both sponsor and State approval.  See
      also Policy VII.N.1, "Acquisition of ADP
Resources."


      Foreign Travel  Any travel outside Canada or the United
      States, its territories and possessions requires prior
      approval.

      Any increase or decrease in the total amount budgeted for    

      training stipends.

      Expenditures for patient care in excess of those included in
      the approved budget.

      Expenditures for alteration and renovation costs in excess of
      the amount provided in the approved budget.


Limitation Concerning Indirect Costs in Rebudgeting  Funds awarded
and identified for indirect costs may be rebudgeted into direct
costs during the budget period only if such action is permitted by
the sponsor and endorsed by the University.

When the modified total direct costs (MTDC) base upon which
indirect costs are calculated is increased by rebudgeting and no
additional funds are provided by the sponsor, the principal
investigator must reduce other direct costs to provide for
additional indirect costs from the rebudgeting action.

The budget categories that are not included in this MTDC base are:

     Health Care Services

     Equipment

     Subcontracts

     Student Aid

     Rental Costs of Off-Grounds Projects

Other Grant and Contract Changes

The following changes require a Form SP-23 and a letter addressed
to the sponsoring agency.  See also Procedures 
8-15.


           Change of or absence of principal investigator (PI) for
           three months or more.

           Substantial change in effort of PI or other key people.

           Change of grantee institution.                          
           
           Extensions of budget periods.

           Change in scope of objectives.

      Use of funds for any purpose disapproved or restricted as a
      condition of award.

      Subgranting or subcontracting out any principal activities of
      the grant.

      Changes in grant and contract terms and conditions (extension
      of the project period, changes in reporting requirements,
      etc.).

Processing Procedure

In order to request necessary prior approval for the above, the
principal investigator/program director will:

      Complete Grant and Contract Change Request, Form SP-23.

      When sponsor approval is required, attach a letter of request
      addressed to the sponsor detailing the request and supplying
      justification.

      Submit Form SP-23 with letter addressed to sponsor 
      to the Office of Sponsored Programs for action VIA THE
      APPROPRIATE DEPARTMENT HEAD AND RESEARCH ADMINISTRATOR.

     ALL REBUDGETING ACTIONS MUST BE SUBMITTED IN TIME TO PERMIT
PRIOR APPROVAL BY THE UNIVERSITY.  SPONSORS WHO DELEGATE SOME
DEGREE OF REBUDGETING AUTHORITY TO THE UNIVERSITY STILL REQUIRE
PRIOR APPROVAL OF REBUDGETING.  AFTER THE FACT APPROVAL IS SUBJECT
TO SPONSOR DISAPPROVAL AND AUDIT EXCEPTION.

See also Procedures 8-15,
"Preparation of Grant and Contract Changes."


ISSUED BY:                                                 08/15/96

Director of 
Sponsored Programs             8.1.5.1