GRANT AND CONTRACT CHANGES

• 1.0 Purpose
• 2.0 Policy
  • 2.1 BUDGETARY CHANGES
    • 2.1.1 Purpose & Background
    • 2.1.2 General Limitations on Rebudgeting
    • 2.1.3 Limitation Concerning Indirect Costs in Rebudgeting
  • 2.2 OTHER GRANT AND CONTRACT CHANGES
    • 2.2.1 Processing Procedure
• 3.0 Definitions
• 4.0 References
• 5.0 Approvals and Revisions

1.0 Purpose

This policy covers budgetary and other grant change requests.  In both cases individual sponsor guidelines will govern the individual procedures for an award. 

2.0 Policy [Top]

2.1 BUDGETARY CHANGES

2.1.1 Purpose & Background 

This policy provides general information about budget category restrictions and outlines the procedures for requesting changes. Unanticipated rebudgeting requirements or changes are permitted within the sponsor's and University's limitations.

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.

2.1.2 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 may include, but are not limited to, the following:

• Domestic Travel exceeding the sponsor approved budget.
• Special Purpose 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  (includes office equipment, air conditioning, reproduction/duplication equipment, etc.) requires approval according to sponsor regulations.  These costs are not typically allowable as a direct charge to a federal award. Automated data processing equipment may require both sponsor and State approval.
• 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.

2.1.3 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

2.2 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.).

2.2.1 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.  AFTER THE FACT APPROVAL IS SUBJECT TO SPONSOR DISAPPROVAL AND AUDIT EXCEPTION.

3.0 Definitions [Top]

4.0 References [Top]

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

5.0 Approvals and Revisions [Top]

       Previous version in effect from 8/15/96 to 3/8/00 available in policy archive.