TUC Sponsored Programs

Budget Revisions

Form:

 Budget Revision Form

 

 

1. Objective

 

The new budget revision procedure is intended to improve administrative efficiencies, reduce processing time, and provide increased flexibility to Principal Investigators (PI’s) to react to the evolving needs of their project. By employing the federal budgeting authority (2CFR$200.308), the new procedure will require significantly fewer requests for budget revisions and speed up the processing of expenditure requests.

 

2. Background 

Grant applications generally require a detailed budget plan, which is usually the basis for the approved budget of the awarded grant. Since there is a time lag between the application for and the actual execution of the grant, need for the application of funds may have shifted to different cost categories.

Until the implementation of this new procedure, any change to the awarded budget required submission of a budget revision request by the PI, approval by ORSP, and processing by TUC. Taking advantage of the federal rebudgeting authority, this process will streamline federal projects by simply allowing requests for expenditures to exceed the approved budgets, within the limits set by the respective granting agency.

 

3. Responsibility

Responsibility for processing budget revisions will be transferred from the Office of Research and Sponsored Projects (ORSP) to The University Corporation – Sponsored Programs (TUC-SP).

All other non-budget issues will continue to be handled by ORSP, in particular:

-       No-Cost Extensions

-       Absence of PI (>3 months) or a 25% reduction in the time devoted to the project by the project director or Principal Investigator

-       Change of PI

 

 4. Federal Projects

 

4.1 Rebudgeting Authority

Some Federal agencies provide grant recipients with the authority to deviate from the originally awarded budget, either within certain restrictions or with no restrictions at all. Rebudgeting authorities vary from agency to agency and are governed by regulations of the granting agency and/or restrictions listed on the award documents.

 

For more details, please refer to the attachment “FDP Prior Approval and Other Requirements Matrix.” Please note that the attached document represents the regulations in effect as of date of issuance of this procedure and may develop and change over time. TUC will post and update the most current matrix on its website.

 

 

4.2 Applicability

The federal rebudgeting authority applies to:

 

  • all grant awards from federal sources;
  • subawards funded from federal sources and awarded through a non-federal agency (pass-through).

 

The federal rebudgeting authority does not apply to:

 

  • federal contracts

 

 

4.3 Definition of Significant Rebudgeting/Change of Scope

Significant rebudgeting occurs when expenditures in a single direct cost budget category deviate (increase or decrease) from the categorical commitment level established for the budget period by 25 percent or more of the total cost awarded.

 

Example:

 

Personnel Cost:          $50,000

Travel:                         $25,000

Direct Cost                  $75,000

IDC                              $25,000

Total Cost*                 $100,000

 

Significant rebudgeting limit: $100,000 x 25% = $25,000

 

Personnel Cost:        $50,000 +/- $25,000

Travel:            $25,000 +/- $25,000

 

*Prior year carryover balances cannot be included in total cost. 

 

Please note: A ‘change in scope’ generally occurs, when the ‘significant rebudgeting threshold’ (25%) is exceeded.  However, other ‘changes in scope’ may also occur and will require granting agency approval, even if budgetary changes are  below the 25% significant rebudgeting threshold.

 

5.   Non-Federal Projects

Due to the multitude and complexity of grant regulations of non-federal grantors, budget revisions in these projects will be handled on a case-by-case basis. The Principal Investigator will work with the respective TUC/SPO liaison to determine the process on budget revisions for each individual non-federal project.

 

6.   Procedure

 

6.1 Submission of Expenditure Requests

The Principal Investigator will submit the expenditure request (Check Requests, Purchase Orders, Timesheets, etc.) to TUC for processing.

 

6.2 Review & Approval

TUC-SP will review the expenditure requests and determine if it is within the limits of the approved budget and the rebudgeting authority of the respective granting agency.

 

6.3 Request for Budget Revision

If the expenditure request exceeds the limits of the approved budget and the rebudgeting authority, the TUC-SP-Liaison will contact the Principal Investigator to discuss the need for a budget revision.

The Principal Investigator will then submit a ‘Request for Budget Revision’ form to TUC-Sponsored Programs.

Once the TUC-SP-Liaison obtains the official approval from the granting agency, the expenditure request will be processed and the budget will be updated in the system.

 

6.4 Internal Project Reports (BBA-Report / Detail Trial Balance)

Budgets in internal project reports (BBA-Report; Detail Trial Balance (DTB)) will list the originally awarded budget, unless an official budget revision has been approved by the granting agency.

 

The BBA column in the reports will show the deviation from the originally awarded budget, or from the officially approved budget by the granting agency. 

 

7.   Implementation

This procedure is valid as of March 1, 2017

 

 

8.   Procedure Information:

 

Date of Last Revision: 02/28/17

 

Responsible for Content:

The University Corporation – Sponsored Programs Department

 

Contact Information:

Georg Jahn

Director, Sponsored Programs & Strategic Planning

Phone: 818.677.2698; Email:

 

 

 

Attachment:  FDP Prior Approval and Other Requirements Matrix

 

AFOSR

ARO

AMRMC

DOE

EPA

NASA

NIH

NSF

ONR

USDA

Cost Related Requirements

 

 

 

 

 

 

 

 

 

 

Rebudgeting among budget categories (8)[MD1] 

W

W

W

W

W

W

8

W

W

W

Rebudgeting between direct and F&A costs (8)

W

W

W

W

W

W

8

W

W

W

Rebudgeting of funds allotted for training allowances (direct payment to trainees) to other categories or expense

W

W

W

W

W

W

9

R

W

W

Equipment not in approved budget

W

R

W

W

W

W

8

W

W

W

Capital expenditures for improvement of equipment not in the approved budget

W

W

W

W

W

W

W

W

W

W

Alterations and Renovations costing less than $25,000

W

10

W

W

W

W

11

W

W

W

Foreign Travel

W

R

W

W

R

W

W

W

W

W

Inclusion of costs requiring prior approval in Cost Principles

W

W

W

W

W

W

12

W

W

W

Faculty consulting compensation that exceeds base salary [MD2] 

W

W

W

W

W

W

W

W

W

W

Restrictions on costs not explicitly unallowable under Cost Principles

none

none

none

13

none

none

14

15

none

16

Inclusion of unrecovered F&A costs as cost sharing

Permitted

Permitted

Permitted

Permitted

Permitted

Permitted

Permitted

Permitted

Permitted

Permitted

Transfer of funds between construction an non-construction

R

R

R

R

R

R

R

R

R

R

Use of program income earned during the project period

Added to Project

Added to Project

Added to Project

Added to Project

Added to Project

Added to Project

Added to Project

Added to Project

Added to Project

Added to Project

Use of program income earned after the project period

No obligation

No obligation

No obligation

No obligation

No obligation

No obligation

No obligation

No obligation

No obligation

No obligation

 

 

 



General Requirements

 

 

 

 

 

 

 

 

 

 

Significant Rebudgeting/Change of Scope

R

R

R

R

R

R

R

R

R

R

Absence or Change of PI

R

R

R

R

R

R

R

R

R

R

Need for Additional Funding

R

R

R

R

R

R

R

R

R

R

Subaward of ‘significant part’ of Programmatic effort

R[MD3] 

R

R

1

R

R

2

R

R

3

Pre-award costs (<90 days)

W

W

W

W

W

W

W

W

W

W

Pre-award costs (> 90 days)

R

R

R

R

R

R

R

R

R

R

Initial no-cost extension of up to 12 months

R

R

W

W

4

W

W

W

R

5

Subsequent no-cost extension > 12 months

R

R

R

R

R

R

R

R

R

R

Carry forward of unexpended balances to subsequent funding projects

W

W

W

W

W

6

7

W

W

W

R

Prior approval required.  "Prior approval" means prior written approval from the sponsor.  Prior approval can take the form of the sponsor's acceptance of the proposal  and/or proposal budget and subsequent incorporation into the award, or written approval of a separate request submitted by the recipient.

W

Prior approval requirement waived

 

1

Waived except when subaward would be more than 25% of the total dollars of the award

9

Waived except for Kirschstein-NSRA grants

 

2

Waived unless change in scope and except when subawardee is foreign

10

Waived, but is required for A&R in excess of $25K, even if the A&R is accomplished with institutional funds designated as cost sharing

 

3

Waived except when subaward(s) would be more than 50% of the total dollars of the award; required for any subaward to federal agencies

11

Waived for alterations and renovations costing up to $300,000, unless change in scope

 

4

Waived except for extensions that would result in a project period in excess of five years

12

Waived, but costs not specifically covered in the Circulars are subject to NIHGPS.

 

5

Waived only for first-time requests for extensions of 12 months or less

13

Interest penalties for late payment are not allowable

 

6

Uncommitted carryforward funds are to be included in the continuation proposal if they are "substantial."

14

Prior approval required for patient care costs if change in scope

 

7

Waived except when award indicates prior approval is required

15

Prior approval required to modify the amount of cost sharing reflected on Line M of the award budget.

 

8

Waived unless change in scope

Note: budget changes that result in a change in scope would require prior approval.

16

 

 

 

Non-working meals and compensation for harm to persons or property are unallowable; also unallowable for awards made under statutory authority cited in Article 3 of the ASR are: graduate assistant tuition remission, F&A in excess of statutory amount, and fixed and real property.

 

               

 

 

 

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