Research OSPA:Re-Budgeting Process
September 1, 2013
Statement of the Issue
Procedure to follow when re-budgeting funds that require sponsor approval.
In most circumstances, awarding of the project constitutes approval of the expenditures according to the approved budget. However, funds may need to be re-budgeted in order to meet project objectives (See Uniform Guidance 2 CFR 200.308 Revision of Budget and Program Plans). Each agency varies in the degree of re-budgeting authority granted to institutions. This is specified in the award document.
Some federal sponsors have granted institutions expanded authority under the Federal Demonstration Partnership (FDP) to allow re-budgeting among most funding categories without prior approval. (See, e.g., NIH Grants Policy Statement – Part II: Terms and Conditions of NIH Grant Awards, Administrative Requirements, Section 18.104.22.168 and 8.1.2).
The following purposes require prior, written sponsor approval, obtained by the Office of Sponsored Projects (OSP):
* Change of any named personnel * Reduction of salary/effort * Change in equipment costs * Addition of foreign travel * Change greater than 25% of budget item * Change in student support (C7010)
A. OSP will receive a request to re-budget funds from either the Office of Post Award Management (OPM) or the Principal Investigator (PI) of an active project.
B. The respective Grants Specialist will review the request against the applicable guidelines/regulations/conditions to determine if it is allowable.
C. If the request is disallowed, the Grants Specialist will email the PI and copy the Post Award Management Specialist in OPM to state the request is not allowed and the reasoning: grant terms/conditions, OMB, etc.
D. If the request is allowable, but requires sponsor approval, the Grants Specialist will contact the PI with the following questions: 1. What is the justification for the request (why is it needed)? 2. Will there be any significant impact on the project/scope of work? 3. Where in the approved budget will the funds be coming from and where will the rebudgeted funds go in a new budget? E. The Grants Specialist will provide the PI all relevant sponsor requirements for rebudgeting and advise as to how these requirements apply to a rebudget request. Once the PI provides the justification for the rebudget, a letter or email stating the specific re-budget request and the answers to the above questions will be prepared (and, if applicable, signed by the Assistant Director, OSP). See template for re-budget request at the end of this process.
F. The Grant Specialist will then forward the request to the responsible parties (e.g. Sponsor’s Grants Management Specialist, Program Official, Administrative Contact, etc.) listed in the contract or grant Notice of Award.
G. If the rebudget request is denied by the Sponsor, the Grant Specialist will email the PI and copy the OPM informing them of the denial and the reasoning.
H. If the rebudget request is approved, the Grant Specialist will upload the approval in the Awards module in Peoplesoft. The Grant Specialist will then send the Sponsor’s approval to OPM and copy the PI.
I. For additional information, refer to the [process].
A. //Rebudget// - Deviations from the approved budget. All rebudgeting must meet two criteria: enhance the project and must conform to the re-budgeting guidelines of the funding sponsor.
B. //Federal Demonstration Partnership (FDP)// – A cooperative effort among federal research agencies and recipients of federal funds aimed at reducing the administrative burden associated with research grants and contracts. FDP implemented streamlined terms and conditions for research grants.
C. //Uniform Guidance// - In effect December 26, 2014 and published by the federal Office of Management and Budget (OMB), this guidance supersedes and streamlines requirements from OMB Circulars A-21, A-87, A-110, and A-122; Circulars A-89, A-102, and A-133; and the guidance in Circular A-50 on Single Audit Act follow-up. This guidance provides a governmentwide framework for grants management which will be complemented by additional efforts to strengthen program outcomes through innovative and effective use of grant-making models, performance metrics, and evaluation. http://www.whitehouse.gov/omb/grants_docs
[Name of Grants Management Specialist] [Title] [Address] [Address]
RE: Re-budget request for [grant number]
Dear [Name of Grants Management Specialist],
The University of Texas at Dallas requests a re-budget of grant, [grant number], entitled “[title of grant]”, under the direction of Dr. [name of PI].
[Reason the re-budget is being requested and what categories are being re-budgeted. Example: “The PI has determined a second graduate student is needed to perform the necessary experiments and accomplish the project objectives. We are requesting $15,000 be moved from Materials and Supplies to Graduate Student Support.”]
Approval: ________________________________________ ____________________ Emily Lacy, Assistant Director, Office of Sponsored Projects Date
- March 22, 2016**