Budget Revision Procedure:
Occasionally, a project’s financial resources need to be reallocated due to the nature and progress of the research. For example, a piece of equipment may become unnecessary, while another expense becomes necessary, or the scope of the project might change due to unforeseen circumstances. In these cases, re-budgeting may be required.
Re-budgeting will be allowed only to the extent the terms of the award or contract allow it. Therefore, before any attempt to re-budget, the PI should review the terms of the specific award. The PI should also assess the potential impacts of the proposed re-budgeting (e.g., shifting an expense from one budget category to another or shifting expenses from direct costs, which may result in adjustment to the F&A cost collection). Depending on the terms of the agreement, re-budgeting may require sponsor approval. Any revision relating to a change in scope would have to be approved by the sponsor.
Requesting a Budget Revision:
The budget revision request is made using an Award Modification Request Form. The form includes the following information: PI name, project number, explanation/justification for the change, amount of funds, where the funds are currently located, and where the funds need to be moved.
Approval Process:
Grants and Contracts Accounting Analyst and Senior Analyst reviews the form to determine if the budget revision is allowable.
If the Sponsor Agency requires prior approval, the Grants and Contracts Accounting Analysts and Senior Analysts would obtain sponsor approval.
Processing Budget Revision:
If the revision is allowable and agency approval is obtained if appropriate, the Grants and Contracts Accounting Analysts and/or Senior Analysts processes the budget modification through GRAMS. An auxiliary review is then sent electronically to the PI, in GRAMS, our Huron Grants and Agreements electronic research administration module which assists researchers and research administrators with an electronic award modification process, including budget revisions.
Denial: Internally, budget revision requests for items that are unallowable costs or a change in scope are not allowed. Also, if it does not comply with Agency regulations.
Relevant Supporting Documentation:
Budget Revision documentation retrieved from here