Budget Revision
Budget Revision may be necessary if the current planned expenditures differ from the original or most recent budget approved by the sponsor. Reasons for revising a budget include increases (or decreases) in funding amounts or to reallocate budgeted funds between cost categories within a project. Budget revisions may require sponsor approval
UMaine classifies budget revisions into two categories depending on the reason for revising a budget: Budget Modification and Budget Reallocation.
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Budget Modification
Whenever a project budget is increased (or decreased) through an amendment or modification of an existing award, ORA uses the ORA Budget Spreadsheet (revised 10/24/25) to build a budget that has a new revised total. Multiple year awards will usually have the following year budgets already prepared at the submission stage on projects that a sponsor incrementally funds. However, in order to modify a budget that is already in the system, please consult an ORA award management staff member.
Budget Reallocation
To reallocate budgeted funds between cost categories within a project without changing the total amount budgeted, use the Budget Reallocation Form (revised 1/2/2025).
This form has special instructions noted within it. Preparers will enter the current budget as seen in GL before the changes. Then, enter the changes by increasing or decreasing budget categories. New budget categories may be introduced that are not currently listed in the project. Please see a list of available account codes listed in the account code definitions tab at the bottom of the excel form. Please note that increasing or decreasing certain budget lines may necessitate a change in the F&A budget. The form will automatically calculate what that change is. The change will be reflected in the red box on the form. Whatever value is in the red box must be entered as an adjustment amount as one of your changes. In order for a successful budget revision, all changes (sum of all increases and decreases) must net out to zero.
Why A Budget Is Revised
Increases in Funding Amounts
Whenever additional funds are awarded by a sponsor, the project budget is increased to reflect the new award total. Usually, these increases are in the form of an award modification or an amendment. In rare instances, budgets may be decreased to reflect changes in project needs. The amount of time it takes to have a budget revised in GL depends on the need for sponsor approval and how quickly a sponsor replies to the request.
To Reallocate Budgeted Funds
A proposal’s budget represents the amount of funding required to perform the project and presents to the sponsor an accurate assessment of what cost items and cost amounts will be necessary to complete the proposal’s aims, objectives or statement of work. Moving funds between cost categories can help meet unexpected needs or accomplish certain program changes. Most sponsors understand the need for a degree of flexibility the proposed budget and allow the University of Maine to make changes without agency approval as long as the scope of work is not affected. PIs should review their awards for specific terms and conditions requiring prior approval for budget revisions.
Budget Revisions Requiring University of Maine Approval
In addition to Sponsor specific terms and conditions, the University of Maine requires a budget revision if allocating funds between direct cost categories and indirect costs. These affect the following cost categories: capital equipment, capital expenditures, charges for patient care, rental costs, tuition remission, scholarships and fellowships, participant support costs and the portion of each subaward in excess of $25,000. Budget revisions involving these categories may or may not require sponsor approval.
When to Process a Budget Revision
The following list is in order of precedent:
1. If required under the terms and conditions of the award
Example: A clause in the award document states that any changes to the budget requires sponsor approval.
2. Transfer of funds budgeted for participant support costs
Example: You have $40,000 budgeted for Participant Support Stipends. Because there are less participants than anticipated, only $30,000 will be needed. Sponsor approval will be required to reallocate $10,000 of funds out of the PSC line.
3. Sub-awarding, transferring or contracting out of any work
Example: You have determined that part of the project’s work can better be accomplished at another institution (or some other off campus entity).
4. Changes in the approved cost-sharing or matching
Example: The award states that the recipient’s share is a certain dollar amount or a certain percentage of the total project costs. If the recipient’s share can’t be met, sponsor approval is required.
5. Disengagement from the project for more than three months, or a 25 percent reduction in time devoted to the project, by the approved project director or principal investigator
Example: If the PI/PD or co-PI/co-PD will devote substantially less time to the project than anticipated in the approved proposal, (defined in the applicable grant terms and conditions as a reduction of 25% or more in time) he/she should consult with the appropriate officials of the grantee organization. Requests for changes to the person-months devoted to the project must be signed and submitted by the AOR via use of NSF’s electronic systems. If the grantee organization or NSF determines that the reduction of effort will substantially impair the successful execution of the project, the NSF Program Officer will consult the NSF Grants Officer.
6. If the resulting revision affects F&A. When there is a change to capital expenditures, charges for patient care, rental costs, tuition remission, scholarships and fellowships, participant support costs, and the portion of each sub-award in excess of $25k
Example: Your approved budget currently has $50,000 budgeted for capital equipment. You determine that only $32,000 is needed for capital equipment. Since the original $50,000 was excluded from F&A, spending the $18,000 on non-excluded items will generate F&A charges. A budget revision will be needed to increase the F&A line.
7. Transfer of funds among direct cost categories where the cumulative amount of such transfers exceeds or is expected to exceed 10 percent of the total project cost (the percentage may be different among sponsors)
Example: The total budget for your award is $126,000. Personnel is budgeted at $60,000, supplies and materials at $40,000, and the F&A budget is $26,000 (26% rate). If your supply expenditures will exceed the budget by $15,000, you’ll need to spend $15,000 less in personnel and request sponsor approval because the additional supplies of $15,000 exceeds $12,600 (10% of the $126,000 award amount).
