Guidance on When to Process a Budget Revision

This 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).

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