Common use of Budget Flexibility Clause in Contracts

Budget Flexibility. ‌ As directed in 2 CFR 200.308(e), the transfer of funds among direct cost categories or programs, functions and activities is restricted such that if the cumulative amount of such transfers exceeds or is expected to exceed 10 percent of the total budget as last approved by the Federal awarding agency, the recipient must receive prior approval from the Grant Officer. Any changes within a specific cost category on the SF424a do not require a grant modification unless the change results in cumulative transfer among direct cost categories exceeds 10% of total budget as noted above. It is recommended that your assigned Department of Labor (DOL) Federal Project Officer (FPO) review any within-line changes to your budget prior to implementation to ensure they do not require a modification.