Common use of Budgetary Changes Clause in Contracts

Budgetary Changes. The Subgrantee must obtain the prior written approval of CV before deviating from the approved budget included in Exhibit B in any of the following ways: 1) Specific Costs Requiring Prior Approval before Incurrence under OMB Cost Principles 2 CFR Part 200, Subpart E. For certain cost items, the cost principles require approval of the awarding agency for the cost to be allowable. Examples of these costs are overtime pay, rearrangement and alteration cots, and pre-award costs. 2) Purchases of Equipment over $5,000 using award funds, unless specified in the approved application and budget. 3) Unless the CNCS share of the award is $100,000 or less, changes to cumulative and/or aggregate budget line items that amount to 10 percent or more of the total budget must be approved in writing in advance by CV. The total budget includes both the CNCS and recipient shares. Subgrantees may transfer funds among approved direct cost categories when the cumulative amount of such transfers does not exceed 10 percent of the total budget. In some cases, CV will be required to obtain approval from CNCS before a program can make this change. Exhibit G, “Resource and Reference Materials for Subgrantees” identifies resources available on the budget revision and approval process. Failure to receive prior approval for budget revisions may result in nonpayment of expenditures that did not receive prior approval and/or invoices being held until the budget changes are resolved. In addition, non-compliance will be noted in monitoring reviews and may become a factor in evaluating organizational capacity for future funding decision-making.