Common use of Budgetary Changes Clause in Contracts

Budgetary Changes. The Recipient must obtain the prior written approval of CNCS’s Office of Grants Management before amending the approved budget in any of the following ways: a. Specific Costs Requiring Prior Approval before Incurrence under the Uniform Guidance and CNCS’s implementing regulation (2 CFR Part 200 and Part 2205). For certain cost items, the Uniform Guidance requires approval of the awarding agency for the cost to be allowable. A list of these can be found at 2 CFR §200.407 – Prior written approval (prior approval). b. The transfer of funds budgeted to other categories of expenses from participant support costs, which are direct costs for items such as stipends or subsistence allowances, travel allowances, and registration fees paid to or on behalf of participants or trainees (but not employees) in connection with conferences, or training projects. c. Unless described in the application and funded in the approved Federal awards, the subawarding, transferring or contracting out of any work under this award that is not for supplies, material, equipment or general support services. This does not include the selection of subrecipients as required in these terms and conditions or any contracting previously identified in the budget, such as contracting for the required evaluation. d. Changes in the amount of approved cost-sharing or matching provided. e. For those awards where the Federal share exceeds the Simplified Acquisition Threshold (set by 48 C.F.R. Subpart 2.1), cumulative changes to budget line items that are expected to or do amount to 10 percent or more of the total budget, as last approved by CNCS, must be approved in writing in advance by CNCS. The total budget includes both CNCS and recipient shares. Recipients may transfer funds among approved direct cost categories when the cumulative amount of such transfers does not exceed 10 percent of the total budget. Currently, the Simplified Acquisition Threshold is $150,000, but it is periodically adjusted for inflation. 48 C.F.R. Subpart 2.1 will have the current amount. The recipient may also seek prior written approval on the allowability and allocability in advance of the incurrence of special or unusual costs under 2 C.F.R. §200.407. This prior written approval should include the timeframe or scope of the agreement.