Budget modifications

Budget modification under expanded authority

Some federal agencies have waived cost-related prior approvals and allow an institution to decide minor budget changes under expanded authorities. Under expanded authorities, significant re-budgeting means that a single direct cost category changes more than 25 percent of the total award or $250,000, whichever is less. These expanded authorities are automatically in force for grants that support research, but they do not apply to contracts. A budget modification under expanded authority cannot not change the scope of work.  Scope of work changes must be approved by the agency.

What is the process?

For a budget modification the PI will contact their fund manager and/or post award administrator when he/she deems it necessary for a budget modification on their award. A request for a budget modification can occur anytime during the life of the grant.

Prior approval of a one time no cost extension and/or budget modification under expanded authority from the chairs and deans is no longer required. Notification to the chairs and deans will be on the back end of the process once the action(s) has taken place within the PeopleSoft System.

Budget modification NOT subject to expanded authority

Where expanded authority does not apply, the award terms and conditions should be closely evaluated to determine if budget modifications are allowable and whether or not the sponsor requires prior approval for a budget modification.

What is the process?

If there are no special terms and conditions that restrict no-cost extensions, the PI and grant and contract administrator and/or grant and contract coordinator will work together to prepare a request that follows NAU and sponsor guidelines.

• For requests that require prior approval from the sponsor, the PI will submit a request to OSP and work with a grant and contract administrator and/or grant and contract coordinator to obtain both NAU and sponsor required approvals and documentation. OSP will then submit a formal request to the sponsor for approval.
• For requests that do not require prior approval from the sponsor, the PI will submit a request to OSP and work with a grant and contract administrator and/or grant and contract coordinator to obtain NAU required internal authorization and documentation to submit to the Authorized Organizational Representative (AOR) for approval.

Related NAU policies and procedures

• Sponsored Project Action Request (SPAR) form– The PI may “cut & paste” the budget reallocation section from this form and send the request via an email.