PAP.11.2.150 Modification

(a) For grant modifications, the Tribe is required to report deviations from budget, project scope, or objective, and request written approval from awarding agencies for budget and program plan revision.

(b) For non-construction awards, the Program Director must request prior approval from awarding agencies for one (1) or more of the following program or budget-related reasons:

(1) Change in the scope or the objective of the program (even if there is no associated budget revision requiring prior written approval).

(2) Change in a key person specified in the application or the award.

(3) The disengagement from the project for more than three (3) months, or a 25 percent (25%) reduction in time devoted to the project by the approved program.

(4) The inclusion, unless waived by the awarding agency, of costs that require prior approval in accordance with CFR §200 Subpart E, titled "Cost Principles"

(5) The transfer of funds budgeted for participant support costs, to other categories of expense.

(6) Unless described in the application and funded in the approved awards, the sub-awarding, transferring, or contracting out of any work under an award. This provision does not apply to the acquisition of supplies, material, equipment, or general support services.

(7) Changes in the amount of approved cost sharing or matching provided by the Tribe.

(c) For construction federal awards, the Tribe must request prior written approval promptly from the federal awarding agency for budget revisions whenever the following applies:

(1) The revision results from changes in the scope or the objective of the project or program.

(2) The need arises for additional federal funds to complete the project.

(3) A revision is desired which involves specific costs for which prior written approval requirements may be imposed consistent with applicable CFR §200 listed in Subpart E-Cost Principles

(4) No other prior approval requirements for budget revisions may be imposed unless a deviation has been approved by OMB.

(5) When a federal awarding agency makes a federal award to the Tribe which provides support for construction and non-construction work, the federal awarding agency shall require the Tribe to obtain prior approval from the federal awarding agency before making any fund or budget transfers between the two types of work supported.

(d) Generally, grant modifications follow most of the same guidelines for regular budget modifications, although some of the budget requirements for grants are more stringent. Some grants also will not allow any amount over the amount that was requested for administration, indirect costs, salaries, or other line items.

(e) Departmental requests to move grant funds from one budget line item to another must be made in writing. Depending upon the amount, the request may need the approval of the Tribal Governing Board and approval from the funding source. Copies of all modifications should be given to the Compliance Department and the Financial Analyst to record in the accounting system. At the least, a budget modification is required when one (1) of the following changes:

(1) One (1) line of the budget has exceeded more than ten percent (10%) of the total budget. The Tribal Governing Board must also approve all budget modifications if any line item exceeds ten percent (10%) of the total grant.

(2) Plans to hire a position that is not included in the original budget.

(3) Plans to make a large equipment purchase (over $5,000.00) not budgeted for.

(4) There is an increase or decrease in funding from the relevant funding source.

(f) The Program Director, with agreement from Compliance Department and Accounting Department, must receive Tribal Governing Board approval of all budget modifications before submission to the funding agency.

(g) The Program Director will always submit to the appropriate management at the funding agency, after receiving approval from the Compliance and Accounting Departments, when a modification is needed, specifically when the budget modification exceeds an agency allowed maximum budget modification not requiring approval and moving funds from one budget line item to another that did not exist in agency approved budget.