Rebudgeting & Prior Approvals

The United States Office of Management and Budget (OMB) has established cost principles for educational institutions. Costs for university projects with funding should comply with guidelines stated in the OMB Circular A-110 (REVISED 11/19/93, as further amended 9/30/1999).

OMB Circular A-110, §25 – Revisions of budget and program plans, states the following:

  • Definition of expanded authorities includes the Federal Demonstration Partnership (FDP) and the Education Department Expanded Authorities.
  • Prior approval requirements apply to grants, but not contracts- contracts require an amendment or modification.
  • Recipient is required to inform and request prior written approval from Federal awarding agencies for the following program and budget revisions:
    • Change in scope or objective of the project
    • Change in a key person specified in the application or award document
    • Absence of more than three months of 25% reduction in time devoted to project by the approved Principal Investigator
    • Need for additional federal funding
  • Recipient may be required to inform and request prior written approval from Federal awarding agencies for the following program and budget revisions:
    • Rebudgets from direct cost categories to indirect cost and vice versa
    • If approval is required, inclusion of costs requiring prior approval under OMB Circular A-21
    • Transfer of funds allotted for training allowances to other categories of expense