(a)  A grant recipient having an approved budget shall obtain prior approval for all budget amendments.  A budget amendment is defined as any change in the budget which:

(1)           involves the transfer of amounts budgeted for direct cost to absorb increases in indirect costs;

(2)           involves transfer of amounts for items requiring prior approval;

(3)           involves the transfer of amounts because of changes in the work program;

(4)           involves the transfer of funds from the inception to the termination of the grant agreement between projects in excess of an aggregate of five percent of the total amount of the grant agreement; or

(5)           results in award of additional funds or decrease in total funds.

(b)  Budget amendments requests should be submitted to the Office on the prescribed program and financial forms.

(c)  Within 40 calendar days after receipt of the request for a budget amendment, the Office shall notify the grant recipient in writing as to whether or not budget amendment request has been approved or disapproved.  During review of the request, additional information may be required from the project grant recipient.

(d)  The following policies and procedures shall govern the approval or disapproval of budget amendment:

(1)           if a budget amendment request is approved by the Department a grant amendment will be issued.  The grant recipient must sign and return the new grant amendment before the request is officially approved, and related cost can be incurred; and

(2)           if the request is not approved by the Department, the grant recipient will be notified in writing by the Office.

(e)  A grant recipient having an approved budget shall submit for informational purposes all budget revisions to the Office.  A budget revision is defined as all changes in an approved budget except those set forth in Paragraph (a) of this Rule.

(f)  Budget amendment requests will be received by the Office until ninety days prior to the termination date of the grant agreement.  Budget revision requests will be received by the Office at any time during the grant agreement.

(g)  At the completion of a grant agreement, the grant recipient will submit within 90 days, if applicable, a revised budget that agrees with actual expenditures, and reflects all allowable adjustments.  Final adjustments shall be based upon the audit.


History Note:        Authority G.S. 143B‑10; 143B‑276; 143B‑277; 143‑323(d);

Eff. December 1, 1983;

Amended Eff. February 1, 1985; October 1, 1984;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. April 25, 2015.