Contract and/or Budget Revision Procedures
From time to time, grantees may need to revise budget line items to meet actual costs. These revisions must be accomplished prior to submitting a payment request to DOLA.
The grant budget is the approved financial plan for carrying out the purposes of the grant. The budget may be revised when necessary. Other contractual matters may change from time to time, also necessitating revisions.
Most changes to the grant budget require a formal amendment to the Grant Agreement. The Grantee must submit a written request (at least 30 days prior to the proposed effective date) to the project monitor and obtain written approval from the State before expending funds consistent with the requested budget change.
Written notice to the CDBG Program Manager or Regional Manager and receipt of approval from the project monitor is sufficient when, unless specified in the Grant Agreement, cumulative budgetary line item changes do NOT exceed the lesser of 15% or Twenty Thousand Dollars ($20,000.00).
A bilateral amendment to the Grant Agreement is required for the following circumstances:
- When, unless otherwise specified in the Grant Agreement, cumulative budgetary line item changes exceed the lesser of 15% or Twenty Thousand Dollars ($20,000.00).
- When a transfer of funds to or between administrative budgetary categories is proposed.
- When the scope, objective or completion date of the project changes substantially, as determined by the State. (Note: environmental review clearance may be affected.)
- When additional OR less State funding is needed.
- When additional OR less Grantee funding is needed.
- When there are additional Federal statutory or regulatory compliance changes to applicable laws found in Exhibit 22.H of the original contract.
The state will review the request for budget or contract amendment and notify the grantee of whether or not the proposed changes have been approved within 30 days. The state's approval is not binding until a fully executed amendment of your grant agreement has been processed. Until you receive a fully executed amendment, the existing contract terms, budget and budgetary limitations remain in effect.