Troy University Sponsored Program Accounting

Budget Revisions

Troy University is required to comply with revisions of budget and program plans in accordance with OMB Circular A-110 section 25, OMB A-133 and agency specific guidelines.

The budget plan is the financial expression of the project or program as approved during the award process.  Most agencies will allow the university to depart from the original budget provided that:

Budget revisions are not allowed for the purpose of relieving financial pressure on a department’s unrestricted budget, or on other sponsored projects in order to charge costs that are not necessary for the completion of the project, or not allowable.

Troy University requires prior written sponsor approval for budget revisions to buy equipment within 6 months of project end date.

Prior approval requirements for the various sponsoring agencies are subject to change; the principal investigator should contact Sponsored Program Accounting for guidance.  When requesting prior approval for budget revisions, the Principal Investigator must submit the budget forms that were used in the application unless the Federal or Non Federal awarding agency indicates that a letter suffices.
Budget revisions will be allowed upon sponsor approval.  Failure to obtain prior approval from the sponsoring agency for any budget revisions requiring such approval may result in the disallowance of costs.

Federal Awards

Troy University will request prior approval from Federal awarding agencies for one or more of the following program or budget related reasons.

    1. Change in the scope or the objective of the project (even if there is no associated budget revision requiring prior written approval).  Agencies may view significant rebudgeting as a change in scope.
    2. Change in a key person specified in the application or award document.
    3. The absence for more than three months, or a 25% reduction in time devoted to the project, by the approved project director or principal investigator.
    4. The need for additional Federal funding.
    5. The inclusion, unless waived by the Federal awarding agency, of costs that require prior approval in accordance with OMB Circular A-21 “Cost Principles of Educational Institutions.”
    6. The transfer of funds allotted to training allowances (direct payment to trainees) to other categories of expense.
    7. If restricted by the Federal agency in the award document, the transfer of funds between direct cost categories, functions and activities for which the Federal share of the project exceed $100,000 and the cumulative amount of the transfer exceeds or is expected to exceed 10% of the total budget as last approved by the Federal awarding agency.

Non Federal Awards

Troy University will refer to sponsored agreements to determine if budget revisions are allowed and require prior approval.  If the sponsor requires approval, then the principal investigator must draft the letter to the Non Federal agency and forward the letter to Sponsored Program Accounting for review, after that SPA will forward to Office of Sponsored Programs for countersignature by the official of the University.

Sponsored Program Accounting will approve budget revisions for sponsored projects based on the allowability of the transfer between direct cost categories in accordance with the terms and conditions of the award. 

Principal Investigators and their designees are also responsible for submitting budget revisions for allowable costs in accordance with the terms and conditions of the award.  Questions of a procedural nature should be addressed to Sponsored Program Accounting before budget revisions and transfers are submitted.  Specific questions may be referred to the appropriate official listed in the award document.  If prior approval is required, principal investigators must obtain written approval from the sponsoring agency prior to submitting Budget Revision Request Form.

Principal Investigator

Principal investigators and their designees are to submit a Budget Revision Request Form to Sponsored Program Accounting. 

  1. Complete a Budget Revision Request Form for any budget changes.  The justification for the budget revision must answer the following questions:



    • Why are there funds available for rebudgeting?
    • Why is this change necessary for the project?
    • How will the funds be used?

  2. When requesting prior approval for budget revisions, the principal investigator should follow agency procedures.  Federal awards require that requests for prior approval be countersigned by the official of the University.  Please draft a letter to the Federal sponsor and forward the letter to SPA for review at which point it will be sent to Office of Sponsored Programs for countersignature by the official of the University.  The letter must specify:

    • Amount of the change (the budget categories to be increased and decreased),
    • Justification for the change,
    • Award agency grant or contract identification number, and
    • Beginning and ending dates of the budget periods(s) affected.

  3. Submit Budget Revision Request Form with the written approval from sponsor to Sponsored Programs Accounting.

Sponsored Program Accounting

  1. Process budget transfers after the Budget Revision Request Forms and prior written approval are received.
  2. Notify Principal Investigators and their designees promptly if the Budget Revision Request Forms are denied, and why.

 

Troy University Sponsored Program Accounting
334-670-3970