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Financial Guide 2006 - Part III - Chapter 5: Adjustments to Awards

Highlights of Chapter

• Grant Adjustment Notice
• Notification
• Reprogramming of Funds

Grant Adjustment Notice

A Grant Adjustment Notice (GAN) is used to request project changes and/or correction for any programmatic, administrative or financial change associated with a grant award. Effective April 2006, all GANS must be requested electronically by the grant recipient through the GAN module in the Grants Management System (GMS).

The GAN module in GMS will give grant recipients the ability to initiate requests for grant adjustments electronically. The request is reviewed by the awarding agency. Once a decision has been made on the proposed adjustment, the grant recipient will be notified by email of the decision. The decision is made part of the grant file and the record is updated, as appropriate.

Grant Recipients will be limited to specific grant adjustment. Grantees can initiate the GAN adjustments to the following:

• Budget Modifications. Grantees may request modification to approved budget in order to reallocate dollar amounts among budget categories within the existing award amount. The original award amount may not be increased by this procedure; however, it can be decreased. Movement of dollars between approved budget categories is allowable up to 10 percent of the total award amount (the 10 percent rule), provided there is no change in project scope. A formal request from the grantee is required when:
1. The proposed change exceeds 10 percent of the total award amount
2. The budget modification also changes the scope of the project. Examples include altering the purpose of the project, authorizing use of subcontractor or other organization that was not identified in the original budget, or contracting for or transferring of grant-supported effort
3. If a budget adjustment affects a Standard 424 cost category that was not included in the original budget, a grant adjustment is required. For example, if the direct cost category, "Travel" did not exist in the original budget, the adjustment to transfer funds from the Equipment to Travel requires a grant adjustment.
• Grantee Authorized Signing Official and/or Official's Contact Information. A grantee may make changes to the person who is responsible for authorizing and signing official documents, such as Awards documents, Progress Reports, Standard 424 documents, etc. These changes include name, address, phone number, email address, fax number, cell phone number, title, etc.
• Grantee Contact Name or Key Staff and/or Contact Information. A grantee may make changes to the information for main contacts or key staff. These changes specifically include name, address, phone number, email address, fax number, cell phone number, title, etc. Reason for changes to key staff may be:
1. Permanent withdrawal or change in Main Contact (e.g., Project Director)
2. Temporary absence (3 months) of the Project Director (Discretionary & Cooperative Agreements Only).
• Change in Scope of Grant. A grantee may make minor changes in methodology, approach, or other aspects of the grant to expedite achievement of the grant's objectives. Changes in scope, duration, activities, or other significant areas are changes that require prior approval from the bureau or program office through a grant adjustment. These changes specifically include:
1. Altering programmatic activities
2. Affecting the purpose of the project
3. Changing the project site
4. Change in organization with primary responsibility for implementation of grant contracting out, sub-granting, (if authorized by law) or otherwise obtaining the services of a third party to perform activities which are central to the purpose of the award
5. Changes in scope that affect a grantee's budget will follow the Budget Modifications grant adjustment procedures.
• Date Changes. A grant adjustment is required for a change in grant period, such as extension of the project period and date and/or extension of the expenditure deadline (No Cost Extension). The grantee must request an extensions is no more than 12 months past the original end date. Request for extensions beyond the 12 months end date requires justification of extraordinary circumstances.
• Mailing Address Change. A grantee may make changes to the grant organization mailing address.
• Organization Name Change. A grantee may make changes to the grant organization name, excluding vendor number change, and/or type of organization, i.e. profit vs. nonprofit.
• Program Office Approvals. Written approval is required for those cost specified in OMB Circulars A-21, A-87 and A-122 as "Cost Allowable with Approval of Awarding Agency" or cost which contain special limitation. The following is a list of activities that requires a Grant Adjustment:
1. Consultant Rates in excess of $450/day
2. Compensation for individual consultant services
3. Publication Plans
4. Purchase of Automatic Data Processing (ADP) Equipment and Software
5. Costs incurred prior to the date of the sub-award period
6. Foreign Travel
Grant recipients will not be allowed to make adjustments to Grant Manager Assignment and Program Office approval. Grant recipients will not have access to remove any Special Conditions. All Special Conditions must be removed by the Grant Manager or the Grants Financial Management Division.

For general information concerning the online processing of GANs, GMS staff will be available by e-mail at [email protected] or contact OJP, OCFO Customer Service Center, by phone at 1–800–458–0786 (option 2).

Notification

Recipients must give prompt notification through the GAN module to the awarding agency of events or proposed changes which may require an adjustment/notification. In requesting an adjustment, the recipient must set forth the reasons and basis for the proposed change and any other data deemed helpful for awarding agency review.

Reprogramming of Funds

The movement of funds awarded under Crime Control programs from one program to another contained in an approved State block or formula award which results in deletion or addition of a program or change in the subrecipient must be approved by the awarding agency prior to the expenditure of funds. The awarding agency will consider retroactive approval only in extremely unusual circumstances. When such retroactive approval is not considered warranted, the awarding agency will exercise its option to reduce the award by the amount of the unauthorized-reprogrammed funds.

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