Part III - Chapter 5: Adjustments to Awards
HIGHLIGHTS OF CHAPTER
- Grant Adjustment Notice
- 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. All GANS must be requested electronically by the grant recipient through the GAN module in the Grants Management System (GMS). For further assistance, visit the GMS Training Web site: https://ojp.gov/gmscbt.
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 e-mail. The e-mail notification will become a permanent part of the grant file and the record will be updated, as appropriate.
Grant recipients will be limited to specific grant adjustment(s). Grantees can initiate the GAN adjustments for the following situations:
- Budget Modifications. Grantees may request modification to the 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 without a GAN is allowable up to ten percent of the total award amount (the ten percent rule), provided there is no change in project scope. (This ten percent rule applies to awards over $100,000 only; however, if the total award is less than $100,000 and the scope of the project doesn't change, PRIOR APPROVAL IS NOT REQUIRED). A formal request from the grantee for a GAN is required when:
1) The proposed cumulative change is ten 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 a subcontractor or other organization that was not identified in the original approved budget, or contracting for or transferring of grant-supported efforts; and
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 notice.
NOTE: The ten percent rule applies to the cumulative total.
- Changes to the Grantee's 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 award documents, Progress Reports, Standard 424 documents, etc). These changes include name, address, phone number, e-mail address, FAX number, cell phone number, title, etc.
- Changes to the Grantee's 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, e-mail address, FAX number, cell phone number, title, etc. Some reasons for changes to key staff may be:
1) Permanent withdrawal or changes to the main contact (ex: Project Director); and
2) Temporary absence (3 months) of the Project Director (Discretionary & Cooperative Agreements Only)
- Changes to the Scope of the Grant. A grantee may make minor changes in methodology approach, or other aspects of the grant to expedite achievement of the grant's objectives, without initiating a GAN. However, 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 notice. These changes specifically include:
1) Altering programmatic activities;
2) Affecting the purpose of the project;
3) Changing the project site;
4) Changes to the organization with primary responsibility for implementation of the 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; and
5) Changes in scopes that affect a grantee's budget, which must follow the budget modifications GAN procedures.
- Date Changes. A grant adjustment notice is required for a change to the grant period, such as an extension of the project period end date and/or an extension of the expenditure deadline (no cost extension). A grantee may request a no cost extension at anytime after accepting the award, but no later than 30 days prior to the award end date. The grantee may request an extension no more than 12 months beyond the original end date. Request for extensions beyond the 12 month end date requires justification of extraordinary circumstances.
NOTE: After an award is made, the grantee may not request a change to the project period start date.
- Mailing Address Change. A grantee may request a change to the organization's mailing address.
- Organization Name Change. A grantee may request a change to the organization's name. A grantee cannot request a change to the vendor number and the type of organization, (i.e. profit vs. nonprofit).
- Program Office Approvals. Written approval is required for those cost specified in
Code of Federal Regulations (CFRs) (2 CFR Part 215, 220, and 225) as "Costs Allowable with Approval of Awarding Agency" or costs which contain special limitation. The following is a list of specific activities that requires a Grant Adjustment Notice:
1) Compensation for individual consultant services in excess of $450 per 8-hour day, or $56.25 per hour;
2) Publication Plans;
3) Purchase of Automatic Data Processing (ADP) Equipment and Software;
4) Costs incurred prior to the date of the sub-award period; and
5) 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, OCIO, by phone at 1-800-549-9901.
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 the awarding agency to 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.