(a) The budget plan is the financial expression of the project or
program as approved during the award process. It may include either the
Federal and non-Federal share, or only the Federal share, depending upon
DOL's requirements. It shall be related to performance for program
evaluation purposes whenever appropriate.
(b) Recipients are required to report deviations from budget and
program plans, and request prior approvals for budget and program plan
revisions, in accordance with this section.
(c) For nonconstruction awards, recipients shall request prior
written approvals from the grant officer for one or more of the
following program or budget changes:
(1) Change in the scope or the objective of the project or program
(even if there is no associated budget revision requiring prior written
approval).
(2) Change in a key person specified in the application or award
document.
(3) The absence for more than three months, or a 25-percent
reduction in time devoted to the project, by the approved project
director or principal investigator.
(4) The need for additional Federal funding.
(5) The transfer of amounts budgeted for indirect costs to absorb
increases in direct costs, or vice versa.
(6) The inclusion, unless waived by the grant officer, of costs that
require prior approval in accordance with OMB Circular A-21, ``Cost
Principles for Institutions of Higher Education,'' OMB Circular A 122,
``Cost Principles for Non-Profit Organizations,'' or 45 CFR part 74,
Appendix E, ``Principles for Determining Costs Applicable to Research
and Development under Grants and Contracts with Hospitals,'' or 48 CFR
part 31, ``Contract Cost Principles and Procedures,'' as applicable.
(7) The transfer of funds allotted for training allowances (direct
payment to trainees) to other categories of expense.
(8) Unless described in the application and funded in the approved
awards, the subaward, transfer or contracting out of any work under an
award. This provision does not apply to the purchase of supplies,
material, equipment or general support services.
(d) No other prior approval requirements for specific items may be
imposed unless a deviation has been approved by OMB.
(e) Except for requirements listed in paragraphs (c)(1) and (c)(4)
of this section, the grant officer may waive cost-related and
administrative prior written approvals required by this part and
OMB Circulars A-21 and A-122. Such waivers may include authorizing
recipients to do any one or more of the following:
(1) Incur pre-award costs 90 calendar days prior to award or more
than 90 calendar days with the prior written approval of the grant
officer. All pre-award costs are incurred at the recipient's risk (i.e.,
the grant officer is under no obligation to reimburse such costs if for
any reason the recipient does not receive an award or if the award is
less than anticipated and inadequate to cover such costs).
(2) Initiate a one-time extension of the expiration date of the
award of up to 12 months unless one or more of the following conditions
apply. For one-time extensions, the recipient must notify the grant
officer in writing with the supporting reasons and revised expiration
date at least 10 days before the expiration date specified in the award.
This one-time extension may not be exercised merely for the purpose of
using unobligated balances. The one-time extension may not be initiated
if:
(i) The terms and conditions of award prohibit the extension.
(ii) The extension requires additional Federal funds.
(iii) The extension involves any change in the approved objectives
or scope of the project.
(3) Carry forward unobligated balances to subsequent funding
periods.
(4) For awards that support research, unless the grant officer
provides otherwise in the award or in DOL's regulations, the prior
written approval requirements described in paragraph (e) are
automatically waived (i.e., recipients need not obtain such prior
written approvals) unless one of the conditions included in paragraph
(e)(2) applies.
(f) DOL may, at its option, restrict the transfer of funds among
direct cost categories or programs, functions and activities for awards
in which the Federal share of the project exceeds $100,000 and the
cumulative amount of such transfers exceeds or is expected to exceed 10
percent of the total budget as last approved by DOL. DOL shall not
permit a transfer that would cause any Federal appropriation or part
thereof to be used for purposes other than those consistent with the
original intent of the appropriation.
(g) All other changes to nonconstruction budgets, except for the
changes described in paragraph (j), do not require prior approval.
(h) For construction awards, recipients shall request prior written
approval promptly from the grant officer for budget revisions whenever
paragraphs (h)(1), (h)(2) or (h)(3) of this section apply.
(1) The revision results from changes in the scope or the objective
of the project or program.
(2) The need arises for additional Federal funds to complete the
project.
(3) A revision is desired which involves specific costs for which
prior written approval requirements may be imposed consistent with
applicable OMB cost principles listed in Sec. 95.27.
(i) No other prior approval requirements for specific items may be
imposed unless a deviation has been approved by OMB.
(j) When DOL makes an award that provides support for both
construction and nonconstruction work, DOL may require the recipient to
request prior written approval before making any fund or budget
transfers between the two types of work supported.
(k) For both construction and nonconstruction awards, recipients
shall notify the grant officer in writing promptly whenever the amount
of Federal authorized funds is expected to exceed the needs of the
recipient for the project period by more than $5,000 or five percent of
the award, whichever is greater. This notification shall not be required
if an application for additional funding is submitted for a continuation
award.
(l) When requesting written approval for budget revisions,
recipients shall use the budget forms that were used in the application.
(m) Within 30 calendar days from the date of receipt of the request
for budget revisions, the grant officer shall review the request and
notify the recipient whether the budget revisions have been approved. If
the revision is still under consideration at the end of 30 calendar
days, the grant officer shall inform the recipient in writing of the
date when the recipient may expect the decision.
