[Code of Federal Regulations]
[Title 20, Volume 2]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 20CFR437.30]

[Page 1165-1166]
 
                      TITLE 20--EMPLOYEES' BENEFITS
 
               CHAPTER III--SOCIAL SECURITY ADMINISTRATION
 
PART 437_UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND COOPERATIVE 
AGREEMENTS TO STATE AND LOCAL GOVERNMENTS--Table of Contents
 
                    Subpart C_Post-Award Requirements
 
Sec. 437.30  Changes.

    (a) General. Grantees and subgrantees are permitted to rebudget 
within the approved direct cost budget to meet unanticipated 
requirements and may make limited program changes to the approved 
project. However, unless waived by the SSA, certain types of post-award 
changes in budgets and projects require the prior written approval of 
SSA. Approvals are not valid unless they are in writing, and signed

[[Page 1166]]

by at least one of the following SSA officials:
    (1) The responsible SSA Grants Management Officer; or
    (2) The SSA Commissioner or subordinate official with proper 
delegated authority from the Commissioner.
    (b) Relation to cost principles. The applicable cost principles (see 
Sec. 437.22) contain requirements for prior approval of certain types 
of costs. Except where waived, those requirements apply to all grants 
and subgrants even if paragraphs (c) through (f) of this section do not.
    (c) Budget changes. (1) Nonconstruction projects. Except as stated 
in other SSA regulations or an award document, grantees or subgrantees 
must obtain prior approval from SSA whenever any of the following 
changes is anticipated under a nonconstruction award:
    (i) Any revision which would result in the need for additional 
funding.
    (ii) Unless waived by SSA, cumulative transfers among direct cost 
categories, or, if applicable, among separately budgeted programs, 
projects, functions, or activities which exceed or are expected to 
exceed ten percent of the current total approved budget, whenever SSA's 
share exceeds $100,000.
    (iii) Transfer of funds allotted for training allowances (i.e., from 
direct payments to trainees to other expense categories).
    (2) Construction projects. Grantees and subgrantees must obtain 
prior written approval for any budget revision that would result in the 
need for additional funds.
    (3) Combined construction and nonconstruction projects. When a grant 
or subgrant provides funding for both construction and nonconstruction 
activities, the grantee or subgrantee must obtain prior written approval 
from SSA before making any fund or budget transfer from nonconstruction 
to construction or vice versa.
    (d) Programmatic changes. Grantees or subgrantees must obtain the 
prior approval from SSA whenever any of the following actions is 
anticipated:
    (1) Any revision of the scope or objectives of the project 
(regardless of whether there is an associated budget revision requiring 
prior approval).
    (2) Need to extend the period of availability of funds.
    (3) Changes in key persons in cases where specified in an 
application or a grant award. In research projects, a change in the 
project director or principal investigator always requires approval 
unless waived by SSA.
    (4) Under nonconstruction projects, contracting out, subgranting (if 
authorized by law) or otherwise obtaining the services of a third party 
to perform activities that are central to the purposes of the award. 
This approval requirement is in addition to the approval requirements of 
Sec. 437.36 but does not apply to the procurement of equipment, 
supplies, and general support services.
    (5) Providing medical care to individuals under research grants.
    (e) Additional prior approval requirements. SSA may not require 
prior approval for any budget revision that is not described in 
paragraph (c) of this section.
    (f) Requesting prior approval. (1) A request for prior approval of 
any budget revision will be in the same budget format the grantee used 
in its application and must be accompanied by a narrative justification 
for the proposed revision.
    (2) A request for a prior approval under the applicable Federal cost 
principles (see Sec. 437.22) may be made by letter.
    (3) A request by a subgrantee for prior approval must be addressed 
in writing to the grantee. The grantee will promptly review such request 
and must approve or disapprove the request in writing. A grantee may not 
approve any budget or project revision that is inconsistent with the 
purpose or terms and conditions of the Federal grant to the grantee. If 
the revision requested by the subgrantee would result in a change to the 
grantee's approved project that requires Federal prior approval, the 
grantee must obtain SSA's approval before approving the subgrantee's 
request.