[Code of Federal Regulations]

[Title 45, Volume 1]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 45CFR74.25]



[Page 219-221]

 

                        TITLE 45--PUBLIC WELFARE

 

           SUBTITLE A--DEPARTMENT OF HEALTH AND HUMAN SERVICES

 

    PART 74_UNIFORM ADMINISTRATIVE REQUIREMENTS FOR AWARDS AND SUBAWARDS TO INSTITUTIONS OF HIGHER EDUCATION, HOSPITALS, OTHER NONPROFIT ORGANIZATIONS, AND 

COMMERCIAL ORGANIZATIONS--Table of Contents

 

                    Subpart C_Post-Award Requirements

 

Sec. 74.25  Revision of budget and program plans.



    (a) The budget plan is the financial expression of the project or 

program as approved during the award process. It may include either the 

sum of the Federal and non-Federal shares, or only the Federal share, 

depending upon HHS awarding agency 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. Except as provided at 

Sec. Sec. 74.4, 74.14, and this section, HHS awarding agencies may not 

impose other prior approval requirements for specific items.

    (c) For nonconstruction awards, recipients shall obtain prior 

approvals from the HHS awarding agency for one



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or more of the following program or budget related reasons.

    (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 the project director or principal investigator or 

other key persons 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 inclusion, unless waived by the HHS awarding agency, of 

costs that require prior approval in accordance with OMB Circular A-21, 

``Cost Principles for Educational Institutions;'' OMB Circular A-122, 

``Cost Principles for Nonprofit Organizations;'' or appendix E of this 

part, ``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.

    (6) The transfer of funds allotted for training allowances (direct 

payment to trainees) to other categories of expense.

    (7) Unless described in the application and funded in the approved 

award, 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.

    (8) The inclusion of research patient care costs in research awards 

made for the performance of research work.

    (d) Except for requirements listed in paragraphs (c)(1) and (c)(4) 

of this section, the HHS awarding agency is authorized, at its option, 

to waive cost-related and administrative prior written approvals 

required by this part and its appendixes. Additional waivers may be 

granted authorizing recipients to do any one or more of the following:

    (1) Incur pre-award costs up to 90 calendar days prior to award, or 

more than 90 calendar days with the prior approval of the HHS awarding 

agency. However, all pre-award costs are incurred at the recipient's 

risk: the HHS awarding agency is under no obligation to reimburse such 

costs if for any reason the applicant does not receive an award or if 

the award to the recipient 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 conditions identified 

at paragraphs (d)(2)(i), (ii), and (iii) of this section apply. For one-

time extensions, the recipient must notify the HHS awarding agency in 

writing, with the supporting reasons and revised expiration date, at 

least 10 days before the date specified in the award. This one-time 

extension may not be exercised either by recipients or HHS awarding 

agencies merely for the purpose of using unobligated balances. Such 

extensions are not permitted where:

    (i) The terms and conditions of award prohibit the extension; or

    (ii) The extension requires additional Federal funds; or

    (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 performance of research work, unless the 

HHS awarding agency provides otherwise in the award, or the award is 

subject to Sec. 74.14 or subpart E of this Part, the prior approval 

requirements described in paragraphs (d) (1)-(3) of this section are 

automatically waived (i.e., recipients need not obtain such prior 

approvals). However, extension of award expiration dates must be 

approved by the HHS awarding agency if one of the conditions in 

paragraph (d)(2) of this section applies.

    (e) The HHS awarding agencies may not permit any budget changes in a 

recipient's award that would cause any Federal appropriation to be used 

for purposes other then those consistent with the original purpose of 

the authorization and appropriation under which the award was funded.

    (f) For construction awards, recipients shall obtain prior written 

approval promptly from the HHS awarding agency for budget revisions 

whenever:



[[Page 221]]



    (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; or

    (3) A revision is desired which involves specific costs for which 

prior written approval requirements apply in keeping with the applicable 

cost principles listed in Sec. 74.27.

    (g) When an HHS awarding agency makes an award that provides support 

for both construction and nonconstruction work, it may require the 

recipient to obtain prior approval before making any fund or budget 

transfers between the two types of work supported.

    (h) For both construction and nonconstruction awards, recipients 

shall notify the HHS awarding agency 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 $5000 or five percent 

of the Federal award, whichever is greater. This notification shall not 

be required if an application for additional funding is submitted for a 

continuation award.

    (i) Within 30 calendar days from the date of receipt of the request 

for budget revisions, HHS awarding agencies shall notify the recipient 

whether its requested budget revisions have been approved. If the 

requested revision is still under consideration at the end of 30 

calendar days, the HHS awarding agency must inform the recipient in 

writing of the date when the recipient may expect a decision.

    (j) When requesting approval for budget changes, recipients shall 

make their requests in writing.

    (k) All approvals granted in keeping with the provisions of this 

section shall not be valid unless they are in writing, and signed by at 

least one of the following HHS officials:

    (1) The Head of the HHS Operating or Staff Division that made the 

award or subordinate official with proper delegated authority from the 

Head, including the Head of the Regional Office of the HHS Operating or 

Staff Division that made the award; or

    (2) The responsible Grants Officer of the HHS Operating or Staff 

Division that made the award or an individual duly authorized by the 

Grants Officer.

    (l) No other prior approval requirements for specific items may be 

imposed unless a class deviation has been approved by OMB.



[59 FR 43760, Aug. 25, 1994, as amended at 61 FR 11746, Mar. 22, 1996]