[Code of Federal Regulations]

[Title 32, Volume 1]

[Revised as of July 1, 2006]

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

[CITE: 32CFR34.15]



[Page 212-213]

 

                       TITLE 32--NATIONAL DEFENSE

 

              CHAPTER I--OFFICE OF THE SECRETARY OF DEFENSE

 

PART 34_ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND AGREEMENTS WITH 

FOR-PROFIT ORGANIZATIONS--Table of Contents

 

                    Subpart B_Post-award Requirements

 

Sec.  34.15  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 DoD Component 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) Recipients shall immediately request, in writing, prior approval 

from the cognizant grants officer when there is reason to believe that 

within the next seven calendar days a programmatic or budgetary revision 

will be necessary for certain reasons, as follows:

    (1) The recipient always must obtain the grants officer's prior 

approval when a revision is necessary for either of the following two 

reasons (i.e., these two requirements for prior approval may never be 

waived):

    (i) A change in the scope or the objective of the project or program 

(even if there is no associated budget revision requiring prior written 

approval).

    (ii) A need for additional Federal funding.

    (2) The recipient must obtain the grants officer's prior approval 

when a revision is necessary for any of the following six reasons, 

unless the requirement for prior approval is waived in the terms and 

conditions of the award (i.e., if the award document is silent, these 

prior approvals are required):

    (i) A change in a key person specified in the application or award 

document.

    (ii) 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.

    (iii) The inclusion of any additional costs that require prior 

approval in accordance with applicable cost principles for Federal funds 

and recipients' cost share or match, in Sec.  34.17 and Sec.  34.13, 

respectively.

    (iv) The inclusion of pre-award costs. All such costs are incurred 

at the recipient's risk (i.e., the DoD Component 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).

    (v) A ``no-cost'' extension of the project period that does not 

require additional Federal funds and does not change the approved 

objectives or scope of the project.

    (vi) Any subaward, transfer or contracting out of substantive 

program performance under an award, unless described in the application 

and funded in the approved awards. This provision does not apply to the 

purchase of supplies, material, or general support services, except that 

procurement of equipment or other capital items of property always is 

subject to the grants officer's prior approval under Sec.  34.21(a), if 

it is to be purchased with Federal funds, or Sec.  34.13(a)(7), if it is 

to be used as cost sharing or matching.

    (3) The recipient also must obtain the grants officer's prior 

approval when a revision is necessary for either of the following 

reasons, if specifically required in the terms and conditions of the 

award document (i.e., if the award document is silent, these prior 

approvals are not required):

    (i) The transfer of funds among direct cost categories, 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 

the DoD Component. No DoD Component shall 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.

    (ii) For awards that provide support for both construction and 

nonconstruction work, any fund or budget transfers between the two types 

of work supported.



[[Page 213]]



    (d) Within 30 calendar days from the date of receipt of the 

recipient's request for budget revisions, the grants 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 grants officer shall inform the recipient 

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