Sponsor guidelines, federal and non-federal, for modifying a project's budget vary widely. The guidelines may even vary from program to program within a single agency. The terms and conditions of the award must be consulted to determine in which categories and/or at what level of spending the sponsor wishes to retain the authority to approve changes.

Significant Rebudgeting on NIH Grants
NIH Guide Notice

Purpose of the Policy: Every time there is a significant rebudgeting planned on any NIH grant, the PI must contact the project's Grant Management Officer. The purpose of the contact is to allow the GMO to make a judgment about whether or not the significant rebudgeting indicates a change in scope. If it does, the change in scope must be approved.

Definition of Significant Rebudgeting: Significant rebudgeting occurs when expenditures in a single direct cost budget category deviate (increase or decrease) from the categorical commitment level established for the budget period by more than 25 percent. For example, if the award budget for direct costs is $200,000, NIH prior approval is required for any rebudgeting that would result in an increase or decrease of more than $50,000 in a budget category. The baseline used for determining significant rebudgeting excludes the effects of prior year carryover balances but includes competing and non-competing supplements.

Procedure: If a proposed rebudgeting meets the significance criteria, the PI must write a letter to the GMO which describes the proposed changes to the budget and explains why the changes do not represent changes in the scope of the project. The letter must be counter signed by ORS. Once the GMO has determined that there is no change in scope, the request to rebudget will be handled in accordance with standard rebudgeting policy.