You are required to report expenditures on a line-item basis corresponding to your approved budget. However, you may overspend an existing line item provided you do not exceed the approved budget subtotal (Personnel, Other Direct Costs, Equipment, and Consultant/Contractual Agreements) amount plus 5 percent. For example:

PERSONNEL	APPROVED BUDGET	TOTAL EXPENDITURES	VARIANCE	PERCENTAGE
Project Director	45,000	48,000	(3,000)	107
Secretary	20,000	18,000	2,000	90
Research Asst.	30,000	35,000	(5,000)	117
Fringe Benefits	19,000	18,700	300	98
SUBTOTAL	114,000	119,700	(5,700)	105

As this example illustrates, the expenditures reported in the Personnel budget category do not exceed the approved budget category amount by more than 5 percent. Therefore, no explanation or budget revision would be required. It should be noted, however, that we might request additional information for expenditures reported against individual line items. Although you may overspend any CATEGORY by 5 percent you must remain within the total approved budget per year (unless a revised budget has been approved).

If a fact sheet or copy of the actual contract was not provided at the time you negotiated your grant budget; or, if any elements of the contract have changed including the dates, dollars, or deliverables from that previously approved, the following information is required prior to expending funds under the initial or amended subcontract:

• a copy of the actual contract or contract amendment; or

• a fact sheet providing the grant identification number, the contractor’s name, the contract dates, the dollar amount of the contract and the deliverables. The document should identify, and provide an explanation for, those elements that are being changed.

PLEASE NOTE:

The Foundation should not be listed as a party to the contract. The grantee maintains fiscal responsibility for its contracts, which includes reporting expenses associated with the contracts to the Foundation. We suggest that you consider including right to audit provisions and record retention expectations when negotiating or amending contracts.

Unexpended grant funds remain in the grant account and are not automatically carried forward to the next budget period. Grantees may request that funds unexpended from previous budget periods be used in subsequent budget periods. A revised budget and budget narrative must be submitted that outlines the use of these funds.

An extension may be granted to provide extra time to complete your project. Grantees may also request that funds unexpended from previous budget periods be used to extend the award beyond the original end date. In both instances, the proposed activities must be consistent with the original objectives of the award, an explanation regarding the activities to be undertaken during the extension period should be provided, and the dates of the extension period should be explicitly stated. If unexpended funds are being applied to the extension period, a separate budget and budget narrative are required as well.

Grant Budget Revision Guidelines are available to assist you in preparing a revised budget and/or extension request. Any questions related to this document or other general financial questions should be addressed to the Financial Monitoring Office at (609) 627-5851.