Budget Adjustment

When and Why a Budget Adjustment is Necessary

Budget Adjustments are used to modify an approved budget to reallocate funds among the budget categories. The original award amount may not be increased by this procedure. A budget modification can only be initiated, when an award has a final clearance or an approved budget.

A budget adjustment must be initiated if:

  • The proposed cumulative change is greater than 10 percent of the total award amount. The 10% rule does not apply to an award of less than $100,000.
  • The proposed change within any budget category is greater than 10 percent of the original category total 
  • The budget modification changes the scope of the project. This requires a scope change and a budget adjustment.  Examples include altering the purpose of the project, authorizing use of a subcontractor or other organization that was not identified in the original approved budget, or contracting for or transferring of award-supported efforts.
  • A budget adjustment affects an eligible cost category that was not included in the original budget. For example, if the direct cost category "Travel" did not exist in the original budget, the adjustment to transfer funds from Equipment to Travel requires a budget adjustment. OPB will not consider a budget adjustment in a cost category that was not included in the original budget until the final budget is approved to be modified. 

OPB will review all adjustment requests for completeness and reasonableness and provide a notification of approval or denial. 


Download this pdf file. Budget Adjustment Form : To submit a budget adjustment, grantees must submit an updated project narrative and detailed budget worksheet along with this form. Project narrative should update any changes from the original proposal that was awarded. Grantees may submit this as a word file or pdf. Forms submitted without the narrative and budget adjustment will not be considered.