Definition:
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Rebudget – A rebudget of a sponsored award occurs when the PI requests the formal reallocation of funds from one spending category to another spending category that better reflects the project requirements. A re-budget requires sponsor approval and is most common when the reallocation of funds into or out of a spending category exceeds a specified percentage of the award amount or if the rebudget includes a restricted category or line item.
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Budget Realignment – A budget realignment of a sponsored award occurs when the PI requests a reallocation of funds from one spending category to another spending category and no sponsor approval is required. A budget realignment is used to show a more accurate reflection in Spectrum of how funds are being spent on sponsored awards and to avoid large negative balances on line items.
Rebudgets and Budget Realignments
Overall Guidelines
- Review the terms and conditions of the award and determine if the sponsor allows rebudgeting and whether prior approval is needed for your specific request
- Most federal agencies have waived cost-related prior approvals and allow an institution to decide minor budget changes under expanded authorities. Under expanded authorities, significant rebudgeting means that a single direct cost category changes more than 25 percent of the total award or $250,000, whichever is less. These expanded authorities are automatically in force for grants that support research, but they do not apply to contracts.
- Each Sponsor will have its own rules for rebudgeting. Some will allow rebudgeting within categories up to a certain percentage or dollar limit. Some will allow rebudgeting within categories so long as particular categories are not increased. Many will require the written permission of the sponsor outside the stated limits.
- A prior approval matrix reflecting requirements of select agencies in relation to budget reallocations and other general requirements can be found on the Federal-wide Research Terms and Conditions website which is currently maintained by the National Science Foundation.
- If your specific request requires sponsor prior approval, you will complete a rebudget request. If your specific request does not require sponsor prior approval, you will complete a budget realignment request.
- Per agreement with OSPA, unless the award contains restricted categories, all non-restricted lines will be open in the project in Spectrum.
- Per agreement with OSPA, Participant Support Costs within an award will be set up in a separate speedtype/project ID number at the time the award is initiated. The IDC rate will be set at 0%.
Requesting Rebudgeting on a Sponsored Project
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Open the rebudgeting/realignment form and choose "Sponsor Approved Rebudget" from the dropdown menu. Complete the rebudgeting request form in the GSU research portal
- Use the approved Excel template that shows the current budget alignment in Spectrum, the adjustment for each line, and the revised budget
- Complete the justification of the rebudget on the form
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Generally, rebudget requests should be submitted to the sponsor by OSPA. The OSPA officer assigned will contact the sponsor and obtain approval. Once approved by the sponsor, OSPA will attach the approval documentation to the rebudget form.
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In the event sponsor approval has been received without OSPA approval, attach the documentation of approval to the form and state that approval has been granted in the comments section.
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Follow the guidelines of your college for workflow approvals
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OSPA will review and complete the rebudget request in Spectrum and release an NOAA action that shows the new approved budget in Spectrum
- Once the rebudget request routes to OSPA, it will be assigned to the appropriate pre-award officer. The pre-award officer will review the award terms and conditions and ensure that sponsor approval has been received. The pre-award officer will then assign the rebudget request to the post-award officer.
- The post-award officer will review the Excel spreadsheet, confirm the numbers are correct and comply with the sponsor approval. They will then make the budget changes in Spectrum.
- If there is a reduction of a subaward line, the OSPA accountant will confirm that the amount available to a subrecipient to spend according to the subawards issued will not exceed the amount in the Spectrum budget.
- The post-award officer will assign the rebudget request to their Associate Director who will review and, upon approval, issue the NOAA.
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OSPA will enter in Spectrum within 2-3 days after receiving sponsor approval.
Requesting a Budget Realignment on a Sponsored Project
- Open the rebudgeting/realignment form and choose "Internal Budget Realignment" from the dropdown menu. Complete the realignment request form in the GSU research portal
- Use the approved Excel template that shows the current budget alignment in Spectrum, the adjustment for each line, and the revised budget
- Budget realignments for an individual project will be done only once a month
- State in the justification box that you are requesting a budget realignment that does not require sponsor approval
- The OSPA accountant will review the budget realignment request and ensure that sponsor approval is not required. The OSPA accountant will then update the budget in Spectrum within 2-3 days and mark the form as complete.
- If there is a reduction of a subaward line, the OSPA accountant will confirm that the amount available to a subrecipient to spend according to the subawards issued will not exceed the amount in the Spectrum budget.
- No new NOAA will be released, the OSPA accountant will mark the form as completed and the budget will show as updated in Spectrum. The creator of the form will receive notification that the realignment has been completed.
- No new workflow is required for realignment.