Federal Assistance Manual Chapter 5-30R

CHAPTER 5-30R REGULATORY GRANT PROGRAM POST-AWARD CHANGES THAT REQUIRE PRIOR APPROVAL

• 5-30R-00 Purpose
  
• 5-30R-10 Applicability
  
• 5-30R-20 OSM Policy
  
• 5-30R-30 Budget Changes
  
• 5-30R-40 Programmatic Changes
  
• 5-30R-50 Requirements for Approval of Changes
  
• 5-30R-60 Guidance on Scope Changes

5-30R-00 PURPOSE

1. The requirements for prior approvals for changes to grants are established in the Grants Management Common Rule (codified by the Department of the Interior at 43 CFR Part 12, Subpart C).

2. This chapter provides OSM policy and procedures when requiring recipients to report and request approval for changes to grants.

5-30R-10 APPLICABILITY

This chapter is applicable to all grants and cooperative agreements awarded by OSM.

5-30R-20 OSM POLICY

1. Amendments, revisions and other proposed changes to the official agreement shall be submitted for OSM approval in advance of the actual change or obligation. By incurring costs prior to approval of an amendment, the recipient takes the risk that Federal funding may not be available or allowed.

2. No request for a change to a grant (e.g., extensions of time, additional funding) received after the scheduled expiration date will be honored unless there are unforeseen circumstances not under the direct control of the recipient. Such extenuating circumstances must be justified to the satisfaction of the designated OSM official.

3. Requests for extensions of the performance period must be received by OSM at least 45 days prior to the scheduled expiration date. OSM will honor only one extension of the normal period of performance and the extension may not be for more than one year, unless special or unusual circumstances are adequately justified to the designated OSM official. This policy does not apply when the original grant is awarded for less than the normal performance period due to budget constraints and, as funds become available, the grant is extended to its normal performance period.

5-30R-30 BUDGET CHANGES

In accordance with the Grants Management Common Rule, the following changes require prior written approval of OSM:

1. Nonconstruction Grants
   1. Any revision which would result in the need for additional funding.

   2. Cumulative transfers among direct cost categories, or, if applicable, among separately budgeted programs, projects, functions, or activities, which exceed or are expected to exceed ten percent of the current total approved budget, whenever OSM's share exceeds $100,000.

   3. Transfer of funds allotted for training allowances (i.e., from direct payments to trainees to other expense categories).

2. Combined Construction and Nonconstruction Grants

   When a grant provides funding for both construction and nonconstruction activities, the grantee must obtain prior written approval from OSM before making any fund or budget transfer from nonconstruction to construction or vice versa.

3. Additional Prior Approval Requirements

   OSM may not require prior approvals for any budget change which is not described in the Grants Management Common Rule.

5-30R-40 PROGRAMMATIC CHANGES

In accordance with provisions in the Grants Management Common Rule, grantees or subgrantees must obtain the prior approval of OSM whenever any of the following actions is anticipated:

1. Any revision of the scope or objectives of the grant (regardless of whether there is an associated budget revision requiring prior approval).

2. Need to extend the period of performance.

3. Changes in key persons in cases where specified in an application or a grant award. In research grants, a change in the project director or principal shall always require approval unless waived by OSM.

4. Under nonconstruction grants, contracting out, subgranting (if authorized by law) or otherwise obtaining the services of a third party to perform activities which are central to the purposes of the award.

5-30R-50 REQUIREMENTS FOR APPROVAL OF CHANGES

1. Revisions to the Grant (Not Requiring Formal Amendment)
   1. The following changes are considered revisions to an approved grant and may be approved by letter:
      1. Under nonconstruction grants, cumulative transfers among direct cost categories exceeding ten percent of the current total approved budget. Once the recipient has obtained approval for the ten percent transfer, the recipient may transfer up to an additional ten percent of the grant without the need for OSM approval.

         Transfers that do not exceed ten percent of the total grant amount should be documented by the recipient by submission of revised budget information form, OSM 47, at the time the next performance report is submitted.

      2. Changes in key persons when specified in the grant award.

      3. Transfer of funds allotted for training allowances;

      4. Under nonconstruction grants, contracting out, subgranting (if authorized by law) or otherwise obtaining the services of a third party to perform activities which are central to the purposes of the award.

   2. Submittal, Approval, and Processing
      1. Recipients shall submit a letter requesting the needed revision, including a narrative justification and, if appropriate, a revised Budget Information Report, OSM 47. Upon approval, this information will become part of the official agreement.

      2. No later than 15 days from the date of receipt of the revision request, OSM must review the request and notify the recipient whether or not the request has been approved. If the request is still under consideration at the end of 15 days, OSM will inform the recipient in writing when a decision on the request may be expected and the reasons for the delay in the decision.

2. Amendments to an Approved Grant
   1. The following changes require a formal amendment to an approved OSM grant award:
      1. The need for additional funding;

      2. The need to deobligate funds prior to the end of the performance period;

      3. When providing funding for both construction and nonconstruction activities, making any fund or budget transfer from nonconstruction to construction and vice versa;

      4. Any revision of scope or objectives of the grant; and

      5. The need to extend the period of performance.

   2. An agreement amendment may be initiated by either the recipient or OSM. However, both parties must be in agreement with the amendment terms. The amendment is effective upon the signature of the designated OSM official, or his authorized representative, and applies to the entire grant period unless otherwise stated. The approved amendment becomes part of the agreement and supersedes that part of the original agreement. Multiple changes should be made by a single amendment whenever possible. Agreement amendments are sequentially numbered.

   3. Submittal and Approval of Amendments
      1. Recipients shall submit one original and two copies of the changes to the previously approved application precipitating the amendment request. The amendment request shall include: the SF 424, indicating the type of change in item 8; OSM 51, providing a narrative justification for the requested change; and, as appropriate, the revised budget information report, OSM 47.

      2. All amendments shall be processed in accordance with the provisions in Chapter 5-20R-30. However, amendments not involving an increase in funding or addition of projects do not require the submission of a NIDS.

5-30R-60 GUIDANCE ON CHANGES IN SCOPE

1. A scope change is a programmatic change in the work to be performed under a grant or cooperative agreement that is outside the range of work contemplated at the time of award and has the potential for affecting the successful completion of grant activities. A scope change requires a formal amendment to the agreement.

2. Under OSM nonconstruction grants, examples of scope changes are the wholesale contracting out of inspection and enforcement or permitting functions and the transfer to another entity of substantial amounts of program responsibility. Conversely, changes in key personnel, reorganizations, changes in office locations or changes in administrative systems (e.g., use of a new accounting system) are not considered changes in scope warranting a formal agreement amendment.

3. Scope change funding source must be the fiscal year to which the scope change applies.

EXHIBIT X5-30R-1

United States Department of the Interior
Office of Surface Mining Reclamation and Enforcement

Memorandum

To:
Through:
From:

Subject: Grant Amendment Findings and Recommendations

1. DOCUMENTS SUBMITTED
   • Application for Federal Assistance, SF 424: Yes___ No___ N/A___

   • Budget Information Report, OSM 47:          Yes___ No___ N/A___

   • Program Narrative Statement, OSM 51:     Yes___ No___ N/A___

   • Other: _____________________________: Yes___ No___ N/A___

2. GRANT SUMMARY
   1. Current

      State:
      Grant No.:
      Type of Grant:
      Total Amount (Federal and State Share):
      Current Grant Period:

   2. Amendment Request

      Type of Amendment Request:
      Amount of Amendment Request (Federal Share):
      Revised Total Amount (Federal and State Share):
      Revised Grant Period:
      Recommended Action:

3. CRITICAL DATES (Milestones During the Review)

   Event	Date
   Application received	___________
   Application & NIDS sent to OSM office	___________
   Acknowledged receipt to State	___________
   ________________________	___________
   Downtime (please explain in Section III)	___________
   Application determined administratively complete	___________
   Funding check requested from OSM office	___________
   Confirmation of funding availability received	___________
   ______________________	___________

4. ADDITIONAL INFORMATION/SPECIAL CONSIDERATIONS

   See Exhibit X5-20R-2 for instructions.

FEDERAL ASSISTANCE MANUAL
January 2, 1998