18 Miss. Code. R. 8-1.1-5
Overview
Subgrantees are required to report deviations from budget or project scope/objective and must request approval from the MDHS Funding Division prior to implementing any budget or program plan revisions, in accordance with this section.
The two types of subgrants modifications are as follows:
Subgrant Amendment
Any time a contractual term of the Subgrant is required, then a Subgrant Amendment must be executed. A contractual term is limited to a change in the total amount of the subgrant funding, a material change to the scope of the subgrant, or altering the original length of time on the subgrant.
For a subgrant amendment, the Subgrantee will complete the Subgrant Amendment Sheet and an updated budget, if there is any impact to the current funding amount or budget.
Budget Modifications
The Subgrantee is allowed up to, but not exceeding, three (3) Subgrantee-requested subgrant budget modifications during the term of the subgrant agreement to include any subgrant agreement modifications. There are two types of budget modifications;
For a budget modification, the Subgrantee will complete a Budget Modification Summary Sheet and attach an updated budget packet, if the modification is a full budget modification.
MDHS may initiate budget modifications of any active subgrant agreement (during the term of an active subgrant agreement or modification period) which may be in addition to any Subgrantee-requested budget modifications. MDHS may request and/or initiate these budget modifications due to changes in federal program requirements and/or funding formulas from the associated federal partner agency or for reasons that serve the best interests of the federal program and/or the State. Any subgrant modification initiated and/or requested by MDHS due to change in MDHS programmatic policy and/or as the result of direction from MDHS federal funding partner, will NOT be treated as a Subgrantee-initiated modification.
Line-Item Flexibility
Transfers of budgeted amounts between budget categories within an activity shall be restricted to no more than twenty percent (20%) of the amount authorized in the receiving budget category. No funds shall be transferred into the Equipment budget category and no funds shall be transferred into or out of the Salaries, Fringe Benefits, or Indirect Costs budget categories without the submission and approval of a full budget modification.
There shall be no flexibility allowed between activities, unless MDHS provides written approval through a fully executed budget modification.
Reference2 C.F.R. § 200.308
Full Budget Modification
Any change to the budgeted amounts that does not qualify as a Line-Item Flex is considered a full budget modification and will require a fully updated budget modification and justification.
18 Miss. Code. R. 8-1.1-5