when plans change, amendments offer solutions sponsored by thompson information services may 2, 2013...

When Plans Change, When Plans Change, Amendments Offer Solutions Amendments Offer Solutions

Sponsored by Thompson Information ServicesMay 2, 2013

Presented byKaren NorrisManaging EditorThompson Media Group

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5-2-2013 When Plans Change, Amendments Offer Solutions

Amendments Offer SolutionsAmendments Offer Solutions

When Plans Change, Amendments Offer Solutions

Every funding award is based upon the details described in the proposal and confirmed in the award agreement.

Once an award is made, what happens if plans change?

3© 2013 Thompson Information Services


The Fully Executed Agreement

A legally binding documentEnforces the terms of the project, as proposed


Amendments Offer SolutionsAmendments Offer SolutionsEven in the best implemented projects, unexpected circumstances can occur:

Key personnel may changeA bid may come in over or under costA planned conference, event, or activity may be

cancelledA new opportunity may be foundMore time may be needed to expend funds



These unexpected circumstances, and others, create needs that are outside the original terms of the award agreement.

Fortunately, it is possible to amend the terms to better reflect current requirements when plans change.



What is an amendment?

An amendment to an agreement is a legal act modifying the commitments initially accepted.

It allows the parties to modify the agreement at any time during the project period.

Because it is a legal act, certain procedures and definitions apply.



Initiating an amendment

While either party may do so, it matters which party initiates the amendment.

An amendment initiated by the funding agency is usually a notification of a modification, such as a new award period.

An amendment initiated by the recipient is usually a request for a modification.



Award agency amendments generally informrecipients of a change such as

a new budget period for a continuation award.

Recipient agencies would indicate acceptance of the change (amended award).



Recipient amendments generally requesta change from the granting agency.

Recipient amendments create flexibility and can offer solutions

for program managers who must deal with moving target realities.



Recipient amendment requests

While recipients may initiate an amendment request any time during a project period, it is important to seek the amendment before the current period ends, leaving enough time to receive a response.



Recipients should:

Request the amendment in writing, with an authorized signature.

Receive back from the funding agency a written response with an authorized signature.

Consent to the change must be clearly demonstrated.



In general, recipient amendmentswould neither substantially change the intent

of the original agreement, nor request additional funds.



What can be amended by recipients?

It is possible to negotiate a number of modifications:

To promote more efficient management of the awarded project

To resolve the need for change



Typical amendments include:

Revision to the project end date – no cost extensionRevision of the budget – reallocation or carry-overChange in project personnelChange in contractual servicesOther modifications, as appropriate



No-cost extension amendment

A need for more time to complete activitiesNo additional costProbably the most common amendment

Funding agencies are generally receptive to an extension request as long as it is received in a timely manner and there is no additional cost.



No-cost extension (cont)

Commonly approved for an additional 12 monthsLonger extensions may be consideredJustification of the request may include:

Personnel issues Rescheduling issues Consultant availability Bid process Manufacturing delays



Budget amendment

The need to modify a budget generally follows other changes to the program.

Two common budget revisions: Carry-over request Reallocation request



Budget amendment (cont)

Carry-over request: It is likely a no-cost extension would also include a request to carry-over funds past the original end date so that all funds can be spent.

Reallocation request: It is possible to transfer funds out of one budget category into another If travel costs were lower than originally budgeted, for

example, an amendment could transfer the excess travel funds to another category to make better use of the funds.



Personnel or contractual amendments

Sometimes it’s necessary to hire personnel.Sometimes it’s necessary to hire a consultant.The funding agency may wish to approve new hires

or consultants.An amendment can add the new hire or consultant

to the project with agency approval.



Other amendments

Amendments can be forwarded to the funding agency for review and approval for a variety of reasons.

Developments that produce new requirements outside the original terms of the award can be addressed through this process.



Introduction of an amendment request

An amendment usually starts with two conversations: The funding agency program officer An internal office such as Finance, Budget, or Grants

Recipients would want to discuss the amendment to obtain instructions about preparation, and to gain insight into the level of receptiveness for the modification.



Submitting an amendment request

After the preliminary conversations, recipients would prepare the written amendment request, including an authorized signature.

Sometimes there is a required form.An explanation or justification should be included,

along with a revised budget, if needed.



Sample Amendments

Samples of amendments are on the

following slides.


Amendments Offer SolutionsAmendments Offer SolutionsSample 1: Budget Amendment Recipient Agency:Award Number: Please type the information requested below and sign this form. Please describe in detail the change(s) being proposed to your project.

We propose to reallocate money (intended in our original application to help cover the salary costs for the project coordinator) to maintenance and upkeep of the portrait collection.

Why is this change necessary? The funding agency adjusted the requested grant amount to reflect the desire not to

support faculty salary. The adjustment in the amount of the grant meant a change in the proposed number of events and so requires rethinking of the budget.


Amendments Offer SolutionsAmendments Offer SolutionsSample 1: Budget Amendment (cont)

In addition, three panels in the exhibit have been damaged during the grant period and need to be replaced. Panel covers have become worn and some so don’t adequately protect the panels. The proposed revised budget, below, allocates $990 for maintenance of the exhibit. The project manager expects to be able to purchase one or two panels, or one panel and a new set of panel covers with this amount.

$4,737 Moving Expenses$563 Printing and publication $1,840 Contracted services (storage & handling) $240 Transportation$150 Local travel $480 Refreshments and awards $990 One or two replacement panels; or, one panel and new panel

covers


Amendments Offer SolutionsAmendments Offer SolutionsSample 1: Budget Amendment (cont) What impact will these changes have on the final outcome of the project?

Wear and tear on the portrait panels have been an unanticipated aspect of increasing the travels of the exhibit. This change will enable us to maintain the exhibit so that it can continue to do the work of educating middle and high school students throughout the county about this historic event.

Many thanks,

___________________________________________Signature of Program Manager Date

___________________________________________ Signature of Authorized Representative Date


Amendments Offer SolutionsAmendments Offer SolutionsSample 1: Budget Amendment (cont) _________________________________________________________AWARDING AGENCY APPROVAL

Mail to: Awarding Agency, 000 xxx Street, Anytown, ST 99999

Please return to: Your Program, Your Agency, 999 xxxxx Street, Anytown, ST 99999

Please sign in blue ink.

AWARDING AGENCY Authorized Signature: Approved By________________________________ Date ________________ Not Approved _______________________________ Date ________________


Amendments Offer SolutionsAmendments Offer SolutionsSample 2 – Budget Amendment Form


Column AOriginal Budget

Column BPrior Amended(if applicable)

Column CAmendment Request

Column DRevised Budget

Salaries $65,000 ($15,000) $50,000

Fringe Benefits 18,200 (4,200) 14,000

Travel 500 2,200 2,700

Equipment 0

Supplies 1,200 3,000 4,200

Contractual 1,000 14,000 15,000

Other 0

Total Direct $85,900 $0 $85,900

Indirect 6,872 6,872

Total $92,772 $0 $92,772

Funds of $15,000 for salaries and $4,200 for associated fringe benefits may be reduced due to delays in the hiring process for the program manager, with a concurrent increase in travel $2,200, supplies $3,000, and printing services for brochures $14,000 to expand dissemination activities, reflecting a transfer of $19,200 funds.

Signature of Recipient Agency Authorized Representative: _____________________________ Date: ___________________Signature of Awarding Agency Authorized Representative: _____________________________ Date: ___________________

Amendments Offer SolutionsAmendments Offer SolutionsSample 3 – Budget Amendment Form


Description Original Budget

Requested Change

(+/-)

Revised Amount

Rationale

Salaries $65,000 ($15,000) $50,000 Reduce funds for hiring delay

Fringe Benefits 18,200 (4,200) 14,000 Reduce associated FB

Travel 500 2,200 2,700 Add conference to support dissemination activities

Equipment 0 0

Supplies 1,200 3,000 4,200 Increase materials for additional dissemination activity

Contractual 1,000 14,000 15,000 Increase printing services to produce dissemination materials

Other 0 0

Total Direct $85,900 $0 $85,900

Indirect 6,872 6,872

Total $92,772 $0 $92,772 No change in budget total

Signature of Recipient Agency Authorized Representative: _______________________________Date: ________________Signature of Awarding Agency Authorized Representative: _______________________________Date: ________________

Amendments Offer SolutionsAmendments Offer SolutionsSample 4 – No Cost Extension


Grant Details Amendment: No-Cost ExtensionProgram Name Technology Challenge Grant

Program Title Community Technology Centers in Action

Principal Investigator Dr. John Smith

Awardee Agency Xxxxxx

Award Number ED – 09 – 98765432-1

Current Start Date 1/1/12

Current End Date 12/31/12

New End Date: 6/30/13

Reason for Requesting New End Date:Extension of time at no cost will enable completion of activities through the spring semester.

Signature of Recipient Agency Authorized Representative: ____________________________________ Date: _____________Signature of Awarding Agency Authorized Representative: ____________________________________ Date: _____________


Sample 5 – Change of Key Personnel

Xxxx Recipient is currently implementing the Scholars in Residence Program, under Grant Award #123456789-1 and requests authorization to change the Principal Investigator, Dr. John Smith, to Dr. Susan Jones, through this amendment request. Dr. Smith has accepted a new position with another institution out of state. Dr. Jones has been an exemplary member of the leadership team throughout the project period and would continue to support the project in her expanded role, anticipated 7/1/10. Her resume is attached for your review and approval.

Authorized Signature/Date: ____________________________



Approval or rejection of an amendment

The funding agency will review the amendment request, and send a written response or new award document once approved.

While it is possible the amendment could be rejected, the preliminary conversation with the funding agency should promote concurrence.


Amendments Offer SolutionsAmendments Offer SolutionsSample 5: Amendment Approval from Grantor



Changes that do not require an amendment

Occasionally, modifications can be made without the need for a formal amendment.

Funds can be transferred between budget categories without a formal amendment if the amount is below a certain threshold.

The conversation with the funding agency and budget office will help determine whether or not an amendment is required.



Differences in locality, agency and legislation

Compliance requirements can vary from state to state, and agency to agency.

Requirements can vary between private and public institutions, federal and state institutions.

Requirements can vary due to legislation such as the American Recovery and Reinvestment Act (ARRA).



Differences in locality, agency and legislation

It is always helpful to make use of resources such as the original award documentation, procedure manuals that may be provided by the funding agency, and conversations with key administrators to determine the requirements for amendment requests.



A few last words

Amendments offer an opportunity to modify the original terms of a funding award to resolve needs that arise from unexpected circumstances during program implementation.



A few last words

A preliminary conversation with the funding agency and internal contacts such as the Budget, Finance, or Grants offices can provide a roadmap to making beneficial modifications that promote successful implementation.



References

American Recovery and Reinvestment Act (ARRA) of 2009, Grant Processing Procedures

US Department of Housing and Urban Development (HUD), Congregate Housing Services Program (CHSP) Grantee Manual

Illinois Environmental Protection Agency, Municipal Brownfields Redevelopment Grant Program

Maryland State Department of Education, Maryland Financial Handbook



References

Massachusetts Department of Elementary and Secondary Education, FY10 760 ARRA-IDEA Grant, Amendment Instructions

Minnesota Department of Administration, Office of Grants Management, Operating Policy and Procedures

Montgomery College, Rockville, Maryland, Starter Kit for Awards, Office of Business Development and Grants, May 2009


Amendments Offer SolutionsAmendments Offer SolutionsReferencesNew York State Division of Criminal Justice Services, Grants

Management System Amendment ProcessWyoming Aeronautics Commission, Request for

Amendment to an Existing Grant, AERO FORM 1110-1American University of Beirut, Grant AdministrationEuropean Commission, Community Research, Seventh

Framework Programme, Amendments Guide for FP7 Grant Agreements

Health Research Board, Research Strategy and Funding Directorate, Dublin, Ireland



Q & A


Amendments Offer SolutionsAmendments Offer SolutionsDo you have a question that you would like Do you have a question that you would like

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