Recipients are required to report deviations from budget, project scope or objectives. Recipients must request prior approvals from FEMA for certain budget and program plan revisions in accordance with this section and the requirements in 2 CFR § 200.308.
Requests must be made in writing and demonstrate the need for a budget or scope change and include the revised scope, schedule and budget. When budget changes are made, all program requirements continue to apply. Changes must be made prior to closeout to avoid disallowance of costs.
All approvals will be at FEMA’s discretion. Failure of the recipient to obtain prior written approval may result in the disallowance of costs. Even in cases where the recipient has authority for rebudgeting, if a program audit determines the costs do not meet the required allowable and reasonable determination, the costs may be disallowed.
The recipient must also notify FEMA as soon as an underrun or overrun is identified.
The following types of post-award changes will require the prior written approval of FEMA.