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9.4 Budget Change <br />Prior approval is required for a budget change if the Federal share of its grant agreement exceeds the Simplified Acquisition <br />Threshold as stated in .2 Ci=R § 200,88 , (see block 16 on the AMS-33 Grant Agreement Face Sheet for the Federal award <br />amount) and the cumulative amount of a transfer among budgeted direct cost categories or between individual subawards <br />exceeds or is expected to exceed 10 percent of the total Federal award budget as last approved by AMS. If the Federal share of <br />the Federal award is less than the Simplified Acquisition Threshold, recipients do not need to request prior approval for budget <br />changes. The request must include: <br />1. A justification for the change; and <br />2. A description of the requested change that includes: <br />a. The proposed budget change, <br />b. The last approved budget, and <br />c. An updated budget for the affected cost categories. <br />9.5 Pre-Award Costs <br />As defined in 2 CFR §200.458 , pre-award costs are costs incurred prior to the effective date of the Federal award directly <br />pursuant to the negotiation and in anticipation of the Federal award where such costs are necessary for efficient and timely <br />performance of the scope of work. Refer to Pre-Award Costs for more information. The request must include: <br />1. A brief description of the pre-award activities completed; and <br />2. An updated budget, using the same format for presenting the budget information that was used in the approved <br />application, clearly indicating the associated dollar amount of award funds and/or the value of any matching <br />resources expended during the pre-award period. <br />9.6 Contracting or Subawarding for Activities Central to the Award's Purpose(s) <br />Prior approval is required for a change that involves subawarding, transferring, or contracting out of any work under a Federal <br />award or executing a fixed amount subaward. This provision does not apply to the acquisition of supplies, materials, equipment, <br />or general support services. The request must include: <br />1. A brief description of and justification for the change; <br />2. A brief description of the non-Federal entity's qualifications, and how their work will fulfill the project goals; <br />3. If a modification to the budget is required: <br />a. A description of the proposed modification, <br />b. The last approved budget, and <br />c. An updated budget for the affected cost categories using the same format as was used in the approved <br />application with changes noted; and <br />4. If the third party was not identified in the original application, a description of the third party's qualifications, how its <br />work will fulfill the project goals, and an itemized budget (if applicable) showing cost categories with appropriate <br />justification. <br />9. 7 Specific Allowable Costs Prior Approvals <br />Prior approval is required for allowable costs that were not included in the approved project and/or the latest budget. See 8.2 <br />Allowable and Unallowable Costs and Activities for more information on these costs. The request must include: <br />A description of and justification for the cost including how it furthers the objectives of the project; and <br />If applicable, a comparison between the most recent budget and the proposed budget as well as an updated <br />budget narrative of the affected cost categories. Recipients must use the same format for presenting the budget <br />information that was used in the approved application with changes noted. <br />19