Common use of Budget Modification Without Written Contract Amendment Clause in Contracts

Budget Modification Without Written Contract Amendment. Subject to the prior review and approval of the contract manager, line items shifts of up to $20,000 or ten percent (10%) of the annual contract total, whichever is less, may be made up to a cumulative maximum of $20,000 or ten percent (10%), whichever is less, for all line item shifts over the life of the contract. Any line item shifts exceeding this amount must be executed in a written contract amendment and if required by law or State policy, submitted to DGS OLS for review and approval. There must be a substantial business justification for any shifts made. Fund shifts which increase Indirect/ Overhead or General/Operating Expense line items are prohibited. Line item shifts may be requested by either the State Agency or the Contractor in writing and must not increase or decrease the total contract amount allocated. Any line item shifts must be approved in writing by the Deputy Director of Welfare to Work Division, or his or her designee, and must be sent to Contracts Bureau, MS 8-14-747, within 10 days of approval for inclusion in contract folder. If the contract is formally amended, any line item shifts agreed to by the parties must be included in the amendment.