Common use of Formal Budget Modification Clause in Contracts

Formal Budget Modification. a. Prior to incurring any costs, GRANTEE shall obtain COMMISSION’s prior written approval, pursuant to a formal budget modification. b. A formal budget modification is 1) any modification to a cost category with a total of more than Five Thousand Dollars ($5,000), in which the modification will exceed ten percent (10%) of the total cost category; or 2) any modification to a cost category for which no dollar amount is budgeted. c. GRANTEE shall address and send a request for a formal budget modification to the designated COMMISSION staff, with the appropriate “Formal Budget Modification Summary” forms on or before the first (1st) of the month prior to the month in which the actual expenses will be incurred. GRANTEE shall not be permitted a formal budget modification during the first two (2) months or the last two (2) months of the Grant Period, unless authorized by COMMISSION staff. d. GRANTEE is only permitted two (2) approved formal budget modification requests during the Grant Period. COMMISSION’s approval of a formal budget modification request will be contingent on GRANTEE’s timely submission of documentation required by COMMISSION.