GIM 18
Attachment A
Part 3

For discretionary grants other than construction grants, grantees must obtain written prior approval from the GMO of the PHS awarding office for the following postaward changes. Other prior approvals may be required by the NGA, specific program legislation, or regulations. Therefore, the following list may not be all inclusive. PHS has extended additional authorities for recipients of certain PHS research grants (see "Prior Approval Authorities Retained by PHS for Research Grants"). For State and local governments and federally recognized Indian tribes, PHS has waived the 10-percent cumulative threshold contained in 45 CFR Part 92.30, and only the items listed below must receive PHS prior approval.

For those rebudgeting actions listed below, prior approval is required whether increasing an existing budget category or using funds for categories not in the originally approved budget. Failure to obtain prior approval, when required, from the appropriate PHS awarding office may result in the disallowance of costs.

1. Change in Scope, Principal Investigator, Grantee Institution, Successor in Interest, or Recipient Institution Name. See Changes in Project.

2. Restrictions on Notice of Grant Award. Undertaking any activities disapproved or restricted as a condition of the award.

3. Transferring Substantive Programmatic Work. Transferring to a third party, by contracting or any other means, the actual performance of substantive programmatic work.

4. Carryover of Unobligated Funds From One Budget Period to Another Within an Approved Project Period.

5. Extensions of the Budget/Project Period With or Without Additional Funds.

6. Equipment Purchase. Equipment exceeding $25,000 per unit.

7. Alternative Use of Salary Support Due to Receipt of a Research (Career/Scientist) Development Award. The alternative use of grant funds awarded under a PHS grant to a nongovernmental organization for an individual's salary that are no longer required for that purpose as the result of the transfer of that individual's salary to an RCDA or other RCDA-type career development award.

8. Alterations and Renovations (A&R). Drawings and specifications for alteration and renovation projects over $50,000. Also, A&R costs may not exceed the lesser of $150,000 or 25 percent of total direct costs during any consecutive 3-year period unless a waiver is obtained.

9. Audiovisual Materials. The cost of acquisition or production of audiovisual materials exceeding $25,000 for a single audiovisual product. This is an internal programmatic clearance which must be obtained by the PHS awarding office. However, in order to comply with this clearance requirement, information will be needed from recipients.

10. Transferring Amounts From Trainee Costs. The transfer of amounts previously awarded for trainee costs (stipends, tuition, and fees) to other categories of expense. This excludes trainee travel, which PHS does not consider to be a trainee cost.

11. Capital Expenditures. Capital expenditures for land or buildings. Also, real property acquired with PHS grant funds may not be conveyed, transferred, assigned, mortgaged, leased, or in any other manner encumbered by the grantee without the written prior approval of the PHS awarding office or its successor organization.

12. Patient Care Costs. Patient care costs not previously approved by PHS and/or when a grantee desires to rebudget funds out of the patient care category. Regardless of the amount of funds involved, any reduction in the level of patient care is considered to be a change in project scope and requires PHS prior approval.

13. Publication and Printing. Publication and printing costs exceeding $25,000 for a single publication when not included in the originally approved budget. This is an internal programmatic clearance that must be obtained by the PHS awarding office. However, in order to comply with this clearance requirement, information will be needed from recipients.

14. Preaward Costs Incurred More Than 90 Days Prior to the Effective Date of any New or Competing Continuation Award. The incurrence of costs prior to the award of a grant imposes no obligation on the Federal Government to make the award or increase the amount of the approved budget.

15. Consumer/Provider Board Participation. When not specifically authorized by program regulations, only the following costs are allowable with the prior approval of the PHS awarding office:

1. Reasonable and actual out-of-pocket costs incurred solely as a result of attending a scheduled meeting, including transportation, meals, babysitting fees, and lost wages.

2. The reasonable costs of necessary meals furnished by the grantees to consumer or provider board participants during scheduled board meetings only if not reimbursed to participants as per diem or otherwise.

16. Need for Additional Funds. A need for the award of additional Federal funds.

17. Closely Related Work. When salaries and/or other activities are being supported by two or more PHS grant projects, grantees may charge costs to the project for which the costs are originally approved or to another PHS project with the prior approval of the PHS awarding office provided all of the following conditions are met:

1. The projects are scientifically and technically related.

2. The projects are under the direction of the same principal investigator/project director.

3. The projects have been funded by the same PHS awarding office.

4. There is no change in the scope of the individual grants involved.

5. The relating of costs will not be detrimental to the conduct of work approved under each individual award.

6. The relatedness will not be used to circumvent the terms and conditions of an individual award.

18. Indemnification Against Third Parties. The Government is obligated to indemnify the organization only to the extent expressly provided in the award.

19. Transfer of Funds Between Construction and Nonconstruction.

20. Program Income. For other than research grants, the use of alternatives other than the deduction alternative (see General Program Income) for disposition of program income must have PHS prior approval.

2. Policy regarding postaward changes to construction grants is specified under Construction Grants in Part 5 of this document.