Release Date:  December 18, 1998


National Institutes of Health

The purpose of this Notice is to clarify the definition of significant
rebudgeting in the NIH Grants Policy Statement (NIHGPS) as it appears on page II-
53 of the NIHGPS.  The definition and example should read:

Significant rebudgeting, whether or not the particular expenditure(s) require
prior approval under rules governing budget changes.  Significant rebudgeting
occurs when expenditures in a single direct cost budget category deviate
(increase or decrease) from the categorical commitment level established at the
time of the competing award by more than 25 percent of the total costs awarded. 
For example, if the award budget for total costs is $200,000, NIH prior approval
is required for any rebudgeting that would result in an increase or decrease of
more than $50,000 in a budget category. 

Please note this correction in your copy of the NIHGPS.  The HTML version of the
NIHGPS has been changed to reflect this Notice.  The revised Page II-53 may be
downloaded in Adobe Acrobat format from the OER Grants Web site at

Questions about this Notice should be referred to the Grants Management
Specialist identified on the Notice of Grant Award.

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