Reallocation of Grant Funds

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Type: 
Investment
Document ID: 
POL-INV-11
Version: 
2.0
Approved By: 
Board
Date Approved: 
10/01/2001
Date Effective: 
06/23/2016
Date Revised: 
06/23/2016

1.0 RATIONALE

The Ontario Trillium Foundation (OTF) is committed to monitoring all grants to ensure that OTF funding is used for the purposes for which it was approved. Close monitoring and prudent decision-making regarding the use and reallocation of OTF’s funding by grantees provides the flexibility to ensure the funds are used effectively. This also fulfills OTF’s obligation to be accountable for the appropriate use of public funds.

2.0 PURPOSE

This policy defines OTF’s approach to modifications of an approved grant’s budget. OTF sets parameters to support the effective use of grant funds while ensuring accountability and the appropriate use of public funds.

3.0 POLICY

Grant funds can only be reallocated when they directly support the scope of the originally approved outcomes for the grant.

Grant funds may not be reallocated towards:

  • General or indirect costs
  • Items or activities beyond or separate to the initiative’s approved scope of work
  • Items or activities ineligible for OTF funding

3.1 Reallocation within previously approved budget

Subject to the foregoing, grantees may reallocate funds within each budget categories, without prior approval of OTF. The grantee must report any budget reallocation within budget categories in their next progress and/or final report.

Reallocations between budget categories require the prior written consent of OTF.

Requests for reallocations between budget categories must be submitted to OTF in writing for approval. OTF will consider the reallocation request if the following conditions have been met:

  • The grant is in good standing
  • The grant activities have so far met expectations
  • The reallocation request is within the scope of the originally approved outcomes for the grant
  • The reallocation is not to cover indirect costs

3.2 Recovery of surplus funds at the end of the OTF grant

OTF will request the return of any surplus funds remaining at the end of the grant.  This recovery will be supported, in part, by the OTF Payment Release for Grantees Policy.

4.0 DEFINITIONS

Reallocation: Transfer of OTF funds within a previously approved grant budget, including OTF modifying the payment schedule.

Budget categories: Budget line items that are related to similar costs from a budget category. OTF budgets include three broad budget categories: direct personnel costs (i.e. staffing or salaries), direct non-personnel costs (project/program costs and capital) and overhead and administration costs.

Recovery: Return of unspent surplus grant funds.

Surplus Funds: An amount of funding that is unspent after the specified grant result(s) have been met.

5.0 KEY WORDS

Approval; Budget; Funds; Reallocate; Reallocation; Recovery; Surplus

6.0 TARGET AUDIENCE(S)

☒ Staff          
☒ Volunteers
☒ Applicant Organizations
☒ Grantees   

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