Reallocation of Grant Funds Policy
Target audience: Applicants, Grantees
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 provide the flexibility to ensure the funds are used effectively.
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.
Grant funds are awarded based on the budget identified in the grant contract. Grant funds may only be spent on the items and activities described in Schedule A of the contract.
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 operating costs or costs not directly related to the approved project
- Items or activities beyond or separate to the project’s approved scope of work
- Items or activities ineligible for OTF funding as per OTF’s Eligibility Policy
In addition, reallocations must align with specific limits identified in the Capital Grants Policy and Overhead and Administration Policy.
3.1 Reallocation within Previously Approved Budget
i) Subject to the foregoing, grantees may reallocate funds within each budget category, without prior approval of OTF. The grantee must report any budget reallocation within budget categories in their next progress and/or final report.
ii) Requests for reallocation of funds between budget categories must be submitted to OTF in writing for approval. Reallocation of funds between budget categories requires the prior written approval of OTF. 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 general operating costs or costs not directly related to the approved project
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.
Budget categories: OTF budgets include three broad budget categories: direct personnel costs (i.e., staffing or salaries), direct non-personnel costs (contracted services; project/program costs; capital), and overhead and administration costs.
Recovery: Return of unspent surplus grant funds.