An organization managing a federal grant realizes that due to an unforeseen supply chain issue, the cost of a key piece of equipment will be 15% higher than budgeted, requiring funds to be moved from the travel line item. What is the most appropriate first step?
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A
Purchase the equipment immediately and explain the discrepancy in the final financial report.
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B
Consult the grant agreement and 2 CFR 200 for budget modification and prior approval thresholds.
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C
Ask the Program Officer for informal verbal approval over the phone to expedite the process.
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D
Cancel the equipment purchase and spend the funds on other allowable project activities.