The purpose of this policy is to provide guidelines for the movement of funds within an SFA Foundation-funded grant. SFA Foundation grantees are expected to take note of the provisions of this policy and abide by them.
Virement refers to the transfer of funds between budget headings
3.0 Policy Statement
SFA Foundation expects grantees to manage their projects within the funding granted. It is the responsibility of each grantee to plan and conduct activities so as not to expend more funds than budgeted, and to ensure that funds are utilised effectively and efficiently. SFA Foundation however recognises the use of virements as a mechanism in the day-to-day management of grants budgets.
The movement of funds between two grants is not allowable.
4.0 Grant Holder Obligations
The grantee should check the SFA Foundation Award letter and Terms and Conditions before committing to vire funds.
4.1 Virement Limits and Approvals
- For grants up to USD 100,000, the funds granted may be moved between cost headings at the grantees discretion (except for funds earmarked for salaries and capital investments which would require prior approval from the SFA Foundation Programme Manager;
- For grants greater than USD 100,000, funds may be moved between cost headings at the grantees discretion if the amount being transferred across budget headings does not exceed a change of 10% of the total grant value (except for funds earmarked for salaries and capital investments which would require prior approval from the SFA Foundation Programme Manager);
- Prior approval of the Director of Programmes is required for significant transfers of funds (ie over 10% of the total grant value) between cost headings, or if the funds are needed for any other purpose, i.e. for expenditure under any budget heading not specified in the grant letter. The grantee should contact the relevant SFA Foundation Programme Manager in the first instance;
- All transfer requests requiring approval by the SFA Foundation Programme manager must be made in writing (including submission by e-mail) to the SFA Foundation programme manager assigned to the grant no later than 30 days before the proposed change and before the granted grant expires. SFA Foundation Programme Managers may make decisions whether or not to recommend a movement of funds between cost headings without merit review of the request;
- Requests requiring approval by the Director of Programmes should be submitted to the SFA Foundation Programme Manager at least two months prior to the movement of funds and must be adequately justified;
- Whenever grantees contemplate re-budgeting, or other post-grant budget changes, and are uncertain about the need for prior approval, they are strongly encouraged to consult, in advance, with the SFA Foundation Programme Manager assigned to their grant.