The Best Laid Plans: When Grant Agreements Need a Variation

By Kate Caldecott

It all looked so good on paper. If only reality would conform to our plans. Of course, that’s not how things work. Life is full of surprises, including delays and cost overruns that can affect your grants. Projects which include a long chain of dependencies can easily get off schedule. Key personnel may leave to pursue other opportunities. Unanticipated costs can pop up. How should you handle these changes?

Be Clear About What’s Expected

The first step in managing variations is recognising that they will happen. Things will go easier for you and your grantees if everyone knows what is expected when reality deviates from the plan. You might consider creating an applicability matrix like the example below from the NHMRC, or at least outlining the procedures for dealing with variations to timeline, budget, and project scope in your program guidelines.

Variation Policy Applicability Matrix. Source: NHRMC.

Collect the Updated Information/Documentation

There are two key considerations to keep in mind with regard to variations:

• The revised project must still meet your eligibility criteria and address the same objectives of the original grant
  
  
• Documentation needs to be updated so that the contract, budget and work plan reflect the revised project

Any alteration in grant activities should be carefully considered as it may change whether or not the grant will have an impact on your targeted outcomes. Not all requests for variations have to be approved. The revised contract should still reflect the potential impact on desired outcomes that motivated your assessors to award the grant in the first place.

Changes in time or budget will probably not affect the grant objectives, however they must be carefully managed to ensure that funds are drawn from the correct grant round and that enough funding is available to carry out all projects you have committed too.

Grantees should submit revised documents explaining:

• The variation they need
  
  
• A justification for the request (why this need for more time/money wasn’t foreseen at the time of application)
  
  
• A plan for ensuring that the revised plan can be successfully executed

You may want to create a Request for Variation form in SmartyGrants that asks grantees to indicate the type of variation requested (additional funding, time frame extension, change in activities, etc.) the justification for the request and an update of the existing plan (milestones, budget, etc.)

Once you have the information, you can make a decision on whether or not to approve the request and adjust your documentation to reflect your decision. Use file notes to track the progress of your negotiations and make sure everything is in writing. You don’t want any surprises later on down the road.

Maintain Open Lines of Communication

Even with all of the documents in place, variations underscore the need for open and frequent communication between grantors and grantees. Cultivate a relaxed, but professional relationship in which your grantees feel comfortable sharing updates (positive or challenging) with their Program Officers. Be open and supportive, offering explanations and guidance. Frequent communication will make it much less likely that a grantee will attempt to change the scope, budget or timeline of their project without your input or approval.

The better informed you are, the better you can manage your grants, even when things don’t go as planned. If you would like a consultation, please contact me at Kate@katecaldecott.com.au or 0447 227 598.