Sometimes it is necessary to shift funds from one phase to another phase (for example: CE to Construction) in order to expend all the federal funding authorized on a project. Upon submittal of the Final Report of Expenditures (FROE), a justification letter is now required to explain why funds need to be shifted. Please make sure and include the justification letter when submitting your FROE. Sample language is shown below for your reference.
Regarding the increased Construction Engineering (CE) expenses shown on the City’s Federal Report of Expenditures for Federal Project XXXX (XXX), the City offers the following explanation:
The reason for the increase in CE is to capture the total allocation of Federal funds. Because the actual construction costs were less than specified on the original finance letter, the City would like to add the unused construction funding to the amount already authorized for CE by shifting the funding from Construction to CE. The new total for CE being requested for reimbursement is $XXXX.