There are two instances where the budget would need revision. The first is when you have overspent in one category (such as personnel, equipment, or supplies) and underspent in another (such as travel, other direct costs, etc.). In this instance you would need to move funds between the categories ensuring that the total budget for the year does not exceed the contracted amount. The second example would be if you plan to finish this year’s work early and want to move the remainder of the unused budget into Year-2 or 3; this will automatically occur if all stated deliverables have been submitted and approved. The second example would also be relevant if, for example, you have had difficulty hiring the appropriate personnel in Year-1. Note that when redistributing funds from one year to the next you will be required to provide a written justification, updated budget forms (PMC 123.1 and SF 424A), and Statement of Work (SOW).