Budget Amount Appears Insufficient - (Rev. 2, 08-30-02)

120 - Budget Amount Appears Insufficient - (Rev. 2, 08-30-02) A1-1351, B1-4351 A. Submission of SBR The contractor shall submit an SBR whenever it appears that the budgeted amount is insufficient to adequately perform the required functions and the need for additional funds can be adequately documented. As a general rule, it shall submit the SBR no later than 90 days prior to the exhaustion of funds so as to allow CMS sufficient time to respond prior to the need to submit an abatement notice. (See B below.) The SBR should never be submitted less than 60 days prior to the exhaustion of funds unless it can be demonstrated that it could not have been given in advance. Resolution of the SBR may include: An increase in the budget; Institution of additional efficiencies; A reduction of functions to be performed; or Other ways and means agreeable to both parties. The contractor shall discuss these alternatives in the SBR and, if after negotiating in good faith, there is no satisfactory resolution, CMS will send a written rationale denying all or part of the SBR. B. Abatement Notice The contractor shall submit a written abatement notice to the RO no less than 60 days prior to the date on which it appears that the budgeted amount is insufficient to adequately perform the required functions in accordance with the Cost of Administration Article in the Contract/Agreement.