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the MPSC Grant Administrator before these changes are instituted. The total amounts contained in Attachment B to the grant contract must not change. For example, a Grantee may move $500 from one salary line item to another salary line item without a formal grant amendment because the total dollar amount allocated to the Personnel budget category will not change. Personnel Old Budget Change New Budget Employee 1 $1,500 ($500) $1,000 Employee 2 $1,000 $0 $1,000 Employee 3 $500 $500 $1,000 Total Personnel $3,000 $0 $3,000 7.8.2 UPDATES BETWEEN BUDGET CATEGORIES (FORMAL AMENDMENT NOT NEEDED) The Grantee may reallocate funds between budget categories (e.g., from Personnel to Contractual Services) without a formal grant amendment when certain conditions are met. The Grantee may reallocate funds between budget categories without a formal grant amendment if, and only if, the change is less than 5% of the total line-item amount, or $2,000 (whichever is greater); however, a revised budget should be submitted to the Grant Administrator for approval. The allowable transfer should be calculated as less than 5% of the total line item that the funds are being transferred from, or $2,000 (whichever is greater). The Grantee must obtain written permission from the MPSC Grant Administrator before these changes are instituted. In addition, a revised budget and budget narrative should be submitted with the revision request. Informal revisions may not generally be requested/approved outside of the grant period. However, exceptions may be made between October 1- October 15 to allow the move unspent funds from other State-funded categories to Direct Assistance to serve additional households based on final APP invoices. 7.8.3 UPDATES BETWEEN BUDGET CATEGORIES (FORMAL AMENDMENT NEEDED) Criteria for formal budget amendments that require approval by LARA.  Cumulative budget changes equal to, or greater than, 5% of the total line-item amount, or $2,000 (whichever is greater) require formal Budget Amendments.  Reallocating funds from Direct Assistance to any other category is prohibited unless extenuating circumstances exist. A formal budget amendment constitutes a renegotiation of contract terms and must be signed by the organization and the Director of DLARA’s Bureau of Finance and Administrative Services. The following documents must be collected or generated by the MPSC Grant Administrator to initiate the grant amendment: A. Request from Grantee: