Presentation on theme: "Dede Rutberg Lead Grants Management Specialist"— Presentation transcript:
1 Budget Basics NIH Regional Seminar on Program Funding & Grants Administration Dede RutbergLead Grants Management SpecialistGrants Administration BranchNational Institute of Dental & Craniofacial Research (NIDCR)
2 Budget Basics Types of Competing Application Forms Types of Budgets Budget ComponentsFederal RequirementsPre-Award Policy IssuesOther Considerations
3 Types of Competing Application Forms SF424 Research and Research Related (R&R) (for Research, Career Development, Training and SBIR/STTR awards; submit via Grants.gov)PHS 398 Public Health Service Grant (for Cooperative Agreements and Complex Mechanisms)To compare SF424 R&R with the PHS 398, see:
4 Types of Budgets Modular vs. Categorical/Itemized Multi-Project/ConsortiumSBIR/STTRClinical TrialsFellowshipsInstitutional Training GrantsResearch Career Development Awards
5 Application Guide PHS SF424 Research & Related Budget 4.7 R&R Budget Component4.7.1 Section A and B4.7.2 Sections C through E4.7.3 Sections F through K4.7.4 Cumulative Budget5.4 Modular Component5.4.1 Periods 1 through 45.4.2 Period 5 and Cumulative
9 R&R Budget Components 4.7.1 A. Senior/Key Person All Persons who are involved on the project at applicant institution who meet the senior/key person definitionThe PD/PI and other individuals who contribute to the scientific development or execution of the project in a substantive, measurable way, whether or not salaries or compensation are requested under the grant.Faculty (calendar vs. academic/summer; person months, Institutional Base Salary; Legislative Cap)Collaborating InvestigatorsPostdoctoral AssociatesOther Professionals
10 4.5 Senior/Key Person Profile (Expanded) Component
12 R&R Budget Components Modular Applications 5.4 Modular ComponentNo categorical budget accepted at time of applicationNo categorical budget required at time of awardNo difference in allowable costsNo difference in post-award financial management requirements
13 Creating a Modular Budget Start with an itemized budget (R&R budget component 4.7.1)Create out-year budgetsDivide total of all years by # of yearsRequest same number of modules each year (there is an exception for equipment)Consortia costs may be rounded to nearest $1,000
14 More on ModularsList all personnel at applicant organization, including names, number of months devoted to project and roles on the projectConsortia total costs are calculated separately and rounded to nearest $1,000. List personnel, number of months devoted to project and roles on the projectNIH may request detailed budget to address specific issuesModular budgets are applicable only to R01, R03, R15, R21 and R34 applicationsFor additional information on modulars see:
15 NIH Guide Notice dated May 4, 2011 Legislative MandatesDissemination of False or Misleading Scientific Information (Section 517b)Continued Salary Limitation (Section 203)Anti-Lobbying (Section 503)Restriction on Distribution of Sterile Needles (Section 505)Acknowledgement of Federal Funding (Section 506)Restriction on Abortions (Section 507)Exception to Restrictions on Abortions (Section 508)Ban on funding Human Embryo Research (Section 509)Limitation on Use of Funds for Promotion of Legalization of Controlled Substances (Section 510)Certification of Filing and Payment of Taxes (Section 527)NIH Guide Notice dated May 4, 2011
16 Salary Cap Effective on or after December 23, 2011 Executive Level II of the Federal Executive Pay scale. The Executive Level II salary is $179,700Effective on or after December 23, 2011$199,700$179700$196,700For FY 2012 the Consolodated Appropriations Act, 2012 (Public Law ) signed into law on December 23, 2011, restricts the amount of direct salary to Executive Level II of the Federal Executive Pay scale. The Executive Level II salary is $179,700.For FY2012 awards issued on/before December 22, 2011 (competing and non-competing), the effective salary limitation remains at Executive Level 1, $199,700Jan 20, 2012 NIH Guide Notice
17 Handling Salary Cap in Competing Budget request Nonmodular/itemized - COMPETING grant applications and contract proposals that include a categorical breakdown in the budget figures/business proposal should continue to reflect the actual institutional base salary of all individuals for whom reimbursement is requested.Modular - Since the modules should be a reasonable estimate of costs allowable, allocable, and appropriate for the proposed project, you must use the current legislatively imposed salary limitation when estimating the number of modules.
19 Pre-award Costs At grantee’s own risk and expense Up to 90 days prior to the start date of a competing award if costs:Are necessary to conduct the project, andWould be allowable under a potential award without prior approvalGreater than 90 days requires prior approvalNo time limit for noncompeting awards. Costs need to be allowable and carefully managed
20 Cost SharingNot required as a condition of applying for/receiving unsolicited NIH awardsFew NIH-solicited programs require itNonetheless, mandatory cost sharing for salary in excess of current salary capBe sure you intend to commit to cost sharing when you propose an item at no cost to the government.
21 Award Restrictions Only applied to a particular grant for cause Shown on the NoA in Section IVRestricted funds must be tracked by grantee to ensure complianceExamples:restrict equipment funds pending receipt of current price quote;prohibit human subjects research pending IRB review
22 Read the Notice of Award Special Terms and ConditionsOther Terms of AwardProgram regulations42 CFR Part 52 - Grants for Research ProjectsProgram and appropriation legislation45 CFR Part 74 or 92 - HHS rules and requirements that govern the administration of grantsNIH Grants Policy Statement - compendium of several regulatory requirements applicable to grants and cooperative agreements
23 Who is Responsible for Financial Management? The InstitutionThe Principal InvestigatorThe Departmental AdministratorThe Department Chair
24 Other ConsiderationsConsistent with grantee institutional policies and practiceRequest reasonable amounts based on current conditions and needDon’t request contingencies or uncommitted promotionsKeep it reasonable & neccessaryJustify the unusual and large ticket itemsIdeally the science drives the budget and justification
26 How is the budget used by Reviewers and Program Officials? The budget reveals the applicant’s understanding of what it takes to accomplish the proposed researchHowever, the budget is not used to assess scientific merit and is reviewed after the scientific merit is assessedRULE 1: Develop a Realistic Budget!RULE 2: Justify Needs!
27 Sections A&B: Personnel Determine the amount of time (effort) that the PI will spend on this project.Calendar vs. Academic/Summer monthsDetermine the number, qualifications and amount of time needed for other personnelTechniciansPostdoctoral FellowsGraduate StudentsUndergraduate Students
28 Personnel (continued) There are no magic numbers regarding the qualifications and/or number of individuals needed for each aim.Be realistic about what each individual can accomplish and the time necessary to complete the work.If effort levels and/or staffing levels fluctuate in outyears, explain.
29 Section C: Is new equipment needed? If additional equipment is needed, this is the time to consider requesting it.Equipment should be project specific – be sure to include a written justification.Most equipment is requested during the first year of the grant.If using a modular budget format, extra module(s) may be requested to cover equipment.
30 Section D: Travel funds This amount is usually small:$800 - $1,600 per scientific meeting per individual per yearGenerally supports travel to one meeting per year for 2-3 individuals
31 Section E: Participant/Trainee Support Costs Unless stated in the FOA, this section should be left blank for NIH applicationsInclude tuition remission under Section F: Other Direct Costs
32 Section F: Other Direct Costs Estimate the materials and supplies needed for the personnel involved.An estimated supply budget of ~$12,000–15,000/year for each FTE may be reasonable.This number will vary depending on the nature of the research proposed.Animal intensive studies and studies involving human subjects tend to be more costly.In silico studies tend to be less costly for supplies.Consider stage of career of personnel involved.
33 Section F: Other Direct Costs This category also includes funds needed for items such as:Publication costsEquipment maintenanceConsortium/subcontractsTuition remissionEstimate these expenses realistically
34 Add it all Up – Year 1 Mon Salary Benefits Req. A. Senior/Key Person Cal Req. Fringe FundsMon Salary Benefits Req.A. Senior/Key PersonPI ,333 4, ,626B. Other PersonnelPostdoc Assoc 12 38, , ,889Grad Student ,772 5, ,226C. Equipment – Microscope ,000D. Travel - (2 meetings) ,000E. Participant/Trainee usually left blankF. Other Direct CostsMaterials/Supplies ,533Publication Costs ,500Subaward/Consortium/Contractual costs noneTuition Remission ,000G. Total Direct Costs ,000
35 Add it all up Calculate the direct costs for the first year. (for example, Year 1 budget = $179,000)Calculate the direct costs for subsequent years taking into account salary increases and changes in funds requested for equipment.Year 2 = $164,800Year 3 = $169,744Year 4 = $174,836Year 5 = $180,081
36 Do I need to submit a modular budget? Calculate the total direct costs for all yearsTotal direct costs for 5 years = $868,461Divide total by the number of years requestedAverage direct costs = $173,692/yrInvestigator-initiated R01s up to $250,000/yr must use modular format, except applications from foreign (non-U.S.) institutions
37 Convert Your Average Direct Costs to the Modular Format Round up to the next module (number divisible by $25,000)In the example, $173,692/yr rounds up to $175,000/yrNo yearly increases for inflationFirst year may include additional modules for one-time expenses like equipmentIn the example, add one additional module to year 1 = $200,000
38 Reminder for R01 BudgetAll budget requests to NIH for R01 applications use:the modular format when requesting direct costs of $250,000 or less each yearthe non-modular format when requesting direct costs greater than $250,000 in any year or if application is submitted from foreign (non-U.S.) institutionConsortium F&A costs are not factored into the modular direct cost limit
39 R01 Budget with Consortium Costs Prepare an itemized budget for the parent awardPrepare an itemized budget for consortium/subcontract costs, including:Personnel – salary and benefitsTravel – professional or investigator meetingOther Direct CostsMaterials and SuppliesTotal Direct Costs = $38,300
40 Total Consortium Costs Consortium Direct Costs = $38,300Consortium F&Aconsortium institution (at 50%) = $19,150Consortium Total Costs = $57,450Remember you may round to the nearest $1,000
41 Add it all upShould you request a modular budget?
42 R01 Grant with Consortium Budget Submit as a modular budgetwhen requesting Direct Costs at or below $250,000 per year…… excluding Consortium F&A costs.
43 Modular Grant with Consortium Budget In our example,Year 1 – Itemized Total DC = $256,124minus Consortium F&A = $ 19,150Year 1 – Itemized DC excluding F&A = $236,974Year 2 – Itemized DC excluding F&A = $224,513Year 3 – Itemized DC excluding F&A = $231,249Year 4 – Itemized DC excluding F&A = $238,186Year 5 – Itemized DC excluding F&A = $245,332Avg Direct Cost per yr (excluding F&A) = $235,251Round up to the next module = $250,000
44 Record Modular Budget with Consortium: PHS 398 Modular Budget, Period 1 A. Direct Costs Funds Requested ($)*Direct Cost less Consortium F&A ,000Consortium F&A ,150*Total Direct Costs$269,150The total direct costs requested are allowed to exceed the modular maximum ($250,000) by the amount of F&A associated with the subcontract.
45 Money…money… and more money? Applications requesting > $500,000 DC in any single year – applicant must seek permission to submit from Institute staff at least six weeks prior to submission.Multiple Principal Investigator R01 is intended for projects that clearly require a “team science” approach. The Multiple PI option should not be used as a means to justify a large budget request.Well-funded investigators should consult with Institute staff regarding policies for support of new research in well-funded laboratories.
46 But I asked for what I needed? Study section may recommend reductionsMay provide information to funding institute to reconsider IRG-recommended reductionsFunding institute may reduce budget further and cut yearsNot appealableDiscuss with Program Officer if causes hardship
47 Based on the AWARDED budget… Build a budget for the dollars and years that are indicated on the Notice of Award.For modular grants remember to build in any increases in spending over duration of grantPrioritize research work and get going
48 Final thoughts on $$Most taxpayers think a $1-2M award is a lot of money. Spend it wisely.Start-up and staffing delays? Don’t rush to spend it. It is OK to carry unspent funds forward for good cause, if justified.We expect recipients to make highest and best use of grant funds.Budget problems? Consult NIH Program and Grants Officers. They often have solutions.
49 Where to get help SF424 R&R guides and FAQs PHS 398 instructions PHS 398 instructionsFor additional information on modular budgets see:The grantee institution’s Sponsored Programs OfficeNIH Program and Grants Management staffOther experienced personnel at your institution