1. Budget Basics for Administrators Application Submission Funding Announceme nt Pre- award Post- award Final Financial Statements Grant Closeout Dwight Mowery Chief Grants Management Officer National Library of Medicine National Institutes of Health Department of Health & Human Services Grants & Funding NIH’s Central Resource for Grants & Funding Information (grants.nih.gov) Award Phase 1

2. Budget Basics for Administrators  NIH Basic Application Process/Funding Opportunity Announcement (FOA)  NIH Cost Limitations  Budget Types  E-Application Submission (Grants.gov)  Allowable Costs  Unallowable Costs  Budget Submission Errors  Pre-award Budget Administration  Post-award Budget Administration  Grant Closeout 2

3. Initiating the Budget Process  All applications to NIH must be in response to a FOA. Carefully read the FOA in its entirety including key budget information, i.e.:  Section II. Award Information  Award Budget - outlines budget parameters (unlimited, direct cost limit, total cost limit, single/multi-funded (applicable indirect costs generally apply – included at time of award).  Award Project Period – Number of years a budget may be requested within the total period of support.  Section IV. Application and Submission Information [SF424 (R&R)]  2. Content and Form of Application Submission – (modular & categorical) outlines the budget forms required and sometimes includes special budget notes  6. Funding Restrictions – outlines restrictions in requested costs; addresses whether pre-award costs are allowable.  Section VII. Agency Contacts  Financial/Grants Management Contact(s) – contact us with questions. 3

4. NIH Cost Limitations  NIH Salary Cap – Annual Update - NOT-OD-16-045 $185,100 – Government Executive Level II Salary (fringe benefits and indirect costs are excluded from adjustment) Notice provides Q&A, example, NIH (OPERA) inquiry contact  NIH Graduate Student Cap – Annual Update - NOT-OD-16-047 $43,692 (FY 2016 -0- Level NRSA Postdoc) Salaries & Wages, Fringe Benefits and Tuition NIH-Direct Costs prior approval for Applications ≥ $500,000 Institute/Center approval of large applications exceeding $500k (DC) NOT-OD- 02-004  Grants & Funding – “Develop Your Budget” – outlines most things you need to know - http://grants.nih.gov/grants/how-to-apply-application- guide/format-and-write/develop-your-budget.htmhttp://grants.nih.gov/grants/how-to-apply-application- guide/format-and-write/develop-your-budget.htm 4

5. NIH Cost Limitations  Annual Institute/Center Financial Management Plan  Outlines limitations by program or grant type  Individual to each IC  Limitations on inflation for out-year budgets (NOT-OD-12-036) Can be requested but currently, will not be funded for most programs Specific items of costs, where an incremental % was applied, may be requested 5

6. Budget Types – Modular vs. Categorical NIH uses two types of application formats that use the SF 424 (R&R) form and the PHS 398 Modular Budget Form (NOT-OD-06-096):  Modular Budget: $25,000 direct cost budgets up to a maximum of 10 segments = $250,000 Subproject/consortium indirect costs are excluded from the calculation by segment If amount of budget is estimated less than segment ceiling, round to the nearest $25,000. Costs must be justified per personnel, consortium(s) and other costs associated with the modules requested Include direct costs removed from indirect cost base 6

7. Budget Types – Modular vs. Categorical  Categorical Budget: All personnel costs for the project (Sections A & B of R&R Budget Form) Time and Effort converted from % to Person Months Applicable institutional levels of fringe benefits apply Senior/Key personnel identified Postdoc Associates (researchers) Graduate Students Other Personnel Equipment, Travel, Other Directs, Publications, Consultants, Services, A&R, Patient Care, Tuition Remission, Special Cost Items, Consortiums/Subawards 7

8. TIME & EFFORT REPORTING: CUMULATIVE EFFORT ANNUALIZED EFFORT SUMMER + ANNUALIZED EFFORT ACADEMIC = ANNUAL % EFFORT FOR THE BUDGET PERIOD (HTTP://GRANTS.NIH.GOV/GRANTS/POLICY/PERSON_MONTHS_FAQS.HTM) Summer EffortAcademic EffortCumulative Effort 25.00% 75.00% 100.00% Base Salary [Annualized - 12 mos.] 3 Mos./PMs [.25 Year] 3 Mos./% [.25 Year] 9 Mos./PMs [.75 Year] 9 Mos./% [.75 Year] 12 Mos./PMs [1.00 Year] Salary $ 100,000 $ 12,5006 50.00% $ 26,2504.2 $ 26,25035.00% $ 38,7504.65 Fringe Benefits $ 24,680 $ 3,0856 50.00% $ 6,4794.2 $ 6,47935.00% $ 9,564or Personnel $ 124,680 $ 15,5851.50 $ 15,58512.50% $ 32,7293.15 $ 32,72926.25% $ 48,31438.75% 8

9. Budget Types by Program  Small Business Innovation Research (SBIR)/Small Business Technology Transfer (PA-15-269 & PA-15-270) Phase I SBIR/STTR - $150,000 Total Costs (direct & indirect costs + fee) – 6 mos. Exceptions, where justified, up to $225,000 (+50%) Phase II SBIR/STTR - $1,000,000 Total Costs/budget period (direct & indirect costs + fee) – 2 yrs. = 2 budget periods of 12 mos. Exceptions, where justified, up to $1,500,000 (+50%)  National Research Service Award (NRSA)–Ruth L. Kirschstein (NOT-OD-16-047) Institutional: Stipends (NIH Table), Tuition (60% of actual to NIH ceiling), Training Related Expense (NIH level for pre/postdocs), 8% indirect costs (-tuition) Individual Fellowships: Stipend (NIH Table), Tuition (60% of actual to NIH ceiling), Institutional Allowance (NIH set levels) 9

10. Budget Types by Program  NIH Career Development Awards – K Kiosk http://archives.nih.gov/asites/grants/03-26- 2015/training/careerdevelopmentawards.htm Various Ks have specific cost structure Salary (9 person-months = 75% Time & Effort) - reimbursed by IC-set levels Fringe Benefits Other Program Related Expenses – Research Support - reimbursed by IC-set levels 10

11. Electronic Applications  Grants.gov Registration - The on-line portal used by all federal grant- making agencies and their applicants to find and apply for federal grant funding.  eRA Commons - A system managed by NIH that allows applicants, grantees and federal staff to securely share, manage and process grant- related information.  System for Award Management (SAM) - is the Official U.S. Government system that consolidated the capabilities of CCR/FedReg, ORCA, and EPLS. There is NO fee to register for this site. Entities may register at no cost directly from this page. User guides and webinars are available 11

12. Allowable vs. Unallowable Costs  Reasonable, allowable, allocable, consistent  Generally Uniform Guidelines (2 CFR Part 200) and Institutional Cost Policies apply  Unallowable may include the following: Advertising (only certain types are allowable) Alcoholic beverages Entertainment Fundraising or lobbying costs Fines and penalties Memorabilia or promotional materials 12

13. Allowable vs. Unallowable Costs Relocation costs if employee resigns within 12 months Certain recruitment costs, such as color advertising Certain travel costs, such as first-class travel Cash donations to other parties, such as donations to other universities Interest payments Membership in civic, community, and social organizations or in dining and country clubs Goods or services for the personal use of employees  Allowable may include the following: Salaries & Fringe Benefits Supplies Equipment 13

14. Allowable vs. Unallowable Costs  Allowable may include the following (continuing): Travel Consultants Consortiums/Subawards Alterations & Renovations Other Expenses Specialized items of cost may be included and must be well justified – NIH Grants Officer may approve in certain circumstances 14

15. Budget Submission Errors & Omissions  Exceeding FOA limitations of cost  Submitting budgets exceeding $500,000 direct costs without prior approval of NIH-IC  Modular Budget did not request indirect costs for consortiums/subawards  Outlined costs in budget are not supported by justification  Costs exceeding salary cap, graduate student cap, etc.  Math errors in computing both the direct & indirect costs of the budget  Using the incorrect format (Modular or Categorical)  Not contacting the Grants/Financial Management contact listed in the FOA 15

16. Pre-award Costs:  Generally allowable up to 90 days prior to the start date of the competing grant (not applicable to training mechanisms)  Incurred at grantees own risk  May be extended beyond 90 days with NIH-IC prior approval  Must comply with grantee’s internal policies/procedures 16

17. Post Award Costs:  NIH allows rebudgeting  Rebudgeting of awarded categorical costs may not increase/decrease by 25% of the total costs awarded. Rebudgeting beyond the threshold requires NIH-IC prior approval generally within 30 days of anticipated expenditure(s). (not common)  The Uniform Guidelines and the Institutional Cost Policies for all expenditures must be adhered to unless additional cost approvals were obtained from either NIH or your institution  Follow the terms and conditions; especially for specific costing related to the award  Review for any restrictions or limitations of use of funds 17

18. NIH Grant Closeout (Financial)  120 days following the close of the last budget period and the overall project period, a Federal Financial Report (FFR) must be submitted  FFR Module is available to eRA Commons users who have the correct role for access; Signing Official or Account Administrator must sign for institution  FFRs accepted by NIH will also agree with the Payment Management System, PSC, DHHS where the expenditures are reconciled to the Authorization and Disbursements made throughout the project period.  Failure to close in timely fashion and beyond 180 days (Unilateral Grant Closeout) may invoke enforcement actions and grantees could go into debt status owing funds back to the NIH. 18