Budget Basics for Administrators - PowerPoint Presentation

Slide1

Budget Basics for Administrators

Sean Hine

Branch Chief

Office of Grants Administration

National Cancer Institute

June 2014Slide2

What we will be discussing:

Let’s discuss some logistics

How do you start the request?

Electronic submission

Discussion of costs

Overarching rules

Types of budgets

Dive into the nitty-gritty – budget specifics

Pre-award considerations

After the awardSlide3

We have an idea for a project…now what?

All applications to the NIH must be in response to a Funding Opportunity Announcement (FOA)

Be sure you understand the specifics of the FOA

Including: period of support, type of budget(s), limits in $ levels, additional reporting, etc.

Abide by any provided submission datesSlide4

Welcome to the

electronic world!

NIH has completed the process of transitioning all competing applications to the electronic (SF 424) process

This includes multi-project proposals

More information at the following

Guide Notice:

http://

grants.nih.gov/grants/guide/notice-files/NOT-OD-13-075.html

The requirements may change from mechanism to mechanism – be careful!Slide5

All about costs

A grantee is responsible for following and NIH for ensuring that all cost considerations are met

Ensure your understanding of the applicable cost principles

Particularly with the change to the uniform principles

Grantees may shape their own systems as long as the principles are followed and the CFR standards are met for financial management systems

Four tests for determining

allowability

:

Reasonableness

Allocability

Consistency

ConformanceSlide6

Costs (cont.)

Differentiation between a Direct Costs and Facility & Administrative (indirect) Costs

Directs – can be identified to a specific grant, project, etc.

F&A – common or joint costs that cannot be readily identified with a specific grant

More information including discussion on cost transfers, reimbursement of F&A, specific items of cost, etc. can be found at the following within the NIH Grants

Policy Statement:

http://

grants.nih.gov/grants/policy/nihgps_2013/nihgps_ch7.htmSlide7

Costs (cont.)

It is NIH’s responsibility as stewards of Federal funds to ensure that a grantee’s financial management systems are adequate to receive support and that all costs being requested within a proposal are allowable

If we have any concerns, we will be in touch!Slide8

Salary Cap

Effective Jan. 12, 2014, the salary cap for Executive Level II has increased to $181,500

Guide Notice announcing

the change:

http://

grants.nih.gov/grants/guide/notice-files/NOT-OD-14-052.html

This level also applies to consortiaSlide9

General Rules/Considerations

Bona Fide Need

In any request, please be sure that the expenses you are including can be reasonably expected to be expended in the request time of support

A budget tells NIH what is needed in terms of $ for the proposed research. It is not used to assess the merit of that research; only accounted after the merit has been establishedSlide10

General Rules/Considerations (cont.)

Cost Sharing

Not required

Is assumed however when an expense is listed but there is no reimbursement requested (includes personnel contributing effort exceeding the level of salary support)

Application requesting more than $500,000 Direct Costs (exclusive of consortia F&A) must seek permission from NIH at least six weeks prior to submission

Understand the specifics of the FOASlide11

General Rules/Considerations (cont.)

Well-funded investigators should discuss appropriateness and specific-Institute policies prior to submission

Responsibility for the Fiscal Management of the award rests with the award recipient and listed principal investigator(s)Slide12

Types of budgets

Modular

Categorical/Itemized

Inclusion of consortia (modular & categorical)

Program specific:

SBIR/STTR

Ruth L.

Kirschstein

National Research Service Awards – Fellowship & Training

Research Career Development AwardsSlide13

Modular Budgets

Availability of use is dependent on mechanism: R01, R03, R15, R21, R34 and others as identified on FOA

Application and associated review process does not require a detailed (categorical) budget

Capped at $250K direct costs per year (exclusive of consortium F&A costs)

If you exceed $250K directs, you are moving to the categorical budget request

If mechanism listed above, modular budget must be used if at or below $250K Slide14

Modular Budgets (cont.)

Grantee should begin with a categorical budget for all years to craft the “module” request

Module = $25K direct costs

General example: All five years of an R01 budget is $841,432. The average per year is $168,286. Modular budget request per year (rounding to next module) would be $175,000.

No escalation per year

Request may fluctuate if appropriate per FOA or one-time expense (i.e. equipment) but it should be justifiedSlide15

Modular Budgets (cont.)

Full justification on personnel

Personnel should include names, person months and description of role

Include other information as you deem appropriate to assist in clarification of request

Consortia costs are calculated separately but same justification (personnel) requirements applySlide16

Modular Budgets (cont.)

A few more things:

If NIH needs further information, even a detailed budget explanation, we may ask for it

The NIH Salary Cap should be accounted for in your calculation/estimate of the number of modules needed

Be thorough in your personnel justificationSlide17

Time for the details – Categorical B

udgets

Personnel

Indicate level of effort (calendar months)

Provide institutional base salary up to the NIH salary cap

If salary exceeds the cap, welcome to include a statement indicating as such in the justification

Apply applicable fringe benefit for position

Explain fluctuations in efforts!

Equipment

Generally, expected to be a one-time expense

Be sure to comply with institution’s definition of equipment (NIH defines as $5K or more and an expected life exceeding one year)Slide18

Categorical budgets (cont.)

Travel

Dependent upon the needs of the research but be sure it provides direct benefit to the project

Must be consistent with institution’s own travel policies

Comply with

Fly America Act

:

http://

grants.nih.gov/grants/policy/nihgps_2013/nihgps_ch4.htm#fly_america_act

Participant/Trainee Costs

With exception of Training grants, this section should be left blank unless specifically identified within FOASlide19

Categorical budgets (cont.)

Other Direct Costs

Highly dependent upon the type of research being conducted – be realistic!

Must be well justified – explain fluctuations and atypical expenses in the justification section

Include tuition remission in this sectionSlide20

Categorical budgets (cont.)

F&A (indirect) costs

Be sure to follow the rate agreement in place at the time of the application explicitly

NIH will utilize whatever rate is in place at the time of award

If the indirect cost base calculation is rather complicated, it may be beneficial to include a brief explanation in the justificationSlide21

Consortia Expenses

Modular budget

May exceed the $250K direct cost limit only for consortia F&A

May round to the nearest $1,000

Beneficial to explain the direct cost need per year

Personnel justification still required

Categorical budget

Detailed budget and justification similar to the parent grantee required

Regardless, flow/pass-down rules are in effect!Slide22

Some Classic Mistakes

Did not request permission for submitting application greater than $500K directs

Modular with multiple consortia without a clear idea as to how much is needed for each site – we need to reflect their costs including appropriate F&A too!

Categorical budget does not justify fluctuations

Application indicates that the grantee is going to take care of the PI’s salary BUT when the award hits, not so much…Slide23

Some Classic Mistakes (cont.)

The listed calendar months when applied to the base salary does not equate to requested salary

Base salary exceeds current salary cap

Calendar months in budget differs from justification

Costs in budget differ from justification

Indirect cost base calculation makes no sense given rate agreement and costsSlide24

Reminder:

If you are submitting an R01 and the request is:

At or less than $250K each year, use a modular format

Above $250K in ANY year OR a foreign (non-US) applicant, use a categorical format

The $250K direct cost limit is exclusive of consortia F&ASlide25

Special Programs

The following programs have individual budgeting requirements:

SBIR/STTRs

NRSA

Career (K) awards

Be sure to comply with the specifics of the FOA and the listed budget requirementsSlide26

Pre-Award Costs

Costs associated with a project that are incurred prior to the receiving of the NIH Award

Remember – only the award is a guarantee of the Federal commitment

Allowable up to 90 days prior the start date of a competing award

Beyond 90 days requires prior approval

Cost considerations still apply

Incurred at the grantee’s own risk and expense – no requirement of the Federal government!Slide27

You got the $!! Now what?

When receiving the award, be sure to:

Check that it was sent to the correct location

Ensure the funds are available in payment management

Understand the level of support - $ and time

Account for any terms & conditions; keep an eye out for any special restrictions on funds

Any restricted funds must be tracked by the grantee separately!Slide28

After the award (cont.)

Funds not matching what you asked for?

Study section cuts have been applied

Can discuss these with your awarding Institute/Center for reconsideration

Funding policies have been put into place

Not appealable and most likely being applied to all (i.e. you are not the only one!)

If there may be necessary changes, be sure to discuss any potential changes in scope to the project with the awarding Institute/CenterSlide29

After the award (cont.)

Build an internal budget utilizing the information provided in the award

Again, be sure to track restricted funds separately

Follow all regulations and policies

If you are encountering start-up issues that may result in a large amount being unspent, have a pro-active discussion with your NIH staff

We are here to help!!Slide30

Last words…

This is all of our Federal tax $ at work – we have a mutual obligation to take care of it wisely!

There is a lot that goes into putting forward an application and conducting reviews – ask questions prior to help the process go smoothly

For investigators, learn what a great resource your own sponsored programs office can beSlide31

Resources

NIH Grants Policy Statement (10/13):

http://grants.nih.gov/grants/policy/nihgps_2013

/

SF424 (R&R) Application and Electronic Submission Information:

https://grants.nih.gov/grants/funding/424

/

NIH Modular Research Grant Applications:

http://

grants.nih.gov/grants/funding/modular/modular.htmSlide32

Thank you!!

QUESTIONS???