Budget Basics for Administrators
Preaward
Funding
Announceme
nt
Application
Submission
Award Phase
Postaward
Grant Closeout
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Final
Financial
Statements
Grants & Funding
NIH’s Central Resource for
Grants & Funding Information
(grants.nih.gov)
Dwight Mowery
Chief Grants Management Officer
National Library of Medicine
National Institutes of Health
Department of Health & Human Services
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
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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.
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NIH Cost Limitations
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

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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-OD02-004
Grants & Funding – “Develop Your Budget” – outlines most things you need
to know - http://grants.nih.gov/grants/how-to-apply-applicationguide/format-and-write/develop-your-budget.htm
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
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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
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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
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Summer Effort
Base Salary
[Annualized - 12
mos.]
Academic Effort
Cumulative Effort
25.00%
25.00%
75.00%
75.00%
100.00%
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 $
12,500
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$
12,500
Fringe Benefits
$
24,680 $
3,085
6
$
3,085
Personnel
$
124,680 $
15,585
1.50
$
15,585
50.00% $ 26,250
4.2
$
26,250
35.00% $
50.00% $
6,479
4.2
$
6,479
35.00% $
12.50% $ 32,729
3.15
$
32,729
26.25% $
38,750
4.65
9,564
48,314
or
38.75%
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)
Budget Types by Program

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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)
Budget Types by Program

NIH Career Development Awards – K Kiosk
http://archives.nih.gov/asites/grants/03-262015/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
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Electronic Applications

Grants.gov Registration - The on-line portal used by all federal grantmaking 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 grantrelated 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
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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
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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
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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
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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
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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
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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
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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.
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