NIH Regional Seminar on Grants Administration Budget Basics for Administrators October 2016 Tijuanna DeCoster, Ph.D. Chief, Grants Management Officer National Institute of Neurological Disorders and Stroke

Budget Basics for Administrators Starting the Process Basic Application Process The Two Budget Types Allowable Costs Unallowable Costs Budget Submission Errors Pre-Award Administration Post-Award Administration Grant Closeout

Starting the Process

Starting the Process Idea Submitting the application in response to a Funding Opportunity Announcement (FOA) that relates to your idea Carefully read the FOA for such information as the following: Period of support Dollar limits (for example, $200,000 Direct Costs or Total Costs) Required effort level Salary cap-- Current salary cap is $185,100 (NOT-OD-16-059); Also, there is a salary cap for various career awards Types of budget submissions (modular or categorical) Submission due date

Electronic Submission All competing applications use the electronic process, SF424 to submit grant applications. Also, this includes multi-project proposals. http://grants.nih.gov/grants/guide/notice-files/NOT-OD-13-075.htm.

Budget Types Modular budgets Grant applications with a budget request of $250,000 or less; Budget requests are submitted $25,000 increments in grant categories. The NIH staff may ask for a detailed budget to address specific issues if not addressed in the budget justification. Categorical budgets (known as detailed or itemized budgets) Grant applications with a budget request of $250,000 or more; Specific dollar amounts are listed in the appropriate categories Applications requesting more than $500,000 direct costs must have permission from the awarding institute to submit an application. Facilities and administrative (F&A) or indirect costs (IDC) are excluded from consortia costs.

Budget Types by Program Small Business Innovation Research Awards/Small Business Technology Transfer (SBIR/STTR)—R41, R42, R43, R44 Ruth L. Kirschstein National research Service Awards (Fellowships & Training grants) Research Career Development Awards (K awards)

Allowable Costs Salaries—commensurate with institutional salary, effort and the NIH salary cap (NIH salary cap is $185,100) Equipment (deemed necessary for the research project) Supplies (includes equipment costs under $5,000) Travel Consultants Consortiums Alterations & Renovations (depends on the type of federal award) Other (such as maintenance costs on equipment if not in the lease agreement, animal costs)

Unallowable Costs Alcoholic beverages (200.423) Commencement and convocation costs (200.429) Contributions and donations (200.434) Defense and prosecution of criminal and civil proceedings (200-435) Goods and services for personal use (200.445) Lobbying (200.450) Losses on other awards or contracts (200.451) Organization costs (fees to brokers, promoters, organizers )(200.455) Bad debt (200.426) Alumni/ae Activities (200.421)

Common Budget Submission Errors Exceeding the FOA budget amount Budget exceeds $500,000 and did not request permission from the awarding institute to submit the budget request Modular budget re4quest did not request F&A for consortia Costs in budget differ from the justification Salaries exceed the NIH salary cap, $185,100 Calendar months effort does not equate to the requested salary Miscalculation of F&A Used a modular budget when a categorical budget was requested Waiting until the last minute to contact NIH on budget clarification questions Not asking questions

Pre-Award Administration Pre-award costs are costs incurred to the beginning date of the project period or the initial budget period of a competitive segment (under a multi- year award), in anticipation of the award at the applicant’s own risk, for otherwise allowable costs (NIH Policy Statement) NIH allows up to 90 days of pre-award costs prior to the start date of a competitive (Type 1 or Type 2) award. Costs starting at 91 days or greater require NIH approval. Pre-award costs are incurred at the grantees own risk and expense

Post-Award Administration Read the terms and conditions (PI, PI departmental officials, & SPO) Verify budget request along with the funding institute funding policy (administrative reductions) If funds are restricted, adhere to the restriction and comply with the needed documents in order to rescind the restriction Follow the funding regulations and policies. If not it could result in unallowable costs and having to reimburse the NIH/Federal government If you have questions, contact the Grants Management Specialist, we are here to help!!!!!

Closeout Closeout is a process by which a Federal awarding agency determines that all applicable administrative actions and all work required under an award have been completed by the grantee and the Federal awarding agency. Closeout is important to demonstrate to the federal awarding agency and tax payers by submitting the required reports, Final Invention Statement (not needed for Fellowships, Training grants, and conference grants), Final Federal Report, and the Final Progress Report. It is also a process in which the federal government collects the undispersed funds. The Uniform Grants Guidance has increased the reporting due date from 90 days to 120 days.

Closeout The policy chapter directs OPDIVs to initiate “Unilateral closeout” (closeout without the operation of the grantee) 180 days after the project end date if it has not received acceptable final reports required by the terms and conditions of an award, after making reasonable efforts to obtain them. OPDIVs must close all awards no later than 270 days after the project end date. The Grants Policy and Administration Manual (GPAM) Chapter 1101 requires that the Chief Grants Management Officer (CGMO) consider taking one or more enforcement actions in addition to unilateral closeout. If an enforcement action is taken, or a future action is planned, it must be documented in the ICs grant file.

Useful TIPS Read the FOA Read the terms and conditions Understand the requirements of the funding that is being requested (SBIR, budget limitations, etc) Submit the correct budget format (modular/categorical) Avoid budget submission errors Understand pre-award costs (what’s allowable) Manage the award appropriately Submit closeout documents in a timely manner Ask questions

References SF424 (R&R) Application and Electronic Submission https://grants.nih.gov/grants/funding/424 http://grants.nih.gov/grants/guide/notice-files/NOT-OD-13-075.html NIH Modular Research Grant Applications http://grants.nih.gov/grants/policy/nihgps_2013/nihgps_ch13.htm http://grants.nih.gov/grants/funding/modular/modular.htm Salary Cap Limitation http://grants.nih.gov/grants/guide/notice-files/NOT-OD-15-049.html NIH Grants Policy Statement http://grants.nih.gov/grants/policy/nihgps_2013/

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