Departmental Administration of Ruth L. Kirschstein National Research Service Awards (NRSA)

1. Departmental Administration of Ruth L. Kirschstein National Research Service Awards (NRSA)

2. Two Support Mechanisms • Institutional Training Grant (T): Award to an institution to support a training program • Individual Fellowship (F): Award to support a specific individual

3. facgrant@umn.edu

4. Background The NRSA program has been used by NIH as a primary means of supporting graduate and post doctoral research training since enactment of the NRSA legislation in 1974 Its goal is to ensure a continuing cadre of well-trained scientists prepared to conduct and lead health-related research.

5. Policies that apply to both Institutional Training Grants and Individual Fellowships

6. Citizenship Requirements Must be a citizen OR Permanent resident • For Institutional Training Grant this is determined at the time of appointment. • For Individual Fellowship it is at the time of award.

7. Degree Requirements • Predoc: Baccalaureate degree & be enrolled in doctoral program leading to Ph.D or M.D/Ph.D • Postdoc: Ph.D or M.D or comparable doctoral degree from an accredited domestic or foreign institution

8. Duration of support • Predoc: Maximum five years • Postdoc: Maximum three years These are aggregate limits, including any combination from individual and/or institutional awards.

9. Stipend • Subsistence allowance to help defray living expenses • Stipend and not a salary • Not considered employees of either the Institution or the Government • NIH publishes stipend levels in NIH Guide • Grantees may supplement

10. Stipend Predoc: One level for all individuals regardless of years of experience FY 07 level - $20,772 Postdoc: Eight levels based on the number of years of relevant experience. (0 -7, $36,996 - $51,036)

11. Stipend Supplementation • Grantee determines the amount according to formally established policies applied to all in similar training status • Non-Federal funds • Without any additional effort or obligation

12. Stipend Taxability • For tax purposes stipend paid to trainees is reported annually using Form 1099 – Statement of Miscellaneous Income not a W2 • Form 1099 is issued by institutional business office and not payroll department. • If stipend supplementation is provided, then they will receive a1099 for stipend piece and a W2 for supplementation.

13. Stipend Taxability • IRS and not NIH has domain over tax interpretation and implementation • Stipend is subject to both Federal and State Income Tax • Institution is not required to withhold either Federal or State Tax • Encourage trainees to complete the Graduate Fellowship Income Tax Withholding Request (UM 1541 from U Wide Form)

14. Benefits Since stipends are not provided as a condition of employment, they do not receive employee benefits such as: • Health Insurance • FICA • Workman’s Compensation • Unemployment Insurance

15. Leave Holidays and Vacations: They receive the same holidays and vacations as others in comparable training. However, they do not accrue paid vacations. Sick and Parental leave: NIH allows up to 15 calendar days of sick leave and up to 30 calendar days of parental leave.

16. Publication • No restrictions should be placed on publication of research results • NIH should be acknowledged in all publications in language similar to: “This investigation was supported by the National Institute of Health under Ruth L. Kirschstein National Research Service Award (number)”

17. New Policy for FY 2007 Federal Fiscal Year: October 1 - September 30 NIH has taken a phased in approach • Applies to all new and competing continuation awards made in FY 2007 • Also applies to Institutional Training Grants that received new or competing renewal award in FY 2006

18. New Policy for FY 2007 For those institutional training grants not immediately affected by the new policy change, existing funding, budgeting and rebudgeting policies will continue to apply until a competing renewal under the new policy is awarded.

19. New Policy for FY 2007 • New policy for funding of tuition, fees, and health insurance • Changes tuition and fees formula used to calculate awards • Changes treatment of Health Insurance. Shifts Health Insurance from Tuition and Fees category to Institutional Allowance for Individual Fellowships and to Trainee Related Expenses category for Institutional Training Grants.

20. New Policy for FY 2007 F & A costs Old - 8% excludes tuition and fees and Health Insurance New – 8% excludes tuition and fees

21. Institutional Training Grants

22. Appointments • Trainee appointments are considered full-time in the training program • Appointments are usually for 12 months • Appointment may begin any time during the budget period • An appointment period may overlap budget periods. The amount that falls in the subsequent budget period is reported as unliquidated obligation

23. Statement of Appointment • A statement of appointment form 2271 must be prepared and sent to NIH for each trainee • It is due on or before the start of appointment period • Include only NRSA portion of the stipend (do not include supplementation) • Postdoc stipend level is set at the time of appointment. No mid year changes made.

24. Payback Agreement • Postdocs incur a service obligation for the first 12 months of their support. They must complete a payback agreement – Form 6031 • The second year of postdoctoral training will serve to pay back a postdoctoral service payback agreement

25. Payback Agreement • Principal Investigator has the responsibility of explaining the terms of the payback agreement requirements to all perspective postdoctoral trainees • All trainees recruited into the training program must be provided with career options as methods to satisfy the NRSA service payback obligations

26. Failure to Fulfill Payback Agreements • United States is entitled to recover the total amount of NRSA funds paid to the individual for the obligated period plus interest at a rate determined by the Secretary of Treasury • Financial payback must be completed within three years beginning on the date the United States becomes entitled to recover such amount • NIH officials are responsible for enforcing the recovery of the entitled amount

27. Costs: Tuition and fees • Health Insurance no longer part of tuition and fees • Formula used for award calculation Predoc • 60% up to $16,000 • 60% up to $21,000 for dual degree Postdoc • 60% up to $4,500 • 60% up to $16,000 for additional degree

28. Costs: Trainee Travel • Amount is usually provided per trainee • It varies for each training grant award • It is normally for Scientific Meetings • Training experiences away from the institution requires prior agency approval • Travel costs must be used in the budget period awarded even if the trainee appointment overlaps two budget periods

29. Costs: Trainee Related Expenses • Now includes Health Insurance • Family Health Insurance allowable • Award Calculation: • Predoctoral trainees - $4,200 • Postdoctoral trainees - $7,850

30. Rebudgeting • Stipend can be rebudgeted into tuition and fees only • Tuition and fees can be rebudgeted into stipend only • Trainee Travel may be rebudgeted into any other category • Trainee Related Costs may also be rebudgeted into any other category

31. Trainee termination • Trainee appointment is terminated if a new statement of appointment is not issued • Termination Notice – Form PHS 416-7 must be completed at the time an appointment is ending • Reflect the total support period • Include only NIH support amounts • Do not include support already reported on a prior termination notice

32. Early Termination • Trainee must complete the termination notice - Form PHS 416-7 • Calculate stipend based on NIH policy • Include brief description of training received • Give reason for termination • Payback obligation may incur

33. Financial Status Report • Financial Status Report - FSR 269 is required annually within 90 days of budget end date • Unliquidated obligations can be used to report any stipend and tuition and fees charges for overlapping appointments • Carryover of unobligated balance is not allowed

34. Individual Fellowships

35. Initiation of Support • Awarding institute of NIH notifies individual of intention to make an award • Fellow must start training within six months of award issue date • Fellow must complete the Activation Notice PHS 416-5 and Payback Agreement PHS 6031 if applicable on or before the training begins

36. Costs: Tuition and Fees • Tuition is limited to specific courses required by the training program Predoc • 60% up to $16,000 • 60% up to $21,000 for dual degree Postdoc • 60% up to $4,500 • 60% up to $16,000 for additional degree • Health Insurance is no longer included in this category

37. Costs: Institutional Allowance • $7,850 • Allowance is intended to defray such expenses as research supplies, travel to scientific meetings and health insurance • Family health insurance allowable if it is allowed for all in similar status regardless of source of support

38. Unpaid Leave • Approval for unpaid leave of absence must be requested in advance from NIH • Award will be revised extending the term date by the number of months of leave • Stipend may not be reimbursed during leave of absence

39. Termination Notice • Termination notice PHS 416-7 required upon completion of training • If the fellowship terminates early, before completion of two years, then payback obligation may incur • Termination notice includes final progress report

40. Miscellaneous Policies • Fellow must submit progress reports annually when continued support is committed • Any proposed change in area of research requires NIH approval. • NIH prior approval is required for transfer of fellowship to another institution

41. Cost Calculations

42. Setting up the Stipend • Example 1 Predoc stipend amount $20,772 Trainee appointment date: October 2, 2006 to October 1, 2007 Number of business days 261 Biweekly stipend calculation: 20,772 divided by 26.1 = $795.86

43. Setting up the Stipend • Example 2 Predoc stipend amount $20,772 Trainee appointment date: May 1, 2007 to April 30, 2008 Number of business days 262 Biweekly stipend calculation: 20,772 divided by 26.2 = $792.82

44. NIH Stipend calculation Predoc stipend: $20,772 No. of months 7 No. of days 10 Calculation: October 2 to May 1 = 7 months May 2 to May 11 = 10 days 7 months = $12,117 57.70 X 10 = $577.70 Total = $12,694.70 Payroll calculation Predoc stipend: $20,772 No. of Biweekly pay periods 10/2/06-5/13/07 = 16 Calculation 795.86 X 16 = $12,733.76 Total = $12,733.76 Overpayment $39.06 Reduce the last check by $39.06 Early TerminationPredocAppointment Period: October 2, 06 to October 1, 07Termination date: May 11, 07

45. Old Tuition and Fees with Health Insurance 100% of $3,000= 3,000 60% of $9,178 = 5,507 Total $8,507 Trainee Related Expenses $2,200 Grant $10,707 New Tuition and Fees 60% of $9,302 = 5,582 Total $5,582 Trainee Related Expenses with Health Insurance $4,200 Grant $9,782 Tuition and Fees Calculation for predocTuition and Fees $9,302and Health Insurance $2,876

46. Applicable Forms NIH forms 2271, 416-5, 416-7, 6031 available at http://grants.nih.gov/grants/forms.htm