Back to the Basics

1. Back to the Basics Preparing an NIH Budget Anne Corriveau and Laurie Naber Office of Research and Project Administration

2. What is a “budget”? “The financial expression of the project or program.”

3. Research • “careful or diligent search” • “experimentation aimed at discovery” • “to discover new information” • “harnessing of curiosity” Unpredictable –difficult to estimate the resources needed to accomplish it

4. Request a reasonable amount because… Reviewers look for reasonable costs and will judge whether the budget is justified by the aims and methods Significant over- or under- estimating suggests -the PI may not understand the scope of the work

5. Request reasonable amounts because… 2 CFR 200.400 dictates consistency in estimating, accumulating and reporting costs False Claims Act - … “knowingly presenting, or causing to be presented to an employee of the US Government a false or fraudulent claim for payment or approval”

6. What’s CFR 200 got to do with it? Allocable - Will there be a mechanism to determine relative benefit to the project? Allowable - Will NIH limitations or institutional policy prohibit this cost? Necessary - Will this be needed to fulfill the scope of the project? Reasonable – prudent person test?

7. Pre-award visits Post-award • Ensure that budgets proposed are compatible with the accounting system • Costs should not be proposed in a different manner than they will be treated post award • Consistency - Direct vs. indirect

8. NIH Grants Policy Statement • 11/16, Section 7.2, last sentence “ The fact that a proposed cost is awarded as requested by an applicant does not indicate a determination for allowability”

9. “Special” NIH grants Read the FOA Budget cap Modular vs. detailed Rebudgeting Unallowable/restricted costs Pre-proposal that includes preliminary budget

10. NIH Budget for Research GrantPersonnel Faculty and committed effort Per OMB memo dated 1/5/01- “most Federally-funded research programs should have some level of committed faculty effort” Show all personnel devoting effort even if no salary requested Institutional Base Salary Projected increase NIH Salary Cap Current benefit rate https://www.rochester.edu/orpa/

11. NIH Budget for a Research GrantPersonnel Medical School Faculty Generally appointed on a 12/calendar month basis River Campus Faculty/School of Nursing Generally appointed on a nine-month, or academic year basis

12. NIH Budget for a Research GrantPersonnel For 9 month faculty, academic-year and summer effort should be listed on separate lines The NIH Salary Cap applies to 9 month appointments too!

13. NIH Budget for a Research GrantPersonnel Consultants Postdocs Employment relationship Graduate Students Medical Insurance Tuition Compensation limitation

14. NIH Budget for a Research GrantMaterials & Supplies Document, document, document!

15. NIH Budget for a Research GrantEquipment UR equipment threshold - >$1,000 Life expectancy of more than one year Total cost – includes shipping, in-transit insurance, installation General purpose? Software?

16. NIH Budget for a Research GrantTravel Relevance of the trip to the project U. S. Carrier Lowest fare

17. NIH Budget for a Research Grant“Other” Costs Subcontracts Payments to research subjects Direct vs. Indirect Publication costs Computing time Tuition

18. NIH Budget for Research GrantF & A Costs • Negotiated rate (each year if split rate) • On Campus • Off Campus • Exclusions (MTDC!) • Equipment • Patient Care Costs • Subcontract total costs in excess of $25,000 • Tuition • Rent

19. Modular vs. Detailed? Use modular budget!

20. Modular = Simplify! • No… • categorical budget accepted with proposal • categorical budget required at award • difference in allowable costs • difference in post-award management requirements • $25,000 direct cost increments

21. Modular • Detailed internal direct costs budget • Current NIH salary cap • Cost sharing • F & A calculations • Out years direct costs budget • 3% escalation • Consortium – Subcontracts • Detailed budget

22. Modular Divide total of all years direct costs by number of years, round to nearest $25,000 Same direct costs each year (with exceptions!) Equipment Justification

23. ModularBudget Justification Personnel Name, title, role, responsibilities, number/kind of person months and percent effort Do not include salary $ or fringe rate info Include consultants Consortium Justification Include name of institution, whether domestic or foreign and averaged annual subcontractor’s total costs Variations in number of modules Equipment in any given year

24. Detailed (R & R Budget) Categorical budget for each year submitted Salary dollars at the institutional base Use 3% escalation in out years Negotiated Fringe rate for institutional base foreach year Even in the out years!! Consortium budgets also detailed

25. Detailed (R & R Budget)Budget Justification Personnel Equipment New equipment when equipment already exists Include quotes Travel – related to project? Destination, number of people traveling, dates or duration

26. Detailed (R & R Budget)Budget Justification Materials & Supplies Itemized list Animals Number, price, per diem, time period to follow

27. Detailed (R & R Budget)Budget Justification Other costs Justify, justify, justify Consortium Justification requirements as for modular

28. Detailed (R & R Budget)Budget Justification Escalation factor used Unusual estimations/circumstances

29. NIH BudgetsHelpful Websites • http://www.rochester.edu/ORPA • http://grants.nih.gov/grants/developing_budget.htm • http://grants.nih.gov/grants/funding/modular/modular.htm

30. Questions?