Lindy-Ann Wright, M.AFinancial Manager, MU-JHUJohns Hopkins University

Nov. 3, 2010

NIH competing applications generally use two types of budget formats,

Modular Budget or Detailed Budget format.

A Modular Budget is used for applications requesting a maximum of $250,000 per year in Total Direct Costs. Budgets are simplified, and do not require submission of detailed budget information to NIH.

A Detailed Budget format is required for all applications requesting more than $250,000 per project year

• Applications for more than

$500,000 Direct Costs per project year must obtain prior approval from the NIH supporting institute or center.

• NIH recommends the approval process is initiated by calling or e-mailing one of the program officers at least six weeks prior to the submission deadline.

For applications submitted manually, use the NIH PHS 398 Budget Pages

Download the most current PHS 398 forms and instructions from the NIH website:

http://grants.nih.gov/grants/forms.htm

• Personnel

•Consultants

• Equipment

• Travel

• Supplies

•Patient Care Costs

•Alteration and Renovations

• Other Expenses

• Consortium/Subcontract (Direct Costs)

• Total Direct Costs Initial & Proposed Budget

Periods

• Consortium /Subcontract Facilities & Administrative Costs

•Total Costs Initial & Proposed Budget

Periods

•Budget Justification

Proposals submitted electronically must use the SF 424 (Research and Related) Budget Pages

Forms can be located at the NIH site

http://grants.nih.gov/grants/forms.htm

Senior / Key Personnel

Other Personnel Equipment Travel Participant /Trainee

Support Costs Other Direct Costs

Total Direct Costs Indirects ( F &A)

Total Costs Fee

Budget Justification

(pdf versions only)

• Personnel effort on NIH proposals must be reported in person months

• For frequently asked questions/ answers on person months visit the NIH website:

http://grants.nih.gov/grants/policy/person_months_faqs.htm

Multiply the % of effort associated with the project by the number of months of the appointment.

For example:

25% of a 9 month academic year appointment = 2.25 (AY) person months

(9 x .25= 2.25)

10% of a 12 month calendar appointment = 1.2 (CY) person months

(12 x .10 = 1.2)

35% of a 3 month summer term appointment equals 1.05 (SM) person months

(3 x .35= 1.05)

Salary Requested is then:

Number of paid "Person Months" by 1/12 of

the Institutional Base Salary - which is

$36,000 for this example:

1.2 (CY) x $36,000 (1/12) = $3,600

$3,600 is included in the Salary Requested column of the budget form

The PI and other individuals who contribute to the scientific development or execution of a project in a substantive, measurable way, whether or not they receive salaries or compensation under the grant. Typically these individuals have doctoral or other professional degrees.

Consultants also may be considered key personnel if they meet this definition.

Key Personnel listed under the Personnel category of the budget form can only be your institution’s employees.

DO NOT list non-institution collaborators in this budget category

Non –institution collaborators are either Consultants or are funded under Sub-recipient Agreements, also known as Subcontracts.

They have separate budget categories and forms

• Fringe Benefits costs are the expense to an institution to provide medical, dental, tuition reimbursement and other staff benefits

• NIH follows your institution’s policy with regard to fringe benefits, and does not have a pre-set limit for these costs

The rate your institution uses to calculate Fringe Benefits cost

may change annually

It is important to get the best estimated rate from the

Research or Finance Department for the proposed start date

of your project

Apply the projected rate (s) to Salaries Requested on the

budget to calculate Fringe Benefit costs

To calculate the fringe benefits costs multiply the Salary Requested (SR) by the fringe rate

$20,500 (SR) x 35% fringe rate = $7,175

Add fringe benefit cost to (SR) for the Total Salary (TS) column of the budget page

$20,500 (SR) + $7,175 (fringe) = $27, 675 (TS)

If your institution allows employees to be consultants on the proposal list the expenses under Personnel, including fringe benefits costs.

An employee with the role of consultant cannot be listed in the consultant category of the budget

Equipment

Normally, a research project will consume supplies such as laboratory items, teaching aids, computer software, and other research supplies.

Itemize by category all expenses over $1,000 on the budget page.

Major Alterations &Renovations (>$500,000).Unallowable under foreign grants and domestic grants with foreign components.

Minor Alterations & Renovations (<$500,000). Generally allowable on grants made to foreign organizations or to the foreign component of a domestic grant, unless prohibited by program regulations.

Minor A&R Costs may be included and justified in any detailed budget of a competing application.

A sub-recipient relationship is appropriate when the Principal Investigator contemplates a funded collaboration with a colleague at another institution.

The collaborating institution should provide a statement of work, detailed budget and budget justification, signed by the collaborator's Authorized Institutional Representative

All subcontracts must include a separate PHS 398 or SF 424 (R&R) budget pages

Include the Direct and F&A subcontract costs into the prime/main budget category

A budget has the following expenses:

Total Direct Costs = $350,000Equipment Costs = $32,000 (exempt)

Base Cost = $350,000 - $32,000 = $318,000

The F&A Rate is applied only to $318,000

Facilities and Administrative (F&A)costs, are costs which are necessary to support research and other sponsored projects, but which cannot be readily assigned to individual projects.

F&A costs must be included in proposal budget unless the sponsor has a written policy on F&A rates for the competing grant.

Follow your budget forms with a detailed budget justification.

Explain in detail the projected expenses in personnel and each budget category.

Edit thoroughly to ensure the figures on the budget forms match those on the justification pages.

Foreign Grants Informationhttp://grants.nih.gov/grants/foreign/index.htm

Foreign Grants – Budgetshttp://grants.nih.gov/grants/foreign/budgets.htm

Fly America Acthttp://www.tvlon.com/resources/FlyAct.html

Foreign Grants – NIH Policy Statementhttp://grants.nih.gov/grants/foreign/

grants_policy_statement.htm

Office of Management and Budget, A -21 Circularhttp://www.whitehouse.gov/omb/circulars_a021_2004