Grants 101 Research Budgets

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Grants 101 Research Budgets

• Ron Conaway
• Grants Contracts Specialist
• Office of Sponsored Projects

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Budget Preparation

• A-21 (Section J) Allowability of Costs for
  Academic Institutions
• PHS 398-(Revised 09/04 All other versions
  Obsolete)
• READ THE BASIC INSTRUCTIONS --
• (http//grants.nih.gov/grants/funding/phs398/phs39
  8.html)
• Read any Special Instructions
• Modular Applications
• Fellowship Applications
• Career Awards
• Centers/Program/Training/Resource Awards
• Proposal with direct cost of 500K or more need
  written approval from Institute or Center Program
  Staff
• Calculation of Subcontractor Indirect Costs

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Budget Direct Cost Categories

• Personnel
• Consultants
• Equipment
• Supplies
• Travel (Domestic Foreign)
• Patient Care Costs (Inpatient Outpatient)
• Alternations and Renovations
• Other Expenses
• Subcontracts (Consortium)

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Budget Preparation

• Budget Should Recover all costs to conduct the
  specific research project!
• Draft Budget- Create during or before the body of
  the proposal is written
• Applies to both standard 398 and Modular apps.
• First time Investigators--
• Develop a program in line with experience and
  research background
• JUSTIFY EVERYTHING (standard application)

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First Year BudgetPersonnel

• List Everyone with EFFORT on project by Name
• All must be employees of Institution
• Principal Investigator
• Effort should reflect work required for project
• Consider existing time commitments (Grants
  Teaching)
• Be aware of Salary Cap Limitations (if
  applicable, primarily NIH Currently 180,100)

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First Year BudgetPersonnel

• Co-P.I.s
• No legal standing with NIH
• Need to be necessary, not just Senior
  Investigator for name only purposes
• Staff Effort (examples)
• Technician
• Research Assistant
• Postdoctoral/Graduate position
• NOTE Administrative and Clerical positions not
  normally allowed per OMB Circular A-21

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Future Years BudgetsPersonnel

• Personnel
• Can add/delete personnel in future years if
  scientifically necessary
• Can increase/decrease effort if scientifically
  necessary in future years
• Salary inflation should not exceed NIH inflation
  increment (3)
• Fringe benefits must correspond to approved
  institutional fringe rate Currently 20.7

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First Year Budget Consultants

• Cannot be employees of Institution
• Avoid using unless expertise/services are
  critical
• If consulting costs are substantial (gt10,000) a
  subcontract may be required
• See OSP FAQs for additional assistance in
  determining Consultant vs Subcontract
• http//www.uth.tmc.edu/osp/faqs.htmlsub
• Note If awarded, department handles consulting
  arrangement and payment through procurement

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First Year BudgetEquipment

• Ask for what you reasonably need, especially if
  setting up a new lab.
• Itemize each piece with a cost over Institutional
  Threshold for Equipment (5,000)
• Computers need scientific justification
• Equipment usually easier to justify in the early
  research years rather than later years.
• Equipment should be required 100 for project.
• If specific equipment is requested, but was
  necessary for your preliminary data, explain why
  it is not available now (i.e., you cannot get
  sufficient usage for the proposed project)

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First Year BudgetSupplies

• Supplies must be essential to the Proposal
• Itemize by category Glassware/Plasticware,
  Serum/Radioisotopes, Chemicals, Sequencing Kits
• Animal Purchase is usually in supplies.
• In the budget justification you must justify each
  category and show how you came to the amount
  requested.

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First Year BudgetTravel

• Standard request is one domestic trip for PI
• If you know what professional meeting you want to
  go to, put on the budget page and in the
  justification. (Gordon Conference, Cell Biology
  Meeting, FASEB, etc.)
• Additional travel can be requested as required by
  the individual project
• Travel for Co-PIs
• Travel for other research staff
• Travel for meetings with collaborators
• Foreign travel must be necessary and extremely
  well justified

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First Year BudgetPatient Care Costs

• Represents payments to hospitals and/or clinics
  for either in-patient or outpatient care.
• Should use hospital with an approved patient
  research rate, negotiated with DHHS.
• Patient care cannot include travel, lodging, or
  donor/volunteer/incentive fees. These costs
  should be in the Other Expenses category.

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First Year BudgetAlterations Renovations

• AR costs are unlikely!- Institution/Dept. will
  probably have to pay for major building
  renovations to establish laboratory
• Equipment installation is not normally considered
  renovations.
• Alterations and renovations gt25,000 must be
  approved by NIH.

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First Year BudgetOther Expenses

• Every Direct Cost not listed somewhere else
• Animal care costs (check with CLAMC) for current
  rates
• Publication costs/page charges/color plates
• Equipment Maintenance Contracts ( usage)
• Donor/Volunteer Fees - including
  travel/lodging/per diem
• Fee charges for services (Mass Spec., EM, Flow
  Cytometry)
• Patient participant incentives/travel
• Long Distance Telephone/Fax (Not Equipment/line
  charges unless specifically approved in review)
• Delivery Services (FedEx, DHL, UPS)
• Anything else that can be identified as a direct
  charge necessary to do the research

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First Year BudgetConsortium/Contractual Costs

• Most subcontracts are to other non-profits, but
  in special circumstances we subcontract to
  commercial or foreign institutions (Indirect
  costs for foreign institutions capped _at_ 8 by
  NIH)
• Subcontract Direct and Indirect Costs are
  included in UTHSC-H Direct costs. However,
  Subcontract Indirect costs are not included when
  calculating 250K modular, 500K, or RFA/RFP
  direct cost caps.
• NOTE If awarded, OSP will prepare the actual
  subcontract after the grant award is made. It is
  not a part of the application.

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First Year BudgetConsortium/Contractual Costs

• Paperwork for Sub-contracts to another
  institution must include
• First year and all years budget, with a full
  budget justification.
• Statement/Letter of Intent and a separate Face
  Page from the subcontractor institution, signed
  by an authorized institutional representative.
• Scope of work (detailed description of work to be
  performed by subcontractor with specific
  milestones or other performance evaluation
  measures)
• Checklist
• Federally negotiated indirect cost (FA) rate
  agreement
• Note Forms referenced are PHS 398 Forms

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Entire Proposed Period

• Budget for Entire Proposed Project Period
• Extend first year with the standard inflation
  rate (3 unless further justified).
• Include any changes in future years
• Additional/less personnel
• Additional Equipment
• New/added Specific Aims in Future Years
• Subcontracts dont need to be for the entire
  project period.

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Budget Justification

• General Principle
• Write a justification for EVERYTHING.
• Remember if you don't justify what you want you
  are at the mercy of the reviewer and potential
  auditor.
• If you CAN'T write a good justification for why
  you want it you probably don't need it.
• Detailed explanation for A-21 items should be
  given to show how the expense is project specific
  and why it is necessary to charge it as a direct
  cost as opposed to an indirect cost

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Budget JustificationPersonnel

• Describe specific functions/ responsibilities of
  each individual starting with the P.I.
• Highlight specific areas of expertise necessary
  for the grant.
• Specify necessary training they may have/receive
• Be sure to explain role of each person on the
  project
• Separate description of future years changes
• Increase/Decrease in Effort
• Future Changes/Additions/Deletions in Personnel
  by year

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Budget JustificationConsultants/Equipment

• Consultants
• Describe exactly the services to be performed
• Include the number of days of anticipated
  consultation, rate of compensation, travel
  per-diem and any other related costs
• Equipment
• Describe the specifics of the equipment
  (Brand/Model/ accessories)
• Specific uses related to the grant.
• Source of Price (quote, previous purchase, sole
  source)
• Utilize retail prices unless you can get a
  committed quote through the award date

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Budget JustificationSupplies

• Justify in detail for each category.
• Animal Costs - should include species, number of
  animals and unit purchase cost. (CLAMC)
• Tissue Culture - detail of materials/service
  costs
• Radioisotopes - isotopes needed/costs
• Biological
• Oligos. - estimated , estimate cost per base
• Enzymes
• Sequencing Supplies
• Chemical - chemistry supplies
• Glass/Rubber/Plastic - basic lab materials and
  supplies

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Budget Justification Travel

• Describe the purpose and destination of each trip
  requested.
• Trip must be related to the purpose of the grant.
  
• If other than P.I. Indicate persons for whom
  travel funds are requested benefit to research
  project.

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Budget Justification Patient Care/Other Expenses

• Patient Care
• Names of hospitals/clinics involved.
• Specific calculations for the amounts requested
  for each. Include patient days, estimated cost
  per day, and specific or estimated costs of tests
  and treatments.
• Detail Inpatient and Outpatient costs separately.
• Project patient accrual for the project period
  and relate it to the budget for patient costs.
• Other Expenses
• See first year budget other expenses for types
  of applicable charges and justify project
  specific use

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National Institutes of Health Modular Grant
Applications

• How It Differs for Submission

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Rationale for Modular Grants

• Allows Peer review team to focus on scientific
  merit of applications rather than administrative
  aspects (budget, management of funds, etc.)
• Reduce certain aspects of proposal preparation
  and submission to just in time (JIT)--once
  decision to make an award has been made
• Attempt to Reduce length of receipt to award
  cycle from 9-10 months to 6 months

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Modular Grant Application

• Applies to research grant applications requesting
  up to and including 250,000 direct costs/year
• Request total direct costs in modules of 25K.
• A typical modular grant application will request
  the same number of modules in each year.
• Provide budget narrative regarding all Personnel
  by position, role, and level of effort. This
  includes consultants and any to be appointed
  positions.
• Include a total cost estimate for any Consortium/
  Contractual arrangements
• Additional narrative budget justification will be
  required in the application only if there is a
  variation in the number of modules requested.

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NIH Modular Research Grant Applications

• Face Page
• Items 7a and 7b should be completed, indicating
  direct costs in 25K increments up to a maximum
  of 250K, plus FA (indirect costs) for the
  initial year. This maximum does not include and
  indirect costs for subcontractors.
• Items 8a and 8b should be completed indicating
  the Direct and Total costs for the entire
  proposed period of support
• Do not complete PHS 398, form page 4 Initial
  Budget Period (it will not be accepted w/the
  application)
• Provide Detailed budget for personnel and all
  items excluded from indirect costs (Equipment,
  Patient Care, Tuition, etc)
• Do not complete the categorical budget table of
  PHS 398, form page 5 (it will not be accepted
  w/the application)

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Modular Budget Page
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Checklist

• Last page (of the original copy of the
  application) has Institutional Certifications and
  Indirect Cost (FA) Calculations.

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Summary

• Budget becoming increasingly important
• A-21 Issues
• Justify, Justify, Justify
• NIH and other federal agencies increasing
  scrutiny of budgets and expenses as projects
  progress PLAN CAREFULLY
• Additional Help and Information
• Department
• Deans Office
• OSP