_________________________________________________________________

Lacey |RA Manager|Physics|Phone: 352-294-3072|Email: xxxxxx@ufl.edu

P Think before you print!

My take on participant costs: if the costs you are referring to are patient care (hospital care), then yes, the costs should be excluded from MTDC. However, if you are referring to participant reimbursement for travel or incentives for them to attend visits, then these costs are included in the "Other Direct Costs" category and thus included in MTDC. A common mistake is made in the interpretation of "participant support costs". Participant support costs refer solely to training grants and ARE excluded from MTDC. It sounds like this may not be a "training grant", though.

Regards,

Chas Dunn, MBA

Sponsored Programs Administrator II

Department of Medicine 

University of Mississippi Medical Center 

2500 North State Street 

Jackson, MS  39216-4505

xxxxxx@yahoo.com

Yes.  The full definition of MTDC for HRSA can be found in UG:

45 CFR 75.2

Modified Total Direct Cost (MTDC) means all direct salaries and wages, applicable fringe benefits, materials and supplies, services, travel, and up to the first $25,000 of each subaward (regardless of the period of performance of the subawards under the award). MTDC excludes equipment, capital expenditures, charges for patient care, rental costs, tuition remission, scholarships and fellowships, participant support costs and the portion of each subaward in excess of $25,000. Other items may only be excluded when necessary to avoid a serious inequity in the distribution of indirect costs, and with the approval of the cognizant agency for indirect costs.

Good afternoon!

We have several HRSA proposals going in next week, one of which contains participant costs.  The Program Guidelines state the following:

“Indirect costs under training grants to organizations other than federally recognized Native American or American Indian tribes, state, or local governments will be budgeted and reimbursed at eight (8) percent of modified total direct costs rather than on the basis of a negotiated cost agreement, and are not subject to upward or downward adjustment. Direct cost amounts for equipment, tuition and fees, and sub-awards and contracts in excess of $25,000 are excluded from the direct cost base for purposes of this calculation.”

My interpretation of this is that, since we are an institution, we are limited to 8%.  My question is:  even though it does not specifically state in the above guidelines, wouldn’t we also exclude participant costs from the direct cost base? 

Thanks in advance!

Lisa Daniels, CRA, CPRA
Grants Officer, Joan C. Edwards School of Medicine at Marshall University
Marshall University Research Corporation
1 John Marshall Drive, BBSC 435M
Huntington  WV  25755-0001

xxxxxx@marshall.edu
phone:  (304)  696-3368

fax:        (304)  696-3737

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