I no longer work with NIH, but, when I did, I was instructed to modify the
base before adding indirect. Thus, I showed modules on page AA and on the
budget justification page, but page II, the checklist, showed the module
amounts - equipment - subk>$25K x ICR. If you want to contact me directly at
xxxxxx@email.uah.edu, I will give you the name of the NIH contact who
instructed me to do it this way. It does seem odd - but it gives them a
handle on the equipment and subk costs.

Christa Leigh Landingham, Contract Administrator
UAH
Research Administration
VBRH, E-14
Huntsville, AL  35899
(256) 824-2661
(256) 824-6677 fax

-----Original Message-----
From: Research Administration List [mailto:xxxxxx@HRINET.ORG]On Behalf
Of Borchers, Julia
Sent: Tuesday, January 23, 2001 3:04 PM
To: xxxxxx@HRINET.ORG
Subject: NIH Modular Grant Indirect Cost Calculation

I would like to know how some of you calculate your Indirect Cost Rate on
NIH modular grants.  Basically I'm getting some conflicting information.
Since the budgets are simplied to increments of $25,000, I believe that you
would use your negotiated IDC rate on the Total Direct Costs [i.e requesting
$50,000 Direct Costs X .40 IDC rate = $70,000 Total Request], then after
award, the IDC would be adjusted as needed per the detailed budget.  [We
normally calculate our IDC based on Total Modified Direct Costs.]
However some say that I need to subtract the equipment and contractual
amount before calculating on the grant.  To me, this is defeating the
purpose of the modular budget.

I realize this is simple, but any feedback for a rookie is appreciated.
Thanks.

Julia G. Borchers
Grants & Contract Specialist
Marshall University Research Corporation

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