Subcontracts on modular grants are even more fun!! We also request a
detailed budget from both the prime and subs for first year and summary for
all years.

For those who want to know more about Subcontracting Modular grants, here it
is! Sorry about the complexity.

With the detailed budgets, we first work with the Subcontractor information.
We take
the Subcontractors budgeted Directs, less equipment and patient care costs,
and apply their F&A to it, example, $43,080 x 40% = $60,312 Total.  Next,
add up all Subcontractor Totals for the entire award and average.  For our
example, after averaging all years, we could round to $61,000 Total for the
first year.  Note: The Subcontractor amount is not rounded to a modular
figure.  It is shown in the budget justification as a separate set of
figures.

For the Prime, let us use $62,675 for their Directs, as an example.  The
Subcontractor Total amount is added to the Prime's Directs. This second
Total figure is used to determine the entire number of modules needed for
each year of the award.   This is accomplished by adding the Prime's
Directs, which remain at prime, plus the Subcontractors Total, from above.
In our example, this would be $62,675 + sub $61,000 = 123,675 Total Directs.
This could be rounded to a $125,000 module for the Total Directs for the
first year.

Finally, the Prime's F & A rate is applied to their Direct figure $62,675 x
56% = $35,098 F & A.  On yes, do not forget F & A on the first $25,000 of
the subcontract at off campus rate $25,000 x 26% = $6,500 F & A. Thus, the
combined first year F & A for the Prime would be $41,598.

Ok!  On the face page the first year Directs would be $125,000 and the Total
for the first year would be $166,598 ($125,000 + $41,598). Each of the
following years would have he Prime's F & A's added to the Total Direct
Modules for everyone.  This information would be tabulated in the Budget
Justification.

Wow, I started to make a simple quick response, it isn't simple after all.

-----Original Message-----
From: Borchers, Julia [mailto:xxxxxx@MARSHALL.EDU]
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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