Eleanor,

If it is in the middle of the award period, you are not going to get any
more funds from the NIH for indirect costs, so your solution about backing
out your indirect costs from the total being relinquished and having the
remainder be the direct costs is the correct formula.  Where you run into
problems is when the new institution has a significantly higher indirect
cost rate than the previous institution -- then the investigator may not
have enough funds to effectively continue the project.  In those cases, we
often accept the lower indirect cost rate of the previous institution,
until we can either get the NIH to give us more money for indirect costs or
the next competing segment.

Hope this helps

Joni.

At 04:51 PM 3/20/03 -0500, you wrote:
>Hi, Folks:
>
>   Budgeting for transfer grants from NIH.    I have several people who
>are in conflict with the budgeting in a transfer process and I want to
>know who has the correct answer.
>
>   It has been the understanding that the total cost is available (direct
>and indirect) and that we should back out our overhead rate making the
>remaining funds the direct costs.
>
>   I have also heard that the amount relinquished is the direct costs and
>the agency would add to that amount the  indirect cost rate to the new
>institution.
>
>Which is correct?
>
>   Eleanor Cicinsky
>   Temple University
>
>
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Jon Hart, Senior Director, Sponsored Programs Administration
The Rockefeller University
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