If the budget variances from year-t0-year, from year 1 to year 5, are not
very large, then modular is the way to go.  In the case presented, I would
accept the detail and submit a modular for $250K DC per year.  It looks
like about $5K per year increase and wouldn't result in a large carryover.
It depends on the budget and the project.

Sarah B. Dumais
Research Grant/Contract Specialist
732.932.0150 x2107
848.218.1834 (mobile)
732.932.0162 fax
xxxxxx@grants.rutgers.edu
www.orsp.rutgers.edu
Please make a note of my new email address: xxxxxx@grants.rutgers.edu

-----Original Message-----
From: Research Administration List [mailto:xxxxxx@hrinet.org] On Behalf
Of Cappellucci, James E.
Sent: Friday, January 29, 2010 1:39 PM
To: xxxxxx@hrinet.org
Subject: Re: [RESADM-L] interesting question regarding NIH budgeting

But in most, but not all, cases, the PI needs to use the Modular for $250k
or
less total direct costs.

-----Original Message-----
From: Research Administration List [mailto:xxxxxx@hrinet.org] On Behalf
Of
Matthew Katz
Sent: Friday, January 29, 2010 1:20 PM
To: xxxxxx@hrinet.org
Subject: Re: [RESADM-L] interesting question regarding NIH budgeting

I don't agree.  We are allowed to carry-forward up to 25% balances without
any
approval but anything over that needs justification.  And the NIH has the
ability to reduce subsequent years if the carry-forward is significant
enough to
warrant their questioning of large balances.
My feeling is that if subsequent year budgeting is significant enough,
then he
shouldn't use the modular budget and use the detail budget to justify the
necessary expenses.

Matthew D. Katz, MHA
Assistant Vice President,
Sponsored Research and Contract Management
Western University of Health Sciences
309 E. 2nd Street
Pomona, CA  91766
(909) 469-5567
(909) 469-5569 FAX

-----Original Message-----
From: Research Administration List [mailto:xxxxxx@hrinet.org] On Behalf
Of
Aull, Robert Matthew
Sent: Thursday, January 28, 2010 10:38 AM
To: xxxxxx@hrinet.org
Subject: Re: [RESADM-L] interesting question regarding NIH budgeting

I agree with Charlie.  Remember, the NIH also wants the same number of
modules
per year unless there is a real exception (equipment, sub) so their
preferred
math can force a modular budget to be higher than your internal.
Naturally, you
only spend what is allowable so any such "rounding up" can revert to the
NIH or
fund a programmatically-justified no-cost extension.

Robert Aull
IU School of Medicine

-----Original Message-----
From: Research Administration List [mailto:xxxxxx@hrinet.org] On Behalf
Of
Charlie Hathaway
Sent: Thursday, January 28, 2010 1:27 PM
To: xxxxxx@hrinet.org
Subject: Re: [RESADM-L] interesting question regarding NIH budgeting

PI is right.

If the REQUEST to NIH is not over $250K in any year, then it is modular.

NIH EXPECTS annual increases to be included in the calculation and
for the institution to manage the abundance in early years to pay
what is needed later.

CH

At 12:55 PM 1/28/2010, you wrote:
>I just had an investigator ask me an interesting question.  He's
>putting in for an R01 and trying to keep his costs to $250,000 a
>year so he can use the modular budget.  We require a detail budget
>anyway to ensure appropriateness and to calculate indirect and
>eventually to plug into our system when the award is made.
>His internal budget started off at around $237,000 Year 1 and by
>Year 5 was over $260,000.  I explained he would need to adjust the
>budget if he wanted to use the modular budget.  His feeling is that
>as long as the total over the 5 years equates to $250,000 a year,
>he's ok because there will be carryover and prices go up every year.
>It's my feeling that that thinking is incorrect. The NIH expects you
>to plan for your needs and use $250,000 a year without planning for
>carryovers or price increases. That if he needs more, he should use
>the detailed budgeting not the modular.
>What is everyone else's understanding?
>Thanks
>Matt
>
>
>Matthew D. Katz, MHA
>Assistant Vice President,
>Sponsored Research and Contract Management
>Western University of Health Sciences
>309 E. 2nd Street
>Pomona, CA  91766
>(909) 469-5567
>(909) 469-5569 FAX
>
>
>
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