Note the caveat: Adjustments will be made only if NIH Institute/Center funds can be allocated for this purpose. That makes for a pretty small loophole, given current budgets. -----Original Message----- From: Research Administration List [mailto:xxxxxx@hrinet.org] On Behalf Of Holmberg, Janet Sent: Thursday, February 04, 2010 2:07 PM To: xxxxxx@hrinet.org Subject: Re: [RESADM-L] FW: Indirect Cost Increase Sorry all - hit send before I wanted to. Below is the info I received from NIH Grants Policy. I'd better get this done soon - sounds like I'm not the only one in this position :-). Thank you for contacting the Division of Grants Policy. Below is a copy of the procedure to request a consideration of total cost commitments when there has been a significant change in the F&A rate. We recommend you follow this procedure to attempt to resolve your issue. Procedure to request a reconsideration of total cost commitments when there has been a significant change in the F&A rate: 1. Negotiation of significant change in a facility and administrative rate (F&A) rate: Criteria for significant changes in a non-profit organization's F&A rate: a minimum increase of three percentage points in the F&A rate and there is the potential of a negative impact on the scope of the project. 2. Contact Office of Policy for Extramural Research Administration (OPERA), NIH to request a reconsideration of total cost commitments Non-profit grantees should send their request by letter on organization letterhead to Mr. Joe Ellis, Director, OPERA, NIH for reconsideration of their total-cost commitment. The address is: Joe Ellis Director Office of Policy for Extramural Research Administration (OPERA) Office of Extramural Research National Institutes of Health 6705 Rockledge Drive, RKL I, Suite 350, MSC 7974 Bethesda, MD 20892-7974 The letter should detail the circumstances of the change, and the negative impact on the ongoing research efforts and the institution, and include a list of active NIH grant awards, the estimated financial unobligated balance for each award, and indicate if each estimated unobligated balance is 25% or more than the total costs for the current budget period. OPERA will review the circumstances and will coordinate an NIH review of the reconsideration of total-cost commitments to that institution, and, when the criteria are met, OPERA will consider NIH approval of the recalculation of total costs commitments. Adjustments will be made only if NIH Institute/Center funds can be allocated for this purpose. 3. Contact the NIH Institute or Center (I/C) for each affected grant If approval is granted for the recalculation of total-cost commitments, it will apply prospectively to non-competing awards for the remainder of the fiscal year and subsequent future year commitments. Where funds are not available in the current fiscal year, adjustments will be made for future years remaining on the competitive segment. This procedure does not supersede or change the current policy for F&A rate adjustments (current fiscal year awards can be adjusted if provisional rates were used to calculate F&A costs, provided the date of the final rate agreement is on or before one calendar month prior to the start date of the award). For each project that estimates an unobligated balance of less than 25% of the current budget period, the grantee will submit the next non-competing continuation application in the SNAP format. In addition to responding to the three SNAP questions, indicate clearly that the grantee has been approved for a recalculation of the total costs commitment. Using the original committed award levels as a direct cost base, the awarding institute will recalculate revised commitments using the new F&A rate. For each project that estimates an unobligated balance of greater than 25%, the grantee will submit a complete PHS form 2590, including the itemized direct cost budget, updated other support, and the impact of the change on the individual project. In addition, information must be supplied on the current availability of unobligated balances. There may be some individual cases in which staff determine that the project is not eligible for the increase because there are sufficient funds within the project to address both programmatic and administrative requirements. In these cases, grantees are reminded that they have the flexibility to rebudget funds to cover the increase to F&A costs. Janet Holmberg Grants & Contracts Specialist Lovelace Respiratory Research Institute 505 348-9507 -----Original Message----- From: Research Administration List [mailto:xxxxxx@hrinet.org] On Behalf Of Carolyn Elliott-Farino Sent: Thursday, February 04, 2010 11:41 AM To: xxxxxx@hrinet.org Subject: Re: [RESADM-L] FW: Indirect Cost Increase Is that true (not that I doubt you, Jane), that NIH will consider increasing the indirects if the rate has increased by at least 3% ? Ours just increased by 4.8%. If this is true, will other agencies also consider this? I'm already salivating, thinking about the potential increase ... Does it depend upon when the rate increase became official and when the award was made? I have always believed that the rate used was the rate in effect at proposal time, unless, of course, the rate decreases, in which case the government uses the lower rate (naturally). Carolyn Elliott-Farino Director, Contracts and Grants Administration Kennesaw State University 770.423.6381 xxxxxx@kennesaw.edu -----Original Message----- From: Research Administration List [mailto:xxxxxx@hrinet.org] On Behalf Of Holmberg, Janet Sent: Thursday, February 04, 2010 12:57 PM To: xxxxxx@hrinet.org Subject: [RESADM-L] FW: Indirect Cost Increase Janet Holmberg Grants & Contracts Specialist Lovelace Respiratory Research Institute 505 348-9507 -----Original Message----- From: Holmberg, Janet Sent: Thursday, February 04, 2010 10:55 AM To: 'HRI LISTSERV Server (15.0)' Subject: Indirect Cost Increase Hello - My institution's indirect cost rate recently increased by 8% (!). Thanks to advice from a fellow List-server I found out that NIH will entertain requests for increased funding when indirect cost rates increase by 3% or more. I'm currently gathering the financial info I need for the request, but the letter will be written and sent by our CFO. He asked me if I had a sample letter (which of course I don't). So once again I'm turning to the List-serve to see if any of you can offer me help. Feel free to respond off-line - xxxxxx@lrri.org. Thanks!! Janet Holmberg Grants & Contracts Specialist Lovelace Respiratory Research Institute 505 348-9507 ====================================================================== Instructions on how to use the RESADM-L Mailing List, including subscription information and a web-searchable archive, are available via our web site at http://www.hrinet.org (click on "Listserv Lists") ====================================================================== ====================================================================== Instructions on how to use the RESADM-L Mailing List, including subscription information and a web-searchable archive, are available via our web site at http://www.hrinet.org (click on "Listserv Lists") ====================================================================== ====================================================================== Instructions on how to use the RESADM-L Mailing List, including subscription information and a web-searchable archive, are available via our web site at http://www.hrinet.org (click on "Listserv Lists") ====================================================================== ====================================================================== Instructions on how to use the RESADM-L Mailing List, including subscription information and a web-searchable archive, are available via our web site at http://www.hrinet.org (click on "Listserv Lists") ======================================================================
