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

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======================================================================
 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")
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