I'd appreciate some insight as to how institutions that are sponsoring an
individual fellow through PHS's Individual National Research Service
Award--Fellowship program are managing such an award. I understand that
the individual applies for the fellowship with the approval/agreement/
support of both a sponsoring faculty member and the institution itself.
The award made by PHS is based on years of postdoctoral experience, and a
fixed "institutional allowance" of $3,000 is allowed. However, I've been
told by the program officer that 1) the institution must use the
"allowance", or pay the fellow to cover costs of self health insurance,
tuition, travel, equipment and 2) the fellow is not an employee of the
institution. No indirect costs are allowed: essentially the University
supports the research project with its own resources.

Our HR has no policy regarding this situation, and has treated all
previous fellows as employees....so,

When setting up this type of award, what do others classify
the fellow as, since the award comes to the institution and must be paid
to the individual, but not go through the payroll system since not
considered an employee? The individual is responsible for tax liability
based on the amount of stipend paid...does your institution simply put it
through A/P for a lump sum payment and issue a 1099 to the
fellow?

Also, for the "institutional allowance", what mechanism is used to
allocate these funds for the fellow's use? Do they receive the funds and
then must pay taxes on these dollars as well, or do you charge the grant
account for related expenses (ie, travel, tuition, equipment, health
insurance) associated with the fellow/research?

Finally, does your institution waive the cost of tuition for the fellow
or charge the grant account for it?

Thanks in advance for any and all replies, they are greatly appreciated!

Nancy Hutchinson
Grant Development Specialist
Office of Grants and Contracts
Nova Southeastern University
xxxxxx@alpha.acast.nova.edu