Presently at VCU we have no plans for a formal system for reserving
unexpended funds early to cover higher costs in future years.  Our release
on the modular grants will refer to the situation.  Here is a first draft
of the commentary our PI's will get:

"BUDGETING MODULAR GRANTS: Hints for the PI

"The modular grant budget submission was developed for NIH's convenience,
not yours.  It is still necessary to have a multi-year budget
a)  to calculate F&A costs,
b)  to meet Cost Accounting Standards requirements,
c)  to help you manage the project.

"The underlying problem is that the Modular Budget bears little
relationship to reality.  You plan a project for, say, five years.  NIH
insists that the modular budget be level for each of these years -- that's
pretty simple for them to administer, isn't it!  However, you and your
staff expect salary increases each year, so you need to manage your budgets
with increases each year.  Luckily, NIH now allows carryover of unexpended
funds automatically, so there is one simple strategy:  budget for five
years; request modular funds based on the average year; carry over the
extra from years 1 and 2 to cover the shortfall in years 4 and 5."

I think it very unlikely that we can get anything more systemmatic in
place, mostly because our accounting system couldn't stand the strain!

We do hope to have a tool for our PI's up on our web site in about a week:
an Excell spreadsheet to construct a detailed NIH-style budget with a few
modifications.  Equipment will be omitted, and maybe subawards (got to work
with that!).  Our standard inflation factor is built in.  A figure
consisting of the N year total direct divided by N will show up in a
special box, with the instruction "cut and try by changing figures in year
one, with the goal of making this figure approach, but not exceed, any even
multiple of $25,000 up through $250,000"  We will then ask a printout of
that as back up for the modular budget in the proposal.

When/if this works, I'll share with anyone.  In order that it work better,
I invite comments for improvements.  Also request any individual who is
REALLY GOOD with Excel make direct e-mail contact  (xxxxxx@vcu.edu) because
we still have a couple of things we want to do with this that we don't yet
know how.

Thanks, folks!

Chuck

At 11:02 AM 3/4/99 -0500, you wrote:
>Hi-
>
>With respect to June/July NIH deadlines, I am assuming that most
>institutions will advise investigators to develop a full itemized budget,
>round the total direct costs to the nearest $25,000, divide by the number
>of grant years, and request the result per year.
>[This assumes no variation in modules...but my questions pertain to either
>situation].
>
>Question:
>Does anyone anticipate systems-related problems, particularly in
>continuation years, stemming from the difference between in-house budget
>and actual NIH award?
>
>Is the need to hang on to surplus in early years an unrealistic (or simply
>unusual) demand of grant administrators/managers?
>
>Any plans for mitigation?
>
>Charlie Hathaway
>
>
>
>
>**************************************
>Charles B. Hathaway, Ph.D., Director
>Office of Grant Support
>908A Belfer
>Albert Einstein College of Medicine
>1300 Morris Park Avenue
>Bronx, NY 10461
>Phone: 718 430-3642     Fax: 718 430-8822
>email: xxxxxx@aecom.yu.edu
>http://www.aecom.yu.edu/ogs
>
>
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Herbert B. Chermside, CRA
Director, Sponsored Programs Administration
Virginia Commonwealth University
PO BOX 980568
Richmond, VA  23298-0568
Express Delivery Only:
 Sanger Hall, Rm. 1-073
 11th & Marshall Streets
 Richmond, VA  23219
Voice:  804-828-6772
Fax     804-828-2521
OFFICE e-mail   xxxxxx@VCU.EDU
Personal e-mail xxxxxx@vcu.edu
http://views.vcu.edu/views/ospa/

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