NIH Modular Research Grants

Overview

NIH Modular Grant Process

Update November 18, 2004


NIH Modular Grant application and award procedures were implementated for the June 1, 1999 submission deadline. NIH data indicate that almost 90 percent of competing individual research project grant (R01) applications request $250,000 or less in direct costs. On the basis of this experience, the size of the modules and the maximum of $250,000 direct costs each year were selected as criteria for Modular applications.

Current guidelines for Modular Grant applications are found on the NIH web at http://grants.nih.gov/grants/funding/modular/modular.htm. Below are specific items to include or exclude for this type of application. Details for completing the PHS 398 (rev.9/04) application form are found at http://grants.nih.gov/grants/forms.htm. Be sure to make the following adjustments for Modular applications.

APPLICATION FORMS NOT SUBMITTED IN MODULAR APPS:

1. Detailed budget for the initial budget period (form page 4)
2. Detailed budget for the entire proposed period of support (form page 5)
3. Detailed budget justification (form page 5)
4. Other Support pages

REQUIRED INFORMATION IN MODULAR APPS:

1. Form Page 1: Face Page Blocks 7a and 8a must show direct cost amounts requested in $25,000 modules up to $250,000 per year of the grant (e.g., "$175,000) exclusive of subaward F&A. Use the internal UO Modular spreadsheets to help prepare your budget and derive the numbers to put in these fields.
   
2. Form Page 2: Description, Performance Sites, Key Personnel, Other Significant Contributors, and Human Embryonic Stem Cells
   
3. Form Page 3: Table of Contents: Use "NA" for page numbers for Detailed Budget and for Other Support.
   
4. Modular Budget Format Page (was form page 5)
   
   • Typically, the number of modules requested will remain constant through the entire budget period. Routine escalation for future years is no longer permitted.
   • Personnel: the role of ALL personnel should be described by position, role, and level of effort . The percentage of effort shown on the Modular Grant Budget Justification page for all personnel should distinguish between academic year and summer effort (for faculty with 9-month appointments). No individual salary information should be in the budget. However, the salary base and FTE must be in the detail budget reviewed internally by ORSA. For personnel whose salaries exceed the NIH salary cap, the cap should be used when calculating the number of modules needed. Increase the cap amount by 3% for out-year calculation. Include consultants and any TBA "to be appointed" positions. Note that any effort reported that is not directly charged to the grant will be considered official costshare and must be documented and reported throughout the project period.
   • Consortium and Contractual (including Subcontracts): show an estimate of Total Costs (Direct plus F&A) rounded to the nearest $1,000 (subcontracts are not awarded in $25,000 modules). For each key individual/organization listed, the role and percent effort should be provided. Each collaborating institution must be indicated as foreign or domestic. The total consortium/contractual costs should be included in the overall requested modular direct cost amount.
   • If there are subcontracts involved, submit the following to ORSA for review and approval along with the UO budget, for each subcontract:
     
     
     1. Detailed budget for Year 1 (spreadsheet acceptable)
     2. Multi-year budget, by major category (spreadsheet acceptable)
     3. Statement of Work (to be done by subcontractor)
     4. Consortium letter (indicating approval of the proposal by the subcontractor's sponsored projects office and their willingness to enter into a consortium arrangement if the project is funded.
        
        
   • Variation in the number of modules requested in different years should be described and justified, without providing additional budget information. For example, purchase of equipment in year 1 may result in a greater number of modules being requested in year 1 than in subsequent years.
     


5. Biographical Sketch Page (form page 6): expanded to4 pages to include additional required information such as:
• Information on research projects relevant to the submitted application (ongoing or completed during the last three years) of the Principal Investigator and other key personnel, including consultants (see sample bio sketch in PHS398). List each project by agency and award number. Include individual's major goals and responsibilities for each project.
• Do not include a list of all current and pending support with award amounts. This will be requested by NIH staff "just in time" of an award.
  
  
6. Resources Format Page


7. Checklist: Complete as usual, except for F&A base in 3.a. and 3.b. The amount of base must be shown for each year and is derived as follows:
   
   • Determine the total direct costs based on the number of modules requested each year (e.g., $175,000 yr 1, $150,000 yr 2, $150,000 yr 3) plus subaward F&A
   • Exclude any cost items normally excluded from the F&A calculation, such as equipment, graduate tuition, and subcontracts in excess of the first $25,000, for each year (e.g., $175,000 minus $25,000 equipment in yr 1 leaves $150,000 as the base)
   • Show the computed F&A costs for each year
   • The grand total F&A cost calculation is entered automatically on the form.
     
     
8. UNCHANGED FROM STANDARD 398 APPLICATION:

All other components of the application are still required (for example, Human Subjects information).

PEER REVIEW OF MODULAR APPLICATIONS:

As part of the Modular application initiative, NIH has changed the focus of budget review from an examination of annual categorical budgets to an evaluation of the total resources needed to complete the project. Reviewers should consider the entire proposed research project and the total direct costs needed to complete the project in the recommended period. Based upon the reviewer's understanding of the research proposed and the costs and services associated with such research, the annual recommended budgets should be in modules of $25,000. In addition:

• Budget adjustments must be made in modules. If in the judgment of the reviewers, the amount requested is too large for the work proposed, the number of modules should be reduced. These reductions do not have to be based on reductions of specific items, but rather can be made generally based on overall funds requested.
  
  
• If changes in staffing, percent effort, specific aims, consortium arrangements, etc. are recommended, but a cost in modules can not be estimated, recommendations should be described in the budget section without assigning an amount. Institute staff will request the specific budget information and will adjust the budget at the time an award is made.
  
  
• Reviewers should not address scientific and budgetary overlap issues during the initial review. NIH staff will address these issues. Complete and up to date Other Support information will be required and therefore requested by Institute staff from applicants being considered for awards. The Institute's scientific and grants management staff will review this information and make the necessary administrative and/or budgetary adjustments. These issues are the responsibility of Institute staff and NIH will ensure that these actions are carried out. These actions by staff are essential to the management of the Institute's grant portfolio.

Applications not in compliance with Modular application instructions will be handled as follows, effective May 4, 2001:

• The PI will be contacted and given four (4) business days to correct the inconsistency.
• If the application cannot be corrected in that time period, the application may be deferred to the next review cycle.
• If reviewers or other NIH staff identify non-compliant applications later in the review process, applications may still be returned to the institution or deferred at that time.

An application will be considered NON-COMPLIANT if:


1. The requested direct cost budget is not in modules of $25,000 for all years of support for requests up to $250,000 direct costs per year, exclusive of subaward F&A.
2. detailed itemized categorical budget is provided.
3. The budget justification page includes an itemized justification for one or more of the following cost categories: equipment, supplies, travel, other expenses, etc. but the number of modules requested in each year is the same. Only information intended to explain the request for a different number of modules in one or more years is acceptable.
4. Other support pages are supplied, in addition to or in the absence of the section in the Biographical Sketch identifying "research projects ongoing or completed during the last three (3) years."
5. The bio sketch lists "current and pending support" instead of or in addition to the required information for the bio sketch

AWARD ISSUES:

1. NIH staff will request an updated Other Support report for key personnel "just-in-time" (JIT) to issue an award.
2. If human research subjects were indicated in the project, NIH staff will ask the PI to prepare and submit a letter describing the education in human subject protection completed by each person listed as "key personnel" in the proposal. The following statement must be included in the letter "All key personnel who are involved in the human subjects portion of the project [list names here] have successfully completed the NIH on-line tutorial entitled Protection of Human Research Subjects Computer Based Training for Researchers." Institutional endorsement is required on the letters so they must be sent to ORSA for review and counter signature.
3. The Scientific Review Group (SRG) may adjust the requested budgets. Any overall adjustments by the SRG must be made in modules. In addition, the reviewers may recommend specific budgetary changes that are described in the summary statement, but cannot be reflected in a modular reduction. In these cases, Institute staff will obtain the necessary cost information prior to any award.
4. The awarding Institute may adjust the amount to be awarded based on identified overlap and/or a requirement to meet its current management objectives. UO Modular awards have been received with varying reductions from the amount proposed: zero reductions for three grants; 2% to 31% cuts for several grants; 1 module cut in years 4 and 5 for one award; 5 years reduced to 4 years with additional minor dollar reductions for four awards. Awarding Institute staff may request a detail budget if they believe it will help in their review.
5. Modular Awards are made without categorical budget amounts, except for total direct, total F&A, and total costs each year. However, the UO will set up the new grant account with budgeted categories based on the proposal budget spreadsheet used and approved at the time of submission.
6. This change in the award process for Modular Awards does not eliminate the applicability of the Cost Accounting Standards or the need for sound fiscal management practices. The expectation remains that costs incurred on sponsored projects will continue to be reasonable, allowable, allocable and consistently treated. Expenses must continue to be charged to appropriate account codes. In particular, personnel effort must continue to be properly charged and reported, consistent with award commitments and the NIH salary cap.
7. Costs are monitored by UO and the NIH by the rate of expenditure (cash draw down) in relation to the proposed scope of work and completion of scientific aims.
8. There is no longer a requirement for prior approval by the agency for "significant rebudgeting" which occurs when expenditures in a single direct cost budget category deviate (increase or decrease) from the categorical commitment level established for the budget period by more than 25 percent of the total costs awarded. The exception is when significant rebudgeting changes the scope of the approved project. When in doubt as to whether significant rebudgeting constitutes a change in scope, PIs should discuss the issue with a program officer and with ORSA prior to the change.
9. There is no change in the NIH policy on carryover of unobligated balances. For awards under the Streamlined Noncompeting Award Process (SNAP), funds are automatically carried over and are available for expenditure during the entire project period. However, under those awards, the grantee will be required to indicate, as part of its noncompeting continuation request, whether its estimated unobligated balance (including prior year carryover) is expected to be greater than 25 percent of the current year's total budget. If so, the grantee must provide an explanation and indicate plans for expenditure of those funds if carried forward. Exceptions to the automatic carryover include funds restricted in an award notice or awards that are not under expanded authorities.

UNIVERSITY OF OREGON PROCEDURES:

GENERAL POLICY
In response to the NIH Modular Grants concept, the University of Oregon has determined that the following procedures will be followed for submission of applications under this model. These procedures will help ensure that 1) adequate support is being requested to accomplish the proposed activities; 2) institutional rates for salaries, fringe benefits, tuition, and other costs are included at appropriate levels; 3) subcontractor costs are appropriate and approvable; 4) exclusions from the direct cost base are accurate for calculating Facilities and Administration (F&A) costs; 5) the institution complies with applicable cost principles and meet Cost Accounting Standards; and 6) project costs are well managed over the life of the grant.

BUDGETS
The Office of Research Services and Administration (ORSA) will continue to check budgets to the extent of detail requested below. The budget should be prepared for each year to provide a grand total, from which an average year budget can be determined. The total amount of direct costs, including one-time special costs such as equipment, divided by the number of years will result in an average annual amount. The next highest module level should be your request level for each year.

A sample modular budget is available on this web site and in E-PCS. A blank modular budget spreadsheet is available for you to save on a local drive and use for future proposals. If you do save a copy, please rememeber to check our website for updates.

The ORSA spreadsheets for the Modular budgets figure the annual average direct costs automatically and give the total number of modules to request for direct costs, plus any subaward F&A (indirect) costs, plus the UO F&A, for a total budget request.

CHECKLIST

This form is submitted with the proposal and includes information on Facilities and Administrative (F&A) costs, formerly referred to as indirect costs. The base amount for figuring F&A costs must be shown for each year of the project and should reflect all exclusions from the total direct cost modules requested, using the UO's rate agreement. Then the total F&A costs are calculated on the base using the appropriate F&A rate (contact ORSA if you are unsure of the correct rate to apply). The UO's latest F&A agreement is dated 5/17/04.

Questions concerning the NIH Modular Grants Program or UO policies and procedures should be addressed to ORSA at 6-5131.

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