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ARCHIVED - NIH Grants Policy Statement (10/98)

Part III: Terms and Conditions for Specific Types of Grants, Grantees, and Activities-Part 2 of 6

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In addition to any program-specific or project-specific requirements imposed by the terms of the award, real property constructed under an NIH grant-supported project is subject to the requirements of 42 CFR Part 52b, in addition to the provisions of 45 CFR 74.30 through 74.32 and 74.37 or 92.31, as applicable, regarding use, transfer of title, and disposition.

Real property constructed or renovated with NIH grant support may not be conveyed, transferred, assigned, mortgaged, leased, or in any other manner encumbered by the grantee, except as expressly authorized in writing by NIH. In the event of any default of any description under a mortgage on the part of a grantee, the grantee shall immediately provide the awarding office GMO with both telephonic and written notification of the default.

The mortgage agreement shall:

  • Specifically allow, in the case of default, that NIH or its designee may assume the role of mortgagor and continue to make payments;
  • Provide that, in the event NIH (or its designee) chooses not to assume the role of mortgagor in the case of default, the mortgagee shall pay NIH an amount equal to the share of the sales proceeds otherwise due the grantee (mortgagor) multiplied by the Federal (i.e., NIH) share of the property; and
  • Provide that the mortgagee notify NIH at least 30 days prior to initiating foreclosure action.

Any NIH assignment of the property and mortgage responsibilities to any party, other than NIH, shall be subject to prior approval of the mortgagee.

The governing statute for the construction grant program may contain usage and disposition requirements for real property constructed or renovated under a grant that are in addition to or different from the usage and disposition requirements of 42 CFR 52b and 45 CFR 74.32 or 92.31, as applicable. These may include provisions governing the length of the grantee's accountability obligations, the Federal right of recovery, or waivers. In those cases, to the extent the statutory provisions are inconsistent with the requirements of 42 CFR Part 52b and/or 45 CFR Part 74 or 92, including those described in this subsection, the statutory provisions, as reflected in the terms and conditions of the award, will apply.

NIH construction awards generally require that a facility be used for biomedical or behavioral research so long as needed for that purpose (usually no more than 20 years from the date of beneficial occupancy) or other period prescribed by statute. During that time, the grantee shall comply with applicable disposition requirements. If, during the required usage period, the facility is no longer used for the original intended purpose and NIH did not provide prior approval for an alternate use, NIH may recover the Federal share. NIH will monitor grantee compliance with these requirements. After the required usage period, the grantee has no further accountability to NIH concerning the use of the property or any sales proceeds.

For disposition of property acquired on an amortized acquisition basis, the formulas in 45 CFR 74.32 and 92.31 do not apply in determining the Federal share. In cases of amortized acquisition, the Federal share will be determined by multiplying the amount of mortgage principal already repaid at the time of disposition by the average Federal participation (taken from the Financial Status Report) plus the increase in value over the purchase price multiplied by the average Federal participation plus the Federal participation in the down payment. The computation of the Federal share of real property acquired with long-term debt financing must be computed for each year of grant support in which Federal funds are used to meet all or a portion of the down payment and/or principal on the mortgage.

If a real estate transaction funded in whole or in part by NIH requires the use of a real estate appraisal (including, but not limited, to appraisals to determine the Federal share of real property and appraisals to determine required insurance levels), the appraisal must be performed by appraisers certified or licensed by the applicable State in accordance with the requirements established by Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA), as amended (Public Law 101-73).

In order to protect the Federal interest in real property that has been constructed or renovated with NIH construction grant funds, grantees shall record a lien or other related notice of record (Notice of Federal Interest) in the appropriate official records of the jurisdiction in which the property is located. The time of recordation shall be when construction or renovation begins. Fees charged for recording the Notice of Federal Interest may be charged to the grant (see "Allowability of Costs/Activities     Allowable Costs/Activities"; in this section).

Immediately upon completion of construction, nongovernmental grantees shall, at a minimum, provide the same insurance coverage as provided for other property they own. "Completion of construction" means either the point at which the builder turns the facility over to the grantee (e.g., the date of the final acceptance of the building) or the date of beneficial occupancy, whichever comes first. Federally owned property provided to a grantee for use need not be insured.

If title vests in the grantee, the following coverage is required as the minimum insurance coverage for real property acquired with NIH grant funds:

  • A title insurance policy that insures the fee interest in the real property for an amount not less than the full appraised value of the property. When the Federal participation in the construction of real property covers only a portion of a building, title insurance should cover the total cost of the facility in order to prevent liens on the unsecured portion from having an adverse impact on the portion with a Federal interest. In those instances where the grantee already owns the land, such as a building being constructed in the middle of a campus setting, in lieu of a title insurance policy, the grantee may provide evidence satisfactory to the NIH awarding office, such as legal or title opinion, that it has good and merchantable title free of all mortgages or other forecloseable liens to all land, rights of way, and easements necessary for the project. In instances where a grantee is given land by the State, if the State recently acquired the land in a land swap transaction, the grantee that is then given the land should obtain title insurance. However, if the State has owned the land for a considerable period of time, title insurance would not be necessary, and a copy of the State documents giving the land to the grantee would be sufficient. If the grantee must buy the land on which to build, a legal opinion would not be sufficient, and title insurance must be obtained in order to protect the Federal interest in the building to be constructed.
  • A physical destruction insurance policy that insures the full appraised value of the facility from risk of partial and total physical destruction. When the Federal participation in the construction or renovation of real property covers only a portion of a building, the insurance should cover the total cost of the facility, because any damage to the building could make the building unusable and could thus affect the Federal interest. The insurance policy is to be maintained for the duration of the Federal interest in the property (usually 20 years) (see "Real Property Management Standards     Use and Disposition" in this section). The cost of insurance coverage after the period of grant support must be borne by a source other than the grant that provided the funds for the construction or renovation. The grant account will not remain open for this purpose.

Within 5 days of completion or beneficial occupancy, the grantee shall submit, to the GMO, a written statement signed by the authorized institutional official certifying that the grantee (1) has purchased the required insurance policies on the NIH-funded facility, and (2) will maintain the insurance coverage at the full appraised value of the facility throughout the period of Federal interest as specified in the NGA.

The awarding office may waive one or both of the requirements above upon a showing that the grantee is effectively self-insured against the risks involved. The term "effectively self-insured" means that the grantee has sufficient funds to pay for any damage to the facility, including total replacement if necessary, or to satisfy any liens placed against the facility. If the grantee claims self-insurance, the grantee must provide to NIH a certification that it has sufficient funds available to replace or repair the facility or to satisfy all liens. This certification should state the source of the funds, such as the institution's endowment or other special funds set aside specifically for this purpose.

EXHIBIT 1

ALTERATION AND RENOVATION COST ESTIMATE OUTLINE

This is a suggested format and is not to be construed as a required form.

Estimate the costs in which the Federal Government is requested to

participate

  1. Demolition $________
    1. General alteration and renovation $________

(e.g., carpentry, masonry, painting)

  1. Plumbing $________
  1. Heating, ventilation, and air conditioning $________
  2. Electrical $________
  3. Architect's and engineer's fees $________
  4. Other costs (specify) $________
  5. TOTAL A&R COSTS (To Federal Government)

$________

  1. Fixed equipment $________

EXHIBIT 1 (Continued)

LIST SOURCE AND AMOUNT OF FUNDS FOR TOTAL ALTERATION AND RENOVATION PROJECT:

NIH SOURCES AND AMOUNTS ALL SOURCES AND
AMOUNTS OTHER
THAN NIH

_____________________________ ______________________________

_____________________________ ______________________________

_____________________________ ______________________________

_____________________________ ______________________________

Total gross square meters/feet of floor area in alteration and renovation proposal
___________

Estimated cost per gross square meter/foot excluding fixed equipment
$__________

Total net square meters/feet of floor area in alteration and renovation proposal
___________

Estimated cost per net square meter/foot, excluding fixed equipment
$__________

This section is a self-contained document that includes the National Research Service Award (NRSA) guidelines for individual and institutional awards as originally published in the NIH Guide for Grants and Contracts Vol. 26, No. 21, June 21, 1997. It includes all requirements of NRSA awards and, therefore, should be followed by NRSA recipients in lieu of the coverage in Part II of this policy statement.

A. Background

Section 487 of the Public Health Service Act (42 U.S.C. 288), provides authority for the National Institutes of Health (NIH) to award National Research Service Awards (NRSA) to support predoctoral and postdoctoral training. This section states that the Secretary shall provide National Research Service Awards for predoctoral and postdoctoral training of individuals to undertake biomedical and behavioral research at domestic and foreign, public and private institutions (profit and non-profit). Section 487 (a) (1) (B) authorizes institutional NRSA grants limiting NRSA support to training and research at public and non-profit private entities. The National Research Service Award legislation requires recipients to pay back to the Federal Government their initial 12 months of NRSA postdoctoral support by engaging in health-related biomedical or behavioral research, research training, health-related teaching, or any combination of these activities (See Section IV below). Title 42 of the Code of Federal Regulations, Part 66, is applicable to these awards.

B. Nondiscrimination

The NIH research training and career development programs are conducted in compliance with applicable laws that provide that no person shall, on the grounds of race, color, national origin, handicap, or age, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity (or, on the basis of sex, with respect to any education program or activity) receiving Federal assistance. Applicant organizations are required to have appropriate Assurance of Compliance forms filed with the Office of Civil Rights, Office of the Secretary, DHHS before a grant may be made to that institution. The NIH awarding office should be contacted if there are any questions concerning compliance.

A. General

The Congress of the United States enacted the National Research Service Act Program in 1974 to help ensure that highly trained scientists would be available in adequate numbers and in appropriate research areas to carry out the Nation's biomedical and behavioral research agenda. Under this congressional authority, the NIH awards NRSA individual postdoctoral fellowships (F32) to the most promising applicants to support full-time research training related to the mission of the NIH ICs. Some specialized individual predoctoral fellowships (F31s and F30s) and Senior Fellowships (F33s) are also provided under the NRSA. For individual predoctoral fellowships, NIH awarding offices have different requirements. Thus specific program announcements should be consulted for guidance.

National Research Service Awards (NRSA) are made to individual fellowship applicants selected for award as a result of national competition for research training in specified health-related areas. All NIH ICs except the Fogarty International Center (FIC) and the National Library of Medicine (NLM) make individual awards under NRSA. FIC & NLM have unique funding authorities for fellowships that are not under the NRSA.

1. Eligibility

a. Research Areas

National Research Service Awards may be made for research training in areas which fall within the mission of the NIH ICs. Applications which do not fit these areas will be returned. An increased emphasis has been placed on the research training of physicians. The Secretary, DHHS, is required by law, in taking into account the overall national needs for biomedical research personnel, to give special consideration to physicians who agree to undertake a minimum of two consecutive years of biomedical and behavioral research training.

b. Research Training Program

The NRSA fellowship must be used to support a program of research training. It may not support studies leading to the M.D., D.O., D.D.S., D.V.M., or other clinical, health professional degrees; nor to support residencies, the primary purpose of which is the attainment of a medical or nursing specialty. Research trainees in clinical areas are expected to devote full time to the proposed research training and to confine clinical duties to those which are part of the research training.

2. Degree Requirements

a. Predoctoral

Individuals must have received, as of the activation date of their NRSA award, a baccalaureate degree and must be enrolled in and training at the post baccalaureate level in a program leading to the award of a Doctor of Philosophy of Science (Ph.D. or Sc.D.) or a combined clinical degree and Ph.D. degree such as M.Dindex.htmPh.D.

b. Postdoctoral

Before an NRSA award can be activated, individuals must have received a Ph.D., M.D., D.O., D.D.S., D.V.M., O.D., D.P.M., Sc.D., D.Eng., D.N.S., or equivalent doctoral degree from an accredited domestic or foreign institution. Certification by an authorized official of the degree granting institution that all degree requirements have been met is also acceptable.

c. Senior Fellows

As of the beginning date of their award, senior fellows must have received a doctoral degree (as in A.2.b. above) and must have had at least seven subsequent years of relevant research and professional experience. The senior fellowship is awarded to provide opportunities for experienced scientists to make major changes in the direction of their research careers or to broaden their scientific background by acquiring new research capabilities. In addition, these awards will enable individuals beyond the new investigator stage to take time from regular professional responsibilities for the purpose of increasing their capabilities to engage in health-related research. Senior fellowships are made for full-time research training. Health professionals may utilize some of their time in clinical duties which are part of their research training.

3. Citizenship

The individual to be trained must be a citizen or a non-citizen national of the United States or have been lawfully admitted for permanent residence at the time of award. A non-citizen national is a person, who, although not a citizen of the United States, owes permanent allegiance to the U.S. They are generally persons born in outlying possessions of the United States (e.g., American Samoa and Swains Island). Individuals who have been lawfully admitted for permanent residence must be in possession of a currently valid Alien Registration Receipt Card (I-551), or must be in possession of other legal verification of such status. For example, if an individual is in possession of the proper validation on his/her passport, a notarized photocopy of the passport could suffice. Since there is a 6-month limitation on this validation, it is the responsibility of the sponsoring institution to follow-up and assure that the individual received the I-551 prior to the six month expiration date.

An individual expecting to be admitted as a permanent resident by the earliest possible award date listed in the fellowship program announcement may submit an application for an individual NRSA fellowship. The submission of documentation concerning permanent residency is not required as part of the initial application. Any applicant selected to receive an award must provide a notarized statement of admission for permanent residence prior to award.

Applicants who have been lawfully admitted for permanent residence; i.e., are in possession of an Alien Registration Receipt Card or other legal verification of such status, should check the Permanent Resident box in the citizenship section on the face page of the fellowship application. Applicants who have applied for and have not yet been granted admission as a permanent resident should also check the same box, but should write in the word "pending."

Individuals on temporary or student visas are not eligible for support from the NRSA.

4. Sponsorship

a. General

Before submitting a fellowship application, the applicant must identify a sponsoring institution and an individual who will serve as a sponsor and will supervise the training and research experience. The sponsoring institution may be private (profit or non-profit) or public, including the NIH Intramural Programs and other Federal laboratories. The applicant's sponsor should be an active investigator in the area of the proposed research who will directly supervise the candidate's research. The sponsor must document in the application the training plan for the applicant as well as the availability of staff, research support, and facilities for high-quality research training. Applicants proposing training at their doctorate institution or at the institution where they have been training for more than a year must document thoroughly the opportunity for new training experiences that would broaden their scientific background.

b. Foreign Sponsorship

Under exceptional circumstances an individual may request support for training abroad. In such cases, the applicant is required to provide detailed justification for the foreign training and why the facilities, the mentor, or other aspects of the proposed experience are more appropriate than training in a domestic setting. The justification is evaluated in terms of the scientific advantages of the foreign training as compared to the training available domestically. Only in cases where there are clear scientific advantages will the foreign training be considered for funding.

5. NIH Employees

Both Civil Service employees and PHS Commissioned Officers at NIH are permitted to compete for predoctoral and postdoctoral fellowships. The proposed training should be primarily for career development rather than for the immediate research needs of NIH. The employee's supervisor must disassociate him/herself from the review and award process.

Successful NIH applicants for the predoctoral or postdoctoral fellowship awards must either resign from NIH or take leave without pay prior to activating the award. (There is no obligation or commitment by NIH or the fellow for future employment at NIH upon termination of the fellowship.)

6. Individuals on Active Military Duty

NIH has no restriction against career military personnel applying for research fellowship awards while on active military duty. At the time of application, a letter from the applicant's branch of the military service should be submitted endorsing his/her application and indicating willingness to continue normal active duty pay and allowance during the period of the requested fellowship. If an award is made, the institutional allowance and necessary tuition and fees permitted on a postdoctoral program will be paid. However, stipends, health insurance, and travel allowances will not be reimbursed. Payment of concurrent benefits by NIH to active duty career military awardees is not allowed.

B. Application and Receipt Dates

1. Application

Each applicant must submit an application using the Form PHS 416-1. At least three letters of reference on his or her behalf must also be submitted. The major emphasis of the application should be the research training experience and broadening of scientific competence. The application must include the sponsor's Facilities and Commitment Statement. By signing the face page of the application, the applicant indicates that he or she has read the payback information and will meet any payback provisions required under the law as a condition for accepting the National Research Service Award.

Applicants and sponsoring institutions must comply with policies and procedures governing the protection of human subjects, the humane care and use of live vertebrate animals, and the inclusion of women, minorities and children in study populations.

On the application face page, applicants should indicate (in the Request for Applications section) the initials of the NIH Institute most appropriate to the research area of the application. If the application is submitted in response to a Program Announcement (PA) or Request for Application (RFA) from a particular Institute, the applicant should identify the number of the PA or RFA on the face page. This information will be used as a guide in the application assignment process.

2. Concurrent Applications

An individual may not have two or more competing NRSA applications pending review concurrently in the National Research Service Award program.

3. Application Availability

Application kits containing forms, instructions, and related information may be obtained from:

The Division of Extramural Outreach and Information Resources, OER, NIH
Rockledge II, Suite 6095, MSC 7910
Bethesda, MD 20892-7910
Phone: (301)-435-0714
E-mail: grantsinfo@od.nih.gov

4. Receipt Dates

Individual fellowship applications undergo a review process that takes between five and eight months. The annual receipt dates and review cycle are found in Appendix 2.

C. Review

Each initial and competing renewal application will be evaluated for scientific merit by an NIH Scientific Review Group (SRG). Review criteria for this evaluation will include the applicant's past academic and research record, the research training proposal, the sponsor's general qualifications, the training environment, publications, references, and the applicant's research goals. Individual fellowship applications receive a secondary level of review by Institute staff.

It is important to remember that the purpose of the fellowship program is for research training. Major considerations in the review are the applicant's potential for a productive scientific career, the applicant's need for the proposed training, and the degree to which the research training proposal, the sponsor, and the environment will satisfy these needs.

D. Notification of Action

Shortly after the initial review meeting, each candidate receives a mailer that includes the SRG recommendation/priority score and the name of a program official in the assigned NIH awarding office. A copy of the summary statement is automatically forwarded to the applicant as soon as possible.

The applicant will be notified by letter concerning the final review recommendation. Any questions about initial review recommendations and funding possibilities should be directed to the appropriate institute program official, not the scientific review administrator of the SRG. A Notice of Research Fellowship Award will be issued to applicants selected for funding.

E. Period of Support

All fellows are required to pursue their research training on a full-time basis, normally defined as 40 hours per week or as specified by the sponsoring institution in accordance with its own policies.

No individual fellow may receive more than five years of aggregate NRSA support at the predoctoral level and three years of aggregate NRSA support at the postdoctoral level, including any combination of NRSA support from institutional and individual awards. Any exception to this requires a waiver from the Director of the NIH awarding office or designee based on review of justification from the individual and sponsoring institution. The grounds for approving extensions of support are as follows:

1. Physicians/Clinicians

Individuals requiring additional time to complete training, either as a participant in a combined M.D.-Ph.D. program or as clinicians (e.g., physicians, dentists, veterinarians) who are completing postdoctoral research training, may anticipate favorable consideration of a request for waiver of the time limitation. This action is contingent upon certification of the recipient's good academic standing and justified need for the exception to policy.

2. Interruptions (Break-In-Service)

Requests for additional time will also be considered if an event unavoidably has altered the planned course of the research training; the interruption has significantly detracted from the nature or quality of the planned research training; and if a short extension would permit completion of the training as planned. Such events include sudden loss of the preceptor's services or an accident, illness, or other personal situation, which prevents a trainee or fellow from pursuing research training in an effective manner for a significant period of time. Requests for extension of support will also be considered if a short additional period would provide the fellow an opportunity to use an exceptional training resource directly related to the approved research training program.

3. Other Exceptions

Requests that do not arise from circumstances considered in E.1 or E.2 above will be considered if they are accompanied by an exceptionally strong justification. Requests must be made in writing to the NIH awarding office by the fellow. The fellow's sponsor and an authorized institutional business official, must endorse the request certifying the need for additional support. The request must include a sound justification and specify the amount of additional support for which approval is sought. Requests must be approved by the Director of the awarding office or designee.

F. Initiation of Support

1. Process

The awarding office will notify the individual of the intention to make an award and confirm the actual plans for the start of the fellowship support. The Notice of Research Fellowship Award will be issued so that the individual may begin the fellowship immediately on or after the issue date, or permit a period of up to six months for the individual to finalize arrangements, such as the completion of degree requirements, final coordination with the sponsor, and, if necessary, a move to the sponsoring institution. The fellow must start the period of training under the award by the latest activation date as shown on the Notice of Research Fellowship Award; i.e., six months from the award issue date. Extensions of the activation period may be granted in unusual circumstances. Written requests for extensions should be submitted by the fellow, and countersigned by the sponsor and authorized institutional business official.

The day the fellow begins training, the Activation Notice and the Payback Agreement (only for postdoctoral fellows in their first 12 months of NRSA postdoctoral support) must be completed and submitted to the awarding office (see Section H.1.a.(1) and (2)). A stipend may not be paid until these forms are submitted and the fellow begins training. If necessary for payroll purposes, the Activation Notice and Payback Agreement may be submitted up to 30 days in advance of the start date. However, any change in this planned activation start date must be reported immediately to the business office of the institution and the awarding office. If an award is conditioned upon the completion of degree requirements, certification of completion by the degree granting institution must be submitted with the Activation Notice.

The initial award is usually for 12 months. Subsequent periods of approved fellowship training are consecutive with the first year of support and are usually in 12-month increments. If a fellow decides not to activate the award, or to terminate early, he or she should notify the institutional business office, the sponsor, and the awarding office immediately in writing.

2. Payment

a. Domestic

(1) Domestic, Non-Federal

Sponsoring institutions receive an award for the stipend, institutional allowance, and tuition and fees (when applicable). The domestic institution directly pays the fellow and disburses all other awarded costs

(2) Federal Laboratories

Fellows training at Federal laboratories are paid stipends directly by the awarding office through the Office of Financial Management (OFM), which also reimburses the fellow for appropriate expenditures from the institutional allowance.

b. Foreign

Fellows training at foreign sites receive stipends directly from OFM; however, the institutional allowance is awarded to and disbursed by the sponsoring institution.

G. Financial Provisions

Costs are normally provided based on a 12-month budget period. Awards for less than 12 months will be prorated accordingly.

1. Stipends

A stipend is provided as a subsistence allowance for fellows to help defray living expenses during the research training experience. It is not provided as a condition of employment with either the Federal Government or the sponsoring institution. Stipends must be paid in accordance with stipend levels set by this policy. No departure from the standard stipend schedule, as provided from the fellowship, may be negotiated by the sponsoring institution with the fellow.

a. Levels

Stipend levels are published in the NIH Guide for Grants and Contracts. That publication should be reviewed for any changes to stipend levels.

(1) Predoctoral

One stipend level is used for all predoctoral candidates, regardless of the level of experience.

(2) Postdoctoral

The stipend level for the entire first year of support is determined by the number of full years of relevant postdoctoral experience at the time the award is issued. Relevant experience may include research experience (including industrial), teaching assistantship, internship, residency, clinical duties, or other time spent in a health-related field beyond that of the qualifying doctoral degree. Once the appropriate stipend level has been determined, the fellow must be paid at that level for the entire grant year. The stipend for each additional year of NRSA support is the next level in the stipend structure and does not change mid-year.

(3) Senior Fellows

The amount of the NRSA stipend to be paid shall be commensurate with the base salary or remuneration which the individual receiving the award would have been paid by the institution with which he or she has permanent affiliation on the date of the fellowship award, but in no case shall the stipend award exceed the current NRSA stipend limit set by NIH. Fringe benefits are not provided with this award. The level of NRSA support will take into account concurrent salary support provided by the institution, and the policy of the sponsoring institution.

b. Stipend Supplementation

Fellows are supported for 12-month full-time training appointments for which they receive stipends to defray living expenses. Stipends may be supplemented by an institution from non-Federal funds provided this supplementation does not require any additional obligation from the fellow. An institution can determine what amount of stipend supplementation, if any, will be provided according to its own formally established policies governing stipend support. These policies must be consistently applied to all individuals in a similar status regardless of the source of funds. Federal funds may not be used for stipend supplementation unless specifically authorized under the terms of the program from which funds are derived. Under no circumstances may PHS funds be used for supplementation.

An individual may make use of Federal educational loan funds or V.A. benefits when permitted by those programs as described in Section G.1.e. below.

c. Compensation

It is recognized that fellows may seek part-time employment coincidental to their training program in order to further offset their expenses. In circumstances of actual employment, the funds provided as compensation (salary or tuition remission) for services rendered, such as teaching or laboratory assistance, are not considered stipend supplementation. Funds characterized as compensation may be paid to fellows when there is an employer-employee relationship, the payments are for services rendered, and the situation otherwise meets the conditions of the compensation of students as detailed in "Allowability of Costs/Activities     Selected Items of Cost     Salaries and Wages     Compensation of Students" in Part II of this policy statement. Under these conditions, fellows may be compensated for actual employment on Federal grants, including PHS research grants. However, it is expected that compensation from research grants will occur on a limited part-time basis for employment apart from the normal training activities.

Compensation may not be paid from a research grant which supports the same research that is part of the fellow's planned training experience as approved in the fellowship application. Fellowship sponsors must approve all instances of employment on research grants in order to verify that the circumstances will not detract from or prolong the approved training program.

Under no circumstances may the conditions of stipend supplementation or the services provided for compensation interfere with, detract from, or prolong the fellow's approved NRSA training program. Additionally, compensation must be in accordance with institutional policies applied consistently to both federally and non-federally supported activities and supported by acceptable accounting records determined by the employer-employee relationship agreement.

d. Concurrent Benefits

A National Research Service Award may not be held concurrently with another federally sponsored fellowship or similar Federal award which provides a stipend or otherwise duplicates provisions of the NRSA.

e. Educational Loans or GI Bill

An individual may accept concurrent educational remuneration from the Department of Veterans Affairs (GI Bill) and Federal educational loan funds. Such funds are not considered supplementation or compensation.

f. Taxability of Stipends

Section 117 of the Internal Revenue Code applies to the tax treatment of scholarships and fellowships. The Tax Reform Act of 1986, Public Law 99-514, impacts on the tax liability of all individuals supported under the NRSA program. New statutory requirements were effective as of January 1, 1987. Degree candidates may now exclude from gross income (for tax purposes) any amount used for course tuition and related expenses such as fees, books, supplies and equipment required for courses of instruction at a qualified educational organization. Non-degree candidates are now required to report as gross income all stipends and any monies paid on their behalf for course tuition and fees required for attendance.

The taxability of stipends, however, in no way alters the relationship between NRSA fellows and sponsoring institutions. NRSA stipends are not considered salaries. In addition, fellows supported under the NRSA are not considered to be in an employee-employer relationship with the NIH or the sponsoring institution.

It must be emphasized that the interpretation and implementation of the tax laws are the domain of the Internal Revenue Service and the courts. NIH takes no position on what the status may be for a particular taxpayer, and it does not have the authority to dispense tax advice. Individuals should consult their local IRS office about the applicability of the law to their situation and for information on their tax obligations.

g. Form 1099

Since stipends are not considered salaries, for the purposes of income tax reporting, stipend payments should be reported on the IRS Form 1099, Statement of Miscellaneous Income. The business office of the sponsoring institution will be responsible for the annual preparation and issuance of the IRS Form 1099 for fellows paid through the institution. NIH will issue the subject form for all fellows paid directly by them (e.g., fellows training at Federal or foreign laboratories).

h. Employee Benefits

Since NRSA awards are not provided as a condition of employment with either the Federal government or the sponsoring institution, it is inappropriate and unallowable for institutions to seek funds for or to charge individual fellowship awards for costs that would normally be associated with employee benefits (for example, FICA, workman's compensation, and unemployment insurance).

2. Other Costs

a. Institutional Allowance

An institutional allowance to help support the costs of training is awarded. Interested applicants should consult the NIH program announcement(s) regarding the specific level of allowance for predoctoral and postdoctoral support, including those individuals training at Federal laboratories, for-profit, or foreign institutions. Allowance levels are published in the NIH Guide for Grants and Contracts. Current institutional allowance levels are found in Appendix 1. Beginning in FY 1997, for postdoctoral fellowships, costs for tuition and fees, where appropriate, will be awarded independent from the institutional allowance. (See Section 2.b for details on tuition reimbursement.)

(1) Allowable Costs for Sponsoring Institutions

The type of sponsoring institution dictates what allowable costs may be charged to this category and how the funds are administered.

(a) Non-Federal public and private non-profit institutions

The allowance is intended to defray such expenses for the individual fellow as research supplies, equipment, travel to scientific meetings, health insurance and to otherwise offset, insofar as possible, appropriate administrative costs of graduate training. Funds are paid directly to and administered by the sponsoring institution.

(b) Federal laboratories

The allowance is intended to cover the costs of scientific meeting travel, health insurance, or books. Funds are administered by the awarding office and disbursed from OFM.

(c) For-profit institutions

The allowance is intended to cover the costs of scientific meeting travel, health insurance, or books. Funds are paid directly to and administered by the sponsoring institution.

(d) Foreign institutions

The allowance is intended to defray such expenses as research supplies, equipment, travel to scientific meetings, health insurance and to otherwise offset, insofar as possible, appropriate administrative costs of graduate training. Funds are paid directly to and administered by the sponsoring institution.

(2) Guidelines

The following are specific guidelines for the use of the institutional allowance:

(a) Health Insurance:

A fellow's health insurance is an allowable cost only if required of all persons in a similar training status regardless of the source of support. Family health insurance is not an appropriate charge; however, the individual may elect personally to pay the differential between self-only and family health insurance options.

(b) Travel

1) Payment for travel to scientific meetings is appropriate when it is necessary to the individual's training. 2) For fellows at Federal laboratories, reimbursement of travel costs is in accordance with current Government regulations. 3) Funds may not be expended to cover the costs of travel between the fellow's place of residence and the domestic training institution, except that the grantee institution may authorize the cost of a one-way travel allowance in an individual case of extreme hardship.

(c) Extraordinary Costs

Additional funds may be requested by the institution when the training of a fellow involves extraordinary costs for: 1) travel to field sites remote from the sponsoring institution; or 2) accommodations for fellows who are disabled, as defined by the Americans With Disabilities Act. The funds requested for extraordinary costs must be reasonable in relationship to the total dollars awarded under a fellowship and must be directly related to the approved research training project. Such additional funds shall be provided only in exceptional circumstances which are fully justified and explained by the institution.

(3) Expenditure

Except for fellows at Federal training sites, the sponsoring institution authorizes the expenditure of the allowance on behalf of the fellow according to the institutional policy. The institution is entitled to expend up to the full institutional allowance upon official activation of the award. However, if an individual fellow is not in a training status for more than six months of the award year, only one-half of that year's allowance may be charged to the grant. The Notice of Research Fellowship Award will be revised and the balance must be refunded to NIH.

For fellows at Federal training sites, the awarding office authorizes the expenditure of the allowance. Payment is made through OFM.

b. Tuition and Fees

Tuition and fees for postdoctoral fellows are limited to those for specific courses required by the training program and must receive prior approval from the awarding office. For the purposes of calculating this budget item, health insurance is not included since it is still awarded as part of the institutional allowance

For predoctoral fellows, reimbursement of tuition and fees (including health insurance) varies depending on the policy of the NIH awarding office. Specific programmatic guidelines should be consulted for reimbursement guidance.

Reimbursement of tuition and fees changed with awards competing in FY97. See Appendix 1 for details.

c. Travel to Foreign Training Sites

For fellows at foreign training sites, in addition to the institutional allowance, awards may include a single economy or coach round-trip travel fare. No allowance is provided for dependents. U.S. flag air carriers must be used to the maximum extent possible when commercial air transportation is the means of travel between the United States and a foreign country or between foreign countries. This requirement shall not be influenced by factors of cost, convenience, or personal travel preference.


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