NIH GUIDE, Volume 24, Number 38, October 27, 1995

P.T. 34


  Grants Administration/Policy+ 

National Institutes of Health

Effective October 1, 1995, the National Institutes of Health will

reflect total cost (both direct and indirect) commitments for future

years on all NIH grant and cooperative agreement awards with budget

period begin dates after October 1, 1995.  This change is consistent

with the NIH Financial Management Plan to provide greater

predictability and stabilization of noncompeting budget period costs.

To implement this policy, the indirect cost portion of the commitment

will be calculated as described below.


The indirect cost portion of the commitments will be calculated using

negotiated predetermined indirect cost rates (or other available

negotiated rates) in effect at the time the Notice of Grant Award is

made for each noncompeting year.  If the rate agreement does not

extend to the end of the project period, the last rate in effect will

be used to establish the total cost commitment for any remaining

future years.  If implemented as proposed in OMB Circular A-21,

adjustments to indirect costs (increases or decreases in rate or base

changes) will not be made routinely.  Thus, noncompeting awards will

continue to reflect rate agreements in effect at the time the Notice

of Grant Award is issued.  There is no short-term change to NIH's

current policy for calculating and awarding indirect costs.


Grantee staff with questions about future years total cost

commitments should contact the awarding component Grants Management

Specialist identified on the Notice of Grant Award.


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