# Presentation: 680710

## Briefing on NCI Grant Budget and Policy Issues

**NCI Program Staff Orientation**
**Sponsored by the**
**Office of Grants Administration**
**February 16, 2006**

## Briefing on NCI Grant Budget and Policy Issues by Stephen M. HazenChief,  Extramural Financial Data Branch, OBFM, OD, NCIExecutive Plaza South, Room 6087Telephone: (301) 435-5204                                 Fax: (301) 480-6961

## Briefing Topics

- RPG Budget Allocation – 7 min.
- Grant Decision Calendar – 3 min.
- Exception Process Overview – 5 min.
- Future Budget Realities – 5 min.
- Questions – 20 min.

## NCI’s Decision Making Process for Research Project Grant Allocation

- The following example uses FY 2005 final award levels to show how the Research Project Grant budget is allocated at the start of the fiscal year.
- The general process is the same for any component of the grant budget.
- We start with the money appropriated by Congress....

## NCI’s Decision Making Process for Research Project Grant Allocation

**	****	****	****	****	****	****	****	****     **_**% of total**_
**APPROPRIATION****	****	****	****$2,189,000,000****	****	****100%**
**SMALL BUSINESS SET-ASIDE****	****      -98,000,000****	****	****   4%**
**NON-COMPETING COMMITMENTS****	**_** -1,651,000,000**__**	**_**	**** 75%**
**                                                                                          **_**Number**_
**COMPETING AVAILABILITY****	****   $440,000,000****	****   1,292****	****  20%**
**SET-ASIDE FOR RFAs****	****	****     -44,000,000****	****       87****	****    2%**
**REMAINING FOR R01, P01, R33, ****etc****. $396,000,000****	****   1,205****	****   18%**

**Notes:**
Note Program Evaluation is $59 million of T-5 and T-3s are $51 million

## NCI’s Decision Making Process for Research Project Grant Allocation

**                                                                                     **_**Number**_**    **_**% of total**_
**REMAINING FOR R01, P01, R21, ****etc****. $396,000,000****	****1,205****	****     18%**
**ALLOCATION FOR R01, R37****	****     238,000,000****	****   719****	****     11%      **
**ALLOCATION FOR P01****	****	****       65,000,000****	****    38****	****       3%**
**ALLOCATION FOR R21/R33****	****       36,000,000****	****  197****	****       2%**
**ALLOCATION FOR R03, R15 etc.****	****       10,000,000****	****  103****	****     <1%**
**RESERVE FOR ALL EXCEPTIONS****	****       47,000,000****	****  148****	****       2%**

**Notes:**
R01s are cut 21% from requested levels – with larger grants getting cut 8% more than smaller ones.  And T-2 s which conform to the 20% cap are cut 15% - which gives them 5% over current.
P01s T-1s get cut 21% while T-2s are restricted and get 5% over current – or a 15% cut.

## NCI’s Decision Making Process for Research Project Grant Allocation

**                                                                                                 ****	****	****	****	****	****            **_**Number**_**    **_** **__**% of total**_
**RESERVE FOR ALL EXCEPTIONS****	****$47,000,000****	****148****	****      2%**
**AER EXCEPTIONS****	****	****	****    2,000,000****	****    6****	****    <1%**
**P01 etc. EXCEPTIONS****	****	****    2,000,000****	****    2****	****    <1%**
**R01, R21, etc. EXCEPTIONS****	****    27,000,000****	****  85****	****      1%**
***R01 EXCEPTIONS****	****	****	****    16,000,000****	****  55****	****    <1%**

**Notes:**
Note that *R01 (First Time R01s) was the equivalent of 1 percentile point on the R01 payline

## Estimating Uncertainties- what we know and when

- late August – we know number of 1st round applications and review scores (from the February receipt date) and most of 2nd round application numbers (from the June receipts)
- mid-November – additionally we have some 2nd round scores
- mid-December – we have most 2nd round scores and most 3rd round applications (from October receipts)
- late April – we know all application numbers and most scores from the 3rd round

## NCI’s Decision Making Process for Research Project Grant AllocationDetermine the Payline for R01s With $238 million available for competing R01s

**Notes:**
Note that the requested average cost of R01s is $408 K, but with the policy cut the actual award is $331 K.  It would cost $293 Million to pay the R01s at requested levels and we only had $338 to allocate.

## Orientation for Program Staff

- The calendar (theory and practice)
- The exception process through the year

## Grant Calendar in a Perfect Year

- Funding Policy and Paylines set – early November
- 1st Round Exceptions* later in November
- 2nd Round Exceptions* – Jan/Feb
- 3rd Round Exceptions* – May/June
- Late List Exceptions* – end of July
- Last List – September (early)
-   *Large exceptions are approved by the EDD or EC – regular-sized by Division

## Grant Calendar in a Recent Year (2005)

- T-5 Funding Policy – early November
- RPG Reduction policy and temporary paylines – early November
- RPG Paylines – early January
- 1st Round Exceptions – mid-January
- 2nd Round Exceptions –  mid-February
- 3rd Round Exceptions – mid-June
- Late List Exceptions – end of July
- Last List – September (early)

## Grant Calendar in FY 2006

**T-5 Funding Policy and temporary paylines – November 9**
**First round P01 selections – November 28**
**First Round RFA Funding Plans – December 20**
**Second Round P01 selections – January 17**
**2****nd**** Round Exceptions and RFAs – February 21**
**3****rd**** Round P01 selections – May 16**
**3****rd**** Round Exceptions and RFAs –  June 20**
**Late List Exceptions –  July 18**
**Last List Exceptions – September (early)**

## Exception Process (during the year)

- When the initial RPG policies are set (paylines and average cost), the EC decides how much to allocate to supplements and exceptions.
- Based on historical usage (which basically follows the size of each Division’s RPG portfolio), EFDB proposes an allocation to the Divisions.

## Exception Process (continued)

- The Division Director has authority to approve exception funding for competing applications within 10 points of the payline costing no more than $350 thousand per year DC...
- ...and supplements up to $50 thousand per year DC (no more than $150 thousand for the duration of the grant) – smaller supplements may be approved at the Branch Chief level at the discretion of the Division Director.

## Exception Process (continued)

- The money allocated to the Divisions is intended to permit selection of supplements and exceptions - including AER exceptions as well as R01 exceptions for pancreatic research, AIDS and other high priority research areas.
- Each Division has its own internal procedures for approving exception requests which Program Staff submit– usually prior to each EDD exception meeting for the three rounds and late list.

## Exception Process (continued)

- Each review round, NCI uses the EDD meeting as a forum to approve large sized exception grants.
- Near the end of July, we have a final exception meeting, which we call the Late List Exception meeting.
- After the Late List meeting we move to the Last List process

## End of Year Grant Funding Process (Last List Process)

- We have established a process that permits us to approve a group of grants for payment in the event additional money becomes available.  We refer to this process as the “Last List.”
- The Last List may include Centers, SPORES, Manpower, Clinical Groups as well as RPG requests

## Last List Process

- The vetting process:
- Each Division collects their requests and the Division Director ranks them according to the Institute and Division priorities
- EFDB collects the Division requests and puts them on a consolidated NCI list with other NCI-wide needs of which EFDB is aware
- EFDB presents this consolidated list to a senior management official (or group), who reviews the justifications and decides on an NCI rank order.

## Last List Process - Adjustments

- If/when a Division wants to add another grant (or more) to their Division list, the Division Director must determine where the new grant(s) should appear on the ranked Division list.
- The new grant(s) are taken to the senior official for interpolation into the consolidated last list.
- We pay grants and the process continues until we run out of time and money around  September 20.

## Orientation for Program Staff

- About the budget situation (present and past as presented to the NCAB/BSA Joint retreat on January 9, 2006)

## FY 2006 Appropriation

**AIDS**

**2005 Obligations**

**Appropriation**

**% Reduction**

**Operating Level**

**Change from 2005:**

**Amount**

**Percent**

**Roadmap**

**$4,825,258**

**Total**

**Amount of Reduction**

**4,841,774**

**-1.0%**

**-48,418**

**4,793,356**

**-31,902**

**-0.7%**

**$30,505**

**43,113**

**-0.6%**

**-279**

**42,834**

**12,329**

**40.4%**

**$265,907**

**256,228**

**-1.0%**

**-2,562**

**253,666**

**-12,241**

**-4.6%**

**$4,528,846**

**4,542,433**

**-1.0%**

**-45,577**

**4,496,856**

**-31,990**

**-0.7%**

**2006**

**Notes:**
President signed bill on Dec 30th.

Attached to the Department of Defense Appropriations Bill

For NIH equal to the President’s Request

Roadmap goes down 1% overall from the conference level; but increases by 40%

## Budget Mechanisms

**  ****FY2006**

**Research Projects**

**  ****Competing**

**             ****Subtotal**

**Centers, SPOREs & Spec. Centers**

**FY2005 Actual**

**SBIR/STTR**

**$1,651,239**

**2,091,109**

**97,775**

**2,188,884**

**454,252**

**300,351**

**$1,664,664**

**2,108,969**

**95,735**

**2,204,704**

**449,168**

**293,892**

**0.8%**

**0.9%**

**-2.1%**

**0.7%**

**-1.1%**

**-2.2%**

**  ****Non-Competing**

**439,870**

**444,305**

**1.0%**

**Other Research Grants**

**        ****Total**

**Total Research Grants**

**2,943,487**

**2,947,764**

**0.1%**

**(dollars in **thousands**)**

**Notes:**
Submitted to NIH an initial mechanism allocation.

Mechanisms level could change based on operating budget decisions

RPGs is the only mech that increases.  

Noncompeting RPGS are being paid at 2.35% below the commitment of record
For competing RPGs the average cost is flat with 2005.  These are NIH policies.

Right now, number is about the same as last year (around 1300)

Again as you can see all of the other mechs go down slightly.

## Budget Mechanisms

**FY2006**

**FY2005 Actual**

**711,009**

**182,323**

**531,634**

**7,936**

**4,794,753**

**30,505**

**699,763**

**182,246**

**519,650**

**7,912**

**4,750,522**

**4,793,356**

**-1.6%**

**0.0%**

**-2.3%**

**-0.3%**

**-0.9%**

**-0.7%**

**0**

**0**

**0.0%**

**351,065**

**326,568**

**-7.0%**

**NRSA**

**R&D Contracts**

**Intramural Research**

**RMS**

**Cancer Prevention & Control**

**Construction**

**Buildings & Facilities**

**Total, NCI**

**NIH Roadmap**

**Total NCI with Roadmap**

**67,299**

**66,619**

**-1.0%**

**4,825,258**

**42,834**

**40.4%**

- (dollars in thousands)

**Notes:**
Contracts go down by 7%.  We have some flexibility here with the funding of contracts.  Can change the scope and timing.

RMS – the budget that is used to pay a lot of our taps as well as the salaries of our extramural staff and some staff in the OD is allowed to stay flat.  This again is follwing the NIH policy.

Overall, it’s a .9% reduction before Roadmap.

## FY 2006 Operating Budget 

**FY 2005 Obligations**

**$4,794,753**

**0.3%**

**Plus NIH Roadmap**

**30,505**

**FY 2005 Appropriation**

**4,825,258**

**FY 2006 Appropriation**

**4,841,774**

**Increase over 2005 Appropriation**

**16,516**

**Less Across the Board 1% Reduction**

**-**** ****48,418**

**- 0.7%**

**Subtotal Available**

**- 31,902**

**Percent**
** ****Change**

**Amount**
** ****in thousands**

**Notes:**
Now looking at how we allocate the 2006 budget...

## FY 2006 Operating Budget 

**Less:**

**-0.9%**

**Potential NIH Director’s 1% Transfer**

**?**

**Potential DHHS Secretary’s Transfer**

**?**

**Increase in NIH Roadmap Contribution**

**-12,329**

**Subtotal Available**

**-44,231**

**Taps/Assessments Increase**

**-33,000**

**- 1.6%**

**Subtotal Available**

**-77,231**

**Percent**
** ****Change**

**- 0.7%**

**Subtotal Available**

**-31,902**

**Amount**
**In thousands**

**Notes:**
We have a placeholder for potential transfers by the NIH Directory or by the HHS Secretary.  We haven’t heard of any but they could happen.

Increase in Roadmap contribution to $43 million

Increase in taps and assessments.  Hopefully, $33 million is high but we won’t know all of them until this summer.  Last year increase was about $20 million 

## FY 2006 Operating Budget 

**Subtotal Available**

**- 2.2%**

**NCI-wide Requirements:**

**Mandated Salary Increases**

**- 7,000**

**Rent/Lease/Utilities Increase**

**- $77,231**

**Research Project Grants**

**- 17,860**

**- 2.7%**

**Subtotal Available**

**-130,296**

**- 3,205**

**Subtotal Available**

**- 105,296**

**Director’s Reserve**

**- 25,000**

**Percent**
** ****Change**

**Amount**
**In thousands**

**Notes:**
We’ll set aside funds to pay the mandated salary increases and increases in rent

We have also added funds to RPGs to meet the NIH funding policies

Director’s Reserve

So what are the next steps?

## Briefing on NCI Grant Budget and Policy Issues Handy Reference Sites

**NCI Funding Policies (EFDB Site):**
** ****http://camp.nci.nih.gov/admin/oem/efdb/ **
**Levels of Authority (RPG):**
**http://camp.nci.nih.gov/admin/grants/loarpg.htm**
**NCI Best Practices Document:**
**http://best-practices.cancer.gov/funding/**

**Notes:**
Finally, here are a couple handy web sites which are available to help extramural staff find the rules and business practices which NCI has established for grant funding.