# Presentation: 224748

## Modular vs. Non-Modular Budgets

- George A. Tucker, M.B.A
- Deputy Chief
- Grants Management Branch
- Division of Extramural Activities

## How do I choose a budget?

- How much will it cost to complete the project?
- Determine the cost of the project
- Then apply your escalations
- If the budget is less than $250,000 in any year use the modular budget
- The research grant application form PHS 398 is to be used in applying for these grants

## Modular Grant

- The Modular application and award process is not a new grant program
- Instead it is a revised application and award process for R01 and other kinds of awards
- It replaces the regular R01 application format for requests up to $250,000 direct costs per year

## Modular Grant

- The concept establishes specific modules or increments in which direct costs must be requested as well as a maximum level for requested budgets under the Modular Grant
- you will calculate the total direct costs you need over all the years, including one time costs (such as equipment) and escalation, and then divide by the number of years

## Modular Grant

- Then select the amount in modules of $25,000 closest to that dollar level
- This process is not applicable if the costs are expected to differ significantly from year to year
- In this situation, appropriate annual variations in the number of modules should be requested.

## Budget Information

- Categorical dollar information should not be provided in the application
- However, the responsibilities for the Principal Investigator and all key personnel must be specifically described.
- Use modular budget instructions on page 13 of the application

## Budget Narrative

- Provide budget narrative for ALL personnel by position, role, and level of effort
-  This includes consultants, personnel on any Consortium/Contractual arrangements and any "to be appointed" positions

## Salary Cap

- Since the modules should be a reasonable estimate of costs that are allowable, allocable, and reasonable for the proposed project, applicants must use the current salary cap when estimating the number of modules
- Funds generally should be available to cover any modest increase in the legislatively imposed salary cap with the significant rebudgeting flexibility and the ability to carry forward unobligated balances

## Consortium/Contractual Costs

- The number of modules requested must include the F&A costs associated with a consortium/contractual arrangement

## Budget Details

- Detailed budgets are not necessary at time of application
- It is left to the discretion of the applicant institution whether to one will be necessary
- It may be necessary for institutions to require certain budgetary detail from principal investigators for purposes of determining exclusions from the base when calculating facilities and administrative (indirect) costs

## Budget Details

- In addition, institutions may need to ensure that adequate resources are being requested for the proposed research activity
- However, any budgetary details required by the institution are for its internal use only and should not be submitted in the application

## Figuring it out

- Calculate total direct costs for the entire project over all years
- Subtract one time costs
- Add escalations
- Then divide by the number of years

- $195,000 year 1
- ($25,000 equipment)
- $175,000 year 2
- $180,000 year 3
- $550,000-$25,000=$535,000
- $535,000/3=$175,000 per year

## Modular Budget

**Year 1**
- $200,000 (Add one module for the increase)
- $175,000 + $25,000 (equipment)
**Year 2**
- $175,000
**Year 3**
- $175,000

## Non-Modular Grant

- Applications requesting more than $250,000 direct costs should submit budgetary detail as is the current practice, including future year escalations.

## Non-Modular Grant

- Follow all instructions in the PHS 398 form
- Submit the detailed categorical budget information on Form Pages 4 and 5 as is currently required
- None of the modular grant application instructions would apply.

## Budget Justification

- Consultants-provide names and organizational affiliations
- Whether requesting costs or not
- Provide letters confirming participation on project
- On justification page, include:
- Expected rate of compensation, travel, per diem and other related costs

## Budget Justification

- Equipment-list each item and cost
- Supplies-itemized by categories
- If $1,000 or greater
- Animal (state species and number to be used)

## Patient Care Costs

- Include projected patient accruals
- Number of days
- Estimated cost per day and costs per treatment or test

## Other Expenses

- List expenses by category and unit cost on budget page
- On justification, page provide narrative description of other expenses
- Rental leases
- Publication costs
- Service contracts
- Animal and equipment Maintenance

## Notice of Grant Award

- Legally binding Document
- Establishes period of support
- Establishes funding level
- Sets forth terms and conditions of award

## Notice of Grant Award

- NIH Contact Information
- Program Director
- Grants Management Specialist

## Questions about your award?

- Read the Notice of Grant Award (NGA)
- Contact your Research Administrator
- Contact the Program Director or Grants Specialist listed on your NGA
- E-mail NIH grants Policy helpdesk