R&R Budget Component 

Budget Guidance 

Be sure to include all requested funding periods in the Budget Component. 

Cost-of-living adjustments (maximum of 3% per year) may be budgeted in out years (year 2, 

year 3, year 4) of a project for all current VA salaried personnel (this does not include IPAs) to 

address cost of living increases and personnel actions, and all differences in the operating 

expenses between years need to be fully justified. 

While the dollar fields allow cents to be entered, all dollar fields should be rounded to the 

nearest whole number. The table below summarizes specific guidance for budget categories. 

Table 3. Budget Category Guidance (authorized and unauthorized expenditures) 

Personnel

Physicians Salary support is not authorized for any physician (VA or other 

salaried). 

Nurses or Licensed 

Medical Professionals

Salary support is not authorized for any Title 38 nurse or licensed 

medical professional with clinical responsibilities in VA unless a 

waiver has been granted by the CRADO. If waived, salary support is 

provided for percent effort on the research project.

Increases in salary 

over years to account 

for cost of living or 

salary increases (HR 

actions)

Maximum 3% increase/year may be budgeted for all current VA 

salaried personnel.

Clerical support Clerical support may not be included as study personnel unless the 

support provided can be justified as necessary to the conduct of the 

research. 

Summer students Not authorized

Graduate students/

Tuition stipends

Not authorized

IPAs Costs for IPAs must NOT be listed under B. Other Personnel in 

Section A or B of the R&R Budget Component. These contractual 

costs are not salaries and should be identified on lines 8-10 (Other) 

of Section F. Other Direct Costs. IPAs are not authorized for 

physicians. Cost-of-living adjustments are not allowed for IPAs.

Consultant Limit of $500 per consultation and $2,500 per annum. Physicians 

may not be paid as consultants. Expenses other than professional 

fee (e.g., travel) should be listed under “All Other”. 

Equipment

Computers Computers (and IT expenditures) should not be listed in the 

“Equipment” section. 

Furniture Must be justified as necessary for the conduct of this research. 

Justification must account for disposition of previously purchased 

furniture for projects that have terminated.
Medical Equipment Must be required for the conduct of the research project and not be 

used as part of routine and customary patient care. 

Supplies

Postage Not authorized, unless special circumstances require other than 

ordinary mail.

Phone costs Special lines may be approved with justification.

Copying Not authorized

Construction Contact ORD for guidance on construction requests.

Books, journals, or 

reprints

Not authorized. However, payment for reasonable page/publication

costs for research resulting from HSR&D studies may be included 

up to $3,000.

Professional 

memberships

Not authorized

All Other Expenses

General 

Administrative 

costs

Not authorized

Access to Austin or 

PBM database

Not authorized

Contract for 

Services

Service contracts are used to obtain a deliverable/product from a 

company or an institution, e.g. service contract with the University 

of California for statistical analysis of data. You may not contract 

for clinical services or identify the individual (s) who will provide 

the service. A non-VA physician may only perform non-clinical 

work. A detailed description of the services being contracted for, 

along with the name and credentials of the person(s) who may be 

providing the services, should be included in the budget 

justification. 

IPAs IPAs provide for salary and fringe benefit reimbursements; they do 

not allow for “overhead” costs. IPAs may not be used for physicians. 

IPAs may not be used for any individual assigned the PD/PI role.

Monetary 

incentives to 

physicians 

Monetary incentives to physicians are not authorized. 

Patient Incentives Small amounts of money can be offered as a reimbursement for 

time and/or travel to participate in a study. The incentive must not, 

in and of itself, constitute an incentive and must be consistent with 

IRB and ethics policies.

Travel There are four categories of travel: 

1) Travel necessary for the conduct of research. Project related 

travel expenses must be fully explained and a cogent justification 

provided. Explain why e-mails, conference calls, or 

teleconferencing are not sufficient to accomplish the goals of the 

requested travel. Project travel needs to be requested in the budget 

using the following format: 
Project Travel Table

Traveler Status 

(VA or 

non VA)

Destination Number of 

Trips

Year of 

Trip

Estimated 

Cost

Purpose

2) Travel to Implement or Disseminate findings. This is not travel 

to present research findings at national meetings but is the travel 

necessary to conduct face-to-face meetings or conferences that will 

facilitate the adoption of the research into practice. An estimated 

budget should be listed but funds will not be disbursed until study 

results are available and dissemination/ implementation is 

warranted. Requests for release of funds need to be submitted 

through the ACOS/R&D to the assigned Scientific Program 

Manager at least 3 months prior to the project end date. A 

justification, not to exceed one page, must accompany the request 

for release of funds. Any changes to the dissemination and/or 

implementation plan described in the original proposal must be 

highlighted.

3) Travel to present research findings at professional meetings. 

HSR&D will consider requests to travel to present study findings on 

a case-by-case basis. Requests for travel funds including an 

estimate of travel expenses and a justification must be submitted to 

HSR&D at least two months in advance of the meeting.

4) Professional development travel. HSR&D will automatically 

distribute $1,200 per year to each funded PD/PI to allow 

participation of the PD/PI or project staff in scientific 

meetings/professional development activities. The maximum in 

professional development travel funds that will be distributed to a 

PD/PI is $1,200, irrespective of the number of projects awarded to 

the PD/PI. The PD/PI for Pilot Projects will not receive professional 

development travel funds. Professional development funds do not 

need to be requested in the project budget.

Information 

Technology

List all computer requests; unusual requests should be accompanied 

by a vendor quote and a strong justification. Shared network 

charges are not authorized. Planned IT expenditures need to be 

itemized using the following format:

Planned IT Expenditures Table 

Category Type Amount

Year 1

Amount

Year 2

Amount 

Year 3

Hardware Purchased

Leased

Services
Software Purchased

Leased

Services

Telecommunications Purchased

Leased

Services

IT Supplies and 

Materials

Purchased

Leased

Services

IT Personnel 

(personnel on a 2210 

Position Description)

TOTAL

Personnel (Sections A and B): Starting with the Contact PD/PI, list all personnel involved 

in the project. In the appropriate columns list their names, role in the research proposed, the 

calendar months effort each will devote to the project, and whether or not salaries are requested. 

Salaries are to include actual fringe benefits for all current VA salaried personnel and no more 

than 30% fringe benefits for all “to be determined positions” to be paid from HSR&D funds. 

Secretarial salaries are not allowed. Physicians and dentists and, in most cases, nurses may not 

receive salaries from the medical research appropriation. Physicians and dentists who are not 

licensed to practice in the United States may request salary, but they must be clearly identified 

as such in the budget justification section. PDs/PIs cannot be paid through Inter-agency 

Personnel Act (IPA) agreements. 

To request salary support for a VA employee on the Research and Related budget pages you 

must base your request on the individual’s VA salary (commensurate with their 

appointment) and the time that is spent on the project. This is also true when requesting 

salary support for an individual who has a joint appointment-only their VA salary 

(commensurate with the VA appointment) and time spent on the project factor into the request 

for salary support. It does not matter how many calendar months they work elsewhere. 

HSR&D will pay salary only for the actual time the PI or other VA paid study personnel spend on 

the project. One of the major differences between how BLR&D and HSR&D operates is that 

BLR&D will pay “up to the entire” VA Salary of a PI on a project, regardless of his/her effort 

on the project. 

1) To calculate calendar months for VA paid employees or employees with a joint 

appointment (use only VA hours worked and VA time spent on project): 
a) First, calculate the number of calendar months which will be spent on the project. Use 

the Table below to convert hours worked/work week to calendar months. Only calendar 

months should be used in Section A of a VA budget. This calculation is based on a 

standard VA 40 hour work week. Overtime and compensatory time are not factored into 

this calculation – just regular work hours. 

b) Second, calculate the “requested salary” in section A of the Research and Related budget 

page. Take “% of hours worked” from the last column in the Table above and multiply by 

the full VA salary. 

NOTE: For individuals with joint appointments, signature by the institutional official on the 

applications certifies that: 1) the individual is applying as part of a joint appointment specified 

by a formal Memorandum of Understanding between the University and VA; 2) there is no 

possibility of dual compensation for the same work; and 3) there is no possibility of an actual or 

apparent conflict of interest regarding such work. 

2) The request for calendar months effort for non-VA individuals is to quantify the non-VA 

person’s time commitment to the project. No salary should be requested in section A of the 

Research and Related budget page. For the purpose of the “Other Support” section, an 

individual with multiple appointments may have more than 12 calendar months total effort. 

However, for the budget page base the calculation of calendar months on the hours worked 

at a single (non-VA) institution. To calculate the calendar months:

a) Determine the number of hours of a regular work week at the institution, e.g. 35 hours or 

37.5 hours. Divide the number of hours worked at that institution by the number of 

hours in the work week and multiply by 12. 

For example: an individual works 20 hours a week and the normal University work week 

is 35 hours, you would divide 20/35 (0.57) and multiply by 12 to determine the calendar 

hours worked = 6.86 calendar months. 

 

Hours per 40 hour work 

week spent on the project

Calendar Months 

Effort

Percent Effort (Based on 40 hour 

work week)

1 0.3 2.5

5 1.5 12.5

10 3.0 25.0

15 4.5 37.5

20 6.0 50.0

25 7.5 62.5

30 9.0 75.0

35 10.5 87.5

40 12 100.0
b) Multiply the per cent effort spent on the project by the calendar months worked by the 

individual. 

Equipment Description (Section C): Only major equipment is included in this section. 

Major equipment is defined as an individual item of property that has an acquisition cost of 

$5,000 or more. Such equipment consists of relatively permanent, fixed assets that are essential 

to the completion of the proposed research. Expendable items and small (<$5,000) equipment 

items are to be requested as Materials and Supplies under Other Direct Costs. When feasible, 

equipment is to be purchased in the first year of the project. Only under unusual circumstances 

and if properly justified will HSR&D Service consider equipment requests in years 2–4.

Other Direct Costs (Section F): List service contracts for equipment utilized only for the 

proposed research. If the equipment is used by multiple research projects, request a 

proportionate amount of the service contract. List costs for any personnel to be paid through an 

IPA. 

Consultant Services (Section F, Line 3): A consultant may not receive more than $2,500 

per year. MD consultants may not receive salary compensation.

Budget Justification (Section K)

All items in the budget (budget categories, budget years, and performance sites) must be clearly 

justified in a single narrative and in the Summary Budget Table and attached to Section K of the 

Research and Related Budget. This is a required attachment to the application. When research is 

to be performed at multiple VA medical centers, the submitting VA is considered to be the 

primary performance site. A separate budget(s) for the additional VA medical center(s) must be 

submitted on a separate budget page(s) using the SF424 (R&R) Subaward Budget Attachment 

form. Justification of all items in the subaward(s) budget(s) must be included in the justification 

document for the primary performance site. (See example below).

Begin the justification narrative by summarizing all expenditures using the Summary Budget 

Table – this is a required attachment to the HSR&D application (in addition to the 

budget justification narrative).

An example of a properly completed Summary Budget Table can be viewed at 

http://www.hsrd.research.va.gov/funding/default.cfm under “How to Apply”. 

Personnel: Fully explain the role and calendar months effort of the PD/PI and all personnel 

listed under personnel. An investigator profile (Page 18) including the Commons ID, must be 

completed in ePromise for all personnel assigned the PD/PI role. If the PD/PI is a non-clinician 

scientist paid by the research appropriation, fully describe the basis for any difference in the 

calendar months effort for the work proposed and total VA effort (salary support). Submission 

of the application signifies facility agreement to have the non-clinician PD/PI perform the work 

described to justify salary. Physicians and dentists who are not licensed to practice in the United 
States and are requesting salary must be clearly identified as such and justified in this section. If 

the project has more than one site, identify the personnel by site, for example: 

Washington, DC Personnel

Justification narrative

Boston, MA Personnel

Justification narrative

Note: DO NOT LIST IPAs UNDER B. OTHER PERSONNEL IN SECTION A OR B.

Equipment: For each item, justification should include a discussion of why the equipment is 

needed and why similar existing equipment (if any)—whether at the applicant VAMC or in a 

nearby research space, common resource equipment, borrowed or on loan—cannot be used.

Include the cost of maintenance. Patient care equipment purchased for use in the research study 

must be equipment that is not provided in the customary care of patients. If the project has 

more than one site, identify and justify the equipment needed by site, for example: 

Washington, DC Equipment

Justification narrative

Boston, MA Equipment

Justification narrative

Travel: Travel costs for the conduct of research should be clearly justified in the budget 

justification section using the Project Travel Table format in Table 3.

Materials and Supplies: Itemize expendable supplies in separate categories. Explain how the 

costs for each category of supplies were derived (e.g., based on the PD/PI’s expense history in 

performing similar research). Small (<$5,000) equipment must be justified. If the project has 

more than one site, identify the materials and supplies needed by site, for example: 

Washington, DC Materials and Supplies

Justification narrative

Boston, MA Materials and Supplies

Justification narrative

Consultant Services: Clearly explain the expertise and involvement of each consultant with 

regard to the proposed research, the nature of the service to be provided, the number of 

consultations, and professional status (PhD, RN, etc.). If the project has more than one site, 

identify the consultants needed by site, for example: 
Washington, DC Consultants

Justification narrative

Boston, MA Consultants

Justification narrative

ADP/Computer Services: Do not include IT costs in the Merit Review Budget.

However, a separate table listing all IT items that must be purchased for the proposed research 

and their cost (per item and total) must be itemized in the Budget Justification (and budget 

summary table) attachment in “Section K. Budget Justification” of the SF424 R&R Budget 

Component using the Planned IT Expenditures Table format in Table 3. 

Other Costs: Justify the costs of any items listed under this budget category. If the project has 

more than one site, identify the other expenditures by site, for example:

 

Washington, DC Other

Justification narrative

Boston, MA Other

Justification narrative