Salaries And Expenses

In Section 408 of the PHS Act, as amended, defines administrative expenses as "expenses incurred for the support of activities relevant to the award of grants, contracts, and cooperative agreements and expenses incurred for general administration of the scientific programs and activities of the National Institutes of Health.

In collaboration with staff of the General Accounting Office (GAO), a methodology was developed to account for administrative expenses as defined in Section 408. This methodology includes obligations in the RMS budget activity (except for Program Evaluation costs) and obligations directly related to the administrative responsibilities of the Office of Scientific Director in the Intramural budget activity.

Consistent with language in the House Report on the FY 1998 appropriations bill (H. Rpt. 105-205, p. 62) the definition of administrative expenses has been further modified to exclude public health education activities.