FUTURE YEAR COMMITMENTS ON NIH GRANT AWARDS NIH GUIDE, Volume 24, Number 38, October 27, 1995 P.T. 34 Keywords: 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. INDIRECT COST DETERMINATIONS 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. INQUIRIES 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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