Table of Contents

 Questions and Answers

1.  The following table provides a matrix to help explain the phase in:
   
   Applicable Policy:
   
   

   Competing Award Year	FY 2005	FY 2006	FY 2007	FY 2008	FY 2009
   ≤ FY05	OLD	OLD	OLD	OLD	OLD
   FY06	OLD	Interim	New	New	New
   ≥ FY07	OLD	OLD	New	New	New

   Budget Effect :

   Competing Award Year	FY 2005	FY 2006	FY 2007	FY 2008	FY 2009
   ≤ FY05	None	None	None	None	None
   FY06	Last T5 T/F/HI Level	Awarded at Last T5 T/F/HI Level	Recalculated T/F and TRE Levels	Awarded at FY07 T/F and TRE Levels*	Awarded at FY07 T/F and TRE Levels*
   ≥ FY07	None	None	New Policy	New Policy	New Policy

   Notes on Table: i) The Federal Fiscal Year runs October 1 - September 30. ii) ≤ Less-than-or-Equal-to. iii) ≥ Greater-than-or-Equal-to. iv) T/F/HI = Tuition/Fees/Health Insurance. v) T/F = Tuition/Fees. vi) TRE = Training Related Expenses. See NOT-OD-093 for links to Old, Interim, and New Policies.
   *No increase in future years.

   
   




2. Who do I contact for questions about my specific application or grant?

   Answer: The new policy will affect individual grants differently, depending on the fiscal year of the initial award. Therefore, applicants and grantees are strongly encouraged to contact the NIH staff persons named in the most recent Notice of Award or an appropriate staff person in the NIH awarding Institute or Center for proper guidance. Programmatic questions (MS Word - 139 KB)should be directed to the training Program staff at an appropriate Institute or Center. Budgetary questions should be directed to the Grants Management Office of the awarding Institute or Center.

   
   




3. What mechanisms are affected by this new policy?

   Answer: The new policy applies to all National Research Service Award (NRSA) institutional research training grants (T32, T34, T35, T36, and the NRSA component of T90 and U54), individual NRSA fellowships (F30, F31, F32, F33, and F34), and all other grant mechanisms that utilize NRSA authority.
   
   




4. What mechanisms are NOT affected by this new policy?

   Answer: All other training mechanisms that do not use NRSA authority. These include the following fellowships: F05, F37, and F38. They also include the following training grant mechanisms: TU2, T01, T09, T14, T15, and T37. However, most non-NRSA fellowship and training grants use the NRSA regulations. Applicants should contact the appropriate NIH staff identified in Answer #2 for further instructions.

   
   
   




5. When exactly is the new policy effective? Which Fiscal Year (FY)?
   
   Answer: The new policy applies to competing individual fellowships F30, F31, F32, F33, and F34 awarded beginning in FY 2007. It also applies to new and competing-continuation (renewal) T32, T34, T35, T36, and the NRSA component of T90 and U54 awarded beginning in FY 2007. In addition, the new policy applies to non-competing continuation years of T32, T34, T35, T36, and the NRSA component of T90, and U54 grants that received competing awards in FY 2006. For this cohort, the FY2007 non-competing awards will be issued recalculating budget categories to reflect this new policy based on the requested amount for tuition/fees in the FY 2006 competing application.








6. Explain what fiscal year means. Our institution’s fiscal year is different, starting July 1. What are the NIH fiscal year dates?
   

   Answer: The Federal Government's fiscal year (FY) begins on October 1. So, FY 2007 is from October 1, 2006 through September 30, 2007. All applications that will be awarded during this period are considered to be FY 2007 awards. For example, an award made on July 1, 2007 (Budget start date: 7/1/2007 – Budget end date: 6/30/2008 ) is considered to be an FY 2007 award.
   
   
   





7. What does competing vs. non-competing mean as those terms relate to this policy?
   

   Answer: Most NIH training and fellowship applications request support for multiple years. An application is considered to be competing any time it is initially submitted for peer review. This includes first-time (Type 1, new), revised (Type 1, amended), and competing continuation (Type 2, competing renewal) applications. An application is considered to be non-competing when it is submitted as part of the progress report (Type 5) during the subsequent approved years which are not subject to peer review.
   
   
   





8. Will there be adjustments to my FY 2006 T32 award budget since the tuition, fees, and health insurance was based on the FY 2001 award level which continued through the FY 2005 budget period?
   

   Answer: No. Budgets of competing awards issued in FY 2006 will not be changed. They will be adjusted for FY 2007 and subsequent years, only. Non-competing continuations (Type 5) of a T32 award that started in FY 2005 or earlier (i.e., FY 2001, FY 2002, FY 2003, and FY2004) will continue to receive tuition, fees, and health insurance costs in accordance with the previous (“old”) formula (100% of costs up to $3,000 + 60% of costs above $3,000) for the remainder of the award's project period.

   
   
   





9. In relation to question #8, how does the adjustment impact on my non-competing continuation T32 award that is to be from FY 2007 funds?
   

   Answer: It depends on the fiscal year of the initial award. Non-competing continuation of a T32 award that started (i.e., was a competing award) in FY 2005 or earlier will continue to receive tuition, fees, and health insurance costs in accordance with the previous formula. Non-competing continuation of a T32 award that started in FY 2006 and after, will now receive tuition, fees, and health insurance costs in accordance with the new formula: Tuition and Fees (excluding health insurance) and Training Related Expenses (including health insurance).
   
   
   





10. How does the applicant calculate the formula for application submission?
    
    

    Answer: The applicant should not calculate costs of tuition, fees, or health insurance at the time of application submission. The applicant should request full costs of tuition, fees, and health insurance if applicable. There is no need to request health insurance under the new policy. The NIH contribution to health insurance is built into the lump sum award for Training Related Expenses. The grants management specialists at the awarding Institute or Center will calculate the budget according to the appropriate formula in effect at the time of award.

    
    





11.  Who will make adjustments for the remainder of my current project period? My last competing continuation Type 2 (competing renewal) award was from FY 2006 funds?
    

    Answer: As explained above, the applicant should not calculate costs of tuition, fees, or health insurance when submitting a non-competing continuation application. The applicant should request full costs of tuition, fees, and health insurance (under appropriate budget categories). The grants management specialists at the awarding Institute or Center will calculate the budget according to the appropriate formula in effect at the time of non-competing award.

    
    





12. What are the fees that are allowed in the tuition/fees category?
    

    Answer: Fees are determined by the sponsoring institution, and could include, for example, such expenses as laboratory, seminar, computer and other fees that are consistently charged to all individuals in a similar status regardless of the source of funds.
    
    
    





13. Will the instructions and budget pages of the PHS 398 and PHS 2590 and the PHS 416-1 checklist be changed for this new policy?
    

    Answer: Yes, the instructions and budget pages of the PHS 398 and PHS 2590 and the PHS 416-1 checklist are being modified to reflect the new policy. These revisions will be available shortly. It is important to keep in mind that the changes resulting from the new policy will NOT apply to non-competing continuations when the competing award was issued with FY 2005, or earlier, funds.
    
    
    





14. My T32 award started in FY 2005; does that mean we must keep the same tuition and Training related costs as when the grant started?
    

    Answer: Yes. Non-competing continuations of T32 awards that started in FY 2005 or earlier will continue to receive Tuition, Fees, and Health Insurance costs, and Training Related Expenses at the rates set in the FY 2005 Notice of Award and calculated at that time in accordance with the old policy.
    
    





15. Should a grantee request actual tuition and fees in the non-competing years for FY 2008 and beyond since tuition costs increase each year?
    

    Answer: While the grantee can request actual needs, grantees should be aware that awards will likely be made at the committed tuition level, unless actual is less. The formula used at the time of the competitive award calculation provides no increase in future years.

    
    
    




16. Did the rebudgeting authority really change? Or, only where the health insurance funds are now budgeted?

    Answer: No, the rebudgeting authority did not change (see: NIH Grants Policy Statement). Under the new policy: (1) Rebudgeting of funds awarded in a lump sum for Training Related Expenses (including health insurance) does not require NIH awarding office prior approval; (2) Funds awarded in the stipends or tuition and fees (excluding health insurance) categories may not be used for other purposes except under unusual circumstances and then only with the prior approval of the NIH awarding office. Unless otherwise restricted, rebudgeting into or within the stipends and tuition and fees (excluding health insurance) categories is allowable without prior approval of the NIH awarding office; and (3) Trainee travel is not considered a trainee cost and, therefore, may be rebudgeted into any other budget category without prior approval of the NIH awarding office.
    
    




17. If I have an unused stipend, can I use the money awarded for the stipend and the attendant tuition to pay for the health insurance since the funds allowed in the award was not enough for the health insurance?

    Answer: No. Funds awarded in the stipends or tuition and fees (excluding health insurance) categories may not be used for other purposes except under unusual circumstances and then only with the prior approval of the NIH awarding office. Therefore, funds from the stipend or tuition and fees categories may not be used to provide additional funding for health insurance, unless prior approval is given by the NIH awarding component.
    
    
    




18. What kinds of health insurance will NIH pay for? Can I find my own, and how do I let the NIH know how much it costs? Will I get reimbursed if I pay for it?
    

    Answer: The NIH does not set health insurance policy for awardee institutions. The NIH provides funds to offset a portion of the costs associated with health insurance (either self-only or family as appropriate) at the rate in place at the time of the award. Health insurance costs are allowable only if they are applied consistently to all persons in a similar research training status at the institution regardless of the source of support. Individuals should seek advice from the grantee institution regarding institutional policies and procedures.

    
    





19. Since health insurance is directly tied to the trainee/fellow (the same as the stipend and tuition), can dollars remaining in the Training Related Expenses category at the end of a budget period be considered as “unliquidated obligations” on the FSR?
    

    Answer: Under the new policy, health insurance costs awarded by NIH are no longer directly linked to the trainee/fellow stipend and tuition, but rather are awarded as part of the lump sum Training Related Expenses. Health insurance costs incurred by the institution, but not yet paid or recorded, can be treated as an unliquidated obligation on the Financial Status Report (FSR).
    
    
    





20. The new Policy Notice indicates that aspects of this policy will be evaluated for determining a final policy for competing awards in FY 2011. As a Program Director, should I be keeping any kind of data for a later request from NIH?
    

    Answer: As explained in the Policy Notice, NIH intends to evaluate the use of the rebudgeting option along with other aspects of this policy following the pilot period, using information obtained from progress reports submitted in FY2008 & FY2009. Training Program Directors are required to report information about any rebudgeting of funds from the stipends category into the tuition and fees category. Grantees will also be requested to provide information on plans for any rebudgeting during the subsequent budget periods. In addition, applicants are requested to itemize the costs of tuition, fees, and health insurance, with additional explanation in the budget justification information. Although the Notice of Award provides funds in a “lump sum” under each of the budget categories, the itemization of full actual costs of tuition, fees, and health insurance will allow NIH to use more accurate cost figures for these expenses.

    
    





21. What should I do if I am submitting a competing application for FY 2007 before the new FY 2007 Stipend Levels are announced?
    

    Answer: Use FY 2006 Stipend Levels for applications submitted until the new stipend policy is announced. See NOT-OD-093 for new policies on tuition/fees, trainee travel, and trainee related expenses (including health insurance) that are to be used when submitting applications for FY 2007. Awarding components of NIH will make appropriate stipend adjustments at the time of award.

    
    





22. What tuition/fees base will be used to adjust the FY 2007 and future year non-competing awards for competing awards issued in FY 2006?
    

    Answer: Non-competing FY 2007 awards for training grants that received competing awards in FY 2006 will be made using the new policy as applied to the Tuition/Fees REQUESTED in the FY 2006 application.
    
    
    





23. On what base are the F&A costs calculated? There will be minor equipment necessary; do I need to show that on the budget page anywhere?
    

    Answer: It depends on the award mechanism and the fiscal year of the initial award. For non-competing awards with initial funding in FY2005 or earlier. F&A costs will be calculated in accordance with the formula (8%, excluding tuition/fees/health insurance, equipment, and subgrants and contracts in excess of $25,000). For new awards made in FY2007, and non-competing awards with initial funding in FY2006, F&A costs will be calculated in accordance with the new formula (8%, excluding tuition/fees, equipment, and sub-grants and contracts in excess of $25,000). Equipment should be requested and identified under the Training Related Expenses Category, but only for training grants where the Training Related Expenses are not calculated and awarded on a lump-sum basis (such as the T34 grant programs).
    
    
    
    





24. I have a grant with a subcontract. Does the F&A rate base include or exclude the contract amount when it exceeds $25,000?
    

    Answer: The F&A cost policy did not change. F&A costs for all research training awards will be budgeted and reimbursed at 8% of modified total direct costs, exclusive of tuition and fees, expenditures for equipment and subgrants and contracts in excess of $25,000.
    
    
    
    





25. Where on the budget form should F&A costs be included?
    

    Answer: F&A costs are not included in the budget page. F&A costs are included on the checklist page: http://grants.nih.gov/grants/funding/phs398/checklist.doc (MS Word - 82 KB)

    
    
    

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