GAB Decision 010
November 6, 1975 Texas A&M University System, College Station, Texas;
Docket No. 75-2 Bernstein, Bernice; Dukes, David Mason, Malcolm
Texas A&M University System utilized $4,569 of funds from year-11 of
an Arthritis and Metabolic Diseases Institute research grant AM-06011 to
pay for part of the cost of a centrifuge purchased for $10,400 in
year-10. Purchase of the centrifuge and payment to the extent of $6,300
of year-10 funds were authorized. Appellant utilized only $1,731 of
year-10 funds and paid the balance of the $6,300 out of year-11 funds.
$4,100 was paid from appellant's funds. Year-11 however was not a
noncompetitive continuation, but a competing renewal.
Under applicable Public Health Service (PHS) Policy Statement for
Grants for Research Projects, revised July 1, 1967, in effect in both
year-10 and year-11, the use of year-11 funds for this purpose would
have been allowable had year-11 been a continuation grant, but even then
only if the items concerned were incorporated in the approved budget for
year-11 and only if, where required for restricted categories, prior
approval had been obtained. (Policy Statement p. 36) In the case of a
renewal project, however, expenditures made prior to the beginning date
of the project or renewal may not be paid for out of the grant.
The Audit Agency questioned the cost, and Financial Advisory Services
Branch, Division of Contracts and Grants, National Institutes of Health
(HIH), disallowed it. An appeal to the NIH Grant Appeals Board
sustained the Division of Contracts and Grants in a letter dated January
28, 1975. Grantee appealed to this Board February 21, 1975. NIH
Assistant Policy and Procedures Officer responded to the Appeal.
The facts are agreed to by both parties and the explicit terms of the
applicable Policy Statement are agreed to by both parties.
(2) Grantee argues that, notwithstanding its conceded failure to
comply with the applicable provisions of the NIH Policy Statements, the
violation was a technical one and should not lead to disallowance in the
light of the complete history of the long-term cooperation in this
venture and the partnership role which should exist in such a research
project. NIH responds that enforcement of the clear terms of the Policy
Statement is not an impairment of a partnership relation.
The appellant was directed to show cause why the Board should not
proceed to decision forthwith on the record already made, identifying
the respects, if any, in which the foregoing summary is materially
incomplete or inaccurate, and the reasons, if any, why the appeal should
not be rejected for violation of unambiguous terms of the Policy
Statement, accompanied by any briefing on any aspect of the case the
appellant wished to submit. In response, appellant confirmed that the
facts as presented are correct.
Appellant furnished a copy of a letter from the National Institute of
Arthritis and Metabolic Diseases authroizing purchase of the centrifuge
and payment to the extent of $6,300 of year-10 funds. No authority,
however, is shown for the use of year-11 funds for payments on account
of this purchase. The Policy Statement, for reasons which are a valid
exercise of the supervision required by good grants management, plainly
prohibits this utilization of year-11 funds.
DECISION
The appeal is denied and the action of the National Institutes of
Health is sustained.