National Institutes of Health Modular Grants Proposal Preparation and Award Administration

1. National Institutes of Health Modular Grants Proposal Preparation and Award Administration Presented by UCLA’s Office of Sponsored Research Linda White, Grant Analyst Nancy Daneau, Contract and Grant Officer

2. Rationale for Modular Grants • Peer review team to focus on scientific merit of applications rather than administrative aspects (budget, management of funds, etc.) • Reduce certain aspects of proposal preparation and submission to just in time (JIT)--once decision to make an award has been made • Reduce length of “receipt to award” cycle from 10 months to 6 months • Streamlined modular process under 3-year evaluation • Year 1 open for public comment • Years 2&3 to undergo extensive evaluation

3. Applicable to: • R01, Research project grant applications • R03, Small grants • R15, Academic Research Enhancement Awards • R21, Exploratory/Developmental grants • R41, Small Business Innovation Research Grants-Phase I • R43, Small Business Technology Transfer Grants-Phase I

4. Defining Characteristics of Modular Grants • Effective with 6/1/99 submission deadline • For solicited and unsolicited (investigator-initiated) grant proposals to NIH Institutes where direct costs for project do not exceed $250,000 annually • Direct costs requested in modules of $25,000 each (excluding facilities and administrative costs (F&A) or indirect costs)

5. Rules for Modular Grants • No more than 10 modules in a year • Total direct cost request may not exceed $250,000 in any single year of the proposal • If direct cost request per year exceeds $250,000, use traditional PHS 398 application process • Agency for Health Care Policy and Research (AHCPR) not currently utilizing modular grants procedures

6. Module Calculation • To calculate modules: • Take the total direct costs over the life of the project and divide by the number of years requested to determine average direct cost per year • Take the average direct cost each budget year and divide by $25,000 to determine the number of modules to be requested • Always round upward to the next even module of $25,000

7. Module Calculation • To calculate modules: • Annual escalation of costs (salary increases, merit, incentive, promotion, etc.) must be included in initial budget calculations for each year so that overall modular totals will be accurate • Request the same number of modules each year (unless major equipment to be purchased, patient care costs not requested in first or last year, etc.) • Remember, if the same number of modules in each year are not requested, NIH requires additional justification for the difference

8. Pre-Award, Proposal Preparation • Face Page • Items 7a and 8a completed in modular format (increments of $25,000) • Items 7b and 8b add appropriate facilities and administrative (indirect) costs to the modules of direct costs requested • Abstract: No change • Table of Contents: No change • Research Plan, Proposal Narrative: No change • Budget Preparation: Omit forms DD and EE (use modular grant budget justification on continuation page instead)

9. Pre-Award, Proposal PreparationCalculating the Budget • Direct Cost Line Items • Salaries and Benefits (Personnel Costs) • No key personnel shown at 0% time and effort • Apply applicable NIH salary cap • Include merit, cost of living, promotion increases • Calculate fringe benefits in accordance with UCLA’s published rates or individual’s actual rates, if known • Consultants • Consider rate of remuneration, travel, per diem, and other related costs

10. Pre-Award, Proposal PreparationCalculating the Budget • Direct Cost Line Items • Equipment • Any items costing $1,500 or more per unit with a useful life of at least one year • Supplies • Include any items under $1,500 per unit (or items greater than $1,500 with under 1 year useful life) • Travel • Consider number of individuals traveling, destination (airfare), hotel, per diem

11. Pre-Award, Proposal PreparationCalculating the Budget • Direct Cost Line Items • Patient Care Costs • Consider costs covered by research patient care rate agreement (if using hospital or clinic with DHHS negotiated rates) • Alterations and Renovations • Other Expenses • Contractual Costs: Subcontracts • Subcontracts not awarded in $25,000 modules • Round each budget year to the nearest $1,000 (*including F&A/indirect costs*)

12. Pre-Award, Proposal PreparationCalculating the Budget • Direct Cost Line Items • Subcontracts • Request an itemized budget and justification • Obtain a letter of intent to establish a collaborative/consortium agreement (to be submitted to NIH sponsor with UCLA’s proposal application) • Include in UCLA modular grant budget justification name of subcontractor organization, percent of effort for key personnel, role on the project, estimate of total costs (direct + F&A) • Indicate whether the subcontractor institution is domestic or foreign

13. Pre-Award, Proposal PreparationCalculating the Budget • Include Facilities and Administrative (Indirect) Cost Rates effective for UCLA per the current DHHS negotiated rate agreement: • Current F&A rates with explanatory information is posted on the UCLA Office of Sponsored Research web site at: http://www.research.ucla.edu/sr2/idcinfo.htm

14. Pre-Award, Proposal PreparationCalculating the Budget • UCLA’s F&A Base: Modified Total Direct Costs (MTDC) • Excluded from facilities and administrative (indirect) cost calculation at UCLA: • Equipment (defined as items costing $1,500 per unit with at least one-year useful life) • Alterations and Renovations • Patient Care Costs • Tuition Remission • Space Rental Costs

15. Pre-Award, Proposal PreparationCalculating the Budget • Excluded from facilities and administrative (indirect) cost calculation at UCLA: • Scholarships and Fellowships • Portion of any subcontract in excess of $25,000 (i.e., F&A calculated on first $25,000 of each subcontract only, regardless of the period covered by the subcontract) • Full amount of any funds to be allocated to any other UC campus via multi-campus agreement

16. Pre-Award, Proposal Preparation • Budget Justification • Include name, title, and percent of effort for each key personnel assigned to project (not required to include salary rates) • Distinguish between 9 month/12 month, academic vs. summer support requested • Describe subcontract(s) planned (name of organization, key personnel identified, role on project, time and effort allocation, total costs per year and sum total (direct + F&A) rounded to the nearest $1,000 • Justify uneven module requests

17. Pre-Award, Proposal Preparation • Biographical Sketch • 3 pages allowed with modular submission vs. 2 page allowance for traditional applications • Include studies conducted during past three years relevant to current proposed research • List select peer-reviewed publications with full citations • Other Support Page (Form GG): Omit

18. Pre-Award, Proposal Preparation • Resources: No change • Checklist Page • Show Modified Total Direct Cost (MTDC) base and appropriate F&A (indirect) cost rate applied for each year • Grand total calculation • PI/Personnel Data: No change

19. Follow-up to Proposal Submission and Peer Review Process • Sponsor may request detailed budget and/or additional justification if deemed necessary • Adjustments in modules or duration of study may be negotiated • Other support pages will be required JIT and prior to award

20. Modular Nuts and Bolts • Omits forms DD (initial budget period request), EE (entire period of support request), and GG (other support page). These forms not required with modular grant submissions • Reduces amount of information required in budget justification • No detailed budget required to be submitted to UCLA’s OSR with modular grant applications • Awards made without direct cost categorical breakdowns • Notice of Grant Award (NOGA) states budget allocation in two segments: Direct and F&A (Indirect)

21. Post-Award • Burden for administrative oversight and proper expenditure of funds left to UCLA and each project’s Principal Investigator(s) • PI’s and departmental staff solely responsible for ensuring that sufficient funds are requested and that indirect cost calculations are accurate • Department will initiate Transfer of Funds (TOF) to allocate funds to line items based on expenditures • No additional project funding available to cover errors or omissions • Request for prior approval of significant rebudgeting (budget movement in excess of 25%) eliminated

22. Post-Award • Carryover automatic; however, remember that any carryover in excess of 25% must be explained on non-competing continuation applications • Expenditures must be allowable, allocable, reasonable, and consistently applied (NIH Grants Policy Statement, Cost Accounting Standards (CAS), OMB Circular A-21) • Modulars are eligible for administrative supplements (requests to be submitted utilizing traditional PHS398 instructions) • Only final financial status reports (SF269) required

23. Compliance • Institutions monitored by administrative and financial systems along with business practices • Costs monitored on rate of expenditure (draw down) in relation to: • proposed scope of work • completion of scientific aims

24. Web Sites for Assistance • NIH Modular Grants Website: http://www.nih.gov/grants/funding/modular/modular.htm • UCLA’s Office of Sponsored Research Website: NIH Modular Grants at UCLA:http://www.research.ucla.edu/sr2/ModAdmin.htmPHS Forms -- UCLA Links:http://www.research.ucla.edu/sr2/PHSForm.htmOSR Staff:http://www.research.ucla.edu/SRassn.htm

25. Samples • Budget calculations and justification • Biographical sketch • Face Page and Checklist Page