Modular Budget Instructions

The PHS 398 grant application forms which include the modular budget forms are available here.

For additional information about modular grants, please refer to the NIH Website here.

Applications that do not comply with the specifications for type size, page limits, or margins will be returned to the investigator by NIH without review. Returned applications cannot be submitted in a corrected version until the next receipt cycle.

• Modular Grant Application and Award procedures apply to all competing individual research project grants (R01), small grants (R03), exploratory/ developmental grants (R21), small business technology transfer grants (R41), and small business innovation research grants (R43) with total direct costs averaging up to $250,000 per year.
  
  

• Applicants request direct costs in $25,000 modules, up to 10 modules per year.
  
  

• Applicants requesting direct costs greater than $250,000 in any year must use the traditional PHS 398 application.
  
  

• Modular applications and awards do not itemize direct costs categories. However, NIH policy and federally mandated cost accounting standards require that institutions estimate, allocate, and account for costs related to awards. Thus a complete, itemized budget for the initial year and the total project period (Form Pages 4 and 5) must be submitted to SPA with the modular application.

The following guidelines are provided to assist you in developing the modular budget.

Preparation of the modular budget is a two-stage process:

• First, use the PHS398 (rev. 9/2004) Form Page 4 (detailed budget for initial budget period) (MS Word or PDF)and Form Page 5 (budget for the entire proposed period of support) (MS Word or PDF) to develop the budget and for post award cost accounting procedures.
  
  

• Second, using the detailed budgets, prepare the "Modular Application Budget Justification Page." (MS Word or PDF)

I. Developing the budget using the PHS 398 Initial Year (MS Word or PDF) and Total Project (MS Word or PDF) pages.

Samples are located at:

• Without Consortium:
  
  

  • Detailed Budget for Initial Budget Period

  • Budget Justification
    
    
    

• With Consortium:
  
  

  • Detailed Budget for Initial Budget Period

  • Budget Justification Pages

Available on the SPA website are Excel sheets with built in salary cap and fringe benefit information for preparing budgets. These can be found here.

PERSONNEL/SALARIES AND FRINGE BENEFITS

On Form Page 4, list name, role on project, percent effort, institutional base salary, requested salary, and fringe benefits.

In determining the salaries for each year, take into account the following:

• The NIH salary cap is $191,300. For budgeting purposes in new NIH grant applications, we suggest that the new salary level be used.
  
  

• Requested salaries and wages should be commensurate with the proposed level of effort as defined in the Institutional Policy on Cost Sharing.
  
  

• Budget salaries according to the proposed start date of the project.
  
  

• The salary level for Sackler students is $25,000.
  
  

• Salaries and wages should be increased by 3% for each succeeding budget period until further notice.
  
  

• The rate is currently 32%, effective 09/01/2007. For budgeting purposes use the fringe benefit rate of 32% for proposals with a start date of 09/01/2007 or later.
  
  

CONSULTANT COSTS

• Provide names and organizational affiliations, whether or not costs are requested. Describe services to be performed in Budget Justification section. Include the number of days of anticipated consultation, rate of consultation, rate of compensation, travel, per diem, and other related costs.

EQUIPMENT

• This category should include only those items of equipment having a useful life of more than one year and an acquisition cost of $3000 or more per unit. All other items should be included in the "supplies" or "other" category. Identify equipment purchases in each year.
  
  

• Equipment costs are excluded from the total direct cost base used to calculate the F&A costs.

SUPPLIES and OTHER EXPENSES

• Identify general categories (molecular biology supplies, histology supplies, immunology, animal purchase and care, etc.)
  
  

• Be sure to budget for all allowed expenses including toll calls, service contracts, publication costs, etc.
  
  

• A schedule for lab animal purchase and care costs is available in the SPA Application Kit.

PATIENT CARE COSTS

• Note that Patient Care Costs are excluded from the direct cost base used to calculate the Facilities and Administrations (F&A) costs. Patient is defined as a human subject who is enrolled in a research protocol. Determine number of patient days, estimated costs per day, and costs per treatment or test. If both inpatient and outpatient costs are requested, provide information for each separately, and provide information at other sites if applicable.
  
  

• The following allowable costs are not classified as patient care costs, but should be included in the “Other Expenses” category of the budget: items for personal expense reimbursement, such as patient travel; consulting physician fees; or any other direct payments to patients, including inpatients, outpatients, subjects, volunteers, and donors.
  
  

• For continuation years, increase costs by 3%.

TRAVEL

• Identify possible meetings, individual(s) traveling, and estimated costs.

CONSORTIUM/CONTRACTUAL COSTS

• Consortium applications should have a separate budget page for each cooperating institution. Each budget year should include both the direct and F&A costs. For foreign and international consortia NIH will provide F&A costs of up to 8% of the total direct costs, less equipment. The funds are to support the costs of compliance with DHHS and NIH requirements. The first $25,000 of each consortium is included in the NYUSM F&A cost base. These costs are included in the base one time only.
  
  

• For each collaborating institution an equivalent of our “Cooperating Institution Consortium Statement” must be signed by the authorized Institutional Official. The consortium statement, application, budget, and budget justification must be submitted to SPA along with the NYUSM application.
  
  

• For a more detailed description of the above costs, see the SPA guidelines for "Budget Preparation for NIH PHS 398 Applications and other Sponsored Program Applications.

II. Modular Application

Once the PHS398 Form Page 4 and 5 are completed, the modular direct costs for each year are calculated.

• In general, the same number of modules is requested in each year.
  
  

• The number of modules requested can vary from year to year, but must be well-justified (e.g. major purchase of equipment in one year).
  
  

• In the modular procedure, there are no routine increases for future years. Salary and inflationary increases, therefore, must be built into modules.

CALCULATING DIRECT COSTS PER YEAR

Samples are available at:

• Without Consortium:
  

  • Detailed Budget for Initial Budget Period

  • Budget Justification
    
    

• With Consortium:
  

  • Detailed Budget for Initial Budget Period

  • Budget Justification Pages

To determine the modular direct costs for each budget year:

1. First calculate the total direct costs of the entire proposed period of support (Form Page 5) (MS Word or PDF).
   
   

2. Exclude any one time only expense(s) (e.g. large equipment purchase in one year).
   
   

3. Take an average to determine the direct cost budget for each year.
   
   

4. Add back the one time expense(s) to the appropriate year(s).
   
   

5. Round off each year to the closest $25,000 module.

Due to averaging total direct costs over the entire project period, funds requested likely will be greater than actual costs in the earlier years and lower in the later years. Therefore, plan for carryover of funds from the first year or two towards the later years.

BUDGET JUSTIFICATION PAGE

Samples are available at:

• Without Consortium: Budget Justification
  
  

• With Consortium: Budget Justification Pages

Do not submit Form Page 4 and 5 to the NIH. Submit the new Modular Budget Format Page.

• Provide total direct costs for the entire project period
  
  

• In table format, provide total direct costs for each year, in multiples of $25,000 modules.
  
  

• Budget justification narrative includes:
  

  1. Description of personnel by position, role, and level of effort.
     
     

  2. Reasons for difference in number of modules in any year.
     
     

  3. Consortium/contractual costs: Total cost estimate for any consortium/contractual arrangements. These costs equal direct plus F&A costs, rounded off to the nearest $1,000. Identify organization, list and describe roles of key personnel, indicate whether collaborating institution is domestic or foreign.

Other Form Pages

Biosketch

• Forms: (rev. 9/2004)
  

  • Sample, .MS Word, .PDF
    
    

• The biosketch is limited to four pages (rev. 9/2004 forms).
  
  

• Up to 2 pages may be used for “Positions and Honors” and “Selected Peer-Reviewed Publications”.
  
  

• The remaining 2 pages can be used for listing "Research Projects Ongoing or Completed During the Last Three Years."
  
  

• Information on these projects should list specific aims, overall goals, and responsibilities for non-Federal as well as any Federal support. Submit biosketches for all key personnel, including consultants.

Other Support: Do Not Submit

• Other research support information will not be submitted until just prior to award.

Resources

• Provide description of facilities and major equipment. Use the Resources Format Page for guidance.

Checklist

• Forms: .PDF, .RTF
  
  

• Facilities and Administration Costs for each year must be provided.
  
  

• The NYUSM negotiated federal F&A rate has been changed. The new DHHS agreement is dated 06/12/2006.
  
  

• Please use the following rate: 69.0 % MTDC
  
  

• The rate is based on modified total direct costs (MTDC) and excludes equipment, alterations and renovations, patient care costs, student aid, stipends, tuition, dependency allowances and all consortium costs beyond $25,000 per consortium.
  
  

• When calculating NYUSM F&A costs, only the first $25,000 of each consortium is included in the F&A cost base. These costs are included in the base one time only. A “Cooperating Institution Consortium Statement” signed by the authorized Institutional Official is required for each project, and must be submitted with the application at the time of review.

Face Page

See face page template for NYUSM information. Enter in boxes 7 and 8 requested cost information.

• Forms: .PDF, .RTF
  
  

• The information is calculated as follows:
  

  • Box 7a: Direct Costs for Initial Budget Period.
    This number comes from the Modular budget justification page, initial budget period.
    
    

  • Box 7b: Total Costs for Initial Budget Period.
    This number is the sum of 7a plus F & A cost (Checklist item 3a) for initial budget period.
    
    

  • Box 8a: Direct Costs for Proposed Period of Support.
    This number comes from the Modular budget justification page, Total Direct Costs for Entire Proposed Period of Support.
    
    

  • Box 8b: Total Costs for Proposed Period of Support.
    This number is the sum of 8a plus F & A costs for all years. The F & A costs for all years are calculated on the Checklist (items 3a and 3b).

If the application is targeted to a specific NIH institute, please contact that institute directly for updates and supplemental guidelines.