This document provides guidelines for young and emerging researchers applying for NIH and MRC grants. It discusses the main types of NIH grant funding, including R01, R03 and R21 grants. It emphasizes that reviewers evaluate the scientific merit and budget separately. The budget structure, common expenses, and exchange rate considerations for international applicants are also outlined. Closeout procedures like submitting final reports are described. Tips include using a conservative exchange rate and budgeting approach for international grants.

1. Dollars and Rands: Budget
Planning pre- and post-award
The 10 most important guidelines with
regards to NIH and MRC Grants, aimed
at Young and Emerging Researchers

2. 1. Types of NIH Grant Funding
The following groupings represent the main types
of grant funding the NIH provide:
• Research Grants (R series)
• Career Development Awards (K series)
• Research Training and Fellowships (T & F series)
• Program Project/Center Grants (P series)
• Resource Grants (various series)
• Trans-NIH Programs
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3. • NIH Research Project Grant Program (R01)
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Basic Research Grant
Used to support a discrete, specified, circumscribed research project
NIH's most commonly used grant program
No specific dollar limit unless specified in FOA
Advance permission required for $500K or more (direct costs) in any year
Generally awarded for 3 -5 years
All ICs utilize
See parent FOA: PA-13-302
NIH Small Grant Program (R03)
– Small Research Grant
– Provides limited funding for a short period of time to support a variety of types of
projects, including: pilot or feasibility studies, collection of preliminary data,
secondary analysis of existing data, small, self-contained research projects,
development of new research technology, etc.
– Limited to two years of funding
– Direct costs generally up to $50,000 per year
– Not renewable
– Utilized by more than half of the NIH ICs
– See parent FOA: PA-13-304

4. •
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NIH Exploratory/Developmental Research Grant Award (R21)
– Encourages new, exploratory and developmental research projects by providing
support for the early stages of project development. Sometimes used for pilot and
feasibility studies.
– Limited to up to two years of funding
– Combined budget for direct costs for the two year project period usually may not
exceed $275,000.
– No preliminary data is generally required
– Most ICs utilize
– See parent FOA: PA-13-303

5. 2. Budgets and the Review process
One of the important points is in the review
process - reviewers are evaluating the scientific
and technical merit of the application, scoring the
application, and only after the application is
scored, do they turn their attention to the budget.
Reviewers and program officials use the budget by
essentially evaluating it in the context of a research
plan that’s been proposed by the investigator and
assessing whether the cost items proposed and the
total amount of the budget aligns with the scientific
scope of the project that’s being proposed.
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6. If the review group do recommend budget adjustments, it’s
usually on the basis of one of a few things:
• that either there wasn’t sufficient justification in the budget
justification for the type of science that’s proposed;
• in the future year projected costs there isn’t adequate
explanation of variations in the cost, or
• if they do recommend a reduction in the dollar amount or
length of time it could be because they feel that the research
can be completed at those lower levels.
After review, the institute and center program and grants
management staff also scrutinize budgets very carefully and, in
the context of their own allocations, may determine that further
budget cuts are necessary. They’ll also be looking closely at any
scientific or budgetary overlap that may be apparent and try to
resolve those. It’s possible that budget cuts may be made to
address those issues.
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7. 3. Budget Structure
Budget Category
Comments
Salaries and Wages
Between 50% and 70% of total application.
Base Salary = Total Cost to Company
Fringe Benefits = 0%
Salary Requested = Cal. Months x Base Salary
RFA, could stipulate minimum or maximum levels of effort, or even type of
personnel
Consultants Services
May provide advice, but should not be making decisions for the direction of the
research
Equipment
Defined as items or property that are over $5,000 in cost and with an
expected life of over a year
Supplies
Travel Costs
Between 22%
and 42% of
total
application!
Guide: $15,000 to $20,000 per person on the project
Fully justified per category, e.g. Stationery & Printing; Laboratory Supplies, etc.
Make use, as far as possible, of US Flag Carriers
Cover travel costs for attending directly related meeting, conferences and
workshop to this specific application/research
Other Costs
Publication costs, Communication (Tel/Fax/Internet)
Consortium/Contractual Cost
Total Costs, include a copy of detail budget and budget justification
Total Direct Costs
Federal F&A Costs
Total Costs
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8% for all Foreign Institutions
F&A Base = Total Direct Costs Less Equipment

8. 4. Budgeting Pit falls to Avoid
Rand:Dollar Exchange Rate
R01 Grants: Rule of Thumb - Use an 5 year average rate, i.e.
R8,2222:$1 and not the current prevailing rate of R10.2:$1. Using the
prevailing rate can and will result in the project being under funded if
the Rand appreciates below the R10.2 mark.
E.g. Total Rand required for Project R100,000 converted to $s at R10.2
= $9,804. If awarded at this Budget rate (R10.2) and the rand
appreciates to R9, this will result in a loss of R11,764 ($9,804 x R9 =
R88,236). Awarded at $9,804, claim (via PMS at a future rate of R9,
means that you can only claim a reimbursement for expenditure
incurred to a max of R88,236.
If you used the 5 year average rate of R8.2, your award would have
been $12,195. If awarded at this Budget rate (R8.2) and the rand
appreciates to R9, this will result in a surplus/additional rands of
R9,756 ($12,195 x R9 = R109,756). Awarded at $12,195, claim (via
PMS at a future rate of R9, means that you can only claim a
reimbursement of expenditure incurred to a max of R109,756.
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9. Rand:Dollar Exchange Rate
NIH Policy: Expenses are converted to $ on the day you
prepare the claim for the drawdown on PMS.
R03 & R21 Grants: Rule of Thumb - Use a 3 to 4 year Average rate, (max 2 year
award).
Using a conservative (x year average rate) means that your Rand Budget is smaller, but
that you will be able to complete the study within budget, because you have already
trimmed your budget in the proposal stage to the minimum and know that it is
sufficient to conduct the research.
All NIH RFA’s stipulate a 0% inflation or max of 3%, the only
way to fund inflation is by using a conservative exchange
rate to set your Budget/Contract Rate.
Your institution will have it’s own internal policies on the appropriate
rates to use, consult your Finance Manager.
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10. 5. Grant Award Basics
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11. Read the Notice of Award
• Terms of Award – Section III
– 45 CFR Part 74 or 92 - HHS rules and requirements
that govern the administration of grants
– NIH Grants Policy Statement (GPS) – policy
requirements that serve as the terms and conditions
of NIH awards (latest version 10/01/13)
– Program legislation
– Appropriation acts
– Program regulations
42 CFR Part 52 - Grants for Research Projects
• Special Terms and Conditions – Section IV
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12. Award Restrictions
(Section IV)
• Only applied to a particular grant for cause
• Shown on the Notice of Award (NoA) after Section III –
Institute and/or Center specific terms of award
• Funds usually are not restricted in the Payment Management
System
• Restricted funds must be tracked by grantee to ensure
compliance
– EXAMPLE of Award Restriction: Funds may not be used to
purchase equipment without the written prior approval of the
NIH awarding component.
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13. 6. Financial Reporting
Federal Financial Report (FFR)(SF-425)
Expenditure Data
• Timely - Must adhere to submission deadlines:
– Annual – (Non-SNAP Awards)
 FFR submitted for each budget period no later than 90 days after the end of the
calendar quarter (CQ) in which the budget period ended.
 Budget period ends 1/31/2011 – FFR due 6/30/11
(90 days after the end of the CQ of 3/31/11)
– Final (End of Competitive Segment) – (SNAP and Non-SNAP Awards)
 FFR submitted within 90 days following the end of the project period
(SNAP – Streamlined Non-competing Award Process)
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14. Financial Reporting (cont.)
• FFRs should be submitted accurately
• Reported expenses and program income must
agree with institutional accounting records
• Routine Revisions to correct FFRs are not
appropriate
• Any revisions must be submitted in the same
format as the original submission.
For example: If the original report was submitted as a
Financial Status Report (FSR)(SF-269), the revised report
must be submitted as an FSR.
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15. Closeout: Final Reports
•
Failure to submit timely final reports may affect future funding to the
organization
– Final Federal Financial Report (FFR) SF-425 Expenditure Data
– Final Invention Statement and Certification
– Final Progress Report
•
Final Reports are due within 90 days of the end of grant support.
•
Grantee must ensure there are no discrepancies between final FFR expenditure
data (in eRA Commons) and FFR cash disbursement data in the Payment
Management System.
April 2, 2008, NIH Announces New Centralized Processing Center for Receipt of Grant Closeout
Documents and Reminds Grantees of Required Closeout Reports for NIH Assistance Awards
http://grants.nih.gov/grants/guide/notice-files/NOT-OD-08-061.html
June 17,2005, NIH Announces New Closeout Feature in the eRA Commons and Reminds Grantees of
Required Closeout Reports for NIH Assistance Awards
http://grants2.nih.gov/grants/guide/notice-files/NOT-OD-05-051.html
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16. 7. Carry-over of Funds & ReBudgeting
• Requests for carry-over of funds should be
signed by Authorized Representative.
• Request must be sent to GMO and include:
– Detailed budget by direct cost category with F&A
cost information (base and rate). If personnel
costs are requested, include
 a detailed breakdown of personnel costs
 base salary
 salary requested
 effort to be spent on the project
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– A scientific justification for the use of funds
– The reason for the unobligated balance

17. A Rule of Thumb
General Rule: 25% Change in Budget or Change in Key
Personnel, could indicate/result in a change in scope
which could require prior approval.
Whenever you are contemplating a significant post
award change, and you are uncertain about the need
for prior approval, consult in advance with:
• The Notice of Award (terms and conditions)
• Your Office for Sponsored Research/Projects
• NIH awarding component Grants Management
Officer/Specialist (GMO/GMS)
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18. 8. Audits
Audit Requirements
– Foreign Institutions: A-133 Audit required if,
during its fiscal year, the organisation expends
$500,000 or more in HHS Funding (Direct and
Indirect Awards).
– Covers:
 Financial management systems
 Procurement systems, incl. expenses verification
 Time & effort reporting systems
 Monitoring activities
 Adherence to terms & conditions of award
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19. South African Medical Research
Council (MRC)
9. Budget Tips
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20. 9. MRC Budget Tips
• Young and Emerging Researchers
– Do not ask for a very large grant,
– Demonstrate that you can complete a good small project
for a relative smaller amount of money,
– Build a goog track record before applying for larger grants.
• Use the official MRC Application format and forms.
• Include all other sources of funding for the proposed
study, e.g. NIH, DST, Departmental Grants etc.
• Provide a justification for all categories of funds
requested.
• Reviewer can recommend Budget Cuts, similar to NIH
reviewers.
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21. DON’T FORGET
• Confirm the submission method: Electronic vs.
Hardcopies;
• Due Date for Applications – remember to
factor in your institutions Approval and
Review lead times;
• Exchange Rates:
– Budget Rate used becomes your Contract Rate
– Contract Rate ≠ Claim Rate !!!
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22. Resources
• Desmond Tutu HIV Foundation (DTFH)
http://www.desmondtutuhivfoundation.org.za/
• National Institutes of Health (NIH)
http://www.nih.gov/
• NIH Grant Policy Statement (GPS)
http://grants.nih.gov/grants/policy/nihgps_2013/
• South African Medical Research Council (MRC)
http://www.mrc.ac.za/
• Oanda
http://www.oanda.com/
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