Office of Sponsored Projects Administration
201 Kinkead Hall / 859-257-9420
www.rgs.uky.edu/ospa/ospamain.htm

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January 19, 2001

NCURA Satellite Conference on Research Administration

The National Council of University Research Administrators will sponsor a special session on January 23, 2001, from 11:30 a.m. to 3:30 p.m. in the Student Center Theater. This session will focus on Electronic Research Administration and answer the question, "Where are we today and what can we expect tomorrow?"

Nancy Winkinson, assistant vice president for Research and director of Sponsored Programs at Emory University, will lead the discussion. Joining her will be Pamela Webb, director of the Office of Research & Sponsored Programs, Chicago Campus of Northwestern University. Federal agency representatives and university information technology specialists will also be part of this program.

This team plans to update participants on the status of federal electronic initiatives and how we are adapting to these initiatives at our institutions. The impact of Public Law 106-107, the timetable and plans for the Federal Commons along with selected initiatives of leading federal agencies will be covered.

To sign up for the one-day event presented by the Office of Sponsored Projects Administration, call (7-9424) or e-mail (sllora1@pop.uky.edu) Shelley Surgener. Lunch will be provided for participants who register in advance of the conference.

NIH Salary Limitation on Grants, Cooperative Agreements and Contracts

National Institutes of Health - NOTICE: OD-01-013

Fiscal Year (FY) 2001 is the twelfth consecutive year for which there is a legislatively mandated provision for the limitation of salary. Specifically, the Department of Health and Human Services (HHS) Appropriation Act for FY 2001, Public Law 106-554, restricts the amount of direct salary of an individual under an NIH grant or cooperative agreement (hereafter referred to as a grant) or applicable contract to Executive Level I of the Federal Executive Pay scale. The Executive Level I annual salary rate is $157,000 for the period Oct. 1 through Dec. 31, 2000. Effective January 1, 2001, the Executive Level I salary level increased to $161,200.

For modular budgets, the salary cap should be taken into consideration when estimating the number of modules a project will need to request. Additional information on modular budgets can be found at: www.rgs.uky.edu/ospa/modular.htm.

Direct salary is exclusive of fringe benefits and facilities and administrative (F&A) expenses, also referred to as indirect costs. NIH grant/contract awards for applications/proposals that request direct salaries of individuals in excess of the applicable RATE per year will be adjusted in accordance with the legislative salary limitation and will include a notification such as the following: according to the FY 2001 HHS Appropriations Act, "None of the funds appropriated in this Act for the National Institutes of Health and the Substance Abuse and Mental Health Services Administration shall be used to pay the salary of an individual, through a grant or other extramural mechanism, at a rate in excess of Executive Level I” of the Federal Executive Pay Scale. An individual's institutional base salary is the annual compensation that the applicant organization pays for an individual's appointment, whether that individual's time is spent on research, teaching, patient care, or other activities. Base salary excludes any income that an individual may be permitted to earn outside of duties to the applicant organization.

If adequate funds are available in active FY 2000 awards, and if the salary cap increase is consistent with the institutional base salary, grantees may rebudget to accommodate these salary levels and contractors may bill at the higher level. However, no additional funds will be provided to the FY 2000 grant award and the total estimated cost of the contract will not be modified.

An individual's base salary, per se, is NOT constrained by the legislative provision for a limitation of salary. The rate limitation simply limits the amount that may be awarded and charged to NIH grants and contracts. An institution may supplement an individual's salary with non-federal funds. For salary in excess of the NIH salary cap, the difference between the amount NIH will pay under the regulations and the amount that the University of Kentucky pays is attributed to cost share in the university record system.

The salary limitation does NOT apply to payments made to consultants under an NIH grant or contract although, as with all costs, such payments must meet the test of reasonableness and be consistent with institutional policy.

The salary limitation provision DOES apply to subawards/subcontracts for substantive work under an NIH grant or contract.

Competing grant applications and contract proposals that include a categorical breakdown in the budget figures/business proposal should continue to reflect the actual institutional base salary of all individuals for whom reimbursement is requested. In lieu of actual base salary, however, applicants may elect to provide an explanation indicating that actual institutional base salary exceeds the current salary limitation. When this information is provided, NIH staff will make necessary adjustments to requested salaries prior to award.

Questions & Answers:

1. Can I re-budget grant funds or bill contracts issued with FY 2001 funds to allow for the increase?

Yes, provided funds are available and the increase is warranted. Prorated figures should be used for the applicable months, i.e., the $161,200 level is effective beginning January 1, 2001.

2. If a grant award (competing or non-competing) has already been issued in FY 2001, will an adjustment be made?

No adjustments will be made; however, re-budgeting is allowable.

3. If an application/proposal fails to provide needed salary information, will an adjustment be made based on the new rates?

No adjustment will be made if an application fails to provide adequate information regarding the individual’s salary level.

4. Does the NIH appropriation language link the salary cap to a Federal Executive Level or to a dollar level?

The link is to the Federal Executive Level pay scale (i.e., Executive Level III for FY 1999 and Executive Level II for FY 2000 and Executive Level I for 2001). As the cap is linked to Federal Executive Levels, can grantees/contractors with ongoing awards re-budget/bill up to the various salary caps, based on the fiscal year of the award and the time of the salary expense? Yes, salary may be charged in accordance with the prevailing FY cap(s), as long as the levels are consistent with the individual’s institutional base pay.

5. Will grantees be permitted to submit revised budgets reflecting higher base salaries?

Not as a general rule. NIH policy states that grantees should always reflect actual base salaries in the requested budgets or provide an explanation indicating that actual institutional base salary exceeds the current salary limitation. As a general rule, NIH will use the information available in the existing application and make adjustments for salary cap based on information available at the time of award.

INQUIRIES

Questions concerning this notice or other policies relating to grants or contracts should be directed to the grants management or contracts management office in the appropriate NIH Institute or Center. The full text of the announcement can be found at: http://grants.nih.gov/grants/guide/notice-files/NOT-OD-01-013.html.

No more cramped quarters at OSPA!

The OSPA offices have expanded to include the first floor space formally occupied by RGS Communication and Advancement.

How to find your administrative assistant or research administrator after the change? On the first floor you will find Deborah Davis, Jonathan Compton, Marsha Frost, Mary Hickman, Suzanne Leibee, and Sherry Power. Everyone else is on the second floor, including Penny Allen, who was previously on the fourth floor of Kinkead.

When you need assistance, we encourage you to contact the administrative assistant (AA) or research administrator (RA) assigned to your program. For a matrix on AA and RA assignments, visit the following web address: www.rgs.uky.edu/ospa/radivis.htm.

The following chart will assist you in finding the appropriate OSPA contact person in our expanded space. Stop by and visit us in our new space any time.

Research and Graduate Studies • University of Kentucky

This page is maintained by the RGS Office of Communications and Advancement
Updated February 12, 2001