Posted December 2003

Please refer to the Foreign section/chapter of the NIH Policy Statement at: http://grants.nih.gov/grants/policy/nihgps_2001/part_iib_7.htm#_Toc504812184

Please be aware that the NIH policy concerning the allowability of F&A costs for Foreign and International Organizations has changed. An excerpt from the March 29, 2001 NIH Guide for Grants and Contracts Announcement titled : ALLOWABILITY OF FACILITIES AND ADMINISTRATIVE (F&A;) COSTS FOR FOREIGN AND INTERNATIONAL ORGANIZATIONS is provided below.

ALLOWABILITY OF FACILITIES AND ADMINISTRATIVE (F&A;) COSTS FOR FOREIGN AND INTERNATIONAL ORGANIZATIONS Release Date: March 29, 2001 NOTICE: NOT-OD-01-028

National Institutes of Health

In the past, Department of Health and Human Services (DHHS) policy prohibited the provision of facilities & administrative (F&A;) costs on foreign and international awards. As a result, the National Institutes of Health (NIH) and the extramural community have had concerns that by not providing some allowance for F&A; costs to these organizations, valuable research opportunities may be lost.

Effective October 2001 (FY 2002), NIH will provide limited F&A; costs to foreign and international organizations. The provision of F&A; costs to foreign and international organizations is to support the costs of compliance with DHHS and NIH requirements including but not limited to, the protection of human subjects, the welfare of animals, financial conflict of interest, and invention reporting.

This implementation will affect new and competing continuation awards. Established commitment levels on non-competing continuation awards will not be adjusted; however, funds may be rebudgeted to cover these costs. The F&A; costs should be requested in competing applications and may not exceed eight percent of total direct costs less equipment.  Also, domestic organizations that submit applications with a foreign or international consortium may request eight percent of total direct costs less equipment, for the consortium.  NIH will not support the acquisition of, or provide for depreciation on any capital expenses (facilities), or normal general operations related to foreign and international organizations.

Please go to the following link to see the complete F&A guide announcement: http://grants.nih.gov/grants/guide/notice-files/NOT-OD-01-028.html

Additional questions regarding the implementation of F&A; costs to foreign and international organizations may be directed to the NIH Division of Grants Policy at (301) 435-0949 or the Grants Management Specialist identified on the NIH Notice of Grant Award.