FIC Grants Information: Frequently Asked Questions

Posted December 2003

1. If a foreign or international grantee is issued a Notice of Grant Award, which signifies that the grant is funded, how do they get the grant funds?

Foreign/International grants will normally be paid by U.S. Treasury check by the National Institutes of Health (NIH) Office of Financial Management (OFM) on a predetermined quarterly advance basis, usually in four equal installments. The contact person at NIH, OFM who processes these payments is Ms. Joyce Lee who can be reached at 301-402-5798.

2. What assurances and certifications are required for a foreign organization?

The following assurances and certifications are required for grants to foreign organizations:

• Human Subjects (if applicable)
• Vertebrate Animals (if applicable)
• Inclusiveness in Research Design (if applicable)
• Research Misconduct
• Lobbying
• Delinquent Federal Debt
• Financial Conflict of Interest Debarment (with the exception of foreign governments and international organizations)

You can find out more information about these assurances by referencing the NIH Grants Policy Statement at: http://grants1.nih.gov/grants/policy/nihgps_2001/part_iia_1.htm

3. What is the NIH policy concerning the transfer of a grant to or between foreign institutions?

A change of grantee that involves the transfer of a grant to or between foreign institutions or international organizations is possible but will require approval the appropriate NIH Institute or Center's Chief Grants Management Officer and approval of the Institute or Center Advisory Council/Board. Transfer of a grant from a foreign organization to a domestic organization requires only the approval of the Grants Management Officer.

4. Can requests for funding be made in foreign currency and then be converted to U.S. Dollars?

No. All requests for funds, including the budget contained in the application, must be stated in U.S. Dollars. Once an award is made, the NIH will not compensate foreign grantees for currency exchange fluctuations through the issuance of supplemental awards.

5. Do foreign grantees with grants under the Streamlined Non-competing Application Process (SNAP) have to submit Financial Status Reports for each budget period?

Yes, Financial Status Reports (FSRs) must be submitted for each budget period on Standard Form SF-269. The SF-269 form can be found at: http://grants.nih.gov/grants/fsr_sf269_long.pdf.

6. How to do I complete the budget pages for a D43 Competing Grant Application?

Please follow the instructions for the revised PHS 398. The instructions may be found at: http://grants.nih.gov/grants/funding/phs398/section_1.html#4_detailed

DO NOT use the Modular Budget Format Page.

All budget items related to faculty and administrative participation in the program should be itemized on PHS 398 Form Page 4. For the entire proposed project period, use PHS 398 Form Page 5. Please note:

• The salary limit for U.S. Faculty is currently $171,900. Further information can be found at: http://grants.nih.gov/grants/guide/notice-files/NOT-OD-02-030.html
• List foreign site staff under the "Consultants" category. Do not include them under the "Personnel" category, or under "Stipends" on PHS 398 National Research Service Award (NRSA) Substitute Form Page 4.
• Please include all faculty travel (U.S. and foreign) under the "Travel" category on PHS 398 Form Page 4, reserving all trainee travel expenses to be listed on NRSA Substitute Form Page 4.
• A separate, detailed budget for subcontracts/consortiums should be completed on separate PHS 398 Form Pages 4 and 5, and the total costs reflected under "Consortium/Contractual Costs" on the parent budget page PHS 398 Form Page 4.

The total direct costs from PHS 398 NRSA Substitute FormForm Page 4 should be summarized as an item on regular PHS 398  Page 4 in the "Other" category, and identified as "Totals from PHS 398 Form Page 4 and 5." This will result in Form Pages 4 and 5 reflecting the composite budget, showing all funds requested. All budget items related to trainee participation should be itemized on PHS 398 NRSA Substitute Form Page 4.  

7. Do Foreign or International applicants have to negotiate a Facilities and Administrative (F&A;) cost rate agreement with NIH to receive the F&A; costs of up to 8% of the total direct costs (less equipment)?

No, Foreign or International applicants do not need to negotiate an F&A; rate. Equipment is the only thing that is excluded from the F&A base (i.e. subcontracts are not excluded.)

8. Where do I put the F&A; costs in the PHS 398 application package?

You should put the F&A; costs on the Checklist Form Page of the application. You do not need to list a DHHS negotiated rate agreement. You will also need to check the Modified total direct cost base at the bottom of the Checklist Form Page.

9. What do I put in for Total Costs Requested on the Face Page of the PHS 398 application?

Total costs reflect the direct cost amounts requested on the budget or budget justification page plus the F&A; costs listed on the Checklist Form Page. The direct costs listed include the total costs of any consortium or "subcontracts."

10. What do grantees do with interest earned on advances of grant funds?

Interest earned on advances of Federal funds must be handled as follows: Non- U.S. Governmental grantees: Any interest on Federal advances of grant funds that exceeds $250 per year in the aggregate must be remitted annually to PMS (as the government-wide agent for collection) at the address below: Division of Payment Management Program Support Center P. O. Box 6021 Rockville, MD 20852 Telephone: (301) 443-1660.

11. What is Program Income for a grant?

Program income is gross income earned by a grantee, a consortium participant, or a contractor under a grant that was directly generated by the grant-supported activity or earned as a result of the award. Program income includes, but is not limited to, income from fees for services performed, the use or rental of real or personal property acquired under the grant, the sale of commodities or items fabricated under an award, and license fees and royalties on patents and copyrights. The requirements for accountability for these various types of income under NIH grants are specified on the next slide. Accountability refers to whether NIH will specify how the income is to be used and whether the income needs to be reported to NIH and for what length of time. Unless otherwise specified in the terms and conditions of the award, NIH grantees are not accountable for program income accrued after the period of grant support.

Program income earned during the period of grant support (other than income earned as a result of copyrights, patents, or inventions or as a result of the sale of real property, equipment, or supplies) shall be retained by the grantee and may be used in one or a combination of the alternatives indicated below. Most foreign grantees will use the Additive Alternative (add the $ of program income to the amount awarded).

Additive Alternative - Added to funds committed to the project or program and used to further eligible project or program objectives

Deductive Alternative - Deducted from total allowable costs of the project or program to determine the net allowable costs on which the Federal share of costs will be based

Combination Alternative - Uses all program income up to (and including) $25,000 as specified under the additive alternative and any amount of program income exceeding $25,000 under the deductive alternative

12. Do I need to include "Other Support" information for noncompeting D43 grants and other noncompeting grant applications excluded from SNAP?

The answer is yes. Please provide complete updated other support information including the percentage of time devoted to each item of support.

13. How should domestic grantees pay foreign consortium or subcontract costs?

Unlike domestic grants, foreign grants are paid by U.S. Treasury check by the NIH Office of Financial Management (OFM) on a predetermined quarterly advance basis, usually in four equal installments.  Foreign grantees do not have Federal funds deposited directly into their bank account from Payment Management System and may not have the same access to financial systems as U.S. grantees.   Since many foreign institutions may have unique fiscal needs and/or may not have the infrastructure to pay preaward costs, U.S. grantee institutions that have foreign consortiums may provide them with quarterly advances of funds or arrange a reasonable payment schedule to accomplish the goals of NIH grants.