Office of Research and Project Administration

Good morning,

On Friday, August 4, NIH released Notice Number NOT-OD-06-090 (see attached).  This notice provides official notification of a pilot change in policy for the manner in which tuition, fees, and health insurance are calculated on Ruth L. Kirschstein National Research Service Awards, for both individual NRSAs (F30, F31, F32 and F33) and Institutional NRSAs (T32, T34 and T35).  The pilot policy applies to new and competing continuation (renewal) NRSAs beginning in fiscal year 2007 (10/06-9/07) and to competing awards funded in FY 2006 (10/05-9/06).

Per this new pilot policy, for both Institutional and Individual NRSAs the formula previously used for tuition and fees (100% of the first $3,000 and 60% of the remainder) will no longer be used. Instead FOR TUITION ONLY, EXCLUDING HEALTH FEES, an amount per predoctoral trainee of 60% of the level requested up to $16,000 per year will be provided.  For dual-degree training, an amount up to $21,000 per year will be provided.  For postdoctoral trainees, 60% of the level requested up to $4,500 per year will be provided.  If the program supports postdoctoral trainees in formal degree granting training, an amount up to $16,000 will be provided.

For institutional NRSAs, Health Fees will now be awarded in the Training Related Expenses category.  The Training Related Expenses category will be increased by an additional $2,000 per perdoctoral trainee per year and an additional $4,000 per postdoctoral trainee per year to accommodate the health fees now covered in this category. 

For individual NRSAs the Institutional Allowance category will be modified to include health insurance which will now be an allowable expense in this category.  The predoctoral institutional allowance will be increased by $1,450 per predoctoral trainee per year to cover health insurance costs.  The postoctoral institutional allowance category already includes health insurance as an allowable cost.  An additional $850 per postdoctoral fellow, per year will be provided in the institutional allowance category to help cover the cost of health insurance.

NIH recognizes that this pilot change in policy will require changes to the rebudgeting rules for institutional NRSAs as well.  Under the previous policy, health fees awarded in the tuition/fees category of institutional NRSAs could not be rebudgeted and were excluded from the 8% indirects.  Now that they will be awarded in the trainee-related expenses category, these dollars can be rebudgeted into other categories without NIH prior approval.  These rebudgeting changes also mean that health fees are no longer excluded from the 8% indirects awarded for institutional NRSAs.  Funds awarded in the stipend budget category and the tuition/fees budget category still cannot be rebudgeted without NIH prior approval.

This new policy is a pilot policy that will be evaluated after data has been collected for two full years.  As part of the two year pilot, institutions that choose to rebudget between stipends and tuition/fees for institutional NRSAs will notify NIH as part of the budget justification in each annual progress report.  Specific rebudgeting information will be required including the number of trainee positions and the estimated dollar figure that was rebudgeted during the budget period being reported.  Similar information will be requested about planned rebudgeting during the upcoming budget period. 

Since this pilot policy represents a significant change, we encourage you to read the full policy carefully and be prepared to bring any questions to ORPA Research Administrator.  We will also plan to discuss these changes in upcoming RARA and River Rats meetings.

Thank you.

 
Brenda Kavanaugh
Research Administrator
Office of Research and Project Administration
University of Rochester
515 Hylan Building
Rochester, NY  14627
585-275-1504
FAX:  585-275-9492
bkavanaugh@orpa.rochester.edu

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