Example 1. Individual with a Nine-Month Appointment
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1 Example 1. Individual with a Nine-Month Appointment Dr. Minion is on a nine-month faculty appointment in the Department of Biology. He is submitting a NIH R01 grant proposal with 1.2 person months effort. His full time annual rate is $123,456. Is Dr. Minion over the cap? If not, how much will be charged to the grant for 1.2 person months? If he is, how much needs to be cost-shared? Example 2. Individual with a Twelve-Month Appointment Dr. Gru is on a twelve-month professional appointment in the Department of Physical Therapy. He is submitting a CDC Occupational Safety and Health Research grant proposal with.5 person month effort. His full time annual rate is $181,500. Is Dr. Gru over the cap? If not, how much will be charged to the grant for.5 person month? If he is, how much needs to be cost-shared? Example 3. Individual with a Ten-Month Chair Appointment Dr. Agnes is on a ten-month Chair appointment in the Department of Chemical Engineering. She is submitting a cooperative agreement proposal to the NIH with 2.4 person months effort. Her full time annual rate is $140,500 in addition to a 1/9 and a $5,000 administrative supplement for her role as Chair. Is Dr. Agnes over the cap? If not, how much will be charged to the grant for 2.4 person months? If she is, how much needs to be cost-shared?
2 Answer 1. Individual with a Nine-Month Appointment Dr. Minion is not over the NIH salary cap. For 1.2 person months, $16,461 in salary will be charged to the grant. No cost share is required. Individual's institutional base salary for a nine-month academic year appointment $ 123,456 Research effort requested in application/proposal 1.2 person months Direct Salary requested - ($123,456/9=$13,717*1.2=$16,461) $ 16,461 Fringe benefits requested (34.7% of salary) $ 5,712 Subtotal $ 22,173 Associated F&A at a rate of 55% of subtotal $ 12,195 plus associated F&A $ 34,368 NIH salary cap calculation for 1.2 person months Direct salary ($181,500/12=$15,125*1.2=$18,150) $ 18,150 Fringe benefits (34.7% of allowable salary) $ 6,298 Subtotal $ 24,448 Associated F&A at a rate of 55% of subtotal $ 13,446 plus associated F&A $ 37,894
3 Answer 2. Individual with a Twelve-Month Appointment Dr. Gru is not over the CDC salary cap. For.5 person months, $7,563 in salary will be charged to the grant. No cost share is required. Individual's institutional base salary for a twelve-month calendar year appointment $ 181,500 Research effort requested in application/proposal.5 person months Direct Salary requested - ($181,500/12=$15,125*.5=$7,563) $ 7,563 Fringe benefits requested (34.7% of salary) $ 2,624 Subtotal $ 10,187 Associated F&A at a rate of 55% of subtotal $ 5,603 plus associated F&A $ 15,790 NIH salary cap calculation for.5 person months Direct salary ($181,500/12=$15,125*.5=$7,563) $ 7,563 Fringe benefits (34.7% of allowable salary) $ 2,624 Subtotal $ 10,187 Associated F&A at a rate of 55% of subtotal $ 5,603 plus associated F&A $ 15,790
4 Answer 3. Individual with a Chair Appointment Dr. Agnes is over the NIH salary cap. For 2.4 person months, $36,300 in salary will be charged to the grant. At $37,746, 2.4 person months of salary for Dr. Agnes exceeds that amount. Dr. Agnes will have to cost share $1,167 plus fringe and F&A. Individual's institutional base salary for a Chair appointment $ 140,500 Research effort requested in application/proposal 2.4 person months Direct Salary requested - ($140,500/9=$15,611*2.4=$37,467) $ 37,467 Fringe benefits requested (34.7% of salary) $ 13,001 Subtotal $ 50,468 Associated F&A at a rate of 55% of subtotal $ 27,757 plus associated F&A $ 78,225 NIH salary cap calculation for 2.4 person months Direct salary ($181,500/12=$15,125*2.4=$36,300) $ 36,300 Fringe benefits (34.7% of allowable salary) $ 12,596 Subtotal $ 48,896 Associated F&A at a rate of 55% of subtotal $ 26,893 plus associated F&A $ 75,789 Required cost share as a result of being over the cap Salary difference ($37,467-$36,300=$1,167) $ 1,167 Fringe difference ($13,001-$12,596=$405) $ 405 F&A difference ($27,757-$26,893=$864) $ 864 Total Cost Share Amount $ 2,436
5 Calculating sponsor effort and cost share effort for Dr. Agnes Total Effort = 2.4 person months Sponsor Effort = Capped Salary Amount 36,300 =.97 Actual Salary Earned 37,467 This tells us that.97 of the total effort can be charged to the grant..97 of 2.4 person months = 2.33 person months (or 2.33*8.33%=19.4% effort) Cost Share Effort = Cost Share Salary Amount 1,167 =.03 Actual Salary Earned 37,467 This tells us that.03 of the total effort can be charged to the grant..03 of 2.4 person months =.07 person months (or.07*8.33%=.6% effort) Note for future reference: The denominator is the actual salary earned based on effort committed. To calculate what can be charged to the sponsor, your numerator is the capped salary amount. To calculate what has to be cost shared, your numerator is the cost share salary amount. At the end if your cost share effort + sponsor effort = total effort, you know you have done the calculation correctly.
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