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Accounting for your NIH SBIR award can get tricky at times. Each type of government award has it’s own intricacies that aren’t always clear. Because of this, we created an entire page on some basic principles you should know as a government contractor when doing the accounting for you NIH SBIR grant.

The National Institute of Health (NIH) was formed in 1887 and is the agency in the government that is responsible for research regarding biomedical and public health. It’s a child organization of its parent organization the United States Department of Health and Human Services (HHS). Both organizations support small business research by awarding grants under the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs.

The NIH has some complex accounting principles to follow to make sure you’re DCAA compliant. Continue reading below to learn more about accounting for your NIH SBIR award.

NIH Accounting Principles for SBIR/STTR

Nih-SBIR-accountingRates

  • Indirect Rate Structure – Your company can either do Fringe and F&A, or F&A only.
  • Provisional Rates – Safe rates are available and if negotiating a rate in excess of safe rates, a proposal is required. This is then reviewed by the NIH for approval.
  • Final Proposed Indirect Rates – Not required if using a safe rate.Otherwise, proposed final indirect rate package is due no later than six-months after the end of the fiscal year.
  • Indirect Rate Audits – These are conducted by the NIH and are typically within 1-3 (sometimes longer) years after submission.

nih-SBIR-sttrCosts

  • Fringe Costs – These are included in the F&A cost pool when a separate fringe rate doesn’t exist. If the rate does exist, then these costs are included in the fringe cost pool.
  • Overhead Costs – Included in the F&A cost pool.
  • G&A Costs – Included in the F&A cost pool.

nih-sbir-complianceCost Pools and Bases

  • Fringe Cost Pool – If a fringe rate exists this will fall into total allowable fringe costs.
  • Fringe Base – This includes total productive labor (total labor, less vacation, sick, holiday, or other paid-time-off).
  • F&A Cost Pool – This includes the total of allowable indirect rates (excluding fringe costs if a fringe rate exists).
  • F&A Base – This includes total direct costs (plus fringe on direct labor), plus total IR&D costs (plus fringe on IR&D labor).

nih-sbirAllowability of Costs

  • IR&D – These are unallowable and treated in a manner similar to directs costs where the costs are in the F&A cost base. ddddddddddddddddddddddddddddddddddddddddd
  • Meals – Unallowable indirect meals.
  • Bank Fees – Unallowable.

Do you have a NIH award and need help?