- Contact the Committee

Questions for Wendy Baldwin, M.D. Deputy

Director for Extramural Research

National Institutes of Health

1.  What kind of financial controls and accounting of expenditures does NIH require from those foreign institutions in which NIH provides funding? Are any more stringent controls and accounting of expenditures required from domestic institutions, in particular the VA? 

Answer:  Foreign institutions that apply for NIH support are required to abide by a growing list of regulatory requirements by virtue of receiving US support.  The 8% indirect cost reimbursement is designed to provide some offset to those special requirements.  NIH provides limited indirect costs to foreign and international organizations to support the costs of compliance with DHHS and NIH requirements, including the protection of human subjects, the welfare of animals, invention reporting requirements and financial conflict of interest.  We do not support the acquisition of, or provide for depreciation on, any capital expenses (facilities), or normal general operations for either type of recipient. 

2.  Given that the argument was made to standardize research controls, and the composition, procedures, and oversight of IRGs across the government, would not NIH be the most logical government entity to spearhead such an initiative across the Federal government, obtaining input from all Government research institutions involved in human research? 

Answer: This question is best answered by the Office of Human Research Protection, Office of the Secretary, Department of Health and Human Services.  We have referred it to them, and a response will be forthcoming under separate cover.  

3.  For some major universities, on-campus Facilities and Administration (F&A) costs average 64% of the basic NIH grant.  There is at least one case where F&A costs were more than 100% of the original grant.  NIH reimburses non-federal organizations for these “reasonable” add-on costs.  Why has NIH established a policy of not reimbursing the VA for these costs? 

Answer:  The NIH reimburses Facilities and Administrative (F&A) costs at non-federal institutions to support the indirect costs of doing research.  There is considerable variability in these negotiated rates because different institutions have varying levels of investment in the infrastructure required to conduct research.  In the case of federal agencies, the costs of being a research agency are provided through the agency's appropriation.  While there are cases where an agency, such as the VA, may wish to request additional costs, which are incurred because they elect to participate in research that is funded by the NIH, it is necessary that those costs be justified in part to ensure that they do not constitute an augmentation of appropriation.  NIH is taking steps to meet with representatives of the VA to review documentation necessary to establish an add-on rate.