kal asked 6 years ago
At the recent NIH conference, we were informed to avoid reporting someone\’s salary at the NIH cap if they make more and to always use the IBS just in case the cap changes from the time of the application to the time it\’s awarded. Yet how can we achieve this without messing up our proposed budget, especially when we have a direct cost cap? It seems like this would mess up the effort proposed and our direct costs if we use the IBS yet still only getting salary requests based on the cap. How would this be achieved in KC without messing up the budget? Should we change the salary to the cap or leave it at the IBS?
dgriffit answered 6 years ago
In compiling detailed budgets: The Institutional Base Salary is to be used to calculate salary; the agency will adjust the awarded salary subject to the current salary cap at the time of award. The annual inflation increase should be applied to the budget as usual.
However, with modular budgets or budgets with cost limits: Since the budget should be a reasonable estimate of costs allowable, allocable, and appropriate for the proposed project, use the current salary cap when estimating.
Please see the below link from the SPA Website:
http://www.umaryland.edu/spa/budgets-and-expenses/cost-sharing-and-over-salary-cap/salary-caps/
Please note, the example shown in the link is using an older salary cap amount. This current cap is $187,000.