NIH subawards and escalation of costs guidance


When there is a subrecipient site on the project, the site will need to follow the budget of the prime organization. Therefore, if Duke were the prime organization submitting a modular budget, the subrecipient site would also have to submit a modular budget. At the application stage, the department should collect a signed PHS 398 face page, budget, budget justification, scope of work, resources page, and checklist page (please remember foreign sites will need to apply 8% F&A limitation). If the application was selected for JIT request, the subrecipient would need to provide the standard JIT components in accordance with the request (e.g., Other Support) as well as a completed Duke Subrecipient Checklist (Form Page 1). If the application was awarded, a Duke Subrecipient Checklist (Form Page 1) would need to be collected with each progress report cycle to comply with subrecipient monitoring.


Escalation of costs in out years

NIH will provide up to a 2% escalation factor for recurring costs applied to future budget periods. Remember the adjustment on salaries cannot exceed the salary cap. Refer to NIH Guide Notice NOT-OD-11-068 for further information. 

Please note: To complete the budget in SPS to reflect this escalation accurately, a manual adjustment will need to be performed within the SPS Budget Notebook Rules tab to the Period Definition box Personnel and Operations Inflator columns from 3% to 2%.