Part II: Terms and Conditions of NIH Grant Awards
Subpart B: Terms and Conditions for Specific Types of Grants, Grantees, and Activities – File 8 of 11
16 GRANTS
TO FOREIGN INSTITUTIONS, INTERNATIONAL
ORGANIZATIONS, AND DOMESTIC GRANTS WITH FOREIGN COMPONENTS
16.1 General
Most of the policies contained in IIA apply to NIH grants
made to foreign institutions and international organizations (hereafter
"foreign grants"), including the requirements of 45 CFR 74 or 45 CFR
92 and the cost principles incorporated by reference in those regulations. If
an applicant/grantee would be unable to comply with these requirements, the AOR
should contact the GMO. Specific exceptions and modifications of IIA
requirements for foreign grants, and highlights of other policies, are set
forth in this chapter. This chapter also includes policies that apply to
domestic grants with a foreign component.
16.2 Eligibility
In general, foreign institutions and international
organizations, including public or private non-profit or for-profit
organizations, are eligible to apply for research project grants, but are not
eligible to submit a modular grant application. International organizations are treated as foreign institutions for the purpose of eligibility. If the Funding Opportunity Announcement (FOA) allows foreign institutions to apply, international organizations may apply. If the FOA does not allow foreign institutions to apply, international organizations may not apply. Foreign institutions and
international organizations are not eligible to apply for Kirschstein-NRSA
institutional research training grants, program project grants, center grants,
resource grants, SBIR/STTR grants, or construction grants. However, some
activity codes, such as program project grants (P01), may support projects
awarded to a domestic institution with a foreign component. For purposes of
this policy, a foreign component is
defined as performance of any significant element or segment of the project
outside the United States either by the grantee or by a researcher employed by
a foreign institution, whether or not grant funds are expended. Activities that
would meet this definition include the following:
The involvement of human subjects or vertebrate animals at
a foreign site.
Extensive foreign travel by grantee project
staff for the purpose of data collection, surveying, sampling, and similar
activities.
Any activity of the grantee that may involve the
population, environment, resources, or affairs of a foreign country.
Examples of other grant-related activities that may be significant are:
collaborations with investigators at a foreign site anticipated to result in co-authorship;
use of facilities or instrumentation at a foreign site; or
receipt of financial support or resources from a foreign entity.
Foreign travel exclusively for consultation is not
considered a foreign component.
Grants may not be made to individuals in a foreign location
(i.e., outside of the
United
States and its territorial possessions).
Occasionally, a Kirschstein-NRSA individual
fellowship award is made to a U.S. citizen or a non-citizen national to study
in a foreign institution. (A "non-citizen national" is a person who although
not a citizen of the United States owes permanent allegiance to the United
States, such as a resident of American Samoa.) See Ruth L. Kirschstein National Research Service Awards—Individual Fellowships for additional
information.
16.3 Application
Review
Applications from foreign
institutions or international organizations will be evaluated and scored during
the initial review process using the standard review criteria. In addition, the
following will be assessed as part of the review process and award decision:
Whether the project presents special
opportunities for furthering research programs through the use of unusual
talent, resources, populations, or environmental conditions in other countries
that are not readily available in the
United States or that augment existing U.S.
resources.
Whether the proposed project has specific
relevance to the mission and objectives of the IC and has the potential for
significantly advancing the health sciences in the
United States.
Note, these additional criteria are not applied to
applications from domestic institutions with foreign components or applications
in response to an FOA requesting applications from foreign institutions only.
Research grant applications from foreign institutions or
international organizations may not be funded unless approved by the IC
National Advisory Council or Board.
Debarment
and Suspension. Applicants/grantees that are foreign governments or
governmental entities, public international organizations, or
foreign-government-owned or -controlled (in whole or in part) entities are not
subject to the debarment or suspension certification requirement or to
debarment or suspension under 2 CFR 376. All other foreign institutions
and international organizations are subject to these requirements. See Public Policy Requirements, Objectives, and Other
Appropriation Mandates—Debarment and Suspension for additional information
on this requirement.
Drug-Free
Workplace. Foreign applicants and grantees may be exempted from the
drug-free workplace requirements of 2 CFR 182 based on a documented
finding by the NIH awarding IC that application of those requirements is
inconsistent with U.S. international obligations or the laws and regulations of
a foreign government. See Public Policy
Requirements, Objectives, and Other Appropriation Mandates—Drug-Free Workplace for additional information on this requirement.
16.5 Funding and Payment
The application budget, requests for funds, and financial
reports (see Reporting and Record Retention in this chapter) must be stated in U.S. dollars. Once an award is made, NIH
will not compensate foreign grantees for currency exchange fluctuations through
the issuance of supplemental awards.
Awards to foreign institutions and international
organizations issued prior to October 1, 2012 are not paid through PMS. These grants normally will be paid by
U.S. Treasury check by OFM, NIH on a predetermined quarterly advance basis,
usually in four equal installments. If the amount advanced to an organization
based on the predetermined quarterly advance is insufficient to meet the
grant's cash requirements, the grantee must make a written request to the GMO
for any additional funds needed. All payments will be in U.S. dollars. Foreign
grantees are strongly encouraged to use U.S.
banks to ensure that payments
arrive on time. In special circumstances, foreign grantees may be eligible to
receive funds by electronic deposit or wire transfer.
Awards to foreign institutions and international organizations issued after October 1, 2012, are paid through PMS. PMS is operated by the PSC, DPM in accordance with Department of the Treasury and OMB requirements as implemented by 45 CFR parts 74.22 and 92.21. These requirements are intended to minimize the time elapsing between the transfer of funds from the U.S. Federal government and disbursed by the grantee. Therefore, although the grant may be financed by advance payments, the intent is that grantees draw funds on an as-needed basis – specifically, no more than 3 days before the funds are needed.
Operational guidance for recipients is provided through a training CD from PSC. Inquiries regarding drawdown requests, cash management rules, and the disbursement of funds should be directed to PSC/DPM (see Part III).
The funding and payment information outlined in this subsection applies when the foreign institution is the grantee organization. When a foreign component participates in a consortium
arrangement, the funding and payment information should be reflected in the
formal written agreement. Grantees are required to maintain grant funds in an
interest bearing account; however, interest earned in excess of $250 per year
in the aggregate on advances of Federal funds must be returned in U.S. dollars
by reimbursement check to OFM, and reflected on the annual FFR.
Any questions regarding payments to foreign grantees may be
addressed to OFM (see Part III for address and telephone and
fax numbers).
16.6 Allowable and Unallowable Costs
The cost principles that
apply to foreign organizations depend on the type of organization, i.e., for a
university, OMB Circular A-21 would apply, with the following exceptions:
Major
A&R (>$500,000). Unallowable under foreign grants and domestic
grants with foreign components.
Minor
A&R (<$500,000). Generally allowable on grants made to foreign
organizations or to the foreign component of a domestic grant, unless
prohibited by the governing statute or implementing program regulations. Minor
A&R costs may be included and justified in any detailed budget of a
competing application. Further, rebudgeting of active
grants to accommodate minor A&R is also allowable; however, this does
require NIH prior approval of the GMO. Additional information may be required
(see Administrative Requirements—Alteration
and Renovation Projects under Non-construction Grants in IIB).
Customs
and Import Duties. Unallowable under foreign grants and domestic grants
with foreign components. This includes consular and visa fees, customs surtax,
value-added taxes, and other related charges.
F&A
Costs. With the exception of American University of
Beirut and the World Health Organization,
full F&A costs will not be allowed. However, NIH provides limited F&A
costs (8 percent of total direct costs less only equipment) to foreign
institutions and international organizations to support the costs of compliance
with NIH requirements. Some examples of NIH compliance requirements are the
protection of human subjects (including the required education in the
protection of human research participants), animal welfare, invention
reporting, other post-award reporting requirements, financial conflict of interest and research misconduct. Note, these are just a few representative examples of compliance requirement; this list is not all inclusive. NIH will not
support the acquisition of, or provide for depreciation on, any capital
expenditures, or support the normal, general operations of foreign and
international organizations. These expenses should not be requested as a Direct
Cost budget expense. Note the reference to "capital expenditures" for the purposes of allowable F&A costs do not include purchases of equipment. Equipment is still allowable as a direct cost. Since the F&A costs are intended for
compliance costs only, other items normally considered an F&A cost can be
requested as a direct cost, e.g. rent.
Patient
Care Costs. Patient care costs are provided only in exceptional
circumstances.
16.7 Administrative
Requirements
For SNAP awards to foreign institutions issued after October 1, 2012 grantees are required to submit FFR expenditure data at the end of the competitive segment only. NIH staff now monitors financial aspects of these grants through subaccounts in PMS. For all non-SNAP awards to foreign institutions and awards to foreign institutions issued prior to October 1, 2012 grantees are required to submit FFR expenditure data annually.
16.7.1 Changes in Project and Budget
Foreign grants are subject to the NIH Standard Terms of
award, see Administrative Requirements—NIH
Standard Terms of Award in IIA. Inclusion in SNAP is at the discretion of
the NIH awarding IC and will be specified in the NoA.
16.7.2 Change
in Scope
A change in the performance site within a foreign country or
the addition of a performance site in a country other than that specified in
the approved application requires NIH awarding IC prior approval. The transfer
of work by a domestic grantee to a foreign component also requires awarding IC
prior approval.
16.7.3 Change of Grantee Organization
A change of grantee organization that involves the transfer
of a grant to or between foreign institutions or international organizations
requires approval of the NIH awarding IC and its National Advisory Council or
Board. NIH awarding IC approval also is required for the transfer of a grant
from a foreign organization to a domestic organization. Grantees adding or
changing a foreign performance site within a funded grant award must obtain
approval from the GMO before work can be performed at the added or changed
foreign site.
16.7.4 Audit
Foreign grantees are subject to the same audit
requirements as for-profit organizations (specified in 45 CFR 74.26(d) and in
the Grants to For-Profit Organizations chapter).
16.7.5 Reporting
and Record Retention
For awards issued prior to October 1, 2012, whether or not they are under SNAP, foreign grantees submit annual FFRs. For SNAP awards issued after October 1, 2012, foreign grantees submit FFR expenditure data at the end of the competitive segment only. The requirement for quarterly cash reporting does not apply to foreign grantees. Awards issued after October 1, 2012 are administered in PMS using subaccounts and payments will be specific to each grant at the time the grantee draws funds.
The FFR expenditure data must be submitted electronically through the eRA Commons and must be submitted in U.S. dollars and in English. For awards issued prior to October 1, 2012, the currency rate in effect at the time the FFR is prepared should be used in preparing the report. For awards issued after October 1, 2012, the currency rate in effect at the time the funds are drawn down from PMS should be used in preparing the FFR. For the final FFR, NIH requires grantees to reimburse the U.S. government for funds not spent. Mail reimbursement checks in U.S. dollars to the OFM.
All foreign grantees, contractors, consortium participants,
and/or subcontractors must comply with Bayh-Dole
invention reporting requirements. Regarding intellectual property, foreign
grantees have the same rights and obligations regarding invention ownership as
U.S. grantees. (See http://www.iedison.gov.)
Record retention requirements are the same as those for
domestic grantees.
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