Webinar
Join Gil Tran and Cindy Hope on Monday, Dec. 9, 2p ET / 11a PT
On October 1, 2024, in the process of updating its HHS Grants Policy Statement for the OMB Uniform Guidance revisions, the Department of Health and Human Services (HHS) has also updated its salary rate limit (SRL) to apply to both direct and indirect salaries. The SRL, currently at $221,900, was previously applicable to only direct salaries. The policy applies to all HHS awards made on or after October 1, 2024. NIH issued a similar policy through its notice – NOT-OD-25-025: Updated Guidance on Salary Limitation for Grants and Cooperative Agreements (November 14, 2024). See links below. This new policy requires immediate actions from the grantees regarding their indirect cost rates and cash drawdowns.
While the Federal government will implement the SRL impact in all future indirect cost rates, the grantees must immediately (1) identify the salary rate limit impact and recompute the current indirect cost rates, (2) reduce the cash drawdown by the reduced rates for all HHS awards made on or after October 1, 2024, and (3) document the methodology for recalculating and applying the reduced rates.
This session will dig deep into the following questions:
- What is the history/background of the HHS Salary rate limit?
- What are the HHS instant and long-term requirements for grantees?
- How do you recompute the indirect cost rates with the salary rate limits?
- How do you re-adjust the cash drawdowns, if necessary?
- Can you use carry-forward amounts if you have fixed or provisional rates?
- What are the necessary implementation plan and required steps for compliance?
- What are the consequences for non-compliance?
Learning Objectives
- Understand the new requirements for the HHS Salary rate limit, effective October 1, 2024
- Identify the impact on current indirect cost rates (i.e., predetermined, fixed or provisional rates)
- Assess ways to recompute the current indirect cost rates and re-adjust cash drawdowns
- Develop an implementation plan
