Subject:  NIH Expanded Authorities No.        95-3
Date:    February 13, 1995

(Note: This Important Notice is being sent to Account Managers, Chairpersons, Deans and Chancellors. Please forward to others who have a need to know.)

Effective October 1, 1994 the National Institutes of Health (NIH) announced that they were extending their expanded authorities to additional types of projects. Expanded authorities for NIH were originally covered in Important Notice 89-24 dated 11/30/89 and 88-4 dated 12/16/88. Unless specifically excluded by individual awards, NIH now extends its expanded authority coverage to all grants that support research to include Program Project grants (PO1s), Research Career Awards (Ks), Minority High-School Student Research Apprentice Program awards (S03s), and all Research grants (Rs), except Phase I Small Business Innovation Research (R43) and Small Business Technology Transfer (R41) awards. Training grants "T" and Fellowship grants "F" are not included in the expanded authorities.

The expanded authorities granted are as follows:

(1) Incur preaward costs 90 calendar days prior to award. Preaward costs more than 90 calendar days prior to award require the prior approval of the Federal awarding agency. All preaward costs are incurred at the recipient's risk (i.e., the Federal awarding agency is under no obligation to reimburse such costs if for any reason the recipient does not receive an award or if the award is less than anticipated and inadequate to cover such costs).

(2) Initiate a one-time extension of the expiration date of the award of up to 12 months unless one or more of the following conditions apply. For one-time extensions, the recipient must notify the Federal awarding agency in writing with the supporting reasons and revised expiration date at least 10 days before the expiration date (project period end date) specified in the award. This one-time extension may not be exercised merely for the purpose of using unobligated balances, nor may grantees extend project periods previously extended by the NIH awarding agency. Such extensions are not permitted where:

(i) The terms and conditions of award prohibit the extension.

(ii) The extension requires additional Federal funds.

(iii) The extension involves any change in the approved objectives or scope of the project.

(3) Carry forward unobligated balances to subsequent funding periods.

(4) Waives cost-related (rebudgeting) and administrative prior written approvals required by OMB Circulars A-21 and A-122.

(5) Authorizes program income earned during the project period to be added to funds committed to the project by the Federal awarding agency and recipient and used to further eligible project or program objectives.

We will begin using a single account number for the entire project period for all NIH covered projects (just as we do on the "R" projects) effective immediately. Should you want a new account number each budget year rather than use the same one please notify Contract and Grant Administration - FMS 90 days before the expiration of a budget year and a new number will be established. New numbers may be helpful on large complex projects in order to tie expenditures to budgets.