[HN Gopher] What does a research grant pay for?
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       What does a research grant pay for?
        
       Author : azhenley
       Score  : 35 points
       Date   : 2023-04-09 20:10 UTC (2 hours ago)
        
 (HTM) web link (austinhenley.com)
 (TXT) w3m dump (austinhenley.com)
        
       | samth wrote:
       | This is an excellent breakdown. The one thing I would quibble
       | with is the characterization of summer salary. It's better to
       | think of the 9-month pay idea as an accounting trick that has two
       | purposes: 1. A benefit for faculty, since they get to be paid
       | extra if they get grants. 2. An accounting approach for the NSF
       | to limit how much any one faculty member can get in grant funding
       | and account to Congress that the faculty are actually
       | participating in the research. It does, as the article says,
       | create the possibility of significant swings in compensation,
       | similar to a bonus scheme.
        
       | jdiez17 wrote:
       | Before I read the article, my first reaction was "People.
       | Research grants pay for people('s salaries)." (And other things
       | as well, but that's usually the biggest category)
       | 
       | But apparently, in the author's university, a massive amount of
       | goes to "overhead". That's quite surprising, in my opinion.
        
         | yawnxyz wrote:
         | this is true for every gov't grant! And it's always 20%+ at
         | EVERY university
        
         | azhenley wrote:
         | It is the norm in the US. I'll share a few other overhead rates
         | at well-known universities:
         | 
         | - University of Tennessee, Knoxville (my former employer), 53%
         | 
         | - University of Michigan, 56%
         | 
         | - University of California, Berkeley, 57%
         | 
         | - University of Texas at Austin, 58.5%
         | 
         | - Harvard University, 69%
        
           | alsodumb wrote:
           | UIUC - 58.6%
           | 
           | One thing that really annoys me as a grad student is the fact
           | that the University charges tuition to my advisor even if I'm
           | not taking any classes. Most PhD students finish their course
           | work pretty quickly and don't take any classes after that and
           | yet they get charged for tuition from the grant. The
           | justification is that they're enrolled in thesis credits
           | which is also a class but that's stupid imo, especially when
           | the grad students don't get paid much. It's even more
           | annoying when people say "oh your pay as grad student is low
           | because technically you are getting free tuition.". Yeah no,
           | I'm getting free tuition for like a year or two I take
           | classes while I'm working there for 5 years.
           | 
           | I also wish the funding agencies allowed more flexibility is
           | terms of spending excess money in different categories. I was
           | surprised to know that left over money from a grant that's
           | supposed to pay for an an undegrad cannot be used to buy a
           | faster computer for research related to the same project or
           | maybe even pay for data labeling services like scale.AI. They
           | wanted us to hire a much more expensive undegrad instead of
           | using external data labeling services at much cheaper prices.
           | 
           | Oh and also Fly America Act. Every federal grant requires you
           | to use US airlines and I sometimes paid 2x what I would have
           | paid otherwise (and only one of the author could do instead
           | of 2 because of limited money).
        
         | ordersofmag wrote:
         | Except if you look at university budgets you'll see that most
         | of that overhead ends up paying for...that's right. People.
        
           | jdiez17 wrote:
           | Right, there are a lot of administrators, janitors, technical
           | support staff etc being paid by the university. But I'm
           | surprised they aren't paid by the students tuition fees,
           | since are so ridiculously high already.
        
             | alsodumb wrote:
             | There a too many administrators imo, who are often paid
             | quite a bit. I don't think a University needs so many
             | associate deans, assistant deans, and directors.
             | Unfortunately it's people in those roles that make future
             | hiring decisions so minimizing spending there isn't usually
             | their goal.
        
       | analog31 wrote:
       | >>> A very stressful part of faculty life was knowing that my
       | annual compensation was about to take a nose dive if I don't get
       | another grant.
       | 
       | >>> ... What do you do if you're swimming in funding then? You
       | can buy out of teaching. You effectively pay for the cost of an
       | adjunct to take your teaching load.
       | 
       | Indeed, people think that getting tenure means you can live on
       | easy street, but a tenured prof with no funding is living a tough
       | life. They can lose their research space and department-
       | contributed equipment funding (if in a laboratory science, these
       | can be significant), and travel money, plus get "stuck" with a
       | heavy teaching load. At the same time, a prof who does want to
       | focus their career on teaching pays a price for doing so.
        
       | sega_sai wrote:
       | Yes, that matches well my experience with NSF (in astrophysics).
       | Most goes to the University in overheads + grad student + (maybe)
       | postdoc, and a little bit to cover your summer salary (which is
       | an insane concept if you ask me).
        
         | jgeada wrote:
         | There is a reason university administrative overhead has
         | exploded over the past few decades: MBAs have found yet another
         | vein of money to parasite themselves onto. I think this country
         | will only start to get better when 90% of this management
         | overhead is fired and forbidden to work in management ever
         | again.
        
       | KennyBlanken wrote:
       | This article is...very misleading, implying that "overhead" is
       | (in some dirty or despicable way) "taken" by the university. It's
       | not. The indirect costs are added to the grant, so if you get a
       | $500k grant, the university gets an extra percentage. Sample
       | citation: https://www.science.org/content/article/nih-plan-
       | reduce-over...
       | 
       | > The federal government has been adding indirect cost payments
       | to research grants since 1947. Today, each university negotiates
       | its own overhead rate--including one rate for facilities and one
       | for administration--with the government every few years. Rates
       | vary widely because of geography--costs are higher in urban areas
       | --and because research expenses differ. Biomedical science, for
       | example, often requires animal facilities, ethics review boards,
       | and pricey equipment that aren't needed for social science. The
       | base rate for NIH grants averages about 52%--meaning the agency
       | pays a school $52,000 to cover overhead costs on a $100,000
       | research grant (making overhead costs about one-third of the
       | grant total). Universities usually don't receive the entire 52%,
       | however, in part because some awards for training and conferences
       | carry a lower rate, and because certain expenses such as graduate
       | student tuition don't qualify.
       | 
       | The author is also engaging in manipulative data presentation
       | techniques (such as presenting the cost of a graduate student for
       | five years, making it sound like an outrageously large $233,000,
       | and not $46k/year, which when you factor in the number of hours a
       | grad student typically works, is likely around federal minimum
       | wage.)
       | 
       | If anyone would actually like to read up about the subject, here
       | are some starting points:
       | 
       | https://www.nsf.gov/bfa/dias/caar/indirect.jsp
       | 
       | https://grants.nih.gov/grants/policy/nihgps/html5/section_7/...
       | 
       | If the NIH gives you a "$5M" grant, you get the $5M _plus the F
       | &A costs_. I don't know how NSF does it.
       | 
       | There are a lot of rules around what grant money can and cannot
       | be spent on, and the rules are specifically set up _to try and
       | prevent administrators from taking more than what is reasonable
       | for keeping the lights on, staff paid, etc._
       | 
       | To everyone getting outraged in the comments about evil
       | universities and schools 'stealing' research dollars: you are
       | being manipulated by a computational researcher who likely is not
       | even remotely aware of the costs of the infrastructure to support
       | them, such as computational/storage clusters they utilize. Those
       | clusters, if supported from F&A/indirect costs, often cannot have
       | usage charges, because that would be "double dipping."
        
         | pbj1968 wrote:
         | This is a good post, and I'm glad to see someone knowledgeable
         | commenting. Other federal agencies do tend to award in fixed
         | amounts, so the intricacies of indirect can get very
         | complicated. Foundation indirects aren't a debate worth having.
         | They make the choice to pay indirects, the recipients will
         | happily accept them.
         | 
         | My main response to the author, though, is what exactly does he
         | expect the grant to cover? It's paying for his time,
         | infrastructure used, and the cost of supporting a grad student
         | who's likely generating the bulk of the data. These are the
         | very real expenses of his research...
        
         | azhenley wrote:
         | F&A comes out of NSF grants. If I get a 500K grant, the first
         | 150k or so would have gone to my university. Some universities
         | this overhead number would be lower, some higher, but it is
         | taken out first.
         | 
         | > _The author is also engaging in manipulative data
         | presentation techniques (such as presenting the cost of a
         | graduate student for five years_
         | 
         | I shared the yearly/monthly breakdown the sentence before that:
         | "It includes their salary ($2200 a month), tuition ($15,000 a
         | year), and benefits ($200 a month)."
         | 
         | I didn't post anything misleading or inaccurate. I included
         | screenshots of my cumulative budget pages and included
         | _specific numbers_ to make examples more concrete. Not making
         | any claim as to whether F &A is evil or not (it's not).
        
           | KennyBlanken wrote:
           | You purposefully multiplied the grad student's compensation
           | by five years to make it sound like a huge number.
           | 
           | You purposefully cited the NSF as an example, and left out
           | mention that the NIH (five times the funding of NSF) and
           | numerous other organizations, provide for F&A overhead.
           | 
           | You present the 30% "take" as being high, when it's actually
           | very reasonable, and you clearly think it's all one giant
           | waste of money. Heat, cooling, water, power, internet,
           | computational clusters, internet connections? Those don't
           | cost money! I don't have lab space! Why am I being charged
           | overhead!?
           | 
           | Over and over you're clearly manipulating readers to generate
           | outrage. The whole piece is one giant bitch-fest; woe be the
           | poor AI researcher!
           | 
           | Do you not understand how you're fueling anti-science-
           | research efforts? The level of threat scientific research
           | funding is constantly under? And how one of the most frequent
           | means of attack is the perceived wasteful overhead?
        
             | alsodumb wrote:
             | You seem to take this very personally.
             | 
             | The author is a computational researcher, and most of his
             | funding likely comes from NSF not NIH. Why would you expect
             | him to write about how NIH grants work? Why would you
             | expect him to write how things work in life sciences? If
             | you have an issue with it write your own blog post and
             | share it.
        
         | yawnxyz wrote:
         | Yes, that's why it's "overhead" because it's just the cost to
         | play the game.
         | 
         | But after overhead, even R01 grants which sound "massive" will
         | just end up paying for a couple of PhDs and postdocs over four
         | years at the end. But there's some "inflation" of overhead
         | going on over the years, so the bang for your buck is
         | dwindlding
        
         | stevenbedrick wrote:
         | This is something that varies widely by funding agency- you are
         | correct that NIH grant budget limits are exclusive of
         | indirects, but for the NSF the opposite is true. Different
         | funders handle that differently, and additionally some funders
         | have a cap on the indirect rate that they will allow. Many
         | private foundations will only an indirect rate of 20%, for
         | example. Some corporate grants that I've seen do not allow for
         | any indirects at all.
         | 
         | Depending on your institution, and how they do their
         | accounting, this can have serious negative effects for
         | investigators. At an academic medical center, the majority of
         | PIs are NIH funded, so all of the accounting and finance
         | planning for research assumes a 54% indirect cost rate- so if,
         | for whatever reason, your portfolio of grants doesn't fit that
         | mold, you can have issues. I have known PIs who had multiple
         | very large grants from private foundations, and so were not
         | producing the expected amount of indirects and ended up being a
         | net negative to their department's bottom line. This caused
         | them (and their department chair) all kinds of problems.
         | 
         | Accounting and grant budgeting are two of the things that I
         | wish I'd learned more about in grad school!
        
       | jll29 wrote:
       | Overhead is why your institution wants you to apply for grants,
       | of course.
       | 
       | Note the particularity of not paying professors over summer is
       | only true for the USA. In Germany, for example, you will get 13
       | monthly salaries for 12 months of work (the extra one is in
       | November and helps one to pay for Christmas presents). What
       | really matters in the end is one's quality of life for the annual
       | net salary, of course.
       | 
       | Thanks for uploading some sample documents - interesting to see
       | how they look like in the US.
        
       | avsteele wrote:
       | This a decent write up. The SBIR budgets wind up looking similar.
       | 
       | I can see how the indirect costs ("overhead") seem like ripoff to
       | a professor, but even if you are running a private business
       | having an indirect cost rate of 50% is considered low-to-normal.
       | At least where I am: rent, utilities, cleaning, bathrooms, etc...
       | are just expensive.
        
         | KennyBlanken wrote:
         | IMHO it's outrage-bait from an AI researcher who is likely
         | oblivious to the costs of the computing infrastructure they use
         | and thinks the overhead being charged _on top of the grant
         | award_ is outrageous because they don 't have lab space and
         | such.
         | 
         | Sadly, most researchers have zero appreciation for how much
         | computing infrastructure costs, and how they think it's
         | perfectly fine to store data for a several million dollar
         | research grant, that involves multiple people's academic
         | careers, on a USB hard drive they got at Best Buy because
         | buying a proper server etc would cost too much.
         | 
         | You can see their attitude in how outraged they seem to be
         | about having to pay a grad student $46k a year...
        
           | azhenley wrote:
           | I only paid my students $26,000 a year (listed as $2200 a
           | month in the post). I wish I could have paid them many more
           | times that like they deserve!
        
         | jhart99 wrote:
         | I think one reason indirect costs get a bad rap is there are
         | supplies that can only be paid for through overhead for example
         | ... pens. Depending on the institute, getting anything back in
         | terms of support can be tricky or down right impossible. It was
         | so bad in one place, that we would all go out of pocket for
         | notebooks and pens because the indirect portion was a black
         | hole of nonsupport.
        
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