For any questions please send e-mail to: NDSU.Policy.Manual@ndsu.edu
SECTION 805: ALLOWABLE COST POLICIES - COMPENSATION FOR PERSONAL SERVICES
SOURCE:NDSU President
- Activities under a grant or contract, participation in a training or leadership
program, or similar academic activities are normally considered a part of
the regular work load for faculty or staff members. Also, cost policies for
sponsored agreements determine that a faculty or staff member's sponsored
activities are normally part of the institutional base contract.
- SALARY CHARGES TO SPONSORED AGREEMENTS: Charges for work performed on sponsored
agreements by faculty or staff members will be based on the individual's regular
compensation for the continuous period which constitutes the basis of the
individual's salary. Charges for work performed on sponsored agreements during
all or any portion of such period are allowable at the base salary rate. Charges
to the sponsored agreement, irrespective of the basis of computation, cannot
exceed the proportionate share of the base salary for that period.
- 2.1
- The reallocation of salary charges to sponsored agreements should be completed on a Payroll 101 form. Payments for approved overload compensation arrangements should be made by submission of a Payroll 101 form.
- 2.2
- Under federal programs clerical salaries may be treated as direct costs only if they are "identifiable to a particular cost objective" and are explicitly budgeted for such services.
- 2.3
- In exceptional cases, where work on sponsored agreements is more appropriately
performed on an overload basis, extra compensation may be authorized by
the appropriate Vice President, subject to the following:
- A.
- Recommendation and justification by the department head/chair and dead (if applicable).
- B.
- The compensation generally comes from grant/contract funds, and the grant/contract budget must include an authorization for the salary to be paid on an overload basis;
- C.
- The Sponsor's policy will specifically allow such activity.
(Also see Section 807 for non-exempt personnel)
NOTE: Federal Circular A-21 guidelines prohibit extra compensation on federal projects. - D.
- For faculty members and exempt staff, the total annual overload pay authorized shall not exceed twenty percent of their base salary on an annualized basis (i.e., employees on nine month contracts would be annualized to eleven months. Employees on twelve month contracts would also be annualized to eleven months). (Also see Section 806.)
- CONSULTATION PAYMENTS: Intra-university consulting is assumed to be undertaken
as a university obligation requiring no compensation in addition to full-time
base salary. This principle also applies to faculty members who function as
consultants or otherwise contribute to a sponsored agreement conducted by
another faculty member of the same institution.
- 3.1
- In non-recurring, unusual situations, payment may be made if all of
the following conditions are met:
- a.
- consulting is across department lines or at a separate or remote location;
- b.
- work performed is in addition to the regular departmental workload; and
- c.
- university employee consultants are specifically listed in the agreement budget or approved by the sponsoring agency in a separate document.
- d.
- The total annual additional compensation from all agreements does
not exceed the overload limits specified in 2.2 above.
NOTE: The definition of the "regular departmental workload" will be defined by the respective Dean and Department Head of the faculty/staff member involved. Specifically, the sponsored activity cannot be met with a corresponding reduction in the faculty/staff member's departmental responsibilities to qualify as work in addition to the regular departmental workload.
- The Office of Grant & Contract Accounting will review all additional compensation payments on sponsored agreements for allowability under the guidelines stated above.
HISTORY: July 1990; Amended April 1992; May 1996; April 2000; February 2001; August 2002; January 2007.