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For any questions please send e-mail to: NDSU.Policy.Manual@ndsu.edu

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SECTION 807:

ALLOWABLE COST POLICIES - OVERTIME PAYMENTS SPONSORED AGREEMENTS

SOURCE: NDSU President

1. GRANTS. Overtime payments are generally an allowable expense against grant funds provided the employee is non-exempt from overtime as stated in Section 212 and the cost is reasonable and allocable to the grant.

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   In determining reasonableness, the grant or contract activities should be allocated in relationship to the total workload of the pay period. Overtime payments should be allocated to all funding sources benefiting from the overtime.

2. CONTRACTS. Contract documents must be reviewed individually for clauses relating to the allowability of overtime payments. If overtime payments are allowed, they will be handled in the same manner as described above.

3. RATE OF COMPENSATION. Allowable overtime should be compensated at the rate of time and one-half as stated in Section 212.

4. CODING AND APPROVAL OF OVERTIME PAYMENTS. The overtime should be coded Account 514005 and be submitted on a timeslip for payment. Actual hours must be documented on the timeslip. Overtime payments should be approved (timeslip signed) by the Principal Investigator and the department supervisor.

5. The Department of Grant and Contract Accounting will review overtime payments on sponsored agreements for allowability under the guidelines stated above.

HISTORY: July 1990; Amended April 1992, August 2007.