AIOs and grants accounting folks, I would appreciate your thoughts:

For some time, I have been hearing about a common practice at medical
colleges:  namely, that some research faculty are responsible for raising a
portion of their salaries through grants.  For example, the institution
establishes a "base salary" for Dr. A. of $112,500, and their employment
agreement with Dr. A states that the institution will pay $90,000 plus
fringes on that $90,000.  The employment contract further specifies that
Dr. A must raise the remaining portion of his or her salary plus fringes
through grants (up to but not exceeding $112,500).  When Dr. A is written
into a grant (or a subcontract), his or her base salary is represented as
$112,500.

I have some issues with this, namely Part J, Section 8.d(1) of Circular
A-21.  Perhaps I am just not clever enough to grasp the subtlety of the
"base-plus-grants" salary arrangement.  I have been unable to confirm
whether any medical college actually employs this practice.  But I have now
seen -- for the first time -- something a lot like this "base-plus-grants"
salary arrangement in a subcontract that came to us.

What's your take on this?
---
Erik A. Thelen, Ph.D.
Executive Director
Office of Research and Sponsored Programs
Marquette University; P.O. Box  1881; Milwaukee, WI 53201-1881

Email xxxxxx@marquette.edu     Phone 414-288-5327     Fax 414-288-1578
URL   http://www.marquette.edu/orsp

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