Erik:
The key here is that Dr. A's medical school establishes her base
salary for 100% effort as $112,500. It then appoints Dr. A at 80% effort
and pays her 80% of her full time base salary (i.e. $90k). She may draw the
20% of her base salary which is not paid by her institution from her grants.
With the proviso, of course, that she may only draw salary from a grant in
direct proportion to her effort on that grant.
Hope this helps.
Charlie
Charles Kaars
Assistant Vice President
Sponsored Programs Administration
Suite 211 The UB Commons
Amherst, NY 14228
716-645-2977 ext. 101 (voice)
716-645-3730 (Fax)
-----Original Message-----
From: Erik A. Thelen [mailto:xxxxxx@MARQUETTE.EDU]
Sent: Tuesday, August 20, 2002 11:15 AM
To: xxxxxx@HRINET.ORG
Subject: [RESADM-L] "Base-plus-grants" salary arrangements
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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