I also am very interested in seeing the discussion on this -- we are
wrestling with this, too and have not been able to find a solution...  I'd
appreciate responses to the list so that we can all see them...

Thanks,

Patty Siebenmorgen
University of Arkansas
Division of Agriculture

At 06:06 PM 8/21/02 -0500, Erik A. Thelen wrote:
>Thank you all for your insight.  I realize that "base plus grants" is
>really the wrong way to phrase the issue:  I should say
>"salary+grants=base."  Either way, the NIH Grants Policy Statement seems to
>disallow any such arrangement:  the GPS defines "Institutional Base
>Salary," as
>"The annual compensation paid by an applicants/grantee organization for an
>employee's appointment..."  So if I were auditing, I would probably look at
>a faculty member's PAST salary to judge the base.  If the institution
>actually provided bridge funding to maintain the salary base during years
>when the faculty member recovered no salary from grants, there would be no
>problem.  But if the salary actually paid to the faculty member varied by
>as much as 20% from one year to the next, that would be a problem.  I still
>wonder how medical schools manage this.  Does anyone have a "model" faculty
>appointment letter they are willing to share with me?
>
>Erik
>
>>Date:    Tue, 20 Aug 2002 11:55:21 -0400
>>From:    "Kaars, Charles" <xxxxxx@RESEARCH.BUFFALO.EDU>
>>Subject: Re: "Base-plus-grants" salary arrangements
>>
>>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)
>
>---
>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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