I, too, am interested in how this is handled.  What is the source of funds
for any such bonus?  How is it arranged so as to be legal under A-21, which
is pretty adamant that allowable cost for salaries is based on the "total
compensation...consistently applied".  Wouldn't any bonus become part of
that "total compensation...consistently applied"?  Presumably the word
"bonus" means it is applied periodically and does not add to the base
salary, so it is part of the total compensation for the period being
considered.

Chuck

At 09:11 AM 4/23/2003 -0500, you wrote:
>At 12:00 AM 4/23/2003 -0400, you wrote:
>>Date:    Tue, 22 Apr 2003 10:27:12 -0500
>>From:    RESADM-L Member <xxxxxx@SBLHS.ORG>
>>Subject: incentives
>>
>>Has anyone else seen the article in today's Chronicle about an initiative at
>>Univ. of Southern Mississippi intended to provide an incentive for faculty
>>members to request salary support in external funding proposals? According
>>to the article, "a faculty member who uses money from a research grant to
>>cover 25 percent of his or her university salary and turns the savings back
>>to the institution will earn a bonus of 10 percent [from the university].
>>Professors who use outside research money to cover all of their salary will
>>earn a supplement equal to 30 percent of their university income."
>>
>>Do any of your institutions have a similar initiative? Call it a naive
>>question, but why isn't this a kickback?
>>
>>-----------------
>>Molly Daniel
>>Grants Specialist
>>Planning Dept.
>>Sarah Bush Lincoln Health Center
>>1000 Health Center Drive
>>Mattoon, IL 61938-0372
>>tel. 217-258-2195
>>fax 217-258-4135
>>email: xxxxxx@sblhs.org <mailto:xxxxxx@sblhs.org>
>>web: www.sarahbush.org <http://www.sarahbush.org>
>
>I have wondered the practice of providing incentive pay for Principal
>Investigator's charging research salary to grants.  I recently did a
>survey and found that many institutions have implemented this type of
>system.  I would like to know if these type of arrangements have been
>approved by legal counsel relative to the applicability of the
>Anti-Kickback Act of 1986 as well.
>
>Deborah Everds
>Research Administrator
>Cell & Molecular Biology
>Northwestern University Medical School
>
>312-503-4334
>
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Herbert B. Chermside, CRA
Director, Sponsored Programs Administration
Virginia Commonwealth University
PO BOX 980568
Richmond, VA  23298-0568
Express Delivery Only:
 Biotech One, Suite 113
 Virginia Biotechnology Research Park
 800 East Leigh Street
 Richmond, VA 23219
Voice:  804-828-6772
Fax     804-828-2521
OFFICE e-mail   xxxxxx@VCU.EDU
Personal e-mail xxxxxx@vcu.edu
http://www.research.vcu.edu/ospa.htm

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