At The University of Montana, we charge a sick and annual leave assessment to all grants. The assessment is a percentage of the salary and is charged as a fringe benefit.  The funds received from the assessment are collected in the grant sick and annual leave pool account.  When grant-funded people take sick or annual leave it is charged to the grant sick and annual leave pool account.  Payouts of sick and annual leave for terminating grant-funded employees are also charged to the pool account.  The sick and annual leave assessment is listed in our F&A rate agreement as one of the fringe benefits charged as a direct cost.  This has eliminated the problem of what to do when grant-funded employees need leave payouts after the grant has ended or on extended sick leave.

Claire L. Carlson
Associate Vice President for Research
The University of Montana
Research and Sponsored Programs
University Hall 202
Missoula, Montana  59812-4104
Phone (406) 243-5796
Fax (406) 243-5739
xxxxxx@umontana.edu

-----Original Message-----
From: Diane Gilliland [mailto:xxxxxx@TAMU.EDU]
Sent: Thursday, March 18, 2004 8:57 AM
To: xxxxxx@HRINET.ORG
Subject: [RESADM-L] Annual Leave Payments

The problem of paying for lump sum annual leave when an employee
terminates has come up on our campus.  Our normal policy is to pay for
annual leave from the source, either grant or other, that the employee
was last paid from.  Unfortunately, if it is a grant that has
terminated, the department or college must tap into other sources of
funds for the leave payment.  When it involves retirement of long term
staff or faculty, this can be a sizeable amount.

Has anyone come up with a workable solution to this problem?  We have
discussed increasing our benefit rate by some percent to accumulate
funds for a leave pool.  What would be the implications and problems
associated with such a move?

We are open to suggestion, and welcome any insight you have to help us
out.

Thanks.   Diane

Diane M. Gilliland
Assistant Director for Research Administration
Texas Agricultural Experiment Station
2147 TAMU
Rm. 5, J K Williams Admin. Bldg.
College Station, Texas 77843-2147

Phone  979-845-4781
Fax   979-862-7775

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 Instructions on how to use the RESADM-L Mailing List, including
 subscription information and a web-searchable archive, are available
 via our web site at http://www.hrinet.org (click on "Listserv Lists")
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