Dear Colleagues,

How do you handle requests from PIs for extra compensation payments from
their grant or contract?   I received a call from a person whose request
for extra compensation was rightly declined because the person is PI on the
project from which the extra compensation was to be paid.  The nonfederal
sponsor approved this arrangement, as did university administrators outside
of the sponsored programs organization.

I reviewed the OMB Circular A-21 J. 8. d. (1) exception with the  PI.
Paying only base salary from grants is the rule under A-21.  The exception
exists for faculty members who are carrying a full teaching, research and
public service load and are also engaged in intra-university consulting
with colleagues in another department.  I further noted that consulting for
yourself would be a problem resulting in disallowed costs and raising
concerns should the project in question came up as part of the audit
sample.

Please share any suggestions or war stories either via the list or offline.
Thank you for your help.

Ruth Smith, Executive Director
Old Dominion University Research Foundation
P.O. Box 6369; Norfolk, VA 23508
Ph 757-683-4293, ext. 600
Fax 757-683-5290
Mobile Ph 757-469-5675

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