Re: Intra-University Consulting Herbert B. Chermside 03 Jun 2004 13:21 EST
I am afraid I was not clear. I was referring only to A-21's reference to what "base pay" is. See J.10 ( J. 8.in the old numbering) d. (1), Salary rates for academic year. "... based on the individual faculty member's regular compensation for the continuous period which, under the policy of the institution concerned, constitutes the basis of his salary. I understand this to mean that there must be a "base pay" for ALL individuals in a faculty status. See J. 10. a. General. "Compensation for personal services covers all amounts paid currently or accrued by the institution for services of employees rendered during the period of performance under sponsored agreements. Such amounts include salaries, wages, and fringe benefits (see subsection f). These costs are allowable to the extent that the total compensation to individual employees conforms to the established policies of the institution, consistently applied, and provided that the charges for work performed directly on sponsored agreements and for other work allocable as F&A costs are determined and supported as provided below." I understand "...total compensation to individual employees conforms to the established policies of the institution, consistently applied...." means that every faculty employee must have a "total compensation" -- i.e., "base pay" that covers all expected work, except that an overload by "established policy... consistently applied" (AND reasonable!) is allowable. This interpretation appears to me to be consistent with all of the rest of J.10 in the discussions of how to record and confirm allocations to federal sponsored programs. So, in short, I interpret that "base pay" as described above applies to all faculty employees. This base pay is typically stated in a contract letter. The reason that A-21 says base pay in summer is at the rate of the previous academic period is because AY faculty seldom get a contract letter for summer work. If you have followed the recent discussions nationwide regarding what is "base pay" for faculty with clinical duties, I believe that this interpretation continues to hold. Short and sweet, if the clinical duties compensation is set and paid by the institution (or by a related corporation), as part of total compensation, then pay for clinical duties can be included in the A-21 base pay which constitutes 100% effort. However, if pay for clinical duties is set and paid by a different organization (typically this latter clinical pay can be at a different rate, and can vary based on actual clinical performance over short terms), it cannot be in the base pay which constitutes the university's 100 % effort. Additions to "total pay" from other sources are OK so long as they do not get into the "base pay" of the institution, and hence cannot influence what is charged to federally supported activities, direct or indirect. E.g, clinical pay from the VA, or supplemental pay from an athletic booster organization. If anyone can provide a documented refutation of this interpretation that "base pay" covers the totality of EVERY faculty member's contracted normal responsibilities, I would be especially delighted to hear it. This is the basis of why there is not supplemental pay for taking on a sponsored program. There is a clear assumption that the sponsored program is part of normal responsibilities. If it means a small increment of added work maybe the faculty member just works a little harder -- or a little faster! But if it is a large increment of added work, other institutional responsibilities must be dropped. Hence the concept of "release time". Please note one special situation where taking on a sponsored program can result in an addition to the institutional base pay: If a part timer, say 0.5 FTE, takes on a sponsored program as an ADDITIONAL duty, AND the part time appointment is changed to a larger FTE (presumably at a reasonable relationship of the additional work to the additional FTE so that a reasonable person would say the faculty member's rate of pay for work done is the same), then the base pay can increase, until 1.0 FTE is reached. This an unusual situation, but perfectly legal. Chuck At 01:12 PM 6/3/2004, you wrote: >Chuck, > >Are you saying that A-21 applies to all sponsored program funding? >That's what your sentence, "A-21 applies to all payments for duties >except something specifically defined as overload, no matter where the >payment comes from," indicates to me. A-21's Applicability, the third >section of this circular (the letter to heads etc.), clearly states, >"All Federal agencies that sponsor research and development, training, >and other work at educational institutions shall apply the provisions of >this Circular in determining the costs incurred for such work." How do >you interpret this as meaning that A-21 applies no matter who is funding >the grant, or did I misunderstand your comment? > >Thanks. > >Carolyn > > >>> xxxxxx@VCU.EDU 6/3/04 11:39:44 AM >>> >It is my understanding that "regular compensation" specified in A-21 >applies to all payments for duties except something specifically >defined as >overload, no matter where the payment comes from. Can anyone else >confirm >this, or provide a defensible critique? > >Chuck > > >At 11:06 AM 6/3/2004, you wrote: > >Doesn't the fact that this is a non-federal sponsor that allowed this > >expense come into play? > >My understanding is that A-21 applies to Federal grants only and is >good > >guidance for us for the non-federal sponsors for consistency's sake. >Not > >sure how this will play during an audit, though. > > > >----- Original Message ----- > >From: "Herbert B. Chermside" <xxxxxx@VCU.EDU> > >To: <xxxxxx@HRINET.ORG> > >Sent: Thursday, June 03, 2004 9:45 AM > >Subject: Re: [RESADM-L] Intra-University Consulting > > > > > > > You are correct that extra compensation over base pay from a >project is > > > generally unallowable, no matter who funds the project. A-21 >requires > >that > > > this principle be applied across the board. There can be one >exception. > > > > > > If, and only if, your institution has a policy for overload pay >for > > > overload work, and the sponsor and the institution agreed that this >was an > > > instance of overload work, can such a payment be allowed. In my > > > experience, an overload policy must be clearly restricted to >relatively > > > short and temporary periods; a semester might be a typical maximum, >and > > > approval should come from a high academic manager. Otherwise it >ceases to > > > be an overload. I suggest that overload pay for an overload caused >by > > > something other than a sponsored program come from a separate >account, > >just > > > to keep the record straight that it is not an increase in base >pay. > > > > > > A-21 does allow for overload pay beyond the base pay if the >policies are > > > clear and explicit. In fact an overload could even be charged to >a > >federal > > > project in a very unusual case if the sponsor explicitly agrees to >it. > >But > > > that is a might unusual case. > > > > > > Many institutions have a broad prohibition against >intra-institutional > > > consulting, regardless of departmental lines. I believe this is a >very > > > good idea. "Consulting" should mean personal income from another >source > > > than the home institution for personal effort outside of >institutional > > > responsibilities. Normal university business practices have >changed since > > > > > the A-21 wording about consulting was adopted. If a special >"consult" is > > > needed, and takes more than incidental time -- say, an expert >teaching a > >PI > > > a new technique -- it is much better to budget the expert for a >very small > > > % effort. If the expert devotes a week to that teaching, that can >be > > > budgeted as 2% effort for a year. > > > > > > Chuck > > > > > > > > > At 09:59 AM 6/3/2004, you wrote: > > > >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 > > > > > > > > > > > > >====================================================================== > > > > 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") > > > > >====================================================================== > > > > > > Herbert B. Chermside, CRA > > > Special Asst. to VP-Research > > > Virginia Commonwealth University > > > PO BOX 980568 > > > Richmond, VA 23298-0568 > > > Voice: 804-827-6036 > > > Fax 804-828-2051 > > > e-mail xxxxxx@vcu.edu > > > > > > > > > >====================================================================== > > > 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") > > > >====================================================================== > > > > > >====================================================================== > > 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") > >====================================================================== > >Herbert B. Chermside, CRA >Special Asst. to VP-Research >Virginia Commonwealth University >PO BOX 980568 >Richmond, VA 23298-0568 >Voice: 804-827-6036 >Fax 804-828-2051 >e-mail xxxxxx@vcu.edu > > >====================================================================== > 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") >====================================================================== > > >====================================================================== > 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") >====================================================================== Herbert B. Chermside, CRA Special Asst. to VP-Research Virginia Commonwealth University PO BOX 980568 Richmond, VA 23298-0568 Voice: 804-827-6036 Fax 804-828-2051 e-mail xxxxxx@vcu.edu ====================================================================== 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") ======================================================================