There are also liability issues that the PI who works outside the institution may not think about.  If consulting privately, they do not have the institution, the Board, or, for publics, the state backing them.  So they better have really good professional liability insurance and enough money to pay a lawyer if they get sued.  If they need paid or non-paid student workers on the project, there may be liability issues if the faculty supervisor is not supervising in his/her institutional role.  If the faculty member chooses to employ students or others on his/her own, he/she better be familiar with all the IRS, state, and possibly local regulations regarding payroll tax liability, which likely means he/she will need to pay a CPA or at least a good bookkeeper to keep track of all this.  And he/she should find out about workers comp insurance--for both him/herself and anyone he/she may have working for him/her. Some sponsors may require high insurance limits (general liability and motor vehicle) that can be more expensive than what the faculty member normally carries.  By the time I go through this list with faculty, they usually figure out that they would rather give the university the F&A.

Barbara Gray

Barbara H. Gray, M.P.H.
Director of Sponsored Programs
 & Research Administration
IRB and IACUC Administrator
Valdosta State University
1500 North Patterson Street
Valdosta, GA  31698

xxxxxx@valdosta.edu
Telephone:  229.333.7837
Facsimile:  229.245.3853
www.valdosta.edu/ospra

Office Location:
Psychology Building, Room 3106

-----Original Message-----
From: Research Administration List [mailto:xxxxxx@lists.healthresearch.org] On Behalf Of Scott Niles
Sent: Monday, March 05, 2012 3:22 PM
To: xxxxxx@lists.healthresearch.org
Subject: Re: [RESADM-L] Taking work outside

I agree Rene. Unfortunately, there are some faculty at our institution who just do what they please and fail to inform anyone in our office of any extracurricular activities. And I know that they are most probably doing it on university time, with university resources...

Scott Niles, MA, CRA
Grants and Contracts Administrator
Office of Research and Sponsored Programs Morehead State University
901 Ginger Hall
Morehead, KY 40351
Phone: 606-783-2278
Fax: 606-783-2130
Web site: http://www.moreheadstate.edu/research

On 3/5/12 3:17 PM, "Hearns, Rene" <xxxxxx@EDINBORO.EDU> wrote:

>Scott and Larry,
>
>As a public institution with a faculty union, this is viewed differently.
> A consulting agreement would only be feasible if they meet the
>following
>rules:
>    1) Does not impede on their regular work hours
>    2) Does not use any institutional facility, equipment, supplies or
>personnel
>    3) Does not use and/or highlight their institutional affiliation in
>any of their correspondence
>    4) Includes this as outside employment in their report
>
>And even this makes me nervous.  There are so many ways that this could
>come back on the institution in a negative light.
>
>Cheers,
>Rene
>
>----------------------------------------------------
>Rene Hearns, PhD (cand), MPA, CRA
>Director, Grants and Sponsored Programs Edinboro University of
>Pennsylvania
>148 Meadville Street
>Edinboro, PA 16444-0001
>814.732.1052 Telephone      814.732.2611 Fax
>Office Hours  8:00 am to 4:30 pm
>
>
>
>
>-----Original Message-----
>From: Research Administration List
>[mailto:xxxxxx@lists.healthresearch.org] On Behalf Of Scott Niles
>Sent: Monday, March 05, 2012 1:10 PM
>To: xxxxxx@lists.healthresearch.org
>Subject: Re: [RESADM-L] Taking work outside
>
>Hi Larry,
>
>At my institution, any work faculty does outside of the university is
>not governed by our sponsored programs office. Working directly with
>the agency would fall under their consulting allotment.
>
>As far as faculty requests to defray or eliminate F&A from a budget,
>it's at the discretion of our Associate VP for Research to approve or
>deny, but obviously the onus is on the faculty to provide compelling
>justification for such a request.
>
>
>Scott Niles, MA, CRA
>Grants and Contracts Administrator
>Office of Research and Sponsored Programs Morehead State University
>901 Ginger Hall
>Morehead, KY 40351
>Phone: 606-783-2278
>Fax: 606-783-2130
>Web site: http://www.moreheadstate.edu/research
>
>
>
>
>
>On 3/5/12 12:51 PM, "Lawrence Waxler" <xxxxxx@USM.MAINE.EDU> wrote:
>
>>With an increasingly tight fiscal environment, we have employees who
>>have been approached by agencies to do more work for less (what a
>>surprise).
>>As you might expect, our F&A rate is an increasing target.
>>
>>In some cases, those employees have been asked to do the work
>>themselves outside of the University, or have suggested such, in an
>>effort to lower the cost.
>>
>>Do any of you have policies that address this issue?
>>
>>Thanks.
>>
>>Larry
>>
>>
>>
>>
>>~~~~~~~~~~~~~~~~~~~~~~~
>>Larry Waxler, Director
>>Office of Sponsored Programs
>>University of Southern Maine
>>15 Baxter Boulevard
>>P.O. Box 9300
>>Portland, ME  04104-9300
>>Telephone: 207-780-4413
>>Telefax: 207-780-4927
>>
>>
>>
>>
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 subscription information and a web-searchable archive, are available
 via our web site at http://www.healthresearch.org (click on the
 "LISTSERV" link in the upper right corner)

 A link directly to helpful tips:  http://tinyurl.com/resadm-l-help
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