Any of those scenarios could work if (drum roll) that was the way your
institution negotiated its fringe rate with the Feds.

Your Federal Rate Agreement should have the information to determine that.

If you are not happy with the way the rate is applied now, you can
modify it in future years, but don't expect that the work necessary to
build the case will be administratively easy or any presumed cost
savings will materialize.

My institution had one rate applied to all salaries. Keep in mind that a
lower summer rate would boost the 9-month academic year rate....and most
faculty think that is too high already.

Larry Waxler

On 3/15/2018 1:56 PM, Hicks, Tammy wrote:
> Hi Jeanne,
>
> We use scenario # 1. When we submit our Fringe proposal to HHS, we
> specifically ask for the temporary rate to be applied to our faculty who
> receive summer pay for research, therefore defendable in an audit. Not
> sure if this helps you, but I agree with your assessment.
>
> *Tammy Hicks
> Director of Grants Accounting*
>
> *108 Puryear Hall ***
>
> *University of Richmond
> (804) 289-8752 phone
> (804) 287-6080 fax*
>
> *xxxxxx@richmond.edu <mailto:xxxxxx@richmond.edu>*
>
> *Go Spiders!***
>
> cid:image001.gif@01CB3A1F.0761ACB0
>
> *From:* Research Administration List
> [mailto:xxxxxx@lists.healthresearch.org] *On Behalf Of *Jeanne Viviani
> *Sent:* Thursday, March 15, 2018 12:31 PM
> *To:* xxxxxx@lists.healthresearch.org
> *Subject:* [RESADM-L] Fringe over the summer for 9 month faculty
>
> Dear Brain Trust,
>
> I have put this out there to my Florida brethren and sisters but I would
> like to cast a much wider net to survey other institutions.
>
> There are three scenarios I need help with but particularly from those
> institutions that have had this audited and had some official
> determination. I’m not arguing with the fringe rates themselves… but the
> APPLICATION of those rates to the following:
>
> Assumptions:
>
> All faculty are 9 month faculty who have their health insurance premiums
> covered for them by the institution irrespective of summer funding (if
> they don’t want to teach or do research, they would still have their
> health insurance premiums and retirement contributions (the
> institution’s share) covered and they would just need to continue paying
> their contributions and premiums of course too). All 9 month faculty are
> paid over 12 (university required) so as to evenly distribute pay and
> fringe across the fiscal year for convenience to finance and
> administration. In order to pay and segregate summer costs
> appropriately, a separate appointment/position is created to pay said
> faculty from the grant (thus resulting in the “extra” compensation over
> the summer – which it is not really extra because their regular check is
> really their 9 month paid over 12 month). A negotiated fringe rate says
> faculty are 30%, students are 2%, graduate students are 15% and
> temporary positions are 8% and administrative is 40%.
>
> ·Fringe Application Scenario #1: 9 month faculty in the summer only have
> 8% fringe charged to a grant because that appointment/position is being
> treated as a temporary worker. All of their insurance, retirement, etc.
> are all paid through their permanent faculty appointment/position. Since
> summer money is not guaranteed but the institution guarantees to the
> faculty that they will not lapse in the health or retirement over the
> summer months, we would not charge the grant.
>
> ·Fringe Application Scenario #2: 9 month faculty in the summer have a
> fringe rate higher than 8% but lesser than the full academic year
> fringe. The additional % might be for worker’s compensation, leave time,
> retirement perhaps, etc. that an institution would pay.
>
> ·Fringe Application Scenario #3: 9 month faculty in the summer have the
> academic year FULL FRINGE charged to the grant.
>
> Which is correct? Defensible by audit? etc. My university leadership
> insists we charge full fringe over the summer and I’m not comfortable
> with this for all the consistently applied and allocable issues Scenario
> #3 presents. I believe we should be #1 because we are treating the
> position as temporary for the summer.
>
> As my friend Ken “Superman” Clark would say – free mocha latte to the
> person who can help me with this! (I mean it… find me at NCURA National
> and I will get you a mocha if you can help me!!!)
>
> *Jeanne M. Viviani, MPA*
>
> Director, Sponsored Programs
> Office of Research Services
> W: 863.874.8534
> C: 813.765.0439
>
> xxxxxx@floridapoly.edu <mailto:xxxxxx@floridapoly.edu>
>
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> Lakeland, FL 33805-8531
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