As a state supported institution, we are aware of a potentially
expensive problem with grant funded personnel who have unused annual leave
at the close of the funded project.  Since we are beginning to get
projects on which personnel are fully grant funded, we would like to
develop some policies to protect the institution before we end up with a
big bill.

 In South Carolina, persons moving from one state agency to another
normally may transfer annual leave accumulated at the old agency to
the new.  Employees may also accrue annual leave up to a generous
maximum over a period of years and then may request payout of any unused
leave at their current pay rate when they terminate employment with
the agency or the state.

 Our budgets to sponsoring agencies include only the regular annual
salaries for these types of employees with no extra funds to pay off
unused leave.  If the employee brings leave time from another agency and/or
accrues annual leave beyond the project budget period in which it is
earned and if all of that leave is not taken before the employee
terminates or the project ends, the institution is left with a
potentially large financial obligation (for both the salary and fringe
benefits) without grant funds to cover it.

 Has anyone out there dealt with this situation or developed policies
to protect the institution from this type of expense?  Or does anyone know
how one can budget to ensure that sponsor funds are available, at least
to cover the leave accrued during the grant period?  (I ask this because I
saw this as a topic in a grants workshop flyer that crossed my desk a few
weeks ago.  But I didn't pay attention to who was sponsoring the
workshop.)

 Thanks in advance for advice and assistance!

Barbara H. Gray                                  xxxxxx@cofc.edu
Director of Sponsored Programs                   Phone: (803) 953-5673
University of Charleston, SC                     FAX:   (803) 953-1434
66 George Street
Charleston, SC  29424-0001