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Re: Institutional Base Salary vs. Cap in Applications - Summary Nancy L. Nisbett 09 Sep 1999 16:54 EST

Evelyn's last paragraph addresses an issue I was preparing to post:

Our University has been struggling with the calculation of the institutional
base salary issue on NIH grants.  Many of our faculty are physicians whose
University base salaries are relatively low (comparatively); however, their
clinical income compensates for that.  When preparing NIH budgets, our
faculty are limited to requesting salary based on their University base
salary only - far below the $125,900 cap.  This is based on A21, J8d(1)
which states:   “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”.

Our faculty have said they know physicians at other institutions who are
able to include their clinical income as part of their University base
salaries.  Since clinical income is not guaranteed by our University, we do
not feel we are following A21 appropriately if we include that income.

Do any of you have any experience with this or do your instituions interpret
A21 differently?  We would love to help our faculty but want to stay within
the bounds of A21.

In addition, if there is a way we can include clinical income as part of the
faculty's regular compensation for NIH awards, would this affect the
institution's IDC calculation/rate?

Thank you in advance for your responses.

Nancy Nisbett

Nancy Nisbett, Director
Office of Research Administration
Phone: 405/271-2090
Fax: 405/271-8651

-----Original Message-----
From: Evelyn J. Ford [mailto:xxxxxx@MAIL.MED.UPENN.EDU]
Sent: Thursday, September 09, 1999 11:01 AM
Subject: Institutional Base Salary vs. Cap in Applications - Summary

Many thanks to all of you who responded to my query in July.  There were 18
responses.  Although there was no direct response from anyone at NIH, a
number of respondents quoted interactions with NIH personnel, either
one-on-one or at SRA/NCURA seminars.  The numbers are:

1)  Perform budget calculations on the cap AND enter the cap in place of
institutional base salary when necessary:  7.

2)  Perform budget calculations on the cap BUT cite the true institutional
base salary in all instances:  9 (only 1 respondent indicated that salaries
are sometimes left blank if the P.I. wishes).

3)  Perform budget calculations on and cite the institutional base salary:

NIH was a silent partner, though no direct response was received from
anyone at NIH; one respondent did quote a conversation with a specific
person at NIH.  In all but one instance, method #2 was quoted as the NIH
preference.  One person said that NIH had suggested that he use method #3,
that NIH would adjust at the point of award.

A second question arose, which I directed solely to the original
respondents.  Unfortunately, I didn't receive too many answers, and would
be most appreciative of further input from the group:  Does your total
institutional salary include academic, clinical, administrative, and any
incentive pay, or do you cite something less than this?

Thanks again to the lively discussions and comments I received!

-- Evelyn

Date:         Thu, 29 Jul 1999 08:10:01 -0400
From: "Evelyn J. Ford" <>
Subject:      Federal Salary Cap & PHS398 Form Page 4

I am interested in learning how various institutions are showing (or not
showing, as the case may be) and calculating salaries for individuals whose
compensation exceeds the federal cap.  Are you leaving the institutional
salary column blank (PHS398 form page 4, when required) or inserting the
fed cap in that column, then performing the calculations on the cap?  Do
you provide an explanation in the budget justification?  If either one of
these two, have you been called by NIH at the time of an award to provide
the specific salary information even tho the award from NIH will be limited
to the cap as the base?  Thanks for your input.

Evelyn J. Ford, Manager, Accounting Operations
Office of Research Support Services
School of Medicine, University of Pennsylvania
356 Anatomy-Chemistry Building
36th Street and Hamilton Walk
Philadelphia PA 19104-6061
voice 215.573.1395   fax 215.573.8802

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