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Faculty and Staff Compensation from Sponsored Projects

  1. Faculty (full-time/tenure track) Compensation from Sponsored Projects—Academic Year Effort
  2. Faculty (full-time/tenure track) Compensation from Sponsored Projects—Summer Effort
  3. Staff Additional Pay From Sponsored Projects
  4. Administrative Support Costs Charged to Sponsored Projects

(Approved by Cabinet on 9/15/2009)

Because the federal government is a primary sponsor of research and other scholarly activities of Keene State College, the cost policies of the federal government, contained in OMB Circular A-21, are extended to all sponsored projects, regardless of sponsor type.

Faculty (full-time/tenure track) Compensation from Sponsored Projects—Academic Year Effort

Faculty may not receive more than their regular annual salary as a result of participation in sponsored projects during the academic year.

Some sponsors will reimburse the College for a portion of a faculty member’s academic year salary when the sponsored project is carried out during the academic year. This does not increase the faculty member’s salary, but generally helps the institution recover a portion of the salary expenses that are allocable to the sponsored project. This is commonly referred to as a “buy-out” of the faculty member’s time by the grant or “salary replacement” (i.e., KSC salary funds are replaced by salary funds from the external sponsor of the grant). KSC salary funds “freed up” by salary replacement funds provided by grants shall remain in the School of the faculty member.

Example: A faculty member’s annual 9-month salary equals $50,000. As a PI on a grant, the faculty member requests and is granted $5,000 from the sponsor in academic year salary to cover 10% effort spent on the project during the academic year. The faculty member still receives a salary of $50,000 for the academic year, not $55,000.

Faculty (full-time/tenure track) Compensation from Sponsored Projects—Summer Effort

A faculty member on a 9-month contract may be paid summer salary (supplemental pay over and above the 9-month academic year salary) for effort contributed to a sponsored project during the 3-month summer period. Charges are based on the same monthly base rate of pay as during the academic year. Summer salary chargeable to grants and contracts is limited to that effort actually expended on the project. Faculty members receiving three months of summer support (maximum allowable) from a sponsored project must put the entire three summer months into the work of the grant. Faculty MAY NOT be paid summer salary for effort expended during the academic year.

Example 1: A faculty member on a 9-month contract may be paid one-ninth of his/her prior academic year salary for one summer month of sponsored research. If the faculty member’s academic year salary is $50,000 for nine months, the faculty member receives an additional $5,556 ($50,000 / 9 = $5556) for the month spent working on the sponsored research project. $50,000 + $5556 = $55,556 in total pay.

Example 2: A faculty member plans to spend two weeks at ½ effort (one week total effort) in the summer prepping for a grant funded project (e.g., an institute he or she will lead). Delivery of the institute itself will constitute one additional week of full-time effort. Thus, the faculty member may receive supplemental pay from the grant equivalent to 2 weeks in total (1/2 month). Assuming the faculty member’s salary is $50,000 for nine months, the faculty member receives an additional $2,778 ($50,000 / 9 = $5,556 monthly salary divided by 2 to get to ½ month effort).

Staff Additional Pay From Sponsored Projects

Staff performing work on sponsored projects may receive additional pay beyond their regular compensation in instances where the work is clearly distinct from their normal duties and occurs outside of their normal work hours or during a period for which the individual has used accrued leave (e.g., earned time or vacation) from their regular position during the period for which they request supplemental pay. Requests must be made using the Staff Additional Pay Request Addendum to the Chase/CASA form, and must be approved by the individual’s Supervisor and HR. The direct supervisor is responsible for ensuring the terms of the approval (i.e., outside of normal business hours or use of vacation time) are followed.

Example 1: A staff member is hired to code data collected during the course of a grant project. The staff member performs the coding outside of the normal business hours associated with his regular full-time appointment. He may receive additional pay for this work from grant funds provided they were budgeted for in the approved grant proposal.

Example 2: A staff member is hired to transcribe interviews conducted for a grant project. The staff member conducts the work during normal business hours, but uses one day of vacation time per month to take leave from her normal duties in order to conduct the transcription work. She may receive additional pay for this work from grant funds provided they were budgeted for in the approved grant proposal.

Human Resources can help faculty identify appropriate individuals within the KSC community who might have appropriate skill sets to perform the grant related work required. Contact Director of HR for assistance.

Administrative Support Costs Charged to Sponsored Projects

Because administrative support is designated under OMB Circular A-21 as being part of our F&A costs, administrative support salaries should not be directly charged to federal grants (supplemental or otherwise). PIs with extraordinary administrative support needs in connection with a grant should speak with their Deans prior to proposal submission about utilizing some of the F&A dollars returned to the school under the College’s F&A Distribution Policy to assist with these needs.

For non-federal grants which do not accept our federally negotiated F&A rate, administrative support allocable to the project may be directly charged to the grant so long as it fits within sponsor guidelines and is part of the approved budget.

About this Policy

Faculty and Staff Compensation from Sponsored Projects
Ownership: OSPR, Penny Miceli
Last Modified: Oct 30, 2017 – webmaster, on behalf of Penny Miceli
Categories: Research
For questions regarding this policy, please contact the policy owner.
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