Purpose of Policy

To establish procedures for allocating charges for terminal leave.

Background

OMB Circular A-21 states:

"A cost is allocable to a particular cost objective if the goods or service involved are chargeable or assignable to such cost objective in accordance with relative benefits received or other equitable relationship."

"Fringe benefits in the form of regular compensation paid to employees during periods of authorized absences from the job, such as annual leave, sick leave, military leave, and the like, are allowable, provided such costs are distributed to all institutional activities in proportion to the relative amount of time or effort actually devoted by the employees."

Policy

1. Annual leave, sick leave, military leave, and the like, may be charged to a sponsored award in proportion to the relative amount of time or effort actually devoted to the sponsored agreement by the employee.
2. Annual leave and sick leave paid upon termination or retirement in excess of the amounts earned on the sponsored agreement may not be charged. The annual leave and sick leave must be paid from an unrestricted organization code.