Purpose of Policy

To establish procedures for calculating total compensation for personal services charged to sponsored agreements.

Background

Section J.8.a, OMB Circular A-21 states:

"Compensation for personal services covers all amounts paid currently or accrued by the institution for services of employees rendered during the period of performance under sponsored agreements. Such amounts include salaries, wages and fringe benefits. These costs are allowable to the extent that the total compensation to individual employees conforms to the established policies of the institution, (are) consistently applied, and provided that the charges for work performed directly on sponsored agreements and for other work (as) allocable are determined and supported."

Section J.8.d.(1), OMB Circular A-21 states:

"Charges for work performed on sponsored agreements by faculty members during the academic year will be 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/her salary. Charges for work performed on sponsored agreements during all or any portion of such period are allowable at the base salary rate. In no event will charges to sponsored agreements, irrespective of the basis of computation, exceed the proportionate share of the base salary for that period. This principle applies to all members of the faculty at an institution."

Policy Issues

1. The employees' compensation will be the annual guaranteed amount as determined by the Office of the General Counsel.
2. The employees' guaranteed salary will be included in the Effort Reporting System.
3. The employees' guaranteed salary will be reported on all proposals submitted to funding agencies.