Supplemental Compensation
Background
Active participation in research projects and other sponsored programs may require additional efforts beyond those dedicated to the normal faculty workload of teaching and scholarship activities. It is presumed that a regular full-time faculty and staff appointments include teaching, scholarship/research and other departmental activities, and for such the employee is compensated according to the University-approved base salary.
The allowance of supplemental compensation for faculty on externally funded projects is a rare occurrence, is strongly discouraged, and undergoes careful scrutiny as remuneration using sponsor funds may be in direct conflict with federal regulations governing the use of these funds (see regulations below).
Requirements for Supplemental Compensation
Any request for supplemental compensation on sponsored programs, whether on active awards or within proposals, will be closely examined by Research Services to ensure that ALL of the following criteria are met:
- Research Services has reviewed and subsequently approved a request from the sponsor for supplemental compensation in a proposal submitted in advance of an award;
- The Provost and Vice President for Academic Affairs and Research Services have reviewed and approved a request for supplemental compensation in advance of the performance of the activity;
- Research Services has received written approval from the sponsor authorizing payment of supplemental compensation as part of the award documents;
- Funds are available as a separate line item in the budget on a grant, contract, etc., that has been awarded to the University through Research Services;
- The employee is providing consultation to a sponsored program that is in addition to his/her regular departmental load and that is across departmental lines from the employee’s home department or involves a separate remote operation;
- Supplemental compensation may not exceed 20% of the employee’s institutional base salary during the period academic appointment (typically 9 months for faculty and 12 months for exempt staff);
- Supplemental compensation is not permitted during any period in which the employee devotes 100% effort to sponsored programs; and
- All effort for the employee (departmental and overload) is documented and certified as needed to satisfy University and/or sponsor requirements.
Regulations
Eligibility for extra compensation is described by the USG Policy Manual 8.3.12.5, as well as in the Uniform Guidance, 2 CFR 200, which states “Charges for work performed on sponsored agreements . . . 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. Since intra-university consulting is assumed to be undertaken as a university obligation requiring no compensation in addition to full-time base salary, the principle also applies to faculty members who function as consultants or otherwise contribute to a sponsored agreement conducted by another faculty member of the same institution.”
The only exception to this directive appears as follows:
“However, in unusual cases where consultation is [1] across departmental lines or involves a separate or remote operation, and [2] the work performed by the consultant is in addition to his regular departmental load, any charges for such work representing extra compensation above the base salary are allowable provided that [3] such consulting arrangements are specifically provided for in the agreement or approved in writing by the sponsoring agency.”
Procedure
Any and all requests for supplemental compensation on sponsored program funds should be made in advance of performing the activity. To seek approval, please download the Extra Compensation Projection/Approval Form and perform the following steps:
- Complete Part A.: Description.
- Complete Part C.II: Program Budget by calculating your hourly rate and entering the number of hours worked on the program, please contact your Grant Coordinator if you should need assistance with calculating your hourly rate.
- Certify to the statements within the form by signing Part B.III. and requesting your direct supervisor to countersign Part B.II.
- Provide a brief (less than one page) summary of the activity for which you are seeking supplemental compensation, including how the activity is unrelated to your normal employment duties for the institution.
- Forward this information to your Grant Coordinator for review. If approved, the information will be forwarded to the Provost and Vice President for Academic Affairs and the Vice President for Business and Finance for review/approval.
Last updated: 6/21/2021