This is the Compensation Policy for Sponsored Activities for PASSHE universities, issued January 5, 2018, by the Office of the Chancellor.
The purpose of this document is to establish consistent, fair and equitable treatment of reasonable compensation that may be paid to faculty members and system employees who perform research, educational services or other activities, that are funded by
sponsored agreements. The procedures will:
Grants and contracts that support sponsored projects are awarded to the institutions and therefore the institutions are responsible for compliance with all terms, conditions, regulations, and laws. This procedure covers all State System university faculty
members and non-faculty employees who perform research, educational services or other activities covered by a sponsored agreement.
The Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, published by the Federal Office of Management and Budget (OMB) at 2 C.F.R., Chapter II, Part 200 ("Uniform Guidance") require an institution that receives
federal funding to establish a policy defining the compensation allowable for personnel services performed by a university under a grant, contract or other agreement with the Federal Government. Furthermore, the Uniform Guidance requires this policy must be institution
wide and be consistently applied to all sponsored activities. The amount of compensation that a faculty member and non-faculty employees may receive under a sponsored agreement is further limited by federal and state laws and regulations, contractual
obligations, and collective bargaining agreements. The State System universities need to ensure full compliance with the regulatory and contractual mandates that govern the compensation faculty members and non-faculty employees may receive for personnel
services covered by a sponsored agreement. These guidelines set standards for compliance with the multiple layers of requirements.
State System universities will allow compensation on sponsored projects to the extent that it is accurate and in relation to the work performed. Compensation charges to sponsored agreements normally shall not exceed 100 percent of the IBS paid to a faculty
member or non-faculty employee. However, this standard is not intended to prevent a faculty member or non-faculty employee from receiving additional compensation greater that their annual institutional base salary so long as all regulations, policies,
and applicable collective bargaining agreements are satisfied. State System universities shall develop administrative procedures as required.
Each proposal that is prepared for or by a State System university in support of a sponsored agreement will contain the amount of compensation that is to be paid to each faculty member or employee (or a job position) participating in the sponsored activity.
The amount of compensation paid shall be proportional to the work that the faculty member or other employee will perform. The proposal may include a provision to provide for release time from normal work activities for each faculty member or non-faculty
employee who will be performing the research, educational service, or other activity outlined in the sponsored agreement.
Charges to sponsored projects for salaries and wages must be based on records that accurately reflect the work performed. The records must be supported by a system of internal control which provide reasonable assurance that the charges are accurate, allowable
and properly allocated. Documentation of personnel expenses must be in a method acceptable under the Uniform Guidance and comply with the individual university's policies and procedures. Charges for salaries, wages and fringe benefits shall reasonably
reflect the total activity for which the faculty member or non-faculty employee is compensated, not exceeding 100% of compensated activities, and encompass both individual sponsored and non-sponsored activities.