Controller’s Office phone: 413.545.1675
405
Memorandum
TO: Deans, Directors, Department Heads and Principal Investigators
FROM: Andrew P. Mangels, Controller
DATE: April 27, 2007
SUBJECT: Additional Compensation Processing
In order to ensure that the University is in compliance with OMB Circular A-21 guidelines, which govern personnel costs charged to grants and contracts, revised campus guidelines and additional compensation forms have been developed.
There are now three forms: one for academic year faculty
earning additional compensation during the academic year, another for academic
year faculty earning additional compensation during the summer and a third form
for payment of additional compensation to calendar year faculty. These forms are available on the web at http://www.umass.edu/humres/payroll_forms.htm.
In addition to the new forms and guidelines, the review and approval of faculty additional compensation has been delegated to the deans. Once completed, all forms should be submitted to the Dean’s offices for review and approval. Dean’s Office personnel will then forward the forms to the Office of Human Resources.
Guidelines for processing faculty academic year, calendar year and summer period additional compensation are attached. Questions concerning additional compensation can be directed to the Provost’s office at 554-2554 or the Controller’s office at 545-0806.
Controller’s Office phone: 413.545.1675
405
April 30, 2007
Additional Compensation
Guidelines
A.
Academic Year Additional Compensation Paid to Academic Year Faculty
- Additional compensation paid during the
academic year appointment period is allowed only from private sponsors if
no effort is charged or budgeted to federal, federal pass-through and/or
state sponsors during the academic year.
In unusual circumstances, additional compensation for consulting
across department lines is allowed on federal and state grants “if work is
performed in addition to regular department load and such agreement is
specifically provided for in the agreement or approved in writing by the
sponsoring agency.” Copy of award
page is required to be submitted with additional compensation form for
these unusual circumstances.
- Additional compensation paid from
private sponsors must be evidenced by negotiated rates in the award. Copy of award page is required to be
submitted with additional compensation form.
- Additional compensation must be approved
within 90 days of when work was performed.
Exceptions may be granted for delayed receipt of funding.
- The approval of the Provost, with the
concurrence of the Chancellor, is required for a faculty member to receive
additional compensation in excess of 33% of base annual salary during a
calendar year.
- Academic year additional compensation paid
to academic year faculty will be charged to account code 715400.
B.
Additional Compensation Paid to Calendar Year Faculty
- Additional compensation paid to calendar
year faculty is allowed only from private sponsors if no effort is charged
or budgeted to federal, federal pass-through and/or state sponsors during
the calendar year. In unusual circumstances, additional compensation for
consulting across department lines is allowed on federal and state grants
“if work is performed in addition to regular department load and such
agreement is specifically provided for in the agreement or approved in
writing by the sponsoring agency.”
Copy of award page is required to be submitted with additional
compensation form for these unusual circumstances.
- Additional compensation paid from
private sponsors must be evidenced by negotiated rates in award. Copy of award page is required to be
submitted with additional compensation form.
- Additional compensation must be approved
within 90 days of when work was performed.
Exceptions may be granted for delayed receipt of funding.
- The approval of the Provost, with the
concurrence of the Chancellor, is required for a faculty member to receive
additional compensation in excess of 33% of base annual salary during a
calendar year.
- Additional compensation paid to calendar
year faculty will be charged to account code715400.
C.
Summer Additional Compensation Paid to Academic Year Faculty
- Summer period is defined as three months
for nine month faculty, beginning the day after commencement through August
31st.
- Additional compensation charged at the
annual salary rate allows for 33% (3/9th of the annual salary)
additional compensation to be earned during the summer.
- NSF limits summer additional
compensation to 2/9ths of annual salary.
- Faculty engaging in
federal and/or state grants and contracts during the summer are limited to 33% of base annual salary as
total additional compensation during that same summer period. The summer additional compensation may
include mixes of federal, state and/or private not to exceed a total of
33% of annual salary. The maximum
bi-weekly salary rate paid during the summer period for faculty engaged in
federal and state grants is equal to the annual bi-weekly salary rate
divided by 75%.
- Faculty engaging exclusively in
privately sponsored activities during the summer may be paid at rates
negotiated with the sponsor which may result in
more than 33% of base annual salary paid during the summer period with
approval of the Provost and Chancellor.
Copy of award page is required to be submitted with the additional
compensation form.
- Additional compensation must be approved
within 90 days of when work was performed.
Exceptions may be granted for delayed receipt of funding.
- Summer additional compensation paid to
academic year faculty will be charged to account code 715500