Procedure # : 600.060 Date: 21 Nov 2000
Written By: Ralph Earhart
Director, Financial Services
The cost principles for educational institutions are very specific about
faculty salaries charged to federal grants.
The cost principles (OMB A-21 J.8.d) prescribe pay for faculty on grants during two periods:
(1) During the academic year
(2) Periods outside the academic year.
B. Section J.8.d (1) of OMB A-21,"Salary rates for academic year," states:
Interpretation: Faculty members working on federal grants may charge
a proportionate share of their base salary to the grant, but faculty may
not increase their total compensation by working on a grant. The salary
charged to the grant is based on their regular, annual compensation.
Interpretation: Faculty members may earn additional compensation for
working on grants from mid May (after graduation) until 31 August (when
the summer ends). The base salary is defined as the 9-month salary the
faculty member is paid over 12 months. The maximum monthly salary permitted
under a grant is one-ninth of the base salary. The maximum percentage of
the base salary that can be earned during the summer period will be 30%.
Citadel has adopted the cost principles from OMB A-21 to govern compensation
to be paid from all federal, state, or local grants and contracts.
A. During the academic year, faculty may not earn additional compensation from a grant or contract3.0 Procedure
covered by this policy.
B. Faculty may earn additional compensation during the summer based on their computed monthly
earning rate and the per cent of effort they will be working on a grant each month during the summer.
Summer earnings are limited to a maximum of 30% of the base salary.
C. The Citadel's effort certification system will document that the faculty member did not receive
compensation from the grant in excess of the proportion of effort provided to the grant.
A. This policy will be followed when the grant application and budget are prepared.
B. This policy does not prohibit "course buy-outs."
This is the process by which faculty members receive course load reduction(s). In such cases, the faculty member’s proportionate salary (commiserate with the effort) will be charged to the grant, thus "freeing up" salary in the regular departmental account. Normally, the funds made available in the departmental account would be used to hire an adjunct or pay the overload for a faculty member to teach the course(s). This depends on the overall course demands within the department and the nature of the courses involved.
To obtain approval of a "course buy-out," the following steps would be taken during the grant application process:
1. Obtain approval from the appropriate dean;
2. Obtain approval for the use of an adjunct or overload salary from the VPAA and VP for Finance and
Business Affairs so the issue will be resolved upon receipt of the grant.