Procedure No.: 19.045 Page No.: 1,2,3,4,5,6,and 7 of 7 Date Issued: 02/01/95 Issued By: T.L. Chestnut
A separate restricted account will be established for each sponsored project and expenditures of project funds will be recorded as they occur in that account. Sponsored project funds may not be included in a rotary account and administered nor may project expenses be routinely recorded in a department account on the expectation that a single transfer of charges at the end of the project period will be made.
Upon receipt of notification of an award, the project director should contact the Office of Research and Sponsored Programs (ORSP) to have a restricted account established for the project in the College &;University Financial System (CUFS). The project director will be expected to provide a notice of award, a signed contract, or other documentation clearly showing a commitment on the part of the sponsor before an account number will be assigned. The following documents are also required but, in most instances, will already be available at the ORSP:
A. The proposal.
B. A fully completed, signed proposal transmittal form.
C. Applicable administration guidelines or regulations.
D. Guidelines for preparation of the proposal.
Compensation for services of university personnel, including undergraduate and graduate students, civil service employees, post-doctorals, faculty and administrative staff will be on the basis of established university employment and payroll procedures. These procedures require the use of the presidential contract form or the part-time addendum contract form for payment to University personnel, except students and civil service employees, for personal service. Payment to civil service and student hourly employees is on the basis of biweekly time salary sheets supported by a time sheet. Payment to students on a graduate appointment is on the basis of a contract. The use of requisitions for payment for personal services of university personnel is not allowed. University policies regarding equal employment opportunity and student employment are equally applicable to sponsored programs. Compensation for personal services of university personnel will be on the basis of their regular appointment, pro-rated for the period of service rendered. Federal regulations governing most sponsored agreements with universities do not permit extra compensation to be paid for work performed during intersession periods, except for work which meets the conditions specified in paragraph III-C, Overload Compensation.
Summer salary will be based on the individual's salary for the academic year immediately following the summer period. A maximum of one-third of the academic year salary will be payable for full time effort for a three month (thirteen week I period. If the interval between the end of Spring quarter (Convocation day) and the start of Fall quarter (advising day) is less than 13 weeks, the maximum allowable pay for full-time effort during the summer will be limited to 1/39 of the academic-year salary base times the number of weeks in the interval. The policies of some agencies restrict payment, with agency funds to less than three month's salary during the summer; for example, the National Science Foundation permits payment of no more than two months of salary in that time. Such policies will be observed at Ohio University.
A faculty member who receives full support (three month's salary) from sponsored project funds during the summer must devote full time to the sponsored project. He/she may not direct dissertation research, except to the extent that such research, is directly related to the paid employment of the graduate student on the sponsored project from which the faculty member draws summer salary. A faculty member who receives three month's summer salary from a sponsored project may not be the teacher of record of a graduate student who enrolls for dissertation research for credit unless the dissertation research is closely related with the student's participation in the sponsored project.
In a like manner, the faculty member may not devote any significant amount of time to committee work or student advising during the summer when he/she receives three month's of salary from a sponsored project. The Faculty Activity Report for the summer period for an individual receiving such support is expected to show that 100 percent of I is/her time was devoted to the sponsored project.
In those instances where less than three months of summer salary is paid from sponsored project funds the amount of effort which may be devoted to advising, committee work, and directing graduate research is in proportion to the amount of time not committed to the sponsored project(s) during the summer period.
Individuals who receive summer salary in the amount of one-third of their academic year salary, or a lesser amount because the summer interval is of less than 13 weeks duration, and whose effort, consequently, is committed on a full time basis to the entire summer period, may take a vacation of no more than two weeks duration, provided that an equal amount of time is devoted to the sponsored project during the fall-winter intersession period immediately preceding or following the summer period. No added compensation will be allowed for such replacement effort. This option is not available to persons who receive less than full-time support during the entire summer period.
Federal regulations permit supplemental compensation for intra-university consulting only in unusual cases and only when it is consistent with Ohio University Policy concerning overload payment (#41.002). These regulations specify that faculty members who function as consultants or otherwise contribute to a sponsored agreement conducted by another faculty member at Ohio University may receive compensation in excess of their full-time base salary only if the arrangement for consulting or other collaboration meets all of the following conditions:
Compensation for intra-university consulting normally will be on the basis of a 195 work-day (9 months) academic year for faculty and a 260 work day (12 months) year for persons on a fiscal year appointment. Other bases for overload pay are allowable in situations where the pay is unrelated to effort, such as when a flat fee is paid for delivering a lecture at a conference, or when pay for teaching a course in a period not included in the base salary period is in accordance with established university policy (regional campus teaching, evening courses through the Extension Division, or Workshops).
Consultants, including those persons who are employees of Ohio University will be employed only when all of the following conditions are met:
Payment for consulting service should be requested on an addendum contract if the consultant is an Ohio University employee and on requisition if the consultant is not an Ohio University employee. The addendum contract or requisition must be accompanied by a properly completed Consultant Service Form or equivalent documentation. Some federal sponsor agencies have established maximum, daily rates which may be paid to consultants. These rates may not be exceeded unless specific written authorization is received from the cognizant project officer at the sponsor agency.
Most federally sponsored projects impose limits on the amount of money which may be spent for equipment and the type of equipment which can be purchased. As a general rule, if the equipment is identified in the approved budget, no additional approval is needed from outside the university. The ORSP should be consulted when making equipment purchases which are not so identified or if the purchase will exceed the approved budget for equipment.
University policy regarding reimbursement of travel expenses (No. 41.121) will be followed for travel supported by sponsored projects.
Direct charges to sponsored projects for use of other specialized facilities may be made only with the prior approval of the ORSP. Such charges normally are not allowable unless a cost study has been made to support the basis for a charge.
Indirect costs, commonly called overhead, are provided for in sponsored agreements to reimburse the university for costs which are not readily identifiable as to amount and, therefore, cannot be recovered as direct charges. Some indirect costs rates are set by statutes or regulations and others are negotiated, on the basis of an extensive cost study, with the Department of Health and Human Services Audit Agency. It is the policy of Ohio University to collect the maximum indirect costs allowable on any project and any plan to forego indirect costs must be approved by the Vice President for Research and Graduate Studies. Such plans or requests should be submitted to the ORSP for recommendation to the Vice President for Research and Graduate Studies.
Prior approval is required for the following activities:
A. Expenditures in excess of $500 or 125 percent of the amount budgeted for domestic travel, whichever is greater.
B. Expenditures for foreign travel.
C. Purchase of any item of equipment with a unit acquisition cost of $1,000 or more.
D. Expenditures for equipment when the total acquisition cost in a budget period exceeds 125 percent of the amount budgeted for equipment.
E. Rebudgeting of funds in or out of traineeships.
F. Expenditure of funds for alterations and renovation of facilities.
Effort Reports are not required when the compensation is for overload effort as set forth in paragraph III-C.
Effort reporting for civil service personnel and students on the hourly payroll who receive compensation from a sponsored project shall be via the biweekly time sheet prepared for payroll purposes and submitted in accordance with regular payroll schedules.
When closely related work is supported by more than one funding source, a cost transfer from the originally charged funding source to another project account may be made provided, a) the cost is a proper and allowable charge to the new account, b) the transfer is supported by documentation containing a full explanation and justification for the transfer, and c) the transfer is ordinarily made within 120 days of the original charge.
Dick Piccard revised this file (http://www.ohio.edu/policy/s19-045.html) on July 30, 2012.
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