Several options are available for payments on a grant project. They include Compensation for Additional Service, Reassigned Time and Overload.
Summer salary is typically paid as Compensation for Additional Service (CAS), which represents an extension of contract to add one or more new calendar period(s) outside of a faculty member’s normal 9-month contract.
CAS paid with external dollars may not exceed 50% of the participant’s academic year base salary per fiscal year. (NOTE: the funding agency’s rules may restrict the allowable payments to an amount less than 50%.)
CAS paid with institutional dollars is restricted to 22.2% per fiscal year. Institutional CAS generally is awarded in increments of 7.5% of base salary (for the equivalent of one month full-time equivalent work).
CAS payments in excess of 15% of base salary require approval by the Vice President for Finance.
Reassigned time constitutes a portion of faculty workload that is reassigned from teaching to work on a sponsored project. Typically, reassigned time is calculated in terms of a percentage of teaching load, using student credit hours as the unit of measure. A 3-credit hour course-equivalent reassignment, therefore, would be calculated at 12.5% of academic year base salary.
Budgeting for replacement costs, rather than the full share of salary reassigned to the sponsored project, is strongly discouraged. Please confer with the Office of Grants and Faculty Development prior to using this mechanism in a grant or contract budget.
Example 1: Replacement Costs
Galya has a grant for which she is expected to work 25% of her academic year full time effort. Twenty-five percent of Galya’s academic year assignment is the equivalent of two courses. Galya budgets in the grant for $6,000, or $3,000 per course to pay an adjunct to fill in while she is working on the grant. The amount of Galya's salary ($6,000) budgeted for replacement is paid from the grant account to Galya. The amount paid to Galya from the departmental 102 account is reduced by the same amount. As a consequence, the department has $6,000 in salary savings that they can use to pay an adjunct to teach the two courses.
Example 2: Full Recover (preferred)
Ruslan has a grant for which he is expected to work 25 percent of his academic year full time effort, or the equivalent of two courses. Ruslan budgets his full replacement costs on the grant, equaling 25 percent of her 40,000 base salary, or $10,000. Twenty-five percent of Suzy’s salary is paid from the grant account, 75 percent from the departmental account. That leaves the department with $10,000 to pay adjuncts for two courses (at a total cost of $6,000). Not only is there no loss to the department, but the department actually realizes $4,000 in salary savings that can be used for other purposes.
Reassigned time is not normally an option for instructional academic staff. Please consult with the Development Office in such cases.
Overload payments are for work of an unusual, short-term and non-recurring nature. The additional work requirements create a workload exceeding 100% of the employee’s time. There is a $10,000 limit on the amount a full-time employee may earn as “overload” per calendar year. Use of the overload pay mechanism as for grant-related work is strongly discouraged, and should only be used with approval from the Development Office.