Extra Compensation Guidelines
Extra compensation requested on sponsored activities must adhere to University of Montana policy and federal regulations.
Typically, extra compensation it is neither requested nor approved as a means by which to supplement a PI’s faculty salary on his/her own sponsored activity.
Extra compensation must be noted on the ORSP Checklist at the time of proposal submission, and clearly identified by position in the proposal budget, or otherwise approved by the sponsor in writing. Requests for extra compensation must be routed and approved by the Chair, Dean/Director, Provost, and -- when paid on sponsored activities -- the Vice President for Research using the HRS Request for Personnel Transaction Form via U-Approve.
Compensation (2 CFR 200.430 | A-21.J.10.d)
In no event will charges to sponsored agreements, irrespective of the basis of computation, exceed the proportionate share of the base salary for that period. This principle applies to all members of the faculty at an institution. (2 CFR 200.430(h)(2) | OMB A-21 J.10.d)
Intra-university consulting is assumed to be undertaken as a university obligation requiring no compensation in addition to full time base salary. Similarly, faculty members who function as consultants or otherwise contribute to a sponsored agreement conducted by another faculty member of the same institution, are undertaking such activities as part of their university obligation.
However, in unusual cases where consultation is across departmental lines or involves a separate or remote operation, and the work performed by the consultant is in addition to his/her regular departmental load, any charges for such work representing extra compensation above the base salary are allowable, provided that such consulting arrangements are specifically provided for in the agreement or approved in writing by the sponsoring agency. (2 CFR 200.430(h)(3))
Short term services for which honoraria is requested must also be specifically provided for in the agreement or approved in writing by the sponsoring agency.
Non-faculty full-time professional personnel are similarly eligible for extra compensation per 2 CFR 200.430 (h)(8).
- Research Activities: Charges for work performed by faculty members on sponsored agreements during the summer months or other period not included in the base salary period will be determined for each faculty member at a rate not in excess of the institutional base salary, divided by the period to which the base salary relates, and will be limited to charges made in accordance with other parts of this section. The base salary period used in computing charges for work performed during the summer months will be the number of months covered by the faculty member's official academic year appointment.
As a result, for faculty on nine-month contracts, three months of summer salary calculated at an individual’s institutional base salary may be viable.
- Teaching Activities: Charges will be based on the normal policy of the institution governing compensation to faculty members for teaching assignments during such periods.
Part Time Faculty
Charges for work performed on sponsored agreements by faculty members having only part time appointments will be determined at a rate not in excess of that regularly paid for the part time assignments.
- For example, an institution pays $5000 to a faculty member for half time teaching during the academic year. He devoted one half of his remaining time to a sponsored agreement. Thus, his additional compensation, chargeable by the institution to the agreement, would be one half of $5000, or $2500.