Extra Compensation on Sponsored Activities
Extra compensation refers to payment made to University of Montana employees for work performed on sponsored activities in addition to their institutional base salary. Such compensation is subject to University of Montana policies and applicable federal regulations.
Extra compensation is typically not requested or approved to supplement a Principal Investigator’s (PI’s) and co-PI’s faculty salary on their own sponsored projects, as those responsibilities are normally considered part of their institutional appointment. In limited and clearly justified circumstances, extra compensation may be permitted when the work performed is outside the scope of the individual’s regular duties, is separately identifiable, and is allowable under sponsor and institutional rules.
Any request for extra compensation must be fully disclosed at the time of submission, clearly identified in the project budget, or otherwise approved in writing by the sponsor, and recorded in the Office of Sponsored Programs (OSP) Cayuse Record.. Requests must be routed for approval through the Chair, Dean/Director, and Provost, and—when compensation is charged to sponsored activities—approved by the Vice President for Research using the HRS Request for Personnel Transaction (RPT) Form via U-Approve.
Compensation Limits (2 CFR 200.430)
In no event may charges to sponsored agreements, regardless of the method of calculation, exceed the proportionate share of an individual’s institutional base salary for the applicable period. This principle applies to all faculty members. (2 CFR 200.430(h)(2)).
Intra-university consulting is generally considered part of a faculty member’s institutional responsibilities, requiring no compensation in addition to the full-time base salary. Likewise, faculty who serve as consultants or otherwise contribute to a sponsored agreement led by another faculty member at the same institution are performing duties that fall within their institutional obligations.
In limited and unusual circumstances where consultation is across departmental lines or for a separate or remote operation, and the work performed is clearly in addition to the faculty member’s regular departmental responsibilities, extra compensation above base salary may be allowable, provided that such arrangements are explicitly included in the sponsored agreement or approved in writing by the sponsoring agency. (2 CFR 200.430(h)(3)).
Non-faculty full-time professional personnel may be eligible for extra compensation in accordance with 2 CFR 200.430(h)(8), when such compensation is included in the proposal or approved in writing by the sponsor.
Summer Salary
- Research Activities: Compensation for work performed by faculty on sponsored agreements during the summer months or other periods outside the base salary period must be calculated at a rate not to exceed the institutional base salary, prorated over the period to which the base salary applies. For faculty on nine-month academic appointments, up to three months of summer salary at the institutional base salary rate may be allowable, subject to all other applicable limitations in this section.
- Teaching Activities: Compensation for teaching during summer or other non-base periods will be governed by the institution’s established policies for faculty teaching assignments.
Part-Time Faculty
Compensation charged to sponsored agreements for faculty with part-time appointments must not exceed the rate regularly paid for the part-time appointment.
Example: If a faculty member is paid $5,000 for a half-time teaching appointment during the academic year and devotes one-half of the remaining time to a sponsored agreement, the allowable additional compensation chargeable to the agreement would be $2,500.
Honoraria Pay
(to be edited after further discussion with Jodi and Nicole)
Requests for honoraria associated with short-term services must also be specifically authorized in the agreement or approved in writing by the sponsoring agency.