1311 Institutional Base Salary for Sponsored Projects

Responsible Official: 
Executive Director, Office of Sponsored Projects
Responsible Office: 
Office of Sponsored Projects
Effective Date: 
February 1, 2008
Revision Date: 
June 26, 2017

Policy Sections

1311.1 Institutional Base Salary in Sponsored Projects Proposals

1311.2 Institutional Base Salary Documentation

Scope

This document sets forth Yale University’s definition of Institutional Base Salary (IBS) and applies to all individuals whose salary is charged to sponsored projects, in whole or in part, and to all individuals who have committed effort to a sponsor but are not receiving salary support from the sponsor, also known as cost sharing.

Purpose of the Policy

This document establishes the definition of IBS and the requirements for proposal submissions and to meet the requirements of 2 CFR Part 200 that states:

“Compensation for personal services includes all remuneration, paid currently or accrued, for services of employees rendered during the period of performance under the Federal award, including but not necessarily limited to wages and salaries…Costs of compensation are allowable to the extent that they satisfy the specific requirements of this Part and that the total compensation for the individual employees: (1) is reasonable for the services rendered and conforms to the established written policy of this non-Federal entity consistently applied to both Federal and non-Federal activities; (2) Follows an appointment made in accordance with a non-Federal entities laws and/or rules or written policies and meets the requirements of Federal statute.”

Additionally, total compensation must conform to 2 CFR Part 200 Standards for Documentation of Personnel Expenses (or 2 CFR Part 220, as applicable and in accordance with the terms and conditions of the federal award).  See Policy 1315 Effort Reporting: Certifying Effort on Sponsored Projects and Policy 1316 Effort Commitment: Managing Effort Associated with Sponsored Projects.

Financial penalties, expenditure disallowances, and harm to the University’s reputation could result from the failure to accurately propose, charge, and/or document salaries relating to sponsored projects.

Definitions

Extra Service Pay

Extra Service Pay normally represents compensation for any services above and beyond an employee’s University appointment and associated IBS.  Extra Service Pay is provided without regard for the source of funds and is not limited to those faculty and staff devoting effort to Federal awards.

Note:  Where Extra Service Pay is a result of Intra-University consulting (Refer to Policy 1001 Compensation Above Salary for a definition of Intra-University Consulting), it must be reasonable and may be charged to a Federal award only if it meets all of the following conditions:

(i) The work for which Extra Service Pay is received is beyond the scope of the individual’s appointment and associated IBS as described in the appointment letter or other similar documentation.

(ii) Prior approval of the sponsor as appropriate must be obtained and documented prior to charging extra service pay to a sponsored award.

(iii) The Extra Service Pay is commensurate with the IBS rate of pay and the amount of additional work performed.

(iv) The individual’s salary, as supplemented, must be in accordance with Policy 1001 Compensation Above Salary

(v) The total salary is supported by Effort Reports completed in accordance with Yale Policy 1315 Effort Reporting: Certifying Effort on Sponsored Projects.

Institutional Base Salary (IBS)

IBS is the annual compensation paid by the University for an employee’s appointment, whether that individual’s time is spent on research, teaching, administration, patient care, or other activities.  The IBS does not include bonuses, one-time payments or incentive pay.   Also excluded from the IBS is salary paid directly by another organization including but not limited to the West Haven Veterans Administration Hospital or Howard Hughes Medical Institute and income that an individual is permitted to earn outside of their University responsibilities such as consulting.

Note:  Institutional Base Salary:

  • May not be increased as a result of replacing University salary funds with sponsor projects funds;
  • Is established by the University in an appointment letter, or other similar documentation, regardless of the source of funds;
  • Includes regular salary, as well as any second assignment such as chair of a department for those faculty with 12-month appointments
  • For ladder track faculty in the School of Medicine IBS may consist of a base amount set annually by the Office of the Dean and a supplement that is normally guaranteed for one year.

Policy Sections

When requesting salary support from a sponsor or providing effort on a sponsored project in the form of mandatory or voluntary committed cost sharing, the anticipated effort calculated in the form of person months or percent effort must be based on the individual’s IBS.  The portion of effort multiplied by the IBS will determine the appropriate dollars to request from the sponsor or approved by the University if in the form of cost sharing.

Note: Some sponsors may have a salary rate cap.  Depending on the type of proposal submission the salary rate cap may or may not apply when preparing the proposal but the salary rate cap will apply once an award is made.  Read sponsor proposal requirements for assistance.

A.  For faculty with a 9-month appointment:

Chair Supplement

Because this supplement may be taken as a salary, as research funds, or a combination of the two, at the discretion of the faculty member annually, salary remuneration for serving as Chair will be treated as extra service pay, and will be excluded from the faculty member’s Institutional Base Salary and will not appear on an effort report.

Master Supplement

Because this supplement may be taken as a salary, as research funds, or a combination of the two, at the discretion of the faculty member annually, salary remuneration for serving as Master will be treated as extra service pay, and will be excluded from the faculty member’s Institutional Base Salary and from effort reporting requirements.

Funds paid to a Master for maintaining his/her normal course load during service as a Master will be extra service pay and will be excluded from Institutional Base Salary and from effort reporting.

B.  For faculty with a 12-month appointments:

Chair Salary

Salary remuneration for serving as Chair will be part of the individual’s Institutional Base Salary and will be included in the faculty member’s effort report.

Master Supplement

The effort/pay associated with serving as Master will be defined as:

  • 25% of their 12-month salary;
  • FAS will pay 25% of the faculty member’s 12-month salary;
  • Effort and compensation from sponsored awards must be reduced to 75%
  • IBS will not change as a result of the appointment as Master;
  • Any funds negotiated at the time of appointment in excess of 25% of the 12-month salary will be treated as extra service pay;
    • Such extra service pay may be taken as a salary supplement, as research funds, or a combination of the two, at the discretion of the faculty member annually.
    • The extra service pay will be excluded from the faculty member’s Institutional Base Salary and from effort reporting.

At the time of hire, all employees should receive an official letter or other similar notification that includes their IBS.  Employees receiving an adjustment in salary due to an annual increase or a promotion should receive a letter or other similar notification documenting their new IBS and the effective date of the change in IBS.  All promotions that provide an increase in IBS should also be done in writing.

Roles and Responsibilities

Chairs, Deans and/or Provost Office

  • Ensures that salary letters are provided on an annual basis to faculty indicating the approved institutional base salary.

Principal Investigator

  • Ensures that all requests for salary support in sponsored projects proposals are based on the individual’s correct IBS.

Department Administrator

  • Ensures proposal budgets reflect salaries consistent with IBS or any applicable salary cap, whichever is lower.
  • Ensures that entries into Payroll Costing are correctly based on the individual’s IBS.
  • Retains copies of appointment and salary letters for audit purposes.

Office of Sponsored Projects

  • Ensures systems supporting/feeding the proposal preparation module provide the correct IBS of individuals in the proposal budget.

Reviewed for Workday purposes 6/26/2017.