Revised: 06/17/2013

 

Compensation in Excess of Base Annual                      UPPS No. 04.04.12

Salary for Staff                                                                     Issue No. 7

Effective Date: 4/30/2010

Review: October 1 E5Y

 

 

01.       POLICY STATEMENTS

 

01.01  This UPPS establishes policies and procedures for compensation in excess of base annual salary (pay above base) from all funds, including grants and contracts, administered by the university for staff positions.

 

01.02  The standard applied to the expenditure of all sponsored program funds must coincide with the requirements of OMB Circular A-21 that reads:

 

“In unusual cases where consultation is across departmental lines [intra-university or inter-departmental] or involves a separate or remote operation, and the work performed by the consultant is in addition to his regular departmental load, any charges for such work representing extra compensation above the base annual salary are allowable provided that such consulting arrangements are specifically provided for in the agreement or approved in writing by the sponsoring agency.”

 

01.03  Additional information and requirements that apply to compensation in excess of base annual salary for staff positions are contained in UPPS No. 04.04.11, University Classification and Compensation Policy.

 

01.04  Compensation in excess of base annual salary for intra-departmental services is prohibited (see Section 02, Definitions).

 

01.05   Compensation in excess of base annual salary may be paid for inter-departmental services (see Section 02, Definitions).

 

01.06  A written agreement delineating the consulting terms must document compensation in excess of base annual salary from non-sponsored programs.

 

02.       DEFINITION OF TERMS 

 

02.01  Base Annual Salary – The approved pay grade from the University Pay Plan at which a staff employee is appointed. Each pay grade has a corresponding base annual salary for employees paid on a nine-month or a twelve-month basis. For part-time employees, the base annual salary is calculated based on the percentage (FTE) of employment for their regularly assigned duties.

 

02.02  Compensation in Excess of Base Annual Salary – Any compensation from funds administered by the university received by the employee in excess of the employee’s base salary excluding: teaching appointments, overtime, state compensatory time, state longevity, hazardous duty, and performance awards (bonuses).

 

02.03  Regularly Assigned Duties:

 

a.     Academic Staff Administrators – Regular duties assigned by the Academic Affairs Division as the regular workload. Refer to AA/PPS 01.03 for a detailed definition.

 

b.    Other Staff – Regular duties assigned by the staff employee’s supervisor. See employee’s GOJA booklet and job specifications.

 

c.    Principal Investigator (PI) – If named PI by a sponsor and if the award is accepted by the university, work under a sponsored program, whether compensated or not, is considered a part of the regular duties of that individual and thus they are not eligible for pay above base unless specifically approved in advance by the sponsored agency as an exception to the compensation rules as found in OMB A-21, Section J.

 

02.04  Additional Duties – Duties performed outside the time period specified for “regularly assigned responsibilities” and in addition to “regularly assigned responsibilities”, defined in Section 02.03. These may include:

 

a.   special projects as assigned by university administrators;

 

b.   teaching duties for staff employees.

 

NOTE: The university will not compensate an employee for compensation above base annual salary until the dean or director of the department in which the employee is regularly employed and the dean or director of the department from which the employee will receive the compensation above base annual salary receive a detailed description of his or her duties and responsibilities.

 

02.05 Intra-departmental Services – Service or work provided or performed for the same department in which the employee is regularly employed.

 

02.06 Inter-departmental Services – Service or work performed for another department, college, unit, or division of the university, other than the one in which the employee is regularly employed.

 

03.       PROCEDURES

 

03.01  Eligibility and Limitations

 

a.   Each employee is accountable to the university for 100% of the employee’s regularly assigned duties and may not receive compensation for more than 100% time for performing those duties. 

 

b.   Compensation in excess of base annual salary from federally-sponsored program funding sources is not permitted unless specifically provided for in the sponsored agreement or approved in writing by the sponsoring agency.

 

*c.  A staff employee may receive no more than 25% of the employee’s base annual salary each fiscal year in excess of base annual salary each fiscal year. This does not include teaching assignments for staff positions. Staff may exceed the 25% limit for teaching an academic class.

 

Example: If the twelve-month base salary for a staff member is $36,000, the compensation in excess of base annual salary limit for the fiscal year is 25% or $9,000. The staff member may earn this amount in addition to any of the exclusions identified in Section 02.02.

 

03.02  Compensation and Work Periods

 

a.    Pay periods for compensation in excess of base annual salary must correspond, on a semester basis, to the time periods during which the services were performed. For example, during the fall semester the employee must receive pay for work performed during that semester and may not shift that pay to a subsequent time period.

 

b.    The university’s Payroll Office must make all compensation in excess of base annual salary payments via a PCR.

 

03.03  Responsibility for Compliance

 

For purposes of this policy, responsibilities are assigned as described in the following sections.

 

a.    Human Resources is responsible for (1) assuring compliance with staff compensation policies and (2) reporting to both the vice president for Finance and Support Services and the appropriate divisional vice president when an employee’s compensation in excess of base annual salary for a fiscal year has exceeded the limits specified in this UPPS.

  

b.    Faculty Records is responsible for assuring academic staff administrators’ compliance with compensation policies.

 

c.    The Office of Research and Federal Relations is responsible for assuring that sponsored program proposals are prepared such that:

 

1)   Appropriate expenditure categories (salaries vs. consultants) are utilized; 

2)   Compensation in excess of base annual salary provisions are clearly presented to the potential funding agency; and

3)   Compensation in excess of base annual salary is in compliance with Texas State policies and procedures, funding agency guidelines, and any other applicable rules and regulations.

 

d.    The Office of Research and Federal Relations has primary responsibility for determining if compensation in excess of base annual salary funded from sponsored programs is in compliance with funding agency guidelines and other applicable rules and regulations. The Office of Research and Federal Relations will notify divisional vice presidents, Human Resources, Faculty Records, and other administrators of non-compliance so that they may take corrective action where necessary.

 

e.    For non-sponsored programs account managers have primary responsibility for assuring that payments made for compensation in excess of base annual salary are reasonable, appropriate, and in accordance with this policy and other applicable policies and regulations. 

 

      For sponsored programs, the PI has primary responsibility for assuring that compensation in excess of base annual salary payments are in accordance with funding agency guidelines and other applicable rules and regulations.

 

f.     The administrative chain of command up through the divisional vice president of each account manager has secondary responsibility for assuring that payments made for compensation in excess of base annual salary pay are reasonable, appropriate, and in accordance with this policy and other applicable regulations, including those of external funding sources.

 

g.    Employees who receive compensation in excess of base annual salary have responsibility for knowing the rules, regulations, and policies under which they can be paid such amounts.

 

            03.04 Non-Compliance

 

a.   Consequences of non-compliance with compensation in excess of base annual salary policies of the funding source, the university, and other federal and state rules and regulations may include:

 

1)   loss of funding for the specific sponsored program in question;

2)   repayment of funds expended on pay-above-base;

3)   jeopardizing future projects with the sponsor in question  (and other federal and state sources, where applicable);

4)     suspension of the PI from future privileges for applying for grant and other sponsored program funding;

5)     disciplinary action against responsible individuals, including those in the supervisory chain of command.

 

b.    In the event a funding source requires repayment because of a policy violation regarding compensation in excess of base annual salary, the college or staff department that has managerial oversight for the sponsored program must identify funds within their college or staff department to make the repayment.

 

c.    Employees who receive compensation in excess of base annual salary in amounts that violate this policy must repay those amounts.   

 

            03.05  Exceptions

 

a.   The vice president for Finance and Support Services, in writing, may approve exceptions to this policy for extraordinary circumstances, prior to commencement of the work for which this exception is proposed.

 

b.   The vice president requesting the exception must provide copies of any exceptions to the Office of Research and Federal Relations, Human Resources, the employee, and any appropriate office in the employee’s chain of command.

 

c.   The university will not make exceptions to contradict federal or state regulations or funding source guidelines.

 

04.       REVIEWERS OF THIS UPPS

           

04.01  Reviewers of this UPPS include the following:

 

Position                                                         Date

 

Director, Human Resources                      October 1 E5Y

 

Assoc. Vice President for Financial         October 1 E5Y

Services

 

Director, Faculty Records                           October 1 E5Y

 

Assoc. Vice President for Research         October 1 E5Y

and Federal Relations                               

 

05.       CERTIFICATION STATEMENT

 

This UPPS has been approved by the following individuals in their official capacities and represents Texas State policy and procedure from the date of this document until superseded.

    

Director, Human Resources; senior reviewer of this UPPS

 

Vice President for Finance and Support Services

 

President