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.
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