Office of Research and Sponsored Programs

                                                      December 29, 1997

TO: Deans, Directors, Department Chairs

FROM: Daniel J. Dwyer, Vice President for Research

RE: Extra Compensation from Grants and Contracts

Enclosed is a copy of University guidelines for extra compensation of personnel from grants and contracts. I hope you will find this information helpful in making decisions relative to salary payments.

Over the past few months the Office of Research and Graduate Studies has received several PAFs requesting overload payments from grants and contracts which lacked sufficient documentation for payroll processing. When special circumstances exist which necessitate overload payments, please attach to the PAF the information listed below.

 1.  The title of the sponsored project  to which the salary is to be

     charged, the name of the funding agency, and whether or not federal

     monies are involved. (NOTE: Neither faculty nor professional staff

     serving as key personnel may receive overload compensation from

     federal funds except for teaching in special circumstances.)

2. (a) If the overload is for research, describe the special circumstances

which necessitate performing the work as an overload rather than as

part of the normal workload (NOTE: this is the key on which approval

is based).

(b) If the overload is for educational services (i.e. training

grants, institutes, etc.): (1) certify that the course is in addition

to normal duties, (2) show that the additional compensation will be

paid at a rate not greater than the annual salary rate, and (3) show

that specific authorization for overload compensation is included

in the sponsored ageeement (copy page from approved grant showing

overload compensation).

Your cooperation in providing this documentation will greatly expedite the processing of PAFS. If you are uncertain about whether or not a given project agreement involves federal funds (sometimes federal monies are re-granted or subcontracted by other agencies), or if you are unclear whether a given teaching award specifically authorizes overload compensation, please contact Mr. Richard Carlson in the Office of Research and Sponsored Programs at 1-1471 prior to initiating the PAF. The deadline for receipt in Human Resources of completed professional payroll actions is the 15th of the month in which the action is to be reflected in payroll. Your help in preparing and forwarding timely and complete PAFs will be appreciated.

I appreciate your attention to this matter.

Enclosure

      PC:John Alexander

         Paul Uttormark

         Richard Carlson

EXTRA COMPENSATION FROM GRANTS AND CONTRACTS

Release-Time and Summer Salary

Under University polivy, grants and contracts are assigned to the University and the associated activities are counted as an integral part of the normal workload for faculty and professional staff. Faculty and staff engaged in sponsored activities may be compensated from grants and contracts at their base rate and in an amount adequate to cover the time worked. Faculty and staff on fiscal-year or academic-year appointments may draw release-time salaries from grants or contracts. Faculty holding academic-year appointments may receive, where grant or contract conditions permit, up to three months of summer salary for work carried out during June, July, or August. Advance payment for summer salary is not allowed, nor is it permissible to receive summer salary for services performed during the academic year.

Part-Time Faculty and Staff

Part-time faculty and staff may be compensated from grants and contracts at their regular base rate in an amount adequate to cover the time worked up to full-time. Compensation for work over and above full-time will follow the guidelines for full-time employees.

Overload Compensation

Normally, overload compensation from grants and contracts is not permitted for faculty or professional employees serving as key personnel. Federal regulations prohibit overload payments from federal funds to faculty except for teaching in special circumstances when (a) the course is in addition to normal duties, (b) the rate of compensation does not exceed the base rate, and (c) specific authorization for overload compensation is included in the sponsored agreement. Non-federal funds do not carry these restrictions; however, federal guidelines will apply except in special circumstances which necessitate the work being performed as overload rather than as part of the normal workload. Arrangements for extra compensation must be approved by the Vice President for Research and the faculty/staff member's dean and department head, who shall use as criteria the best interests of the University and of the faculty/staff member.

Overload compensation may be paid to classified personnel and to professional staff not serving as key personnel so long as doing so is a cost-effective means of achieving project objectives.

Return to Office of Research and Sponsored Programs

Please send any comments to clifford.wilbur@umit.maine.edu

Last modified August 29, 2002