Transcript Summer Supplements on Federal Awards

Policies and Procedures for
Summer Supplements on
Federal Awards
April 2012
1
Agenda
 Understand the purpose and main
points of the Summer Supplement
policy.
 Review A&S’ process to administer
the policy


CASE Studies
FAQs
2
Summer Supplements
Why Revise?

Federal sponsors require that compensation
for effort on a funded project coincide with
the time the work is performed.

This means that an individual compensated
100% from grant funds during one month
must work exclusively on that project for
the month.
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Summer Supplements
Policy Prior to Spring 2011
•Faculty can charge 100% effort to
any one of four summer months.
•Faculty can charge 100% effort in up
to three of four months during the
fiscal year.
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Summer Supplements
Problems with 100% Summer
Effort
 No significant vacation time in a
100% committed month.
 No other projects are allowed in a
100% committed month




No new proposals.
No administrative duties.
No student mentoring.
No independent research
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Summer Supplements
Goals of the Current Procedures
 To ensure that the 3/9ths summer
supplement policy is honored.
 To eliminate the 100% problems.
 To allow better alignment of effort
with compensation by providing
flexibility for planning the summer’s
work schedule and sufficient funding
to compensate for non-federal
effort.
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Summer Supplement
Committee Recommendation #1
effective Spring 2011
Change the summer-effort maximum
from 100% per month in three out
of four months to a maximum of
75% effort per month spread over all
four summer months (May, June,
July, and August) for those
supported with federal funding.
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Summer Supplement
Committee Recommendation #2
effective Spring 2011
Keep the maximum amount of summer salary
allowed at three months but lower the
maximum amount of federally-funded effort for
which faculty may be compensated during the
summer from three to two-and-a-half months.
The additional half month of federally
sponsored effort would be performed and paid
for during the academic year, and the remaining
half summer month would be compensated out
of the school funds saved during the academic
year.
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Summer Supplement
Where does the Remaining Half
of Summer Month Come From?
•Academic Year Salary Recovery
•Faculty are compensated for research effort
during the academic year from their grants
and contracts.
•The School realizes a savings. A&S will
transfer the salary + fringe benefits into a
central discretionary code.
•These funds are made available to the faculty
member to cover the 0.5/9th during the
summer.
• Funds cannot come from other federal
grants.
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The Procedure Prior to Spring 2011
100
90
80
70
60
University Effort
50
Federal Effort
40
30
20
10
0
May
June
July
August
According to the Faculty Handbook, the month of May includes
compensation for Duke related effort that might take place during the
summer.
The Current Procedure
The 25% Solution
100
90
80
70
60
University Effort
50
Sponsored Effort
40
30
20
10
0
May
June
July
August
The percentages of effort during the summer can vary. In this example, the
May administrative effort is spread evenly across all four possible summer
months.
Spreading Out Effort for 1/9th
• If a faculty member has committed 1/9th of
summer effort on a grant or contract, he or
she can plan how that time is going to be
spent during the summer.
100
100
90
90
80
80
70
70
60
University Effort
50
Federal Effort
40
60
Federal Effort
40
30
30
20
20
10
10
0
University Effort
50
0
May
June
July
August
May
June
July
August
Spreading Out Effort for 3/9ths:
Step #1
Assuming a faculty member has the funding for
3/9ths summer effort on sponsored effort:


Limit supplemental compensation in any one
summer month to 75% of 1/9th.
Faculty must plan out how to spread summer effort
over 4 months – May, June, July, and August.
100
90
80
70
60
50
40
30
20
10
0
100
80
University Effort
Foundation Grant 1
60
Federal Grant 2
Sponsored Effort
Federal Grant 1
40
University Effort
20
May
June
July
August
0
May
June
July
August
Spreading Out Effort for 3/9ths:
Step #2
To further ensure time for other activities: vacation, new
proposals, independent study, administration, etc.
 Limit supplemental compensation from federal funds
to 2.5/9ths and
 Pay the remaining 0.5/9th from institutional funds.
100
90
80
May
70
60
Non-Federal Effort
50
40
Federal Effort (2.5
Months)
30
20
10
0
May
June
July
August
Summer Supplement
Case Studies
•Case Study 1
•Case Study 2
•Faculty Summer Worksheet
•Faculty Summer Salary Form
•Complete this form only if you will be
charging summer salary to federally sponsored
research grants AND if the faculty member has
requested to use the central discretionary
fund
•Case Study 3
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Summer Supplement
Case Studies
Case
Study 1
Summer Salary
Plan Ahead
(View the actual case studies on the Trinity College of
Arts & Sciences, Finance and Administration website –
Policies and Procedures > Faculty – Summer Supplement
Payments (Faculty Only))
•2 months of summer salary support
•The Central Discretionary Fund is not
needed since the budgeted summer
salary is less than 2.5 months
Case
Study 2
Case
Study 3
•3 months of summer salary support
•Only source of funding is from
federally sponsored grants
•In order to receive 3/9ths of summer
salary during the fiscal year, the
Central Discretionary Fund will have to
be utilized
•3 months of summer salary support
•Faculty member has non-federal funds
to support summer salary as well as
federal funds
•The Central Discretionary Fund is not
needed because 2.5 months have
been budgeted on a federal grant and
there are funds from a non-federal
source
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Summer Supplement
FAQs & Website
•FAQs
•Policy and materials from this
presentation have been uploaded to
the Finance & Administration website
http://trinity.duke.edu/finance
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Summer Supplement
Summary of Key Points
•Compensation should be tied to when the effort
actually occurs.
•Faculty can no longer take 100% of one month on a
federal grant without the Management Center’s
approval.
•Faculty and business managers should plan the
summer distributions early, appropriately spreading
effort across the summer months.
•If a faculty member does not have 2.5 months
committed, then the schools’ regular business rules
apply.
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Summer Supplement
Summary of Key Points
The Central
Discretionary Fund is
not needed if 2.5
months or less are
committed
Initiate the
Supplemental
Payment iForm
Summer
Salary
Utilize the Central
Discretionary Fund if
2.5 months or more
are committed and
federal funds are the
only source of funding
Plan Ahead
Submit the Trinity
College of Arts &
Sciences Faculty
Summer Salary
Request Form if
utilizing the Central
Discretionary Fund
Initiate a Cost
Distribution iForm to
generate a savings
pool if the Central
Discretionary Fund
will be utilized
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Questions
• See the FAQs on the Finance &
Administration website
http://trinity.duke.edu/finance
• Network with other grant
managers
• Call the Office of Finance &
Administration
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