Grants and Sponsored Programs Compensation Policy

This page sets forth the basic information regarding Allegheny College’s Grants and Sponsored Programs Compensation policy, which applies to all grants.

The federal government has increased efforts to monitor time and compensation related to grants, contracts and cooperative agreements (“grants”). Revisions have been made to federal regulations regarding these activities, and higher education institutions have been regularly audited and penalized for inappropriate salary transactions (Florida State University, 2012, $586,370; Michigan State University, 2015, $913,210). You can find more information about these regulations in the federal Office of Management and Budget’s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR 200).

Faculty may be paid for work on a grant. On rare occasions, exempt and non-exempt employees may be paid for grant work if asked to perform a special duty. Please first check with the Foundation & Corporate Relations Department if you are considering paying an employee for work on a grant.

In the case of exempt employees, the employee must consult with the Provost and Dean of the college or the Chief Financial Officer, Vice President of Finance and Administration who will ultimately decide if a stipend can be paid. The divisional vice president or dean responsible for the department paying the stipend must also formally approve it, in advance. Please see the Stipend Policy for Administrators (300.5) for more information.

For non-exempt employees, the employee’s supervisor must consult with Human Resources when determining the employee’s compensation. The non-exempt employee and his or her supervisor are responsible for accurate time reporting for all work activities, regardless of the funding source.

In general, you can be paid for time you dedicate to a grant provided the compensation is consistent with your regular salary. In effect, grant funds can be used to pay a portion of your salary for the portion of your time spent on grant activities (e.g., if grant funds provide 20% of your salary, you should spend 20% of your time on grant activities).

If you work 9 months out of the year (even if you are paid over the course of 12 months), when possible and applicable, grant work can replace a portion of your normal responsibilities. You can receive additional pay consistent with your regular salary during off-contract months but not on-contract months.

For example: If you are a 9-month faculty member and have a salary of $50,000, you may be paid either 1/9 of your salary ($5,500 [$50,000 x .11]) or 2/9 of your salary ($11,000 [$50,000 x .22]), depending on how much time you will spend on grant activities during your off-contract months.

The Foundation & Corporate Relations Office will help you determine the appropriate compensation plan for alternative scenarios not covered by this policy.

Government Grants:
Under federal regulations, you may charge only activities outlined in a grant agreement to a grant (such as writing reports and articles, managing and securing project data, coordinating research subjects, and attending meetings and conferences).

If a portion of your time will be dedicated to grant work, Allegheny College may leverage grant funds to reduce your other commitments. For example, the college could use grant funds to hire an adjunct, additional personnel or a student assistant to help cover some of your typical responsibilities. You are required to ask your department chair, the Provost and Dean of the College and the Foundation & Corporate Relations Office for approval before submitting a grant proposal that will necessitate a reduction in your regular commitments.

Under federal regulations and for institutional requirements, you must track the effort you spend on grant work. Allegheny College requires any faculty or staff member who receives compensation from a grant to complete an affidavit of effort at the end of each semester and summer.