Supplemental Pay on a Federally Sponsored Research Account

Scope

This policy applies to all Indiana University faculty and staff receiving extra compensation over and above their institutional base salary on any federally sponsored research account.

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Policy Statement

It is the policy of Indiana University that in order to charge supplemental pay to federally sponsored research accounts, the following criteria, as outlined in 2 CFR 200.430, must be met:

The work performed must be:

• Across departmental lines,
• Outside the scope of the employee’s regular appointment,
• Short term in nature, and
• Provided for in the sponsored agreement, or approved in writing by the sponsoring agency.
  

Limitation on Supplemental Pay to Internal Consultants

For internal consultants there is a limitation of 0.5% of academic 10-month salary for each day of consulting on federally sponsored programs.  Persons with 12-month appointments are limited to 0.5% of 10/12ths of their annual salary per consulting day. 

Non-Federal Sponsored Program Accounts

If allocating supplemental pay to a non-federal sponsored program account, the allocation is subject to approval by the sponsoring agency and the appropriate campus office of academic affairs.

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Reason for Policy

To establish guidelines and best practices for the charging of supplemental pay to sponsored research accounts.

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Procedures

The Office for Research Administration (ORA) will generate exception reports to identify all supplemental pay charges on federally sponsored research accounts. ORA will review these charges and work with departmental representatives to have charges moved off accounts where the charge does not meet the policy criteria listed above.

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Definitions

Institutional Base Salary: The annual salary received for a payroll appointment. At Indiana University this is defined as base pay applicable to an appointment.  This includes, if appropriate, compensation from both Indiana University and an approved practice plan. 

Supplemental Pay: Extra compensation received over and above the institutional base salary.  At Indiana University this includes payments for services outside the normal scope of employment, including but not limited to Academic Overload.

Departmental Lines: At Indiana University, departments are those organizations in the hierarchy that are directly below the organization of a school or responsibility center.

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Sanctions

Charges for supplemental pay that are not approved as per this policy will be considered unallowable and will be moved to a non-sponsored departmental account.

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History

Replaces III-90 “Supplemental Pay on Federal Accounts” and Important Notice 89-16 “Limitation on In-House Consultant Payments”

A substantive review of the policy was conducted by IU Research resulting in substantive revisions to the policy on April 29, 2024.

Previous Versions:

• Effective Dates: 3-1-2011 through 5-3-2017
• Effective Dates: 05-03-2017 through 04-29-2024

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