Compensation in Excess of Base Annual UPPS No. 04.04.12

Salary For Staff Issue No. 6

Effective Date: 4/1/2004

Review: October 1 E5Y

01. POLICY STATEMENTS

01.01 We at Texas State are committed to supporting the educational mission of the institution through efficient information storage and retrieval, appropriate auditing procedures, professional personnel services, and a safe environment. The following procedure contributes to the fulfillment of this policy.

01.02 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. The standard to be applied for expenditure on all sponsored program funds shall be consistent with the requirements of OMB Circular A-21 which 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 Intra-departmental services - Except as provided in Section 02.02 of this policy, compensation in excess of base annual salary is prohibited for intra-departmental services. Such services are defined as performing work within the same department in which the employee is regularly employed.

01.05 Inter-departmental services – Compensation in excess of base annual salary may be paid for providing services to other departments, colleges/units, or divisions of the University, other than the one in which the employee is regularly employed, in accordance with this policy.

01.06 Compensation in excess of base annual salary from non-sponsored programs must be documented with a written agreement which delineates the consulting terms.

01.07 The total amount of compensation in excess of base annual salary which can be earned each fiscal year from all university funds, regardless of source, is twenty-five percent (25%) of the staff employee’s base annual salary.

02. DEFINITION OF TERMS

02.01 Base Annual Salary – The approved pay step from the University Pay Plan at which a staff employee is appointed. Each pay step 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, benefit replacement pay (BRP), 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.

02.04 Additional Responsibilities – Duties that are performed outside the time period specified for “regularly assigned responsibilities” and that are in addition to the “regularly assigned responsibilities”, as defined in Section 02.03. These may include, but are not limited to:

a. special projects as assigned by university administrators;

b. teaching duties for staff employees.

NOTE: Employees may not be compensated for compensation above base annual salary until a detailed description of the duties and responsibilities for which the employee is to be compensated has been provided to both the dean/director of the department in which the employee is regularly employed and the dean/director of the department from which the employee will receive the compensation above base annual salary. The detailed description must also accompany any Request for Budget Change (RBC) submitted for compensation above base annual salary to a staff employee.

03. ELIGIBILITY AND LIMITATIONS

03.01 Each employee is accountable to the University for 100% of the employee’s regularly assigned duties and may not be paid for more than 100% time for performing those duties.

03.02 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.

03.03 An example of a staff compensation in excess of base annual salary calculation is as follows:

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. This amount can be earned in addition to any of the exclusions identified in Section 02.02.

NOTE: Any change in an employee’s base annual salary during the year will result in a corresponding change in the employee’s compensation in excess of base annual salary limit.

04. COMPENSATION AND WORK PERIODS

04.01 Pay periods for compensation in excess of base annual salary must correspond to the time period(s) on a semester basis during which the services were performed. For example, work performed during the fall semester must be paid during the fall semester and CANNOT be shifted to a subsequent time period.

04.02 All compensation in excess of base annual salary payments must be made through the University Payroll Office via an RBC.

05. RESPONSIBILITY FOR COMPLIANCE

For purposes of this policy, responsibilities are assigned as described in the following sections.

05.01 Human Resources is responsible for assuring compliance with staff compensation policies.

05.02 Faculty Records is responsible for assuring compliance for academic staff administrators.

05.03 The Office of Sponsored Programs (OSP) is responsible for assuring that sponsored program proposals are prepared such that:

a. appropriate expenditure categories (salaries vs. consultants) are utilized; and

b. compensation in excess of base annual salary provisions are clearly presented to the potential funding agency.

05.04 The Grants and Contracts Administration Office (GCA) 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/regulations. GCA will notify divisional vice presidents, Human Resources, Faculty Records, OSP, and other administrators of non-compliance so that they may take corrective action where necessary.

05.05 The Budget Office has primary responsibility for reporting to both the Vice President for Finance and Support Services and the appropriate divisional vice president(s) when an employee’s compensation in excess of base annual salary for a fiscal year has exceeded the limits specified in this UPPS.

05.06 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 Principal Investigator (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/regulations.

05.07 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.

05.08 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.

06. NON-COMPLIANCE

06.01 Risks of non-compliance with compensation in excess of base annual salary policies of the funding source(s), the University, and other federal and state rules/regulations may include, but are not limited to:

a. loss of funding for the specific sponsored program in question;

b. repayment of funds expended on pay-above-base;

c. jeopardizing future projects with the sponsor in question (and other federal and state sources, where applicable);

d. suspension of the PI from future privileges for applying for grant and other sponsored program funding;

e. disciplinary action against responsible individuals, including those in the supervisory chain of command.

06.02 In the event that a funding source requires repayment because of a violation of its policy(ies) regarding compensation in excess of base annual salary, the college or staff department that has managerial oversight for the sponsored program will be responsible for identifying funds within their college or staff department to make the repayment.

06.03 Employees who receive compensation in excess of base annual salary in amounts that violate this policy will be required to make repayment.

07. EXCEPTIONS

07.01 The Vice President for Finance and Support Services is authorized to approve exceptions to this policy. Exceptions are only for extraordinary circumstances and such approvals must be documented in writing, prior to commencement of the work for which the exception is proposed.

Copies of any exceptions must be provided to the offices of Sponsored Programs, Grants and Contracts Administration, Human Resources, Budgeting, the employee, and any appropriate office in the employee’s chain of command by the vice president requesting the exception.

Exceptions that contradict federal or state regulations or funding source guidelines will not be made.

08. REVIEWERS OF THIS UPPS

08.01 Reviewers of this UPPS include the following:

Position Date

Mr. John McBride October 1 E5Y

Director, Human Resources

Mr. Gordon Thyberg October 1 E5Y

Director, Budgeting

Dr. Carolyn Conn October 1 E5Y

Assoc. Vice President for Financial

Services/Treasurer

09. 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.

Mr. John E. McBride, Director, Human Resources; senior reviewer of this UPPS

Mr. Bill Nance, Vice President for Finance and Support Services

Dr. Denise M. Trauth, President