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Purpose: The following guidance is provided for faculty who, in addition to their academic year base salary, choose to devote additional effort and receive compensation during the summer months of June, July and August.
Description: The University is obligated to comply with all federal policies related to the fiscal management of grants and contracts under guidelines established by the Code of Federal Regulations (CFR), Title 2, Part 200-Cost Principles for Educational Institutions.
Requirements: The principles are as follows:
Code of Federal Regulations (2 CFR 200.430)
Additional Reference Materials:
(a) Senior Personnel Salaries & Wages Policy
NSF regards research as one of the normal functions of faculty members at institutions of higher education. Compensation for time normally spent on research within the term of appointment is deemed to be included within the faculty member’s regular organizational salary.
As a general policy, NSF limits the salary compensation requested in the proposal budget for senior personnel to no more than two months of their regular salary in any one year. (See Exhibit II-7 for the definitions of Senior Personnel.) It is the organization’s responsibility to define and consistently apply the term “year”, and to specify this definition in the budget justification. This limit includes salary compensation received from all NSF-funded grants. This effort must be documented in accordance with 2 CFR § 200, Subpart E, including 2 CFR § 200.430(i). If anticipated, any compensation for such personnel in excess of two months must be disclosed in the proposal budget, justified in the budget justification, and must be specifically approved by NSF in the award notice budget.
Since 1990, Congress has legislatively mandated a limitation on direct salary for individuals under NIH awards. The mandate appears in the Consolidated Appropriations Act, 2021 (Public Law 116-260), signed into law on December 27, 2020, which provides authority for NIH to incur obligations for Fiscal Year 2021.
The Consolidated Appropriations Act, 2021 restricts the amount of direct salary to Executive Level II of the Federal Executive pay scale. The Office of Personnel Management recently released new salary levels for the Executive Pay Scale. Effective January 3, 2021, the salary limitation for Executive Level II is $199,300.
For issued awards that were restricted to Executive Level II (see historical record of salary cap link below), including competing awards already issued in FY2021, if adequate funds are available in active awards, and if the salary cap increase is consistent with the institutional base salary, recipients may rebudget funds to accommodate the current Executive Level II salary level.
For a historical record of the salary cap, including effective dates, see: https://grants.nih.gov/grants/policy/salcap_summary.htm
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Metropolitan State University of Denver
Office of Sponsored Research and Programs (OSRP)
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