Budgeting Salaries and Effort Reporting on Sponsored Projects for Joint UCVA Faculty March 1, 2005

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Budgeting Salaries and Effort Reporting on
Sponsored Projects for Joint UC/VA FacultyMarch
1, 2005
UNIVERSITY OF CALIFORNIA, SAN DIEGO
HEALTH SCIENCES
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Brief History

• Driven by directive from OMB via NIH to all
  institutions with faculty dually compensated from
  both their academic institution and affiliated VA
  medical center.
• 7/1/2003 UCSD eliminated VA disclosure in
  payroll system in compliance with UCOP policy
  driven by State and Federal laws and IRS
  regulations.
• 9/2/2004 Campus advised Health Sciences effort
  reporting and proposal salaries for UC/VA joint
  appointments must conform to UC-wide guidance and
  expectations of federal sponsors.

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Definitions Total Professional Effort
Distribution of all effort applied to missions
across ALL institutions. Institutional Base Pay
(IBP) defined by NIH, gross salary paid to
individual by institution (does not include
bonuses such as Z payments) and does not include
any direct payments made to individual by outside
organizations (such as VA). Institutional Pay
Rate rate of pay at 100 an institution uses to
generate a salary payment, which is also used to
calculate salaries on sponsored
projects. Continued.
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• Total UC/VA Comp UC Rank Step at assigned
  APU Scale Y Regular Z VA Salary VA Bonus
• UC Pay gross pay the faculty member receives
  from UC
• (UC Gross Pay UC Rank Step at APU
  Scale Y -Regular Z - VA Salary VA Bonus)
• UC Pay Rate UC Rank Step at APU Scale Y at
  100

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Effort VA, UC, Total
7/1/05 effective date on change from 85 to 87
for faculty with 5/8ths time at the VA.
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• Estimated maximum hours - A work week of 60
  hours per week is maximum that University
  management believes it can defend to external
  regulatory and funding agencies and the general
  public.
• Note Faculty member cannot exceed more than 40
  hours per week at any one institution, i.e.,
  cannot work 60 hours at UC only.
• UC equivalent hours per week - Calculated
  assuming that 40 hours per week is the
  standardized work week even though individuals
  may work more or less to fulfill a set of
  standard responsibilities.
• Faculty are not guaranteed the maximum percent of
  UC pay. The payroll percentage is dependent on
  the amount of gross UC pay as a percent of salary
  component(s).

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Effort and Proposed Salary Calculation Methodology

• Institutional Base Pay
• Central campus agrees use of UCSD
  Institutional Pay Rate is
• acceptable if consistently applied on all
  sponsored project
• budgets (both federal and non-federal).
• Practice is used system-wide at other UC
  Health Sciences
• campuses, as well as other institutions
  such as Stanford,
• Northwestern, and Vanderbilt.
• Percent Salary on Budget
• Must be commensurate with percent of
  Institutional Pay Rate, i.e.,
• salary requested based on UCSD
  Institutional Pay Rate must be
• commensurate with UC Institutional Effort.

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Consistent Practice Compliance

• Using this methodology completes the cycle for
  consistent practice in reporting from an audit
  and regulatory perspective
• Percent Effort on Proposal
• Percent Distribution in Payroll System
• Percent Effort on PARs

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• EXAMPLE 1
• Assistant Prof, Clinical, III, APU Scale 03/8ths
  VA, Max UC100
• Total UC/VA Comp145,000
• VA Pay -37,162
• 107,838 UC
  Gross Pay
• UC X 59,900
• UC Y 47,938
• 107,838 (8,986.50 per month)
• 107,838UC rate to be used on sponsored projects
• Continued.

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Example 1 SALARY/EFFORT FOR A PROPOSAL

• Appointment/Salary Base Dist of Prof Effort
  Between UC/VA (from MOU)
• VA Appt UC Max Pay ttl hrs
  VA UC UC/VA ttl
• 3/8 100
• 15 hrs 40 hrs (implied) 55
  27 (15/55) 73 (40/55) 100
• PI estimates of his UC time on project as
  68.75 (27.5 h/40h)
• of UC salary to request
  68.75 (.6875 x 1.0)
• 100 UC pay rate is 8,986.50 x 12
  107,838
• Budget salary is UC salary requested x UC pay
  rate 74,139 (.6875 x 107,838)
• of Overall Professional Effort
  50.19 (.6875 x .73)
• maximum professional effort available at UC

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Example 1 SALARY/EFFORT FOR A PROPOSAL BUDGET
PAGE
See budget justification Budget
Justification Dr. Doe has a joint UC/VA
appointment. Salary support requested represents
68.75 of his UC pay rate and 50.19 of his
overall professional responsibilities.
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• Example 2
• Assoc Prof, IR, III, APU Scale 0
• 7/8ths VA, Max UC62
• Total UC/VA Comp 125,500
• VA Pay
  -114,840
• 
  10,660 UC Gross Pay
• UC X 73,800 (.1444 in PPS)
• 73,800UC rate to be used on sponsored projects

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Example 2 SALARY/EFFORT FOR A PROPOSAL

• Appointment/Salary Base Dist of Prof Effort
  Between UC/VA (from MOU)
• VA Appt UC Max Pay ttl hrs
  VA UC UC/VA ttl
• 7/8 62
• 35 hrs 25 hrs (implied) 60
  58 (35/60) 42 (25/60) 100
• PI estimates of his UC time on project as
  24.0 (6h/25h)
• of UC salary to request
  14.88 (.24 x .62)
• 100 UC pay rate is 6,150.00 x 12
  73,800
• Budget salary is UC salary requested x UC pay
  rate 10,981 (.1488 x 73,800)
• of Overall Professional Effort
  10.08 (.24 x .42)
• maximum professional effort available at UC

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Example 2 SALARY/EFFORT FOR A PROPOSAL BUDGET
PAGE
See budget justification Budget
Justification Dr. Smith has a joint UC/VA
appointment. Salary support requested represents
14.88 of his UC pay rate and 10.08 of his
overall professional responsibilities.
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• Example 3
• Professor, FTE, AS, APU Scale 3
• 5/8ths VA, Max UC87
• Total UC/VA Comp 285,000
• 
  -30,000 Regular Z Pay
• VA Pay
  -88,234
• 
  166,766 UC Gross Pay
• UC X 160,700
• X 48,200
• 208,900 (.7983--17,408.33 per
  month)
• 208,900UC rate to be used on sponsored projects

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Example 3 SALARY/EFFORT FOR A PROPOSAL

• Appointment/Salary Base Dist of Prof Effort
  Between UC/VA (from MOU)
• VA Appt UC Max Pay ttl hrs VA
  UC UC/VA ttl
• 5/8 87
• 25 hrs 35 hrs (implied) 60
  42 (25/60) 58 (35/60) 100
• PI estimates of his UC time on project as
  60.0 (21h/35h)
• of UC salary to request
  52.20 (.60 x .87)
• Dr. Blues UC pay rate exceeds the NIH Salary
  Cap, so actual salary
• budgeted is based on the NIH cap. However, the
  of the cap will still
• be the same
• Current NIH salary cap of
  180,100
• Budget salary is UC salary requested x NIH cap
  94,012 (.5220 x 180,100)
• of Overall Professional Effort
  34.8 (.60 x .58)

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Example 3 SALARY/EFFORT FOR A PROPOSAL BUDGET
PAGE
See budget justification Actual base exceeds
NIH salary cap Budget Justification Dr. Blue
has a joint UC/VA appointment. Salary support
requested represents 52.20 of his UC pay rate and
34.8 of his overall professional
responsibilities. Dr. Blues salary rate exceeds
the NIH salary cap and actual salary budgeted is
based on the NIH cap in effect at the time this
proposal was submitted. If the NIH cap increases
prior to award, we request that NIH award Dr.
Blues salary at the new cap rate.
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• Example 4
• Professor, FTE, V, APU Scale 3
• 5/8ths VA, Max UC87
• Total UC/VA Comp 262,800
• VA Pay
  -64,761
• 
  198,039 UC Gross Pay
• UC X 107,400
• X 32,200
• Y 88,031
• 227,631 (.8700 or 18,969.25
  per month)
• 227,631UC rate to be used on sponsored projects

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Example 4 SALARY/EFFORT FOR A PROPOSAL

• Appointment/Salary Base Dist of Prof Effort
  Between UC/VA (from MOU)
• VA Appt UC Max Pay ttl hrs
  VA UC UC/VA ttl
• 5/8 87
• 25 hrs 35 hrs (implied) 60
  42 (25/60) 58 (35/60) 100
• PI estimates a of his overall time on project
  to be 85.71 (30h/35h)
• of UC salary to request
  74.57 (.8571 x .87)
• Dr. Pitts UC pay rate exceeds the NIH Salary
  Cap, so actual salary
• budgeted is based on the NIH cap. However, the
  of the cap will still
• be the same
• Current NIH salary cap of
  180,100
• Budget salary is UC salary requested x NIH cap
  134,300 (.7457 x 180,100)
• of Overall Professional Effort
  49.71 (.8571 x .58)

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Example 4 SALARY/EFFORT FOR A PROPOSAL BUDGET
PAGE
See budget justification Actual base exceeds
NIH salary cap Budget Justification Dr. Pitt
has a joint UC/VA appointment. Salary support
requested represents 74.57 of his UC pay rate
and 49.71 of his overall professional
responsibilities. Dr. Pitts salary rate exceeds
the NIH salary cap and actual salary budgeted is
based on the NIH cap in effect at the time this
proposal was submitted. If the NIH cap increases
prior to award, we request that NIH award Dr.
Pitts salary at the new cap rate.
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Timeline

• 10/2004 Original campus deadline for sponsored
  project budgets to exclude VA effort and effort
  reporting system be based on payroll appointments
  to not include effort related to VA activities
  (Position paper from OPAFS on SOMFISCAL).
• 12/2004 Adjusted deadline NIH AIDS proposals
  only (deadline 1/3/2005).
• 12/9/04 DBOs pre-implementation briefing
• 12/13/04 Training presentation to all Health
  Sciences academic compensation and fund managers.

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Timeline

• 12/16/04 Presentation to VMRF representatives
  (President, Executive Director, Service Chiefs).
• 1/2005 Adjusted deadline for all other
  competing proposals due after 1/3/2005.
• 1/4/2005 Presentation to Psychiatry service
  chiefs.
• 3/1/2005 Presentation to Medicine service
  chiefs and faculty.
• 7/1/2005 Adjusted deadline for non-competing
  continuations.