Extra Compensation for Externally Sponsored Projects Policy

Op4.02-4 Extra Compensation for Externally Sponsored Projects Policy


Compensation for faculty and staff is based on performance of their regular duties and responsibilities assigned by the university (see Op4.02-3 Institutional Base Salary (IBS) for Externally Funded Projects Policy). For most externally funded projects, the university will accept funding that involves compensation to personnel within their institutional base salary and will not require extra compensation.


The purpose of this policy is to define the conditions under which extra compensation is permitted for externally funded projects. Externally funded projects are defined as those for which the university administers funds under a contract, grant, or other agreement from an outside source. The university is responsible for specific activities and deliverables and is accountable for expenditures of funds received for these projects.


The following requirements must be met to receive Extra Compensation:

  1. The request of extra compensation must comply with 2 CFR 200.430 Compensation – personal services.
  2. Charges for extra compensation must have prior approval of both university and Funding Agency. University approval must be obtained through the Internal Approval Form. The extra compensation must be noted on the Form and approved by applicable University Administrators. To obtain approval from the Funding Agency, discussion of the extra compensation must be listed in proposed project budget and narrative.
  3. The Extra Compensation requested is not for the performance of regular duties and responsibilities assigned by the university.
  4. An individual's regular duties and responsibilities, assigned by the university, cannot be reduced, and the work required for the project is outside the scope of regular duties and assignments.
  5. Determination of the amount of extra compensation to be charged to an externally funded project should be based on the nature of the work, the time required to complete the work, and charged at a rate that is commensurate with the IBS rate of pay.