Finance & Administration

Summer Supplement Payments for Faculty - Federal Grants

Overview

This article will provide instructions and guidelines for faculty who charge their summer salary to federally-funded grants and contracts.  Please refer to Faculty - Supplemental Pay for information regarding supplemental payments.

Policy

Please refer to the Faculty Handbook for details regarding the policy. See also the 12/8/2010 memorandum from Vice Provost for Research Jim Siedow.

Note: When processing summer supplemental Payments for faculty who will be utilizing federally-funded research grants, it is important to keep in mind the following:

  • Duke University will continue to honor the 3/9th summer supplemental policy for faculty with nine-month appointments.
  • The policy seeks to give faculty greater flexibility in how they distribute their sponsored effort.
  • The policy seeks to give faculty the ability to align their compensation with their effort.
  • The maximum compensation from federal grants, including federal flow-through dollars, in any given month is .75/9ths of the previous academic year's monthly salary
  • The maximum amount of federally-funded effort for which faculty may be compensated during the summer is 2.5/9ths.
  • The maximum amount of National Science Foundation (NSF) funded salary (academic year and summer salary) is 2/9ths in any fiscal year.

Please refer to Fiscal Year Limits information and Frequently Asked Questions below.

Procedures

  1. A faculty member has requested summer salary.
  2. Determine the funding source.
  3. Will the funding source be solely from federally-sponsored funds or federal flow-through dollars or will the funding source be from non-federal funds and from federally-sponsored funds or will the source be solely from non-federal funds?
  4. Use the Overview Flowchart on the Faculty Summer Salary Worksheet to determine next steps in the process, which are determined by funding source and other factors.

Worksheets and Forms

Alert: Enter the Institutional Base Salary (IBS) and the Fiscal Year (FY) and all other required fields within the worksheet. Note, the worksheets referenced below are for Department use only. Do not send copies to the Office of Finance and Administration. Please maintain within your Department.

Fiscal Year Limits

Use the chart below to determine fiscal year limits appropriate for your situation. Liimits are within the fiscal year, not the calendar year (July 1 - June 30).

Ninths are calculated using the base salary rate for the immediately preceding appointment term. For example, 1/9th summer salary paid in July 2015 (FY15/16) would be based on the FY14/15 base salary. In May 2016 (FY15/16), the calculation would be based on the FY15/16 base salary.

Duke University continues to honor the 3 ninths summer supplemental policy for faculty with nine month appointments.

Funding Source Maximum Compensation per Fiscal Month Maximum Compensation per Fiscal Year
Summer Salary Savings Pool (See note) .5 ninths .5 ninths
Discretionary 1 ninth 3 ninths
Non-Federal 1 ninth 3 ninths
Federal (such as NIH) .75 ninths 2.5 ninths
Federal Flow Through .75 ninths 2.5 ninths
NSF (see note) .75 ninths 2 ninths
Start-up Funds (see note) 0 ninths 0 ninths

Summer Salary Savings Pool: Arts & Sciences will place a portion of a faculty member's academic year salary and fringe benefits in an account to be used during the summer months, if we are notified. The amount placed in the account will not exceed .5/9ths in any one fiscal year. Utilizing the summer salary savings pool requires academic year salary charged to a sponsored grant. Allocating academic year salary to a sponsored grant will require a Cost Distribution iForm. This action will create a salary savings pool in the departmental budget. From this pool of institutional funds, up to .5/9ths worth of salary and fringe benefits will be used as needed from the central discretionary fund to pay a full three months of summer salary.  Please notify the Office of Finance and Administration when a faculty member chooses to utilize funds from the central discretionary fund via the ‘Comments’ section on the Cost Distribution iForm.

National Science Foundation limits: No more than 2/9ths of a base salary may be charged to NSF funds in any fiscal year. This includes academic year salary AND summer salary.

Start-up Funds: These funds cannot be used for summer salary.

Frequently Asked Questions

Will I still be able to receive 3/9ths in summer salary during a fiscal year?

Yes, the distribution of summer salary will change if you are charging any portion of your summer salary to a federally sponsored research grant, but the total ninths a faculty member can receive during the summer months of May, June, July and August is still 3/9ths.

How will the distribution of my summer salary change?

There won’t be any change in the distribution unless you are using federally sponsored research funds.  See question#3 if you will be using federally sponsored research funds.

My summer salary will be charged to sponsored grant(s).  How will my summer salary be distributed?

No more than .75 ninths per month of summer salary may be charged to a federally sponsored research grant during the months of May, June, July and August.

Is there a maximum amount of summer salary I can charge to a sponsored grant(s)?

Yes, you may not charge any more than .75 ninths in a month and no more than 2.5 months of summer salary support may be charged to sponsored projects during a fiscal year (July-June).The salary charged must reflect the effort devoted to the sponsored project during the time you receive the summer supplement.

May I top-up the .75 ninths to a full ninth?

Yes, but you must use non-federally sponsored funds.

What funds can I use to top-up the .75 ninths charged to sponsored research grants?

You may use funds from a non-federally sponsored grant(s) and/or funds charged during the academic year to sponsored projects which have been placed in a special account (the central discretionary fund) for use by the faculty member.

How will funds charged to sponsored grants during the academic year be utilized?

Arts & Sciences will place the portion of your academic year salary and fringe benefits in an account to be used during the summer months, if we are notified.The amount placed in the account will not exceed .5 ninths in any one fiscal year.

What is the maximum number of summer salary months that may be charged to sponsored grants in a fiscal year?

2.5 months of summer salary can be charged to sponsored grants during the summer.These charges should reflect the effort devoted to the sponsored project during this period of time.

If no more than 2.5 months of summer salary can be charged to a sponsored grant and I previously charged a full 3 months of summer salary to a sponsored grant, how can I make myself “whole” and continue to receive 3/9ths of summer salary?

The .5 ninths will have to come from sources other than sponsored research grants.An additional one-half month of summer salary may be added to the 2.5 months, if you have charged a least .5 ninths of your academic year salary to a sponsored grant and informed the Office of Finance and Administration via your grants manager that you would like to utilize these funds during the summer.Other sources include non-federally sponsored grants.

How long will the funds placed in the special account for use by the faculty member be available?

The funds will be available the current fiscal year and, if needed, the following fiscal year.

Do I need to notify anyone concerning how I want to use my academic year salary that’s been charged to sponsored grants?

Yes, please let your grant manager and/or business manager know if and how you plan to use the portion of your academic year salary charged to sponsored grants.Your grants manager and business manager will ensure your request is included in the payroll actions that will be initiated.This notation is necessary for the Office of Finance and Administration to transfer the funds to the special account, the central discretionary fund.

CRITICAL STEP - Grant Managers and Business Managers:  Please notify the Office of Finance and Administration when a faculty member chooses to utilize funds from the central discretionary fund via the ‘Comments’ section on the Cost Distribution Change iForm.

Are there any restrictions on summer salary from NSF sources?

Yes, no more than 2 ninths of salary support is allowed to come from NSF sources during the institutional fiscal year (July-June)

My salary is subject to the NIH salary cap.  May I use the special account established for faculty members to top-up my salary to a full ninth?

Yes, as long as you have sufficient funds in the central discretionary fund.