1. Effort Reporting at Vanderbilt Presentation to College of Arts & Science Faculty March 25, 2008 Dennis Hall, Associate Provost, Research & Graduate Education Tim McNamara, Associate Provost, Faculty

2. Chronology: A Few Key Dates Feb. 2003Northwestern audit Feb. 2003Northwestern audit $5.5M Dept. of Justice settlement (effort reporting) $5.5M Dept. of Justice settlement (effort reporting) Jan. 13, 2006Science article Jan. 13, 2006Science article “U.S. Rules on Accounting for Grants Amount to More than a Hill of Beans” “U.S. Rules on Accounting for Grants Amount to More than a Hill of Beans” June 30, 2006DGH Memo: NSF Labor Audit at VU June 30, 2006DGH Memo: NSF Labor Audit at VU July 24, 2007Provost’s memo to Deans July 24, 2007Provost’s memo to Deans “Effort Declaration and Certification” “Effort Declaration and Certification” Oct. 19, 2007Major Effort Meeting Oct. 19, 2007Major Effort Meeting Deans of A&S, Engineering, Peabody; Associate Provosts; representatives from GC, OCGA, Provost’s Office of F&A Deans of A&S, Engineering, Peabody; Associate Provosts; representatives from GC, OCGA, Provost’s Office of F&A

3. Effort: Basic Principles Effort is more fundamental than compensation Effort is more fundamental than compensation All institutional effort must be declared and certified All institutional effort must be declared and certified Institutional effort cannot be based on hours per week Institutional effort cannot be based on hours per week Each activity specified as a percentage of the total institutional effort (T.I.E.); elements must sum to 100% Each activity specified as a percentage of the total institutional effort (T.I.E.); elements must sum to 100% Charge federal sources for the appropriate shares of the T.I.E. Charge federal sources for the appropriate shares of the T.I.E. Consulting, grant-review panels, etc. are not included in T.I.E. Consulting, grant-review panels, etc. are not included in T.I.E. Institutional effort is not bound to a particular time or place Institutional effort is not bound to a particular time or place

4. Effort: Basic Principles Corollary: When compensation for a particular period of time is charged to a federal source, the feds’ expectation is that the corresponding effort (i.e., via the base salary) has been expended entirely on the work funded by that source. Corollary: When compensation for a particular period of time is charged to a federal source, the feds’ expectation is that the corresponding effort (i.e., via the base salary) has been expended entirely on the work funded by that source. Incidental activities: 2.5% (1 hour per 40-hour week; 1.5 hours per 60-hour week) Incidental activities: 2.5% (1 hour per 40-hour week; 1.5 hours per 60-hour week) Effort spent writing proposals cannot be charged to grants (rare exceptions) Effort spent writing proposals cannot be charged to grants (rare exceptions) Reasonableness standard (very important) Reasonableness standard (very important)

5. Resources Limit Summer Grant Support Carnegie Mellon Carnegie Mellon Cornell Cornell Dartmouth Dartmouth Duke Duke Harvard Harvard Michigan State Michigan State MIT MIT Penn State Penn State U. Michigan U. Michigan U. Rochester U. Rochester Aware, and ~ Working on it Emory Emory Northwestern Northwestern Stanford Stanford Washington U. Washington U. USC USC Field Manual: “Policies and Practices: Compensation, Effort Commitments and Certification” (COGR, March 1, 2007) VU Websites: http://www.vanderbilt.edu/ocga/vupolicies/effortreporting/efforttableofcontent.htm http://www.vanderbilt.edu/ocga/vupolicies/vupolicies.htm Not Yet Aware NYU NYU Rutgers Rutgers U. Kansas U. Kansas U. Nebraska U. Nebraska U. Pittsburgh U. Pittsburgh

6. Remaining Challenges, Works in Progress Aligning administrative and academic calendars Aligning administrative and academic calendars The lack of an institutional policy on “vacations” for faculty The lack of an institutional policy on “vacations” for faculty Personnel paid 100% from federal grants/contracts Personnel paid 100% from federal grants/contracts Others Others

7. Questions?

8. Issues Relating to Faculty Effort in Arts and Science Richard McCarty, Dean

9. Issues in Arts and Science Significant grant-related effort occurs during the academic year when many faculty are paid disproportionately from A&S funds. Significant grant-related effort occurs during the academic year when many faculty are paid disproportionately from A&S funds. A significant fraction of faculty with NIH grant support could pay for an additional portion of grant-related effort during the academic year. A significant fraction of faculty with NIH grant support could pay for an additional portion of grant-related effort during the academic year. The institutional salary support that is freed up during the academic year could be employed to compensate a given faculty member for summer effort that cannot be charged to his or her grants (e.g., proposal writing). The institutional salary support that is freed up during the academic year could be employed to compensate a given faculty member for summer effort that cannot be charged to his or her grants (e.g., proposal writing).

10. Example 1 Current Situation Academic salary = $90,000 Academic salary = $90,000 Full summer salary = $30,000 from grant* Full summer salary = $30,000 from grant* Actual academic year effort = 35% Actual academic year effort = 35% Academic year salary from grant = $0 Academic year salary from grant = $0 Total annual salary = $120,000 Total annual salary = $120,000 *100% of summer effort must be directly related to purposes of grant (in particular, no unused effort for proposal writing) Proposed Changes Academic year salary = $90,000 Academic year salary = $90,000 $80,000 from A&S $10,000 from grant Actual academic year effort = 35% Actual academic year effort = 35% Full summer salary = Full summer salary = $20,000 from grant $10,000 from A&S* Total annual salary = $120,000 Total annual salary = $120,000 *Provides the equivalent of one month of effort for activities that cannot be funded by grant (e.g., proposal writing)

11. Example 2 Current Situation Academic year salary = $90,000 Academic year salary = $90,000 $74,700 from A&S $74,700 from A&S $15,300 from grant + $15,300 from grant + Actual academic year effort = 35% Actual academic year effort = 35% Full summer salary = $30,000* Full summer salary = $30,000* Total annual salary = $120,000 Total annual salary = $120,000 + 17% for course release *100% of summer effort must be directly related to purposes of grant (in particular, no unused effort for proposal writing) Proposed Change Academic year salary = $90,000 Academic year salary = $90,000 $69,700 from A&S $20,300 from grant + Actual academic year effort = 35% Actual academic year effort = 35% Full summer salary = $30,000 Full summer salary = $30,000 $25,000 from grant $5,000 from A&S* Total annual salary = $120,000 Total annual salary = $120,000 + 17% for course release + 5.5% for uncompensated effort * Provides the equivalent of two weeks of effort for activities that cannot be funded by grant (e.g., proposal writing)

12. Caveats! This proposed change is only valid if the grant- compensated effort during the academic year is < the actual effort devoted to the grant. This proposed change is only valid if the grant- compensated effort during the academic year is < the actual effort devoted to the grant. Please remember that “vacation” is a very complicated issue and our colleagues, Tim and Dennis, are working to address these complications. Please remember that “vacation” is a very complicated issue and our colleagues, Tim and Dennis, are working to address these complications. This proposal is being road-tested for 2008 until there is sufficient time to consider all variables relating to faculty effort. Consider this a first pass at the problems we are facing. This proposal is being road-tested for 2008 until there is sufficient time to consider all variables relating to faculty effort. Consider this a first pass at the problems we are facing. Other matters will be considered on a case-by-case basis (e.g. NSF and DoE grantees). Other matters will be considered on a case-by-case basis (e.g. NSF and DoE grantees).