1. Policies and Procedures for Summer Supplements on Federal Awards April 2012 1

2. Agenda  Understand the purpose and main points of the Summer Supplement policy.  Review A&S’ process to administer the policy  CASE Studies  FAQs 2

3. Summer Supplements Why Revise?  Federal sponsors require that compensation for effort on a funded project coincide with the time the work is performed.  This means that an individual compensated 100% from grant funds during one month must work exclusively on that project for the month. 3

4. Summer Supplements Policy Prior to Spring 2011 Faculty can charge 100% effort to any one of four summer months. Faculty can charge 100% effort in up to three of four months during the fiscal year. 4

5. Summer Supplements Problems with 100% Summer Effort  No significant vacation time in a 100% committed month.  No other projects are allowed in a 100% committed month  No new proposals.  No administrative duties.  No student mentoring.  No independent research 5

6. Summer Supplements Goals of the Current Procedures  To ensure that the 3/9ths summer supplement policy is honored.  To eliminate the 100% problems.  To allow better alignment of effort with compensation by providing flexibility for planning the summer’s work schedule and sufficient funding to compensate for non-federal effort. 6

7. Summer Supplement Committee Recommendation #1 effective Spring 2011 Change the summer-effort maximum from 100% per month in three out of four months to a maximum of 75% effort per month spread over all four summer months (May, June, July, and August) for those supported with federal funding. 7

8. Summer Supplement Committee Recommendation #2 effective Spring 2011 Keep the maximum amount of summer salary allowed at three months but lower the maximum amount of federally-funded effort for which faculty may be compensated during the summer from three to two-and-a-half months. The additional half month of federally sponsored effort would be performed and paid for during the academic year, and the remaining half summer month would be compensated out of the school funds saved during the academic year. 8

9. Summer Supplement Where does the Remaining Half of Summer Month Come From? Academic Year Salary Recovery Faculty are compensated for research effort during the academic year from their grants and contracts. The School realizes a savings. A&S will transfer the salary + fringe benefits into a central discretionary code. These funds are made available to the faculty member to cover the 0.5/9 th during the summer. Funds cannot come from other federal grants. 9

10. The Procedure Prior to Spring 2011 According to the Faculty Handbook, the month of May includes compensation for Duke related effort that might take place during the summer.

11. The Current Procedure The 25% Solution The percentages of effort during the summer can vary. In this example, the May administrative effort is spread evenly across all four possible summer months.

12. Spreading Out Effort for 1/9th If a faculty member has committed 1/9 th of summer effort on a grant or contract, he or she can plan how that time is going to be spent during the summer.

13. Spreading Out Effort for 3/9ths: Step #1 Assuming a faculty member has the funding for 3/9 ths summer effort on sponsored effort:  Limit supplemental compensation in any one summer month to 75% of 1/9 th.  Faculty must plan out how to spread summer effort over 4 months – May, June, July, and August.

14. Spreading Out Effort for 3/9ths: Step #2 To further ensure time for other activities: vacation, new proposals, independent study, administration, etc.  Limit supplemental compensation from federal funds to 2.5/9 ths and  Pay the remaining 0.5/9 th from institutional funds.

15. Summer Supplement Case Studies Case Study 1 Case Study 2 Faculty Summer Worksheet Faculty Summer Salary Form Complete this form only if you will be charging summer salary to federally sponsored research grants AND if the faculty member has requested to use the central discretionary fund Case Study 3 15

16. Summer Supplement Case Studies 16 Case Study 1 2 months of summer salary support The Central Discretionary Fund is not needed since the budgeted summer salary is less than 2.5 months Case Study 2 3 months of summer salary support Only source of funding is from federally sponsored grants In order to receive 3/9ths of summer salary during the fiscal year, the Central Discretionary Fund will have to be utilized Case Study 3 3 months of summer salary support Faculty member has non-federal funds to support summer salary as well as federal funds The Central Discretionary Fund is not needed because 2.5 months have been budgeted on a federal grant and there are funds from a non-federal source Summer Salary Plan Ahead (View the actual case studies on the Trinity College of Arts & Sciences, Finance and Administration website – Policies and Procedures > Faculty – Summer Supplement Payments (Faculty Only))

17. Summer Supplement FAQs & Website FAQs Policy and materials from this presentation have been uploaded to the Finance & Administration website http://trinity.duke.edu/finance 17

18. Summer Supplement Summary of Key Points Compensation should be tied to when the effort actually occurs. Faculty can no longer take 100% of one month on a federal grant without the Management Center’s approval. Faculty and business managers should plan the summer distributions early, appropriately spreading effort across the summer months. If a faculty member does not have 2.5 months committed, then the schools’ regular business rules apply. 18

19. Summer Supplement Summary of Key Points 19 Summer Salary Plan Ahead The Central Discretionary Fund is not needed if 2.5 months or less are committed Utilize the Central Discretionary Fund if 2.5 months or more are committed and federal funds are the only source of funding Initiate a Cost Distribution iForm to generate a savings pool if the Central Discretionary Fund will be utilized Submit the Trinity College of Arts & Sciences Faculty Summer Salary Request Form if utilizing the Central Discretionary Fund Initiate the Supplemental Payment iForm

20. Questions See the FAQs on the Finance & Administration website http://trinity.duke.edu/finance Network with other grant managers Call the Office of Finance & Administration 20