1. MICHAEL ANTHONY MANAGEMENT ACCOUNTING & ANALYSIS MRAM – JULY 11, 2013 Guidelines for Determining & Adjusting Salary Cap Cost Sharing for UW/VA Appointed Faculty

2. Salary Cap Cost Sharing for UW/VA Appointed Faculty Overview: UW will no longer require faculty with salary paid directly by Veteran’s Administration (VA) to prorate UW Institutional Base Salary (IBS) for determining if they exceed the salary cap. Result of considerable consultation among UW units with significant UW/VA faculty and UW central administration. Pertains to faculty having a fulltime appointment at the University. Faculty having less than a fulltime appointment with the UW:  Required to prorate their UW IBS to determine if they exceed the salary cap.  Proration will be based only on the UW compensation  No change

3. Salary Cap Cost Sharing for UW/VA Appointed Faculty Background: Fulltime rate of compensation reflected in UW’s payroll system (HEPPS) for UW/VA faculty includes both the UW and VA salary components. The NIH has clearly indicated universities not required to include VA component for jointly appointed faculty and that VA salary is not part of Institutional Base Salary. See GIM 35 for more information on IBS. Result of considerable consultation and discussion among academic units with significant UW/VA faculty and the UW central administration. Collectively, we believe this provides units the guidance they need to effectively and efficiently deal with effort certifications for these faculty.

4. Salary Cap Cost Sharing for UW/VA Appointed Faculty Guidance: Recognizes and addresses fulltime rate of compensation reflected in UW’s payroll system (HEPPS) for UW/VA faculty includes both the UW and VA salary components. For purposes of UW Faculty Effort Certification (FEC), the guidance document (posted on the MAA website):  Summarizes the way faculty effort is recorded and salary cap cost share is calculated for faculty with a VA paid direct (PDR) salary component.  Provides illustrative example of how to adjust salary cap cost sharing and FEC reports. Questions concerning these guidelines should be directed to efecs@uw.edu and reflect “VA salary cap” in the subject line. efecs@uw.edu