Faculty Salaries Charged to Sponsored Funds

The University does not allow 100% of an individual faculty member’s salary to come from sponsored sources (awards set up through the University’s Office for Sponsored Programs). The University Effort Reporting Policy states the following relating to the Maximum Effort Threshold:

"In most cases, the University policy allows PIs/faculty members to charge up to 95% of their annual academic and/or supplemental/summer effort to sponsored awards if their other University responsibilities are less than or equal to 5% of their total time and effort. PIs/faculty members must account for 100% of their University compensated time and effort including, for example, the time relating to non-sponsored activities including teaching, grant writing, committee participation, administrative duties, department or other chairmanships, or other administrative responsibilities."

A faculty member may charge up to 95% of their monthly salary to a sponsored project(s) during the academic year or the summer months.

For example:  If a faculty member receives only one month of summer salary, only 95% of that month can be charged to sponsored projects. If a faculty member wants to charge 50% one month and 50% a second month that is fine (provided it is justified/true), but not 100% in any month. The same is true for academic year salary – no more than 95% of one month's salary should be charge to sponsored funds.

HKS faculty members are compensated for 9-month academic year appointments, and may earn up to the equivalent of 95% of three months of additional salary for effort on sponsored projects during the summer. June summer salary is based on the previous academic year salary and July and August salaries are based on the upcoming academic year salary. (Please see Salary Calculations below for details).

Sample Salary Calculation

Academic Year 2014 Salary (Sept 2013-May 2014)

= $ 90,000

Maximum allowed per month on sponsored fund (95% of 1/9)

= $ 9,500

Academic Year 2015 Salary (Sept 2014-May 2015)

= $ 92,250

Maximum allowed per month on sponsored fund (95% of 1/9)

= $ 9,738

June 2014 summer salary: one-ninth of AY14 salary * 95%

= $ 9,500

July 2014 summer salary: one-ninth of AY15 salary * 95%

= $ 9,738

July 2014 summer salary: one-ninth of AY15 salary * 95%

= $ 9,738

Download a pdf copy of this policy.

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