Effort on 53 accounts during the Academic Year

Principle Investigators (PIs), and personnel paid on grants, should charge for actual effort contributed to a sponsored project when the work occurs, whether during contracted (academic year) or non-contracted (summer) time. Effort is compensated at the institutional base salary rate in accordance with 2 CFR 200, Subpart D.

Below is an example of compensation from a sponsored project during the academic year.

Example 1: Charging effort to a sponsored project during the academic year

Professor A is on a 9-month academic appointment and earns an institutional base salary of $90K.  Professor A devotes 5% effort during the academic year to her NIH R01. Professor A is still paid her contracted amount of 90K during the academic year, with 5% ($4,500) paid for from the NIH grant (53- account) and the remaining $85,500 paid for by departmental funds.

Summer Pay on 53 accounts

If allowed by the sponsor, PIs who devote effort on a sponsored project during non-contracted time (summer) receive compensation based on their institutional base salary. Below is an example of compensation for one summer month from a sponsored project during non-contracted (summer) time.

Example 2: Charging effort to a sponsored project during non-contracted time (summer)

Professor B is on a 9-month academic appointment and earns an institutional base salary of $90K.  Professor B works 33.3% of the summer (1 summer month) on his USDA grant. Professor B is compensated 1-month summer pay ($10K) from his USDA award (53- account).

Problems associated with 100% effort on Sponsored Projects, during contracted and non-contracted time

Federal sponsors consider an employee who charges 100% of their salary to sponsored projects to be 100% committed to those sponsored activities, even during non-contracted time. Therefore if a PI is 100% committed on sponsored activities during their non-contracted time (summer), this means during that time they cannot:

• Take vacation
• Engage in teaching/instructional work, including course preparation
• Engage in University committee work
• Advise/supervise students
• Write grant proposals or publications
• Engage in any non-sponsored activity

Rarely does all work on a sponsored project occur 100% during either the summer or the academic year. PIs, and personnel paid on grants, should charge for actual effort contributed to sponsored projects when the work occurs, taking into consideration time for vacation, proposal preparation, institutional activities, etc.