Principal Investigators (PIs) and personnel paid on grants should charge for actual effort contributed to a sponsored project when the work occurs. Sometimes work is conducted during the academic year and other times during the summer. The three scenarios below show how effort might be distributed during the academic year, summer, or both and the resulting salary for each.

Academic Year (AY) Pay on a 53-account

In the case below, 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.

Even though she is working on a grant, Professor A is still paid her contracted amount of 90K during the academic year, with 5% ($4,500) paid from the NIH grant (53-account) and the remaining $85,500 paid for by departmental funds.

Summer Pay (SM) on a 53-account

Faculty who devote effort on a sponsored project during non-contracted time still receive compensation based on their institutional base salary in accordance with 2 CFR 200, Subpart D. Below is an example of compensation for one summer month from a sponsored project during non-contracted (SM) time and the associated effort reporting by quarter.

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 on his USDA award, the equivalent of 1 summer month on his USDA grant. Professor B is compensated 1-month summer pay ($10,000) from his USDA award (53- account).

 Academic Year (AY) and Summer Pay (SM) on a 53-account

Often times work on a sponsored project occurs over the course of contracted and non-contracted time. The example below shows compensation for working on a sponsored project during the academic year and summer and the associated effort reporting by quarter.

Professor Y is on a 9-month academic appointment and earns an institutional base salary of $90K. She devotes 10% effort during the academic year to her NEH grant and 33.3% effort during the summer (1 summer month). Professor Y is still paid her contracted amount of 90K during the academic year, with 10% ($9,000) paid from her NEH grant (53-account) and the remaining $81K paid for by departmental funds. Additionally, Professor Y is compensated $10K during the summer from her NEH grant.

For questions regarding salary on 53-accounts, consult OSP.