I. Purpose and Scope
This policy confirms Northeastern University’s Institutional Base Salary for purposes of extramurally-funded research and sponsored projects, consistent with 2 CFR Part 200. Pursuant to 2 CFR Part 200.430, personal services compensation charges for work performed on sponsored awards are allowable at the Institutional Base Salary rate.
This policy applies to all individuals whose salary is charged to sponsored projects, in whole or in part, and to all individuals who have committed effort to a sponsor but who are not receiving salary support from the sponsor (i.e., cost sharing).
Institutional Base Salary (“IBS”) means the annual compensation paid by Northeastern University for an individual’s appointment(s), whether that individual’s time is spent on research, teaching, administration, or other activities.
IBS includes regular salary as well as administrative and endowed supplements for additional appointment(s) such as dean, chair, and/or center or institute director.
IBS does not include bonuses, honoraria, extra service or incentive pay, if any, reimbursed expenses, or any income that an individual earns outside of duties or responsibilities performed for Northeastern University, such as consulting. IBS also does not include supplemental pay that may be issued for temporarily performing duties that fall outside the responsibilities associated with current appointments (s). Calculation of IBS for purposes of this policy does not alter, adjust or otherwise impact an individual’s total annual compensation as provided for in their appointment letter(s).
Temporary Appointments: Are non-permanent, time-limited appointments that are intended to last less than one year. Examples of such appointments include interim or acting Chair appointments.
Extra Service Pay: means overload compensation, subject to institutional compensation policies for services above and beyond institutional responsibilities that are compensated for by the Institutional Base Salary. Extra Service Pay may include intra-institutional consulting, subject to meeting the conditions of 2 CFR § 200.430, and with funding agency and NU-RES SVPR, or his designee’s, prior approval.
It is the policy of Northeastern University that compensation for personal services charged to sponsored projects will be based upon the individual’s IBS and not exceed any federally-mandated salary cap or other limitations imposed by sponsors.1 [1 Some federal agencies (e.g., DHHS) limit the amount of salary that can be charged to a sponsored award (e.g., salary caps). Other funding sponsors may impose salary limitations. If the award imposes a salary cap, an individual’s salary in excess of the salary cap cannot be charged to the sponsored award. Salary costs above the federally-mandated salary cap and associated fringe benefit costs are not considered committed cost share]
A. Calculating Personal Service Charges:
IBS is used to calculate compensation for personal service charged to sponsored projects. IBS is based upon the full work load for which the individual is compensated by Northeastern, as defined in this policy, regardless of the source of funding or the number of hours expended. IBS does not affect compensation for faculty or staff as established by their Northeastern appointment(s).
Personal service charges to sponsored projects shall be the percentage of IBS that are reasonable, allowable and allocable to that specific project. Charges to sponsored awards are based on actual compensation amounts proportionate to the effort devoted to activities contributing and directly related to work under the sponsored award. IBS may not be increased as a result of replacing or supplementing university salary with sponsored funds.
Charges applied to awards may include reasonable amounts for activities contributing and directly related to work under an award agreement. These activities include but are not limited to: delivering special lectures about specific aspects of the ongoing activity, writing reports and articles, developing and maintaining protocols (human, animals, etc.), managing substances/chemicals, managing and securing project specific data, coordinating research subjects, participating in appropriate seminars, consulting with colleagues and graduate students, and attending meetings and conferences.
B. Institutional Base Salary Documentation
At the time of hire, individuals should receive notification of their IBS for purposes of this policy. Actions resulting in changes to an individual’s IBS, such as a subsequent administrative appointment or subsequent adjustment in salary, will be documented in the related appointment letter(s) and include an effective date of change. Documentation of an individual’s IBS shall be consistent with 2 CRF § 200.430(i).
IV. Additional Information
• Guidelines for Calculating Summer Salary can be found here:
• Uniform Guidance: 2 CFR §200.430 and 2 CFR §200.431.
Compensation; Salary Support on Grants (SSOG); Institutional Base Salary; Effort Certification; Salary Certification; Extra Service Pay
Last Revision Date: N/A
Issued: July 1, 2019