Institutional Base Salary Policy

Version: V.1
Responsible Office: Office of the Provost
Effective Date: August 31, 2023

Policy Statement

Applicable regulation requires institutions receiving federal funding to establish institutional policy that documents the basis for budgeting and charging of institutional salaries on sponsored projects. This policy establishes Fordham University’s definition of Institutional Base Salary (IBS) for all sponsored projects, consistent with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) (2 CFR 200).

Reason for the Policy

The University has implemented this Policy to define Institutional Base Salary and to meet the requirements of federal regulations.

Responsible University Office/Officer

Office of the Provost

Applicability of the Policy

This policy applies to all individuals employed by the University who engage in sponsored awards (regardless of the source of funds) and whose salary is charged to sponsored awards, in whole or in part, and to all individuals who have committed effort to a sponsor but are not receiving salary support from the sponsor (cost sharing).

Policy Text

Institutional Base Salary (IBS)
IBS means the annual compensation paid by the University for an individual’s appointment, whether that individual’s time is spent on research, instruction, administration, or other activities, and regardless of funding source. It includes regular salary, as well as the academic year portion of any additional assignment (e.g., dean, chair, director of University center as established in the individual’s annual appointment letter (or similar notification)) or other written document at the time of hire.

IBS does not include any income that an individual is permitted to earn outside of his or her duties for the University. IBS may not be increased as a result of replacing University salary funds with sponsored project funds. However, changes in IBS can result from compensation adjustments due to changes in position description, merit increases, or other adjustments allowable under the applicable University policy. The effective date of the change and new IBS must be documented in the University’s systems of record.

The following types of compensation are not included in IBS:

a. Periods Outside the Academic Year for faculty on 9-month appointments (e.g., summer compensation);
b. Bonuses/Incentive Compensation;
c. Awards and Honoraria;
d. Fringe benefit payments;
e. Reimbursed expenses;
f. Extra compensation (extra service pay);
g. Internal teaching overloads; and
h. Compensation paid directly to the employee from outside sources (e.g., consulting, royalties). Such payments must be consistent with University policies on conflict of interest and commitment (forthcoming).

Documentation of IBS
IBS is established by the University by appointment letter (or similar notification) or other written document at the time of hire. Employees who receive salary adjustments due to annual revisions or promotion should receive a letter or similar notification indicating such adjustments and the effective date of their new IBS.

Institutional Base Salary – Sponsored Projects
When requesting salary support from a sponsor or providing effort on a sponsored project in the form of cost sharing, IBS must be used as the basis for calculating anticipated person months or percent effort on the sponsored program. The portion of effort multiplied by the IBS will determine the appropriate dollars to request from the sponsor, or approved by the University if in the form of cost sharing.

For faculty on 9-month appointments who request salary support during the summer months from a sponsor or who provide effort on a sponsored project in the form of cost sharing in the summer months, a salary rate not in excess of the IBS must be used as the basis to calculate anticipated person months or percent effort on the sponsored program and to determine the appropriate dollars to request from the sponsor, or approved by the University if in the form of cost sharing.

Where a sponsor issues a limit on the rate of IBS that can be charged to a sponsored project (e.g., a salary cap), such limitations will apply to the proposal and any salary recovery.

Contacts

Office of the Provost for salary and IBS related questions

Director of Sponsored Programs for pre-award questions

Cross-Reference to Related Policies

Effort Reporting in Sponsored Projects [to be created]

Exclusions and Special Situations

None

Revision History

None

August 2023