Salary Over Cap: Part 2SU/VA Faculty

February 27, 2020

Mila DacorroResearch Financial Compliance Manager, Research Management Group

Donna Mahood Research Financial Compliance Manager, Research Management Group

Nancy Lonhart Associate DFA – Research, Department of Medicine

Introductions

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Reliable SourcesOffer letter identifies SU/VA appointment - check w/ DFA (Div Mgr)Faculty Compensation

How do I know if my faculty has an SU/VA faculty appointment?

Unreliable SourceStanford Directory may include VA affiliation but is NOT a reliable source

Examples from Stanford Directory of 8/8ths Faculty:

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Faculty with dual appointments @ Stanford (SU) and Veteran’s Affairs (VA)

100% of their overall effort is a combination of their SU & VA appointments

Who or what is an SU/VA faculty?

40 hrs VA

0 40

20 hrs SU

60 hrs/wk

2/3 1/3

VA appointment assumes a 40 hour work week

SU appointment assumes ~ 60 hour work week

This means they are paid for ~ 60 hour work weekUp to 40 of those ~60 hours may be VA time depending on the distribution of the appointment

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Appointment Distribution(a) (b) (c) (d) (e) (f)

VA 8ths VA hrs/wk VA %w.r.t total hrs

worked

SU hrs/wk SU %w.r.t total hrs

worked

Total hrs/wk

1/8th 5 8.33% 55 91.67% 602/8ths 10 16.67% 50 83.33% 603/8ths 15 25.00% 45 75.00% 604/8ths 20 33.33% 40 66.67% 605/8ths 25 41.67% 35 58.33% 606/8ths 30 50.00% 30 50.00% 607/8ths 35 58.33% 25 41.67% 608/8ths 40 66.67% 20 33.33% 60

SU/VA appointment distribution

Note:  w.r.t. = with respect to

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It is the difference between the SU appointment salary and what the VA pays. Parity is the portion of salary contributed by Stanford University.

If there is no difference – then there is no parity pay.

Parity pay is not proportional to the SU portion of the SU/VA appointment.

For purposes of calculating salary and salary over-the-cap, the same principle of B+V+A applies: parity + any admin sup

What is parity pay?

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[This is an example without a salary cap]

I have an 8/8ths SU/VA appointment. I will devote 25% of my entire work hours to this project. The effort I devote to this project will be Stanford time. My Stanford parity pay is $152,650.99. How do I calculate Stanford percentage of effort?

SU percentage of effort = % effort devoted (with respect to 100% appt) divided by SU appt %

25% effort / 33.33% SU appointment = 75% SU effort

25% effort with respect to a 100% appointment =75% SU effort with respect to a 33.33% SU appointment

How do I calculate the level of effort for an SU/VA faculty member?

VA 8ths VA Hrs VA % SU Hrs SU %8/8 40 66.67% 20 33.33%

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Continuing with the previous example (no salary cap):

Person months (2 ways to calculate this) Method 1 = (effort with respect to 100% appt) x (100% appt) x (# of months)

25% effort x 100% appointment x 12 Cal Mos = 3 Cal Mos

Method 2 = (effort with respect to SU appt) x (SU portion of that appt) x (# of months)

75% effort x 33.33% SU appointment x 12 Cal Mos = 3 Cal Mos

Salary support = SU effort x parity pay (include any admin supplement)

75% SU effort x $152,650.99 parity pay = $114,488.24

How do I calculate person months and salary support for an SU/VA faculty member?

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[This is an example with a salary cap]

Assume the NIH salary cap is $187,000. We will use the same data from the previous example.

Step 1. Evaluate salary cap against parity pay (including any admin supplements) to see if parity pay is greater than salary cap.

Since this PI has a 8/8ths SU/VA appointment, this means the Stanford portion of the appointment is 33.33%. The salary cap needs to be adjusted or recalculated to the same percentage as the SU portion of the appointment.

Calculation: NIH Salary cap x SU portion of the appointment = adjusted NIH salary cap.$187,000 NIH Cap x 33.33% SU appointment = $62,332.71 adjusted salary cap

Comparison:152,650.99 SU parity pay > $62,332.71 adjusted salary cap Given that the adjusted salary cap is less than parity pay, we will need to use the adjusted NIH salary cap to calculate salary request on our budget.

How do I calculate salary when the sponsor has a salary cap?

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Step 2: Calculate Salary Requested (2 ways to calculate this):

Method 1: Effort relative to 100% appointment x full NIH salary cap = salary requested

25% effort x $187,000 NIH salary cap = $46,750 salary request

Method 2: SU effort x adjusted NIH salary cap = salary requested

75% SU effort x $62,333 adjusted NIH salary cap = $46,750 salary request

How do I calculate salary when the sponsor has a salary cap (continued)?

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SeRA should reflect the effort with respect to the full appointment. In the previous example, that would be 25%.

SeRA records the proposed level of effort with respect to a full appointment, not with respect to the Stanford portion of the appointment.

What level of effort is reflected in SeRA?

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EXCEL WORKBOOK

Faculty Name: Jon Snow(v) (w) (x) (y) (z)

Total Annual Salary (SU + VA salary) 354,000          VA 8ths VA Hrs VA % SU Hrs SU %Is the effort on grant Stanford Time only? (yes or no) Yes 1/8 ths 5 8.33% 55 91.67%

(If answer is no, VA portion does not get charged to grant) 2/8 ths 10 16.67% 50 83.33%Type of appointment in 8ths VA APPOINTMENT 8/8 ths 3/8 ths 15 25.00% 45 75.00%

4/8 ths 20 33.33% 40 66.67%(a) Total SU Effort - Based on SU/VA breakdown - see column (z). 33.33% 5/8 ths 25 41.67% 35 58.33%(b) Of the total annual salary, how much of that is Stanford's portion? 152,651          6/8 ths 30 50.00% 30 50.00%(c) What is the NIH salary cap? 187,000          7/8 ths 35 58.33% 25 41.67%(d) NIH Salary cap comparison (c x a) 62,333            8/8 ths 40 66.67% 20 33.33%

(e) What is the % effort that the person told you s/he would devote to grant? 25.0%(f) % of salary to be charged to grant (e / a) 75.00%

Continue calculation with the lowest between b & d(g) If b is lowest, the amount of salary to be charged to grant is (f x b) ‐                  (h) If d is lowest, the amount of salary to be charged to grant is (f x d) 46,750           (i) If b = d the amount of salary to be charged to grant is (f x b) ‐                  (j) Salary above the cap (annual amount) 67,738

The annual amount of salary to charge to the grant is 46,750

Salary Calculation for Faculty with VA AppointmentsFill in only those items in yellow. The spreadsheet will calculate the rest.

Portion of total Responsibilities

I have an 8/8ths SU/VA appointment. I will devote 25% of my entire work hours to this project. The effort I devote to this project will be Stanford time. My Stanford parity pay is $152,650.99

This number is not used in any calculation on this worksheet.

Confirm with PI; effort-split between SU and VA should be reported on the other support and MOU. Does not effect calculations.

This is the Parity Pay plus any admin supplement.

Use amount proposed/awarded. For any change in distribution of effort between SU & VA, there MUST be a MOU that reflects that change

Sonia Barragan/Luke DelongSoM SU VA Faculty presentation 2020‐02‐27 Examples.xlsx 2/27/2020

StanfordJon Snow Base Salary 152,650.99$       87,650.99   65,000.00    12,720.92       6,360.46      

Percent of full time (may be 100% or less) 100%Months in appointment (may be 12 or fewer) 12

Applicable  Per Pay PeriodSalary Cap Proposed Direct  Direct  Salary % Salary Direct  Salary Direct  Salary

at 100% FTE or Awarded Charge $ Charge % over cap over cap Charge $ over cap Charge $ over capAward and PTA Number (or cost sharing PTA number) 12 month appt. Effort %

NIH award 62,333$              75.00% 1,947.92$             30.625% 2,822.43$    44.375% 3,895.83         5,644.85       46,750.00     67,738.24    NIH award ‐ Cost Share ‐$                    0.00% ‐$                      0.000% ‐$               0.000% ‐                    ‐                 CDC Subcontract 62,333$              2.00% 51.94$                  0.817% 75.26$         1.183% 103.89              150.53          Division funds ‐$                    23.00% 1,462.91$             23.000% ‐$               0.000% 2,925.81         ‐                  5,795.38  

Total percentage for Unallowed Expenditure Type 51190 (if using same account) 45.558% 2,897.69$    45.558% 6,925.53$       5,795.38$    

Grand total % of account lines entered 100.000% 100.000% 15,583.33      25.00%

AnnuallyPer Month

Enter $$ from item (b) on SU-VA worksheet

Enter $$ in this from Item (d) on the SU-VA worksheet

Enter the % from Item (f) on SU-VA Worksheet

25% (effort devoted to grant) / 33.33% (SU portion for 8/8ths) = 75%

This ties back to Item (h) on the SU-VA Worksheet

This ties back to Item (j) on the SU-VA Worksheet

3Greenleaf 3SNOW

This should tie back to effort charged  (and should be within any allowable reduction of proposed effort). 

Also, remember to include any cost‐shared or over‐the‐cap as part of the effort ‐ not just $ charged to Award.

Other Support for Dr. Snow

Dr. Snow has a joint SU/VA appointment; the SU appointment is 33.33%, the VA appointment is66.67%. The Stanford position is based on an average 60‐hour faculty work week at Stanford. The VAposition is based on a 40‐hour work week at the Veterans Affairs Palo Alto office. Dr. Snow has ajoint appointment specified by a formal Memorandum of Understanding; there is no possibility of dualcompensation (University plus VA salary) for the same work; there is no conflict of interest regardingsuch work; and the overall set of responsibilities meets the test of reasonableness.

Active

1R01DA01234567 (Snow, J. - SPO 123456) 04/01/2018 - 03/31/2023 3.00 calendar

National Institutes of Health $463,566

1U01PS0011223 (Snow, J. - SPO 123321) 09/30/2017 - 09/29/2020 0.84 calendar

Centers for Disease Control / University of California, San Francisco $125,718

OverlapNone

New Award

What is stated in the budget justification?

If there is no parity pay:Because Dr. Snow is a full-time (8/8th) employee of the US Department of Veterans Affairs and VA Palo Alto Health Care System, no salary support is allowed or requested.

Dr. Jon Snow is applying as part of a joint appointment specified by a formal Memorandum of Understanding; there is no possibility of dual compensation (University plus VA salary) for the same work; there is no conflict of interest regarding such work; and the overall set of responsibilities meets the test of reasonableness.  Dr. Snow has a joint SU/VA appointment; the SU appointment is 33.33%, the VA appointment is 66.67%.  Stanford's portion is based on an average 60‐hour faculty work week at Stanford.  The VA portion is based on a 40‐hour faculty work week. 

Dr. Jon Snow(PI), 3.0 CM. Dr Snow will be responsible for …… 

R01AI1234567

School of Medicine

The Palo Alto Veteran Institute for Research (PAVIR) is the non-profit arm of the VA.

The VA manages merit awards and internal awards funded by the VA.

PAVIR handles the pre-award and post-award on external grants for VA faculty.

Note: See Reference Section for PAVIR and VA contacts

What is PAVIR and how does PAVIR fit in with the VA?

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ReferencesSoM Controller’s OfficeVA Salary Parity Program & FAQs (scroll to bottom of page)

http://med.stanford.edu/fiscalaffairs/faculty-compensation/other-compensation-considerations.html

VA Employment (scroll to bottom of page)

http://med.stanford.edu/fiscalaffairs/faculty-compensation/OtherConsiderations.html

PAVIR & VA ContactsPAVIR Contacts - Contracts & Grantshttps://pavir.org/about-us/departments/contracts-grants-1571092747/

VA Contacts – R&DS (Research and Development Service)https://www.research.va.gov/about/national_directory_byCity.cfm?City=Palo%20Alto&State=CA&Origin=Palo%20Alto

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ReferencesDoResearchResearch Administration - Financial Concepts - Salary Capshttps://doresearch.stanford.edu/research-administration/financial-concepts/salary-caps#other-sponsors-with-salary-caps

RPH 15.5 Salary Cap Administrationhttps://doresearch.stanford.edu/policies/research-policy-handbook/financial-aspects-sponsored-projects-administration/salary-cap-administration

External Resources

NIH Salary Cap Summary (FY 1990 - Present)https://grants.nih.gov/grants/policy/salcap_summary.htm

NIH Salary Cap Notice - Calculation Examples https://grants.nih.gov/grants/guide/notice-files/NOT-OD-16-059.html

CIRM Salary Cap https://www.cirm.ca.gov/researchers/managing-your-grant#salary