The University of Iowa

Salary Compensation through Sponsored Projects

  1. Academic-Year Projects
  2. Summer Employment
  3. Conflicts of Interest
  4. Retired Faculty
  5. Non-Faculty Personnel

a. Academic-Year Projects

According to University and federal guidelines, consulting fees and other sponsored project funds may replace, but may not augment, a faculty member's University salary when the sponsored project is conducted during regular hours of University employment. In other words, the faculty member may not receive supplemental salary -- i.e., double pay -- for activities conducted during University work hours. Full-time University employees, then, are generally subject to the following University practice:

The collegiate dean may relieve the faculty member of some usual duties, allowing time for the individual to undertake a sponsored project research or training activity. In such cases, the individual's regular salary may be divided proportionately between the University's general fund and the special account established to administer the sponsored project funding. The faculty member's "effort" on the sponsored project would be reimbursed by the sponsoring agency, rather than the University.

Note that, even when assigned full-time to a grant, contract, or other sponsored project, the individual remains a full-time UI faculty member and is thus subject to the same supplemental employment restrictions applied to a faculty member paid full-time through the University's General Fund budget.

Exceptions Allo​wing Additional Compensation

It is understood that, occasionally, a situation may arise in which extra compensation for a limited time may be justified. Payment from sponsored project funding in addition to regular salary is, however, authorized only under the following conditions: 

  • When the faculty member is assigned to work overseas and when the payment of an "overseas differential" is specifically authorized by the grant or contract.
  • When the faculty member serves on a strictly limited basis as consultant on a research or training project for which another faculty member in another college -- or, within the College of Liberal Arts, another CLAS faculty member within a different CLAS department -- has principal responsibility; the work involves a separate or remote operation; and the work will be conducted in addition to the faculty member's regular departmental load. In such instances the project director who arranges the consulting fee must obtain written approval through the proposed consultant's Departmental Executive Officer, Collegiate Dean, and the Provost. Such a request for approval should include evidence of the following: 
  1. The services to be provided are essential and cannot be provided by individuals receiving salary support under the grant or otherwise compensated for their services;
  2. The charge is appropriate considering the qualifications and normal charges of the consultant and the nature of the services to be provided; and
  3. The sponsoring agency has approved extra compensation for the services.

Note that, when an effort "overload" is indicated for a training institute or workshop, and it is impossible to release the faculty member from any portion of usual duties, the overload may average no more than one day per week and may be permitted for no longer than one semester. In any case, the faculty member's compensation for this overload may not exceed the amount appropriate for one full working day per week, as determined by the faculty member's University-budgeted salary.

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b. Summer Employment

A faculty member holding a nine-month, academic-year appointment may be employed by the University on a part- or a full-time basis during the summer period, pursuing summer session teaching, sponsored research or training programs, or other activities. Compensation for summer employment in any of these activities should be based on the academic-year pay rate the faculty member received in the preceding fiscal year. The University will not use its own funding to subsidize grant-supported summer salaries that are less than the University's established rate for the previous nine months. A faculty member holding a full-time appointment for any portion of the summer is, during the period of appointment, a full-time staff member in the same sense (s)he is during the academic year and must abide by the same restrictions on accepting additional employment.

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c. Conflicts of Interest  

   Financial -- See RAH Chapter 27: Financial Conflicts of Interest in Research
   Nepotism -- See UI Operations Manual Part III, Chapter 8: Conflict-of-Interest in Employment

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d. Retired Faculty

Retired faculty (see UI Operations Manual Part III, Chapter 11) may, with the permission of their departmental executive officer, collegiate dean, and the Vice President for Research, apply for or otherwise participate in externally supported sponsored research projects. The external sponsor must pay the full costs of the project, and permission to continue the project will depend upon an annual review conducted through departmental, collegiate, and VPR administrative channels.

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e. Non-Faculty Personnel

UI staff members compensated through grants, contracts, and other sponsored projects must be paid within the same pay scale applied to comparable University staff members. If the salary levels budgeted in the proposal don't meet the levels in place at the time of award, due to a new fiscal year, etc, the sponsored project director must rebudget to allow additional salary funds, request supplementary funding from the sponsor, or reduce the period of time or percentage of effort the staff member devotes to the project.

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