| VOLUME: III |
POLICIES RELATED TO CONTRACT AND GRANT ADMINISTRATION |
| SUBJECT: |
Supplemental Pay on Federal Accounts |
| SOURCE: |
Financial Management Support |
| DATE ISSUED: |
October 1990, Revised January 1996 |
| POLICY NO.: |
III-90 |
| RATIONALE: |
To meet federal limitations on consulting fees. |
| POLICY: |
Indiana University will follow the federal requirements and maintain the documentation for payments to consultants from federal funds. The U.S. Office of Management and Budget through Circular A-21 and through guidelines provided by specific federal agencies sets the requirements for paying consultants. For internal consultants paid from federal funds the maximum to be paid is 1/2% of the academic year base salary for each day of consulting. Persons on 12-month appointments may be paid 1/2% of 10/12ths of their annual salary per consulting.
OMB Circular A-21 states that supplemental payment must cross organizational lines. Indiana University has defined these organizational lines as being departmental lines. |
| DEFINITIONS: |
Departments at I.U. are those organizations in the hierarchy that are directly below the organization of school/responsibility center. |
| PROCEDURE REFERENCE: |
Contract and Grant Administration Important Notice No. 89-16. |
| RESPONSIBLE ORGANIZATION: |
Financial Management Support |
