Budget and Planning:
Resources for Department Administrators
Salary Recovery: Special Return - Above 50% Cap
College of Veterinary Medicine
Internal Financial Policy
Effective: October 8, 1999
General
Salary recovery on grants and contacts occurs when a portion of a faculty member's salary, generally budgeted on University general purpose or New York State appropriated funds, is instead charged to an external, restricted, sponsored award. This usage of the budgeted salary funds is referred to as salary recovery. Normally the percentage of a faculty member's effort and equivalent amount of salary is included in the proposal budget and approved by the sponsoring agency.
This policy is an exception to the College of Veterinary Medicine regular Salary Recovery incentive program under the conditions cited below, and will be reviewed and updated on a regular basis.
Special Return
The January 1994 Salary Recovery Policy (issued by Sponsored Funds Accounting, Controller's Office) states:
The amount of recovery cannot exceed 50% of the faculty member's salary. In cases where more than 50% is budgeted, the department should direct charge the person to the grant and discuss changing the state line with the appropriate College Business Officer.
The College of Veterinary Medicine has agreed that when more than 50% salary is budgeted on external funds the faculty member would be appointed directly to the grant(s) commensurate with the awarded amount(s) and level(s) of effort required. The remaining salary effort, not directly charged to the grant account(s), will be paid with College funds. The savings (equal to the salary amount charged to the grant) will be provided back to the faculty member's home department as if they were 'salary recovery' dollars. There is no time limit for expending, since the savings are similar to the faculty member receiving salary recovery dollars. At the end of the award, the faculty member will return to the State Line.
Mechanics
Upon receiving the external fund award, the faculty member's home department will coordinate with the offices of Budget & Financial Management and Human Resources the appointment of the faculty member directly to the appropriate grant account commensurate with the awarded salary amount and level of effort.
The amount of the externally funded salary will be the basis for calculating the salary recovery return to the faculty member's home department. [Therefore, the grant budgeted salary award would not allow for any increase of salary expense, due to a salary improvement program. The percent of effort paid by College funds would be increased.] The awarded salary budgeted will be divided by the external fund's budget period, typically 12 months, to determine the monthly amount to be transferred to the faculty member's home department. [The transfer amount will be reviewed when a new or continuation award is given.] The office of Budget & Financial Management will prepare and submit the monthly journal transfers to an account designated by the faculty member's home department. The salary recovery funds will then be administered under the Department's internal salary recovery policy.
