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WFO Agreements - Compensation above Salary Limits

    Title:

    WFO Agreements – Compensation above Contractual Salary Limits

    Publication date:

    9/11/2012

    Effective date:

    9/11/2012

    BRIEF

    Policy Summary

    This policy provides guidelines for accounting for the cost of compensation above the allowable limits for grants and cooperative agreements at Berkeley Lab. Compensation for researchers working on grants and cooperative agreements may be subject to limitations by federal law or provisions of specific Work for Others (WFO) agreements. The cost of salaries and wages in excess of the limitations are unallowable under the UC-DOE Prime Contract (Contract 31) and must be covered by bestowments or other non-federal funds.

    Who Should Read This Policy

    All employees with financial responsibilities for WFO agreements

    To Read the Full Policy, Go To:

    The POLICY tab on this wiki page

    Contact Information

    Contract Accounting, OCFO

    Title:

    WFO Agreements – Compensation above Contractual Salary Limits

    Publication date:

    9/11/2012

    Effective date:

    9/11/2012

    POLICY

    A. Purpose

    The policy provides guidelines for accounting for the cost of compensation above the allowable contractual limits for grants and cooperative agreements at Lawrence Berkeley National Laboratory (Berkeley Lab).

    B. Persons Affected

    All employees with financial responsibilities for Work for Others (WFO) agreements

    C. Exceptions

    None

    D. Policy Statement

    Compensation for researchers working on grants and cooperative agreements may be subject to limitations under federal law or other terms and provisions of the agreement. For example, certain WFO and Interlocation Appointment (ILA) agreements contain such limitations. The cost of salaries and wages in excess of these contractual limitations must be covered by unrestricted or other nonresearch funds. Unrestricted or nonresearch funds used for this unique purpose include gift and University of California (UC) fee funds.

    The Laboratory must ensure that any compensation above the prescribed limitations is identified and excluded from billings, claims, or proposals.

    E. Roles and Responsibilities

    Role

    Responsibility

    Division

    Prior to the final contract negotiation, the division must:

    • Identify any researcher working on the project whose salary exceeds a contractual compensation limit
    • Identify the funding source for the compensation above contractual limitations prior to commencing work on the agreement. Per the policy statement above, this can be either gift or UC fee.
    • Complete a Less Than Full Cost Recovery form, found on the Web site of the Office of Sponsored Projects and Industry Partnerships (OSPIP), and return the signed, completed form to OSPIP prior to accepting the award
    • For any National Institutes of Health (NIH) agreement where a salary limitation applies: Prepare a resource adjustment each month prior to the month-end close to align salary costs with contractual limitations. The adjustment will be one month in arrears, and should be done after the first hard close at fiscal year-end. The NIH Salary Cap Adjustment Report (produced and circulated by Berkeley Lab's Business Systems Analysis [BSA]) should be used for this purpose.
    • If gift is approved as the funding source: Make the monthly adjustment. In the journal entry, the first three words of the "line description" should be "NIH Salary Cap."
    • If fee is approved as the funding source: Contact and coordinate with General Accounting for the monthly adjustment. General Accounting has a template for submitting the correct projects and amounts. In the journal entry, the first three words of the "line description" should be "NIH Salary Cap."
      Note: The NIH Salary Cap Adjustment Report only applies to NIH WFO agreements. The division will use its own reporting tools to adjust any other type of agreement with a salary limitation.

    Office of Sponsored Projects and Industry Partnerships (OSPIP)

    • Must receive completed Less Than Full Cost Recovery form from the division before completing award negotiations
    • Communicates significant changes in the NIH salary cap policy to affected divisions

    Business Systems Analysis (BSA)

    • Prepares and distributes the monthly NIH Salary Cap Adjustment Report to all affected divisions and to General Accounting and Field Operations
    • In September, as part of the year-end process, prior to the third hard close, runs the annual reconciliation report against journal IDs to confirm all costs have been moved off the appropriate NIH projects

    Contract Accounting

    • Uses BSA annual reconciliation report to confirm completion of the necessary resource adjustments
    • Works with Field Ops if the necessary adjustments have not been made

    F. Definitions/Acronyms

    Term

    Definition

    Cooperative Agreement

    An agreement between the University of California and one or more participants under which the government (through Berkeley Lab) provides personnel services, facilities, equipment, or other resources (with or without reimbursement) toward the conduct of specified research or development efforts that are consistent with the mission of the Laboratory

    Grant

    A financial assistance mechanism that provides money, property, or both to an eligible entity to carry out an approved project or activity. A grant is used whenever the grantor anticipates no substantial programmatic involvement with the recipient during performance of the financially assisted activities.

    Interlocation Appointment (ILA)

    A non-Berkeley Lab appointment of Laboratory personnel to perform work at other organizations such as the federal government, state, or local governments; institutions of higher learning; Native American tribal governments; and other eligible non-federal organizations, including federally funded research and development centers

    Work for Others (WFO)

    The performance of work for non-DOE entities by DOE/contractor personnel and/or the utilization of DOE facilities that are not directly funded by DOE appropriations

    G. Recordkeeping Requirements

    None

    H. Implementing Documents

    none

    I. Contact Information

    Contract Accounting, OCFO

    J. Revision History

    Date

    Revision

    By whom

    Revision Description

    Section(s) affected

    Change Type

    9/11/2012

    1.1

    M. Mock

    Policy-implementation roles clarified. Added Other Related Information table with a link to the NIH Salary Cap Process Flowchart to the Document Information tab.

    E. Roles and Responsibilities in Policy tab; Other Related Document table in Document Information tab

    Minor

    1/2/2012

    1

    M. Mock

    Re-format for wiki

    All

    Minor

    DOCUMENT INFORMATION

    Title:

    WFO Agreements – Compensation above Contractual Salary Limits

    Document number

    11.01.007.000

    Revision number

    1.1

    Publication date:

    9/11/2012

    Effective date:

    9/11/2012

    Next review date:

    9/11/2015

    Policy Area:

    Accounting

    RPM Section (home)

    Financial Management

    RPM Section (cross-reference)

    11.21

    Functional Division

    OCFO

    Prior reference information (optional)

    RPM, Chapter 11, Section 11.21

    Source Requirements Documents

    NIH Guide – Salary Cap Summary (FY 1990 – FY 2012)

    Implementing Documents

    none

    Other References

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