•The Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (12/13) defines what costs are allowable and allocable to federal grants and other "assistance" agreements. The "Uniform Guide" includes requirements for Compensation for Services as described in section §200.430 Compensation—personal services.
(a) General. Compensation for personal services includes all remuneration, paid currently or accrued, for services of employees rendered during the period of performance under the Federal award, including but not necessarily limited to wages and salaries. Compensation for personal services may also include fringe benefits which are addressed in §200.431 Compensation—fringe benefits. Costs of compensation are allowable to the extent that they satisfy the specific requirements of this part, and that the total compensation for individual employees:
(1) Is reasonable for the services rendered and conforms to the established written policy of the non-Federal entity consistently applied to both Federal and non-Federal activities;
(2) Follows an appointment made in accordance with a non-Federal entity's laws and/or rules or written policies and meets the requirements of Federal statute, where applicable; and
(3) Is determined and supported as provided in paragraph (i) of this section, Standards for Documentation of Personnel Expenses, when applicable.
(b) Reasonableness. Compensation for employees engaged in work on Federal awards will be considered reasonable to the extent that it is consistent with that paid for similar work in other activities of the non-Federal entity. In cases where the kinds of employees required for Federal awards are not found in the other activities of the non-Federal entity, compensation will be considered reasonable to the extent that it is comparable to that paid for similar work in the labor market in which the non-Federal entity competes for the kind of employees involved.
The Uniform Guidance includes standards for the institutional salary base used to calculate compensation charged to grants. Below are a few excerpts from the Uniform Guidance.
• To comply with these requirements Dartmouth has established a Labor Verification Report by Employee (Dartmouth Employee’s).
• On an annual basis, usually within several months after the fiscal year ends, OSP generates Labor Verification Reports by Employee. After these reports are generated, they will be electronically sent to PI's to approve their portion of the employee's Labor Verification Report. The PI is just approving that the employee's labor amount charged on that PI's grant account looks reasonable. If an employee was paid off three different grant accounts that involved three different PI's, each of those three PI's will need to approve that report. In addition to these approvals, the PI will approve their own Labor Verification Report and Faculty will approve their own Labor Verification Report. If the PI or Faculty feel the labor amount is not reasonable, then they will need to work with their Department Grant Manager and OSP to correct the labor allocation by submitting a Wage Transfer Form.
• A reminder when reviewing the salary allocation, time spent preparing a proposal or a bid is not normally directly chargeable to a sponsored project.
Revised March 21, 2015. Please note that this section is under review to incorporate updates related to the Uniform Guidance.
Last Updated: 3/22/15