California State University, Bakersfield
Office of Grants, Research, and Sponsored Programs (GRaSP)
DH D108 – 661.654.2231
Scenarios for Payment of Indirect Staff and Faculty
Working on Projects
.Revised: April 2009. Implemented: July 1, 2008
Background
Federal guidelines 2CFR Part 220 Section J.10 (OMB Circular A-21) define how individuals are to
be paid for their work on research, special projects, or sponsored programs (or collectively,
“projects”) funded by means of grants or contracts awarded by sponsoring agents. Specifically,
payment for this work must be processed through the institution’s payroll system in a manner
consistent with the institution’s policies and procedures for all employees. At CSUB, Expenditure
Transfers, Billing Requests, Direct Pays, etc. cannot be used as methods to pay employees for
work on projects or to reimburse departments for loss of employee time. Billing Requests are used
to reimburse a department for faculty release time only. In addition, federal guidelines require that
charges to projects for employee services must be certified after the fact as being correct. For all
employees working on a project(s), a Certification of Effort ReporT (CERT) serves as an after-thefact time sheet (see separate samples of Staff/Administrators CERT and Faculty CERT).
Federal guidelines also require that employee pay for indirect (campus) work must be kept fiscally
separated from pay for direct (project) work to avoid “double-dipping.” Pay is charged as a direct
expense to the project for employees who work exclusively on a project(s), thus causing no conflict
with the institution’s negotiated indirect cost rate. However, special hiring and time certification
procedures are required when university personnel work on projects since their wages are already
being charged as part of the indirect rate. If the work performed for a project is substantially
different from the work an individual (including faculty) performs for the institution, and/or the project
work imposes a burden on the primary position (in terms of time required to achieve primary tasks),
a payroll method must be used to charge the time directly to the project; this serves as a means to
remove those charges from the indirect pool.
It is the responsibility of the Primary Investigator/Program Director (PI) to initiate the appropriate
hiring procedures, make sure proper certifications are obtained, and monitor the project expenses
on a continuous basis to confirm employees are being paid correctly. Human Resources (HR) and
GRaSP are available to assist with this process.
Described below are several scenarios illustrating how staff employees, administrators, and faculty
can be paid for their work on projects in compliance with federal guidelines. The guiding rule is that
both the school and the sponsor pay their fair share of the employee’s time. Not described here are
the specialized reporting procedures required by federal guidelines for “cost-share/match” or
volunteer time; because reporting requirements are so cumbersome, CSUB discourages including
match or volunteer time in proposed budgets during the project proposal stage. In all cases, the PI
must confirm with GRaSP that project funds are available and that required hiring procedures are
followed before employees or faculty begin work on a project.
Scenarios for Staff Employees and Administrators
Except for those hired as “hourly intermittent,” all project employees (including those who work
100% on a single project) must submit a Certification of Effort ReporT (CERT, see separate
sample) since they do not fill out monthly time cards. Staff and administrators CERTs are due on
the 20th day of the following month.
When project budgets do not allow for 100% administrative support, hiring a dedicated part-time
employee as in Scenario One below is the preferred method in order to avoid conflict with the
Project Pay Scenarios Page 1 of 3
California State University, Bakersfield
Office of Grants, Research, and Sponsored Programs (GRaSP)
DH D108 – 661.654.2231
indirect rate and maximize hours and benefits for the employee. Scenarios Two through Four are
options if Scenario One is not practical for the situation.
Scenario One: Direct Staff Support for Multiple Projects
When there are several open projects that have budgeted for part-time administrative assistance, it
is recommended that the school Dean work together with the PIs to hire an individual who does not
already have a full-time primary position as administrative support with a university department.
That individual then provides direct support for several projects on a full- or part-time basis. The
PIs process Hire Forms for their projects (standard search procedures apply), and the percentage
of time the employee works on each project is estimated as full-time-equivalent (FTE). When the
percentages vary over time and/or projects are completed, the PIs must assure that FTE
percentage changes are processed promptly (by email or by Labor Cost Distribution forms as
required by HR). Hourly intermittent employees who submit positive time sheets approved by their
supervisors for each project each month do not have to submit CERTs; however, all other project
employees must submit CERTs to GRaSP each month.
Scenario Two: Indirect Departmental Staff Support for a Project
When a departmental staff employee performs work for a project(s), and that work is similar to
his/her primary position (e.g., processing expense reimbursement forms and making travel
arrangements), and the work is occasional and transitory and does not place a burden over time
on accomplishment of primary tasks, the work is considered part of the primary assignment as
departmental administrative support. In this case, the employee does not receive additional
compensation, and the department does not receive reimbursement for the employee’s time. The
project is not charged.
Scenario Three: Long-Term Departmental Staff Support for a Project
When work for a project(s) will continue over an extended period of time (over 90 days) and is
performed by a departmental staff employee, and there is a burden on the employee’s primary
assignment and/or the project work is substantially different from the employee’s primary position
(see note below), then the PI submits an additional employment Hire Form (standard search
procedures apply) to GRaSP for percentage FTE hours. The project will have to pay the
employee’s overtime rate and/or the department will have to reduce the percentage FTE for the
employee’s primary position. The employee submits a CERT to GRaSP each month.
Note: A burden on the primary assignment exists if one or more of the following
conditions is present: (a) the departmental employee needs to work extra hours in
order to complete primary and/or project tasks; or (b) the employee works fewer
hours on the primary position in order to complete the project tasks; or (c) another
departmental employee is asked to perform the other individual’s primary tasks in
order to free up time for the project tasks. The work is considered substantially
different if it requires different types of tasks or additional skills or knowledge levels
than those required for the employee’s primary position.
Scenario Four: Short-Term Departmental Staff Support for a Project
When a departmental staff employee performs work for a project(s) that is occasional and/or
occurs during a specific time period, and the additional workload is performed outside the normal
primary position hours, a Special Consultant form is prepared by the PI to charge the project and
pay the employee. The Special Consultant form is submitted to GRaSP for a one-month pay period
after the work is completed. Specific minimum and maximum daily rates apply. The form is certified
by both the employee and the PI and serves as a certified time sheet for the project that is
separate from the employee’s primary position.
Project Pay Scenarios Page 2 of 3
California State University, Bakersfield
Office of Grants, Research, and Sponsored Programs (GRaSP)
DH D108 – 661.654.2231
Scenarios for Faculty
Every faculty member who receives pay from a source other than general university funds must
complete a Certification of Effort ReporT (CERT, see separate sample). Total time worked includes
release time, matching/cost-share time, and paid work for projects and the Extended University as
well as regular faculty assignments (teaching and departmental/administrative release time). A 40hour work week for full-time employment is assumed, and CSUB additional employment policy
allows employees to work up to 25% more than full-time (10 hours/week assumed). A full-time
faculty load equals 15 WTUs per quarter (including school-sponsored administrative or other
release time), or 45 WTUs per academic year. The CERT form adjusts the total time worked (up to
125% time) to 100% effort per federal guidelines. Note that pay rate, 125% maximum allowed
calculations, and 100% time/effort are factors that are independent from one another, and actual
hours worked can vary among faculty members and by time period.
All the following scenarios require that a CERT be submitted to GRaSP by the faculty member
within 30 days after the end of each academic time period: each quarter (including summer) and
each academic break (winter and spring).
Scenario One: Release Time
When a faculty member receives funding from a sponsor for release time from teaching a course(s)
or other regular duties to work on a project(s), the Dean’s Office submits a Billing Request to
GRaSP to charge the project and reimburse the department based on the number of Weighted
Teaching Units (WTUs) released for each project each quarter (see note below). It is the Dean’s
responsibility to confirm with GRaSP that the funding is available before the release time is
granted to the employee.
Note: The reimbursement rate is negotiated during the proposal stage of the award
and is included in the proposed budget. Most sponsors do not require that the pay
rate is equivalent to the specific faculty member’s base rate (with one big exception
being the National Science Foundation). The reimbursement amount is approved
when the Dean signs the Proposal Routing sheet.
Scenario Two: Long-Term Project Work
When a faculty member receives an additional appointment to work on a project(s) for an extended
time period over and above their regular assignments (based on a project, fiscal, or academic
year), GRaSP calculates the monthly percentages (see note below) for the project work in advance
for the project year and submits an Authorization for Additional Employment for Exempt Employee
Form to Human Resources. Paychecks are paid out on a monthly basis.
Note: The faculty pay rate, percentage time, and percentage pay must conform to
sponsor requirements. CSUB has two accepted methods for adjusting the
employee’s academic year pay rate to a 12-month base salary for project work. The
rate is decided upon when preparing the budget proposal before the project is
funded.
Scenario Three: Short-Term Project Work
This is similar to Staff Employees and Administrators Scenario Four above. When a faculty
member receives an additional appointment to work on the project(s) during an academic break or
for a specified short-term period, the PI submits an Authorization for Additional Employment for
Exempt Employee Form (similar to the staff Special Consultant Form) to GRaSP. These forms are
submitted for a one-calendar-month pay period within 21 days after the work is completed. Specific
minimum and maximum daily rates apply. This work is estimated as a percentage of time worked,
and the faculty member submits a CERT to GRaSP after each academic time period.
Project Pay Scenarios Page 3 of 3