OSP Weekly 07/14/2023
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FAQ - Merit and Cost of Living Adjustment Budget Planning on Sponsored Programs |
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These FAQs are to be a helpful resource to address commonly asked questions which apply to faculty and research professional and administrative staff supported by sponsored research and other scholarly programs.
An employee is eligible to receive COLA if they were hired in an eligible position on or prior to June 30, 2023.* (unless indicated otherwise by their contract/offer letter).
- Eligible employees: All non-temporary classified and regular continuing faculty (academic and administrative).
- Ineligible employees: Postdoctoral Scholars, Temporary Faculty, Letter-of-Appointment Faculty, Medical Residents, Student Employees, Graduate Student Employees (TAs and RAs), Volunteers, Adjunct Faculty and Emeritus Faculty (unpaid).
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Q1: What is the general rule for applying merit or COLA for individuals whose salaries are paid from, in whole or in part, by externally funded grants, contracts, or cooperative agreements?
A1: The general rule is that all eligible UNLV employees, even those whose salaries are reimbursed by externally funded grants, contracts, or cooperative agreements would receive COLA and merit, as applicable.
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Q2: Are grant/contract funded postdoctoral scholars, graduate students, and students on my project, eligible for COLA?
A2: Postdoctoral, graduate students and hourly students are not eligible. The pay rates are published set rates within Human Resources and the Graduate College. However, pay increases may be possible under certain circumstances and may be possible for postdoctoral scholars if the funding is available through a sponsored program grant, via negotiation with the PI, Graduate College, and determination by HR.
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Q3: How would COLA be applied for UNLV employees, who are partially paid by a federal or other externally funded grant, contract, or cooperative agreement?
A3: An employee whose salary is partially funded from grants, contracts, or cooperative agreements shall be subject to their salary being adjusted accordingly per merit and/or COLA.
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Q4: Is COLA and merit allowable costs for salaries on my sponsored award?
A4: Yes, an increase to your institutional base salary (IBS) is allowable.
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Q5: How should I prepare for these increases on my sponsored programs?
A5: Each PI should review their budgets and evaluate the scope of work, budget, and percent of effort based on the merit and COLA salary needed to complete the scope of work within the period of performance. Faculty should try to adjust the budget if possible to cover the changes in salaries and fringe associated with COLA and/or merit increases.
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Q6: If I need to revise my budget, do I need to ask for sponsor approval?
A6: For current, multi-year awards, there was a standard 3% increase built into the salaries. However, based on the increased percentage this year, if there are not enough funds already in the salary lines to cover the increase, the PI will need to review and modify effort percentages tied to the grant or move unobligated funds from other direct costs. You can revise your award budget by completing an Award Budget Request. Most federal awards do not require prior approval, however, some state or private sponsors may require prior approval if moving funds from different budget categories. If you need assistance your assigned OSP Post Award Grants and Contracts research administrator will lend their expertise in making these determinations and if prior approval is required.
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Q7: Who is ultimately responsible for the scope of work and any changes that may need to occur with respect to impact on budget?
A7: The Principal Investigator (PI) is responsible for the technical, administrative, and fiscal management of a project. In addition, the PI is responsible for assuring that all costs are allowable, allocable, and consistent with the terms of an award. The OSP Post Award Grants and Contracts research administrator will lend their expertise in making these determinations when requested to do so and will determine when prior approval from sponsor is required. The PI must endorse all charges to the grant including any adjustments to the budget.
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Q8: If I do not have enough funds to cover the increase required for merit or COLA can I revise the percent of effort?
A8: Yes, a reduction of effort may be required if you do not have enough funds to cover this mandatory increase. Re-budgeting that results in a change in effort on the project must be reflected in agency progress reports and should be adjusted, if applicable, through payroll allocation prior to work being conducted. This also allows for correct certification at the time of Effort Reporting.
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Q9: Does the sponsor offer supplementary funds to cover additional costs, like merit and COLA?
A9: There are some sponsors that will offer supplementary funds specific to completing the scope of work. While increasing salary would not be the sole justification for requesting supplemental funds, the review of the entire program and impact of moving funds from other direct costs to cover salary/fringe benefits may result in needing additional time or program costs to meet the scope of work. This is not offered by every sponsor so please ask OSP for additional information.
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Q10: What is the role of the Office of Sponsored Programs?
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Q11: When is prior sponsor approval required?
A11: Any changes to the administration of an award that will adversely and significantly affect the scope of work require prior approval. Therefore, COLA or merit related budgeting changes that are significant relative to the total budget and that results in a change in the scope of work, require notification to the sponsor. For National Institutes of Health awards, the determination is associated with budget changes of more than 25% of a budget line item.
The terms and conditions of any given contract or grant award govern the ability to
re-budget project funds. Some awards are somewhat flexible, others are not. For
instance, some State awards do not generally allow for budget changes without prior approval. Many federal agencies issue grants and cooperative agreements under standard Research Terms and Conditions (RTC) based on the Federal Demonstration Partnership (FDP) (expanded authorities.) Under this core set of administrative requirements, prior agency approval for re-budgeting is typically not required. The following link provides guidance on prior approval requirements for FDP participating federal agencies: http://www.nsf.gov/bfa/dias/policy/rtc/priorapproval.pdf. Please note that other federal agencies may elect to use the RTC terms on selective awards to their research recipients. The research terms and conditions of the award will indicate when RTC conditions apply.
Re-budgeting that results in a change in effort on the project must be reflected in agency progress reports and should be adjusted, if applicable, through payroll allocation prior to work being conducted. This also allows for correct certification at the time of Effort Reporting.
For those federal agencies that have not adopted the standard RTC, and all non-federal agencies, the specific terms and conditions of the award will determine if re-budgeting to support additional effort is permissible and if sponsor prior approval is required. The award documents are available through Workday for review of Terms and Conditions too. The OSP Post Award Grants and Contracts research administrator assigned to your college/department should be consulted for guidance.
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For general information or questions please contact osp@unlv.edu or 702.895.1357.
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Althea Sheets, Research, Scholarly, and Creative Activities Development Manager, Office of Sponsored Programs, althea.sheets@unlv.edu, 702-895-1880
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