Sponsored Research Incentive Policy

SUBJECT: Sponsored Research Incentive Policy	Effective Date: 01/31/2017	Policy Number: 10.1.4
	Supersedes: New	Page 1 Of 11
	Responsible Authorities: Vice President for Research Provost

Background

Externally sponsored academic activity involving university faculty, whether teaching, research, or service, is presumed to satisfy the academic needs of the university and the academically related objectives of the sponsoring agency. The university provides faculty and facilities while the sponsor provides funds for the activities. Because faculty time and effort are required, it is reasonable for the university to request funds from the sponsor to support faculty effort. Whenever possible, it is prudent for the university to dedicate released state funds in ways that enhance its academic activities.
Purpose

The purpose of the Sponsored Research Incentive Policy is to reward faculty for sustained externally funded productivity and scholarly activities. This policy will stimulate scholarly activity associated with performing externally funded research in all units. Faculty who are effective in securing extramural funds while maintaining their other scholarly responsibilities are eligible for the incentive.

The Sponsored Research Incentive Policy can also be utilized as a recruitment tool and to retain highly productive faculty.
General Statement

When appropriate, sponsoring agencies that have objectives compatible with FAU’s academic enterprise may provide funds to support faculty time and effort. Such funds are substituted for state funds that have been dedicated to faculty members’ base salaries.

The State funds released may be used to create an incentive pool within each college to further its academic activities by providing incentive funds.
Policy

Each College or Institute is responsible for developing how he or she will distribute the incentive funds appropriate for his or her faculty following the guidance in this policy. The Provost and Vice President for Research must approve each College or Institute’s plan for distributing funds or modifications to the basic incentive plan, outlined below.
1. The incentive pool is created from state funds released when a faculty activity, i.e., teaching, research, or service, is externally funded by a grant or contract.
2. Salary recovered from separate State grants cannot be used in the Research Incentive plan (state dollars cannot replace state dollars).
3. Research salary is capped consistent with the NIH salary cap. Effective January 8, 2017 the cap increased to $187,000. For the latest NIH salary cap, refer to the NIH website or contact the Office of Sponsored Programs.
4. The incentive pool may be used to provide funds for travel, equipment, faculty salary enhancements, graduate student support, and other activities that enhance the academic mission.
5. Each college or institute may determine the manner of distributing its own incentive funds.
6. The receipt of incentive salary may not alter the base salary or contract salary of individual faculty members.
7. The Research Incentive Fund becomes active after 6 months of active funding and is payable in May or December for the previous 6 months of activity.
8. The Research Incentive Fund plan is subject to change.
Procedures

Requests for Salary Support on Grants and Contracts
1. Faculty members who apply for externally funded grants or contracts should request a percentage of their total contract salary, including fringe benefits, consistent with the time commitment to conduct the proposed activity.
2. All state-funded FAU faculty are eligible. Individuals, who are split-funded from state and other services, will be eligible to participate in that portion of their salary supported by state funds.
3. A faculty member may be eligible for an incentive salary from the incentive pool not to exceed 25% of the total contract salary. The faculty member and the department chair will execute a written contract for the specific amount of the incentive award. The academic incentive allocation to faculty will be made twice a year at the end of the Fall and Spring semester.
4. The Dean must approve each contract for academic incentive salary.
Definitions

Incentive Pool Funds
The incentive pool funds come from salary savings when faculty charge their salary on externally funded projects.

Released Time
Released Time refers to that portion of the normal teaching or service commitment of a faculty member that he/she “buys” from the Department with external funds so that he/she can engage in research/scholarship.
Accountability

College and Institutes will be responsible for developing a plan following this policy that works for their individual unit.

The Provost and the Vice President for Research are responsible for reviewing and approving the individual plans developed by the colleges and institutes.
Annual Review

The Sponsored Research Incentive Policy will be reviewed and updated as necessary.

POLICY APPROVAL

(For use by the Office of the President)

Policy Number: 10.1.4

Initiating Authority

Daniel Flynn
5-1-2017

Executed signature pages are available in the Initiating Authority Office

Appendix A
(Sample)

EXTERNALLY SPONSORED ACADEMIC ACTIVITY INCENTIVE PLAN
9-MONTH MODEL POLICY
JANUARY 2016

INTRODUCTION AND DEFINITION OF EXTERNAL FINANCIAL SUPPORT

It is assumed that externally sponsored academic activity, whether research, teaching, or service, involving University faculty satisfies the scholarly needs of the University and the objectives of the sponsoring agency. The University provides faculty and facilities; while the sponsor funds research and scholarly activities. Because faculty time and effort are required, it is reasonable for the University to request funds from the sponsor to support faculty effort. Whenever possible, it is prudent for the University to dedicate those funds to the enhancement of academic activities. To this end, an incentive pool can be created from state funds released when a faculty activity is funded by a grant or contract. This incentive pool may be used to provide funds to support travel, equipment, faculty salary enhancements, graduate student support, and other activities that enhance the academic mission.

External support in that context refers to financial support not derived from FAU state-budgeted sources. Academic activity incentive consideration will be given to programs of high quality that are compatible with the objectives of the Departments, the College and the Institute, regardless of the funding source. As always, programs funded by federal, state or private sources must receive the approval of the Department Chair, and the Dean, prior to being initiated.
REQUESTS FOR SALARY SUPPORT ON GRANTS AND CONTRACTS

All state-funded faculty members who apply for externally funded grants or contracts should request funding to support a percentage of their total nine-month salaries, including fringe benefits, as outlined in their notice of appointment and as allowable by the sponsoring agency consistent with their time commitment to conduct the proposed academic activity.
PROCEDURES FOR DISTRIBUTION OF ACADEMIC ACTIVITY INCENTIVE FUNDS

While the principles outlined in this document can be used to promote and reward externally sponsored academic activity, a case-by-case discussion with the Dean and the Department Chair is required to ensure that the academic obligations of each faculty member are not compromised. The Department Chair, in cooperation with the Office of the Dean, is responsible for maintaining quality instruction and service within the Department. In all such discussions, the concept of “Released Time” will supersede the concept of academic activity incentive.

“Released Time” refers to that portion of the normal teaching or service commitment of a faculty member that he/she “buys”, subject to the approval of the Dean, from the Department with external funds so that he/she can engage in research/scholarship. The Department may request approval from the Dean to keep a portion of the recovered state appropriated funds to hire temporary help to cover the released commitments.

As discussed below, the Academic Activity Incentive concept pertains strictly to that part of a faculty member’s time committed for the academic activity out of the time he/she is paid to perform work as part of the academic year appointment as outlined in the notice of appointment each year. The faculty member still performs the other normal obligations in teaching, research, and service during the academic year.
1. Any state-funded FAU faculty member will have access to seventy-five percent (75%) of state funds recovered in association with his/her participation in an externally funded academic activity.
2. These funds may be used to support travel, equipment, graduate students, faculty salary enhancements, or other activities that enhance the academic mission. The amount that may be allocated as a salary enhancement may not exceed twenty percent (25%) of the faculty member’s academic year base salary.
  NOTE: The receipt of incentive salary does not alter the base salary of a faculty member.
3. Because a minimum of seventy five percent (75%) of incentive income each year is available to specific faculty, the remaining twenty five percent (25%) may be used to otherwise foster academic activity. Recommendations for use of fifteen percent (15%) will be initiated by the Department Chair and approved by the Dean. The remaining ten percent (10%) will be used at the discretion of the Dean.
4. Incentive allocations will be distributed twice each year and will be based upon funds generated from the current year’s grant activities. If applicable, each year a separate academic activity incentive agreement must be drafted by the faculty member requesting participation in this program. The request must include a copy of the individual’s notice of appointment, which provides their base salary. Neither academic incentive nor lack of it will affect the regular base salary figure. The agreement will call for two incentive payments each year as long as the individual is on the payroll at both times in a given year. The funds will be distributed at the end of each semester during the academic year (December and May) and will represent the funds released for that semester.
5. For funded grants/contracts originating within the Faculty member’s College, all of the grant-recovered State personnel dollars associated with an “outside” faculty member’s participation would go to that College’s or Institute’s incentive pool. That is, the other College or Institute would have the funds to provide incentive in the current year’s contract and would have any remainder to support research and scholarship as recommended by their Department Chair and/or Dean.
  Similarly, for a project involving a faculty member within the College or Institute, but originating in another College or Institute, recovered funds for the faculty will go into the academic activity incentive pool for the Faculty member’s College or Institute and distributed per this policy. It is the faculty member’s responsibility to make arrangements for this to occur, in advance of the salary funding distribution change.
Comment: This approach would eliminate involvement in contract negotiations and related salary matters with faculty outside of the College or Institute. It maintains Departmental and College authority relationships and gives additional incentives to Department Chairs and Deans to have their faculty cooperate across disciplines.
ELIGIBILITY

All state-funded faculty members are eligible. This includes personnel holding Faculty Equivalent/Academic Professional (FEAP) positions.
CRITERIA FOR DISTRIBUTION OF FUNDS

Quality research and scholarship are emphasized. As previously mentioned, seventy-five percent (75%) of individual external sponsored academic activity incentive is available to a faculty member. Of this amount up to twenty percent (25%) of the base salary for a given academic year may be provided for faculty salary enhancement.
EXAMPLES

Number One

A faculty member’s base salary is $60,000. He/she has a one-year grant committing fifteen percent (15%) of his/her time during the academic year. Funds recovered from the grant for his/her time amount to $9,000 (15% of $60,000). A salary of $9,000 is recovered from his state-funded base salary and goes into the academic activity incentive pool of the College.

It is possible for him/her to receive up to $15,000 (25% of $60,000) in incentive salary. Based upon his/her grant, he/she has accrued an incentive contract of $6,750 (75% of $9,000). This money will be paid to him/her in two installments, on or about December 31 and May 31. Thus, with his/her incentive agreement, his/her total salary will be $60,000 of salary plus $6,750 of salary enhancement or $66,750.

Alternatively, the faculty member may elect to use the $6,750 for research including travel, equipment, graduate student support or other research related activities.

The Department Chair and the Dean will use the other $2,250 (25% of $9000) to support academic activities.

The one-year grant was terminated at the end of the year. The incentive salary is no longer available to the faculty member in the next year; his/her total salary will consist only of the state-funded base salary for that year.

Number Two

Another faculty member, whose salary is also $60,000, is involved in two funded grants. The first as described in example number one involves fifteen percent (15%) of his/her time. The second grant covers twenty percent (20%) of his/her time. In this example, recovered state-funded salary for the incentive pool amounts to $9,000 (15% of $60,000) for the first grant plus $12,000 (20% of $60,000) for the second grant, a total of $21,000.

It is possible for him/her to receive up to $15,000 (25% of $60,000) in incentive salary. He/she is assured of at least seventy-five percent (75%) of the generated funds ($21,000) or $15,750. Therefore, he/she will be certain of an incentive agreement of $15,000. If this person elects to take the maximum amount of incentive for salary enhancement, then his/her salary for that year would be $60,000 base salary + $15,000 enhancement (paid in 2 installments) or will $75,000 for the year. The principal investigator’s remaining $750 ($15,750 less $15,000) in incentive pool funds can be used for other academic activity support. Lastly, $5,250 of the total $21,000 is available to the Department Chair ($3,150) (60% of $5,250) and the Dean ($2,100) (40% of $5,250) for academic activity support.

Number Three

A faculty member’s base salary is $60,000. He/she has a one-year grant committing 2 summer months (16.7%) of his time during the academic year. Funds recovered from the grant for his time amount to $10,000 (2/12ths or 16.7% of $60,000). A 9-month employee is only paid for the academic year ($60,000 over 9 months) and not for summer months. The summer salary is not part of the state funded salary. Therefore, the faculty member receives an additional $10,000 in annual pay for summer research and none of those summer salary dollars apply to the Incentive Plan.

Number Four

Another faculty member, whose salary is also $60,000, is involved in two funded grants. The first as described in example number one involves fifteen percent (15%) of his/her time During the academic year. The second grant covers two summer months (20%) of his/her time. In this example, recovered state-funded salary for the incentive pool amounts to $9,000 (15% of $60,000). The summer pay of 2/12ths $60,000 or $10,000 is extra pay for the faculty member and not applicable to the salary incentive plan.

It is possible for him/her to receive up to $9,000 (15% of $60,000) in incentive salary. He/she is assured of at least seventy-five percent (75%) of the generated funds ($9,000) or $6,750. Therefore, he/she will be certain of an incentive agreement of $6,750. His/her total salary for that year will be $60,000 base + $10,000 summer pay + $6,750 incentive pay = $76,750.

Approval:

XXX, Ph.D. Date
Dean
College of XX

Gary Perry, Ph.D. Date
Provost
Florida Atlantic University

Daniel Flynn, Ph.D. Date
Florida Atlantic University
Vice President for Research

EXTERNALLY SPONSORED ACADEMIC ACTIVITY INCENTIVE PLAN
12-MONTH MODEL POLICY
JANUARY 2016

INTRODUCTION AND DEFINITION OF EXTERNAL FINANCIAL SUPPORT

It is assumed that externally sponsored academic activity, whether research, teaching, or service, involving University faculty satisfies the scholarly needs of the University and the objectives of the sponsoring agency. The University provides faculty and facilities; while the sponsor funds research and scholarly activities. Because faculty time and effort are required, it is reasonable for the University to request funds from the sponsor to support faculty effort. Whenever possible, it is prudent for the University to dedicate those funds to the enhancement of academic activities. To this end, an incentive pool can be created from state funds released when a faculty activity is funded by a grant or contract. This incentive pool may be used to provide funds to support travel, equipment, faculty salary enhancements, graduate student support, and other activities that enhance the academic mission.

External support in that context refers to financial support not derived from state budgeted sources. Academic activity incentive consideration will be given to programs of high quality that are compatible with the objectives of the Departments and the College, regardless of the funding source. As always, programs funded by federal, state or private sources must receive the approval of the Department Chair, the Dean and the Provost, prior to being initiated.
REQUESTS FOR SALARY SUPPORT ON GRANTS AND CONTRACTS

All state-funded faculty members who apply for externally funded grants or contracts should request funding to support a percentage of their total twelve-month salaries as outlined in their notice of appointment and as allowable by the sponsoring agency, including fringe benefits, consistent with their time commitment to conduct the proposed academic activity.
PROCEDURES FOR DISTRIBUTION OF ACADEMIC ACTIVITY INCENTIVE FUNDS

While the principles outlined in this document can be used to promote and reward externally sponsored academic activity, a case-by-case discussion with the Dean and the Department Chair is required to ensure that the academic obligations of each faculty member are not compromised. The Department Chair, in cooperation with the Office of the Dean, is responsible for maintaining quality instruction and service within the Department. In all such discussions, the concept of “Released Time” will supersede the concept of academic activity incentive.

“Released Time” refers to that portion of the normal teaching or service commitment of a faculty member that he/she “buys out”, subject to the approval of the Dean, from the Department with external funds so that he/she can engage in research/scholarship. The Department may request approval from the Dean to keep a portion of the recovered state appropriated funds to hire temporary help to cover the released commitments. Release time is normally associated with 9-month appointments and may not be a factor in 12-month appointments where faculty may have a significant fraction of their effort dedicated to research (e.g., 70% of their effort is dedicated to research and teaching obligations have fewer contact hours than a 9-month appointment).

As discussed below, the Academic Activity Incentive concept pertains strictly to that part of a faculty member’s time committed for the academic activity out of the time he/she is paid to perform work as part of his/her academic year appointment as outlined in his/her notice of appointment each year. The faculty member still performs his/her other normal obligations in teaching, research, and service during the academic year.
1. 12-month research-intensive faculty are required to fund a percentage of their annual salary from research grants (typically 25% or 50%, depending upon the unit). Funding this portion of their salary supersedes participation in the academic activity incentive.
2. Any state-funded FAU faculty member will have access to seventy-five percent (75%) of state funds recovered in association with his/her participation in an externally funded academic activity AND in excess of the percentage of their salary that they are required to fund with extramural grants.
3. These funds may be used to support travel, equipment, graduate students, faculty salary enhancements, or other activities that enhance the academic mission. The amount that may be allocated as a salary enhancement may not exceed twenty-five percent (25%) of the faculty member’s academic year base salary.
  NOTE: The receipt of incentive salary does not alter the base or salary of a faculty member.
4. Because a minimum of seventy five percent (75%) of incentive income each year is available to specific faculty, the remaining twenty five percent (25%) may be used to otherwise foster academic activity. Recommendations for use of fifteen percent (15%) will be initiated by the Department Chair and approved by the Dean. The remaining ten percent (10%) will be used at the discretion of the Dean.
5. Incentive allocations will be distributed twice each year and will be based upon funds generated from the current year’s grant activities. If applicable, each year a separate academic activity incentive agreement must be drafted by the faculty member requesting participation in this program. The request must include a copy of the individual’s notice of appointment, which provides their base salary. Neither academic incentive nor lack of it will affect the regular base salary figure. The agreement will call for two incentive payments each year as long as the individual is on the payroll at both times in a given year. The funds will be distributed at the end of each semester during the academic year (December and May) and will represent the funds released for that semester.
6. For funded grants/contracts originating within the Faculty member’s College, all of the grant-recovered State personnel dollars associated with an “outside” faculty member’s participation would go to that College’s or Institute’s incentive pool. That is, the other College or Institute would have the funds to provide incentive in the current year’s contract and would have any remainder to support research and scholarship as recommended by their Department Chair and/or Dean.
  Similarly, for a project involving a faculty member within the College or Institute, but originating in another College or Institute, recovered funds for the faculty will go into the academic activity incentive pool for the Faculty member’s College or Institute and distributed per this policy. It is the faculty member’s responsibility to make arrangements for this to occur, in advance of the salary funding distribution change.
Comment: This approach would eliminate involvement in contract negotiations and related salary matters with faculty outside of the College or Institute. It maintains Departmental and College authority relationships and gives additional incentives to Department Chairs and Deans to have their faculty cooperate across disciplines.
ELIGIBILITY

All state-funded faculty members are eligible. This includes personnel holding Faculty Equivalent/Academic Professional (FEAP) positions.
CRITERIA FOR DISTRIBUTION OF FUNDS

Quality research and scholarship are emphasized. As previously mentioned, seventy-five percent (75%) of individual external sponsored academic activity incentive is available to a faculty member. Of this amount up to twenty percent (25%) of the base salary for a given academic year may be provided for faculty salary enhancement.
EXAMPLES

Number One

A faculty member’s base salary is $60,000 and they are required to fund 25% of their salary from extramural sources ($15,000). He/she has a one-year grant committing twenty-five percent (25%) of his time during the academic year. Funds recovered from the grant for his/her time fulfill the requirements of his annual appointment to fund 25% of his salary. Therefore, the faculty member is not eligible to participate in the academic incentive plan until they obtain sufficient funds to relieve state support in excess of 25%.

Number Two

Another faculty member is required to bring in 25% of their salary, which is $60,000, and he/she is involved in two funded grants. The first as described in example number one involves twenty-five percent (25%) of his/her time. The second grant covers twenty percent (20%) of his/her time. In this example, 25% of salary is applied directly to their base pay. However, from the remaining 20% salary recovery, they are able to participate in the academic salary incentive program. They are eligible to pay themselves 25% above their base pay of $60,000 (or $75,000). The extra 20% salary recovered on the second grant is $12,000 (20% of $60,000). They are eligible to receive 75% of the $12,000 in academic incentive or $9,000.

It is possible for him/her to receive up to $15,000 (25% of $60,000) in incentive salary. He/she is assured of at least seventy-five percent (75%) of the generated funds ($12,000) or $9,000. Therefore, he/she will be certain of an incentive agreement of $9,000. His/her total salary for that year may be $69,000.

Twenty five percent or $6,000 is available to the Department Chair ($3,600) (60% of $6,000) and the Dean ($2,400) (40% of $6,000) for academic activity support.

Number Three

Another faculty member, whose salary is also $60,000, is involved in three funded grants. The first as described in example number one involves twenty five percent (25%) of his/her time during the academic year. The second grant covers 20% of his/her time and the third one 15%. In this example, the faculty member must cover 25% of their base salary of $60,000. The remaining 35% (20%+15%) is eligible for participating in the academic incentive plan and recovered state-funded salary for the incentive pool amounts to $21,000 (35% of $60,000).

It is possible for him/her to receive up to $15,000 (25% of $60,000) in incentive. He/she is assured of at least seventy-five percent (75%) of the generated funds ($21,000) or $15,750. Therefore, he/she will be certain of an incentive agreement of $15,750 of which $15,000 may be applied to salary incentive and the remaining $750 applied to research related expenses. His/her total salary for that year will be $75,000.

Of the remaining 25% of $21,000 ($5,250) goes to the Chair (60% or $3,150) and 40% to the Dean ($2,100).

Approval:

XXX, Ph.D. Date
Dean
College of XX

Gary Perry, Ph.D. Date
Provost
Florida Atlantic University

Daniel Flynn, Ph.D. Date
Florida Atlantic University
Vice President for Research