Contracts Requiring Hourly Rate Calculations

On occasion, faculty and staff may be asked to submit budgets that present salary costs as labor hours, shown either as a salary rate alone or as a ‘loaded rate’, which would include fringes and F&A in the rate calculation.  As an educational institution, presenting compensation in terms of hours worked is not consistent with University policy or with the applicable federal regulations pertaining to effort reporting in the Uniform Guidance.  Consequently OSP will present information in labor hours “for budget estimate purposes only” and will note in the budget narrative, transmittal to the sponsor, or in some other appropriate manner that the University takes exception to requirements to monitor and report salary expenditures as hourly wages/time, and that effort will be certified as a proportion of all institutional responsibilities and billed as effort devoted, not hours worked.