UMB Policy on Institutional Base Salary
3702 (G) | Financial Affairs | Approved December 12, 2024
Responsible VP/AVP: Dawn M. Rhodes, DBA, MBA
Purpose
This policy provides guidelines for ensuring compliance in setting compensation procedures related to sponsored awards. It also provides guidelines to ensure compliance with 2 CFR Part 200 – Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”).
Policy Statement
In accordance with 2 CFR 200.430(h)(2), charges for work performed on Federal awards by faculty members during the academic year are allowable at the Institutional Base Salary (IBS) rate. Therefore, in all submissions for funding for sponsored work, the IBS is used as the salary of the employee.
Institutional Base Salary may not be increased as a direct result of being awarded Federal grant funds or other grant or contract funds. Institutional Base Salary of an employee will not be increased or decreased during a fiscal year as a result of receipt or loss of salary support from grants, contracts, clinical income, and other revenues.
A Payable Institutional Salary, as well as an Institutional Base Salary, will be established for faculty and staff who will receive from UMB variable compensation as well as Institutional Base Salary during a fiscal year. Whenever an employee’s IBS changes, unless the change is due to mandated COLA and merit increases, a formal notification is sent to the employee which will state the new Institutional Base Salary and indicate anticipated sources of funding. Payable Institutional Salary is not reflected on funding applications and is subject to revision during a fiscal year consistent with the terms of the policies or approvals which authorize a change in salary component (e.g., faculty salary enhancement plans, faculty practice plans, approvals of bonuses for special duties).
Definitions
Institutional Base Salary (IBS) - the base annual compensation set by UMB (through a School or administrative unit) for an employee’s appointment, whether that employee’s professional effort for UMB is spent on research, teaching, patient care, or other activities, and whether that employee is appointed full-time or part-time. For School of Medicine faculty who participate in the faculty practice (the Medical Service Plan), Institutional Base Salary is that part of the Total Approved Salary which is to be paid by UMB or by a practice plan organization and is not variable during the fiscal year except in limited circumstances as provided below. For other faculty and for all staff, Institutional Base Salary is paid entirely through the UMB payroll system.
Institutional Base Salary may be changed during a Fiscal Year in limited circumstances, such as:
- the employee's formal appointment or required level of effort changes to a different required level of effort, whether: (i) from full-time to part-time; (ii) from part-time to full-time; or (iii) from one level of part-time effort to another level of part-time effort; and
- the employee receives a salary increase, whether as a result of: (i) a retention; (ii) an equity adjustment promotion in rank or position; (iii) a change in employment responsibilities; or (iv) a State authorized Cost of Living Allowances (COLA) or merit increase.
Payable Institutional Salary - includes all annual compensation payable through the biweekly UMB payroll.
Total Approved Salary (TAS) - Several of the UMB Schools establish a Total Approved Salary for faculty pursuant to faculty practice plans or salary enhancement plans and/or to recognize sources that are by definition not included in IBS (e.g., “VA 8ths”). TAS includes all variable and non-variable annual compensation that a full-time or geographic full-time faculty member is allowed to earn for full-time professional effort without additional approvals, and may be payable from UMB, authorized faculty practice organizations, and affiliated organizations (e.g., the Baltimore VA Medical Center).
Scope and Exceptions
IBS does not include compensation for irregular, short term, and voluntary assignments such as additional pay, non-instructional overload, instructional overload, and part-time contract pay for services above and beyond IBS. IBS also does not include bonuses or one-time incentive pay such as housing allowances, stipends, honoraria, or tuition reimbursements. Other exclusions from IBS are salaries approved to be paid directly by another organization (i.e. not UMB, School, or faculty practice plans) and income that an individual is approved to earn outside of their UMB appointment responsibilities.
Other types of salary that are excluded from IBS:
- Salary paid directly by the Veterans Administration (VA) for VA appointments (“VA 8ths”) or paid directly by any other health care organization that is an affiliate of the School is not included in Institutional Base Salary or Payable Institutional Salary.
- Special, one-time payments that may be approved by UMB policy, even if processed through the payroll system, are not included in Institutional Base Salary or Payable Institutional Salary.
- If under a School's policies Total Approved Salary includes estimates of compensation that are variable under the terms of a faculty practice plan or salary enhancement plan, such variable compensation is not included in Institutional Base Salary. The variable compensation may be included in Payable Institutional Salary, or it may be paid by another organization if so provided by the relevant plan or policy and approved by the School.
- School of Dentistry faculty practice compensation is not included in IBS.
- Compensation that is incentive faculty practice income under faculty practice plans is never included in IBS.
Roles and Responsibilities
Schools/Department/Unit Administrators
Institutional Base Salary information shall be available to and reported by UMB in connection with sponsored programs applications and administration, including effort reporting.
Procedures to convey the appropriate information to Administration and Finance upon hiring of employees and upon change of Institutional Base Salary will be developed under the direction of the Chief Business and Finance Officer and Senior Vice President, Administration and Finance, and the Chief Information Officer and Senior Vice President for Information Technology.