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Applying a Salary Cap
Two methods for salary calculation with a salary cap
The Institutional Base Salary is to be used to calculate salary; the sponsor will adjust the awarded salary subject to the current salary cap at the time of award. The annual inflation increase should be applied to the budget as usual.
Kuali Coeus data entry: No special instructions.
Modular budgets and other scenarios with restricted budgets
For NIH modular budgets, since the modules should be a reasonable estimate of costs allowable, allocable, and appropriate for the proposed project, it is appropriate use the current salary cap when developing the budget and estimating the number of modules to request.
In other scenarios with restricted budgets, it is preferable to use the Institutional Base Salary to calculate all personnel costs. However, if this is not possible given budget constraints, use the current salary cap for Year 1 of the budget. Apply annual inflation to the budget as usual.
Kuali Coeus data entry. To calculate the appropriate percent of salary to charge to the grant:
- Take the Salary Cap and multiply it by the effort percent to be committed to the grant
- Take that result and divide by the Institutional Base Salary
- Enter that result as % Charged
- Enter the effort to be committed to the project as % Effort
- Calculate. NOTE: Kuali Coeus will apply inflation. That is OK!
- Make sure that the “Submit Cost Sharing” box on the Parameters tab is not checked
Salary cap = $189,600
Institutional Base Salary = $225,000
Effort commitment = 25%
- Take the Salary Cap and multiply it by the effort percent to be committed to the grant: $189,600 x 0.25 = 47,400
- Take that result and divide by the Institutional Base Salary: 47,400/225,000 = 0.2107
- Enter that result as % Charged (21.07%)
- Enter the effort to be committed to the project as % Effort (25%)
- Calculate. In this example, the budget starts on 6/1/18, one month before the start of the fiscal year, and the calculation includes inflation (3%) for eleven months beginning 7/1/18.
- Check that “Submit Cost Sharing” on the Parameters tab is NOT checked.