I. Scope
This policy applies to all employees of the university, including hourly employees, part-time employees, adjunct faculty, and students on the university payroll who are working on federally sponsored projects.
II. Policy Statement
The university is responsible for ensuring that work performed in support of sponsored projects justifies the salaries and wages charged to the project. Estimated payroll allocations are entered for future payroll, therefore, this after the fact certification confirms that all payroll charges reasonably reflect the work performed.
Charges or cost sharing for salaries and wages on all federal projects for research, training, and service must produce an equitable distribution of charges for an employee’s activities and be documented in a method acceptable under Office of Management and Budget’s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (OMB Uniform Guidance).
III. Overview
The payroll distribution system reflects salaries and wages charged to sponsored projects and cost sharing expressed as a percentage of total activities not to exceed 100%. The apportionment of employees’ salaries and wages which are chargeable to sponsored projects or identified as committed cost sharing is initiated by the Principal Investigator or designee using the appropriate university authorization format for labor allocations. All charges and cost sharing for personnel working on sponsored projects are based on actual salary charges posted in the accounting system and are supported by documentation such as employment contracts, supplemental appointment letters, and other written guidance.
Individuals whose payroll is charged or whose effort is identified as committed cost sharing on projects must have worked on the project and be documented in the university financial system using the activity code, the charges must be reasonable in relation to work performed, and charges must be in compliance with special costing requirements ( e.g., clerical and administrative salaries charged meet federal exception criteria; no non-sponsored activities, such as instruction, department committees, proposal preparation time charged to the project). The university’s payroll certification method has been approved by its federal cognizant agency, the Office of Naval Research.
IV. Definitions
Principal Investigator (PI): The PI is responsible for reviewing charges and committed cost sharing for project personnel annually and certifying that all individuals worked on the project, salary and wage charges were reasonable in relation to work performed, and special costing requirements were met. Certifications will be generated annually in the University payroll certification system based on the project anniversary date or project end date. Payroll certification statements must be reviewed and certified in the system within 45 days of notification that the statement is available for review.
Co-PIs: These individuals are responsible for reviewing and certifying to personnel charges and committed cost sharing for which they have direct responsibility and knowledge at the request of the PI.
Research Faculty, Graduate Research Assistants and Other Employees: These individuals are responsible for reviewing personnel changes and committed cost sharing for which they have direct knowledge at the request of the PI to inform PI certification.
Primary Payroll Coordinator: The academic unit administrator who is responsible for pre-reviewing payroll certification statements for their assigned department within the system will work with PIs to answer questions and ensure PI certification is completed within the required time frame. OSP will work closely with this individual to ensure the certification process works smoothly and reports are certified within the required time frame.
Dean or Dean Designee: This individual will receive notification if payroll certification reports are not returned to OSP within 45 days of system notification that certification is ready for review. If the report is not certified within 15 days of the Dean or Dean Designee notification date the salary charges will be moved to an indirect pool fund within the PI’s unit.
Sponsored Programs: The Office of Sponsored Programs (OSP) is responsible for monitoring the payroll certification system, ensuring payroll certification statements are being generated within 75 days of the end of the certification period, and monitoring certification status for all pending statements. Payroll certification statements are generated for each project annually based on the start date of the project or project end date, whichever is sooner.
IV. Compliance
Payroll certification statements must be certified within 60 days of the date of system notification that the statement is available for review. If statements are not certified within 45 days of the notification date, a reminder is sent to the PI and Dean or designee. If the certification is not received within 15 days after contacting the Dean or designee, the payroll charges are moved from the sponsored fund code to the PI’s indirect fund. If the budget is insufficient, charges are moved to the PI’s pool fund, then to the department chair’s indirect or pool fund, and finally to the dean’s indirect or pool fund.
V. Dates
A. Effective Date
This policy is effective January 1, 2011
B. Date of Most Recent Review
June 9, 2025
VI. Timetable for Review
This policy will be reviewed and revised, if necessary, annually, with changes to become effective at the beginning of the University’s fiscal year, unless otherwise noted.
Approved:
_______________________
Carol D. Kissal
Senior Vice President of Administration and Finance
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Mark R. Ginsberg
Provost and Executive Vice President
Approved: March 14, 2011
Revised: August 21, 2015
Revised: May 18, 2021
Revised: July 9, 2025
Page last updated: July 15, 2025