Compensation

There is no clear guidance related to sick leave buyouts.  Some agencies have tried to address annual leave buyouts and the general direction is to consider these types of payouts as unreasonable in that they do not directly benefit or further the objectives of the award.

Based on the attention that leave buyouts have received recently, including in the Uniform Guidance, there is a probability that an audit would disallow this cost. For that reason, we would advise obtaining sponsor approval to direct charge sick leave payouts.

The ASE 2018-2021 negotiated agreement includes a $100 lump sum payment to ASE’s with at least a 50% appointment, payable during the first quarter of employment starting with the 2018-2019 academic year.  The payment is allocated to the cost center (budget) that is covering salary at the time of payment under Object Code 01-80.  It is up to each unit to reallocate the cost if the budget does not have sufficient funds to cover the cost or if the cost is unallowable.

This cost is allowable on Sponsored Awards with the following caveats:

  • It is allocated to the budgets based on the salary allocation at the time of payment; costs cannot be reallocated based on budgetary convenience.
  • NIH sets the reasonable compensation level for graduate students to either the zero-level or first- level, if appropriately re-budgeted.  This $100 in compensation (as it is charged to Object Code 01-80) is unallowable if its inclusion causes the total amount of compensation to exceed the NIH compensation limitation. 

No.  NRSA Trainees or Fellows are not employees and as such receive a stipend and not compensation.  This payment is considered to be compensation (charged to Object Code 01-80) and Trainees/Fellows cannot receive compensation.  If this cost has been allocated to a NRSA Trainee or Fellowship Award, it must be removed from this Award and allocated to another department budget.