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Handbook of Operating Procedures
Chapter 4 - Personnel General
Publication Date: January 11, 2001
Responsible Executive: VP for Business Affairs

4.07 Payment of Salary Supplements to University Employees and Non-Standard Payments to Persons who are not Employees of The University of Texas at San Antonio

  1. In accordance with rules, regulations and policies of The University of Texas System, prior written approval must be obtained before The University of Texas at San Antonio's (UTSA) funds, from any source including grant and contract funds, may be expended for the following categories of non-standard or supplemental payments to either employees or to persons who are not employees of UTSA:

    1. Proposed Payments for services to Employees or Non-Employees addressed by this policy:

      Administrative Stipends Fees for Consulting (Research) Fees for Consulting Services* Fees for Professional Services Fees for Guest Lectures Fees for Extension Center/Continuing/Extended Education Teaching Fees for Correspondence Course Instruction Fees for Coaching Clinics or for Sports Camps or Other Camps (unless covered by official contracts for coaches)

      *Consulting Services: Includes studies conducted for, and advice rendered to, a state agency that does not involve the traditional relationship of employer and employee or routine service that is necessary to the functioning of the agency's programs.

    2. Proposed Payments for Expenses to Non-Employees addressed in this policy:

      1. Fees for "Consulting Services" detailed procedures, including publication and pre- and post-award notices, are provided in UT System Policy 128 which are available in the UT San Antonio Business Office. Where used in these "Policies and Procedures" the term "Consulting Services" applies only to such services as may be officially contracted for in accordance with UT System Policy 128 and only where non-employees of UT San Antonio are to be paid for such services. Texas law is very specific regarding the definition of "Consulting Services" (see section I.A.) and established statutes govern the nature of such services. Some sponsored research grants or contracts may authorize "Consulting" under the terms of the research grant or contract. Where used in these "Policies and Procedures" the term "Research Consulting" refers only to consulting which is specifically authorized in the grant or contract proposal and in the approved budget for the grant or contract.

      2. Transportation (lodging, meals or other travel expenses) expenses required in the performance of contracts or to provide professional services or consulting services to UTSA.

    3. To obtain prior written approval (with the exception of "Consulting Services" with an anticipated total value of $15,000 or more), for proposed services , the Authorization For Services Agreement Form must be completed and submitted to the appropriate office for final approval as follows not less than five (5) working days prior to the date on which the proposed services are to be provided:

      1. When the proposed services are to be provided by a UTSA employee or when the anticipated total of the authorization for services form equals $15,000 or more, the Office of the Vice President for Business Affairs is required for final approval. The Authorization for Services Agreement form must first be submitted through the appropriate administrative channels in respective Vice Presidential areas, e.g., Director, Dean, Assistant/Associate Vice President, Vice President, Provost.

      2. When the proposed services are to be provided by a non-UTSA employee or the anticipated total of the authorization for services form is less than $15,000, approval of the appropriate vice presidential reporting area only is required. The Authorization for Services Agreement form must first be submitted through the appropriate administrative channels in respective Vice Presidential areas, e.g., Director, Dean, Assistant/Associate Vice President, Vice President, Provost.

      To obtain prior written approval for "Consulting Services" with an anticipated total value of $15,000 or more, refer to UT System policy 128 , described above, which describes procedures and requirements for hiring outside consultants.

  2. Payment of Administrative Stipends to University Employees.

    The following rules will apply to all proposed payments of administrative stipends to any UTSA employee who may be considered eligible for such payment:

    1. Administrative stipends, which result in an increase to base salary, cannot be paid from grants and contracts. In instances where a payment is authorized for work performed on a grant or contract, such payments must be specifically identified in the grant proposal and budget and must be treated as a "buy-out" during the regular 9 month academic period or as summer salary. All compensation to be paid from a grant or contract must be clearly explained in the proposal budget and/or budget narrative. A copy of any special terms and conditions imposed by the sponsoring agency should accompany the proposal. Any changes to the approved budget must be forwarded to the Office of Research Development for review and approval. Incomplete proposals will not be forwarded to the sponsoring agency under any circumstances and deadlines may be missed if appropriate staff work has not occurred prior to receipt of the proposal by the Office of Research Development.

    2. Administrative stipends are included as part of the regular payroll records of the UTSA employee receiving the stipend and will be reflected in the annual Letter of Appointment.

    3. Administrative stipends normally will be authorized only for administrative duties where it is possible to define, justify, and document the circumstances which require payment of an administrative stipend to the employee. The justification for paying the proposed administrative stipend must be in writing and include an explanation of the purpose for which the stipend is to be paid.

    4. The following information (as a minimum) must be included in the statement of justification for payment of the proposed administrative stipend:

      1. Employee's name and social security number
      2. Employee's current job title
      3. Proposed payment period (inclusive dates)
      4. Specific duties to be performed which require payment of the administrative stipend
      5. Proposed amount of the stipend to be paid to the employee and the basis for recommending the amount of the proposed stipend
    5. The following signatures of endorsement and/or approval will be required in advance of any payment of an administrative stipend:

      1. Signatures of the appropriate Departmental Chair, Dean, Associate or Assistant Vice President and the appropriate Vice President.
      2. Approving signature of the Provost and Vice President for Academic Affairs on all proposed administrative stipends to academic employees, including Library employees.
      3. Approval by the UTSA President or his or her designee.
    6. All administrative stipends must be approved annually during the process of developing the annual operating budget of the University, including those stipends which are to be continued from one fiscal year to the next fiscal year.

    7. Approval by UT System Administration of administrative stipends is required on all transactions involving tenured faculty and on all University employees who report directly to the President or who report directly to a Vice President in accordance with University of Texas System Budget Rules and Regulations prior to approval by the Board of Regents in the annual operating budgets of all components of The University of Texas System. Administrative stipends not included in the annual operating budget of the University are to be submitted by the President to the Vice Chancellor for Academic Affairs in the form of a Request for Budget Change (RBC) and for inclusion in UTSA's institutional docket for presentation to The University of Texas System Board of Regents in accordance with established docketing procedures.

    8. Unless specifically approved in writing by the President, the limitation on the amount paid as administrative stipends shall be as follows:

      For employees on 12-month appointments an administrative stipend shall not exceed 10% (ten percent) of the employee's budgeted annual (12-month) salary. For employees on 9-month appointments an administrative stipend shall not exceed 10% (ten percent) of the budgeted 9-month salary. Such payments will generally be made monthly through the established payroll system of the university.

  3. Policy on Payments to Consultants, Research Consultants and Payment of Similar Fees for Specific Short-Term Assignments to (1) Faculty and Staff of UTSA, (2) Faculty and Staff of Other UT System Institutions, (3) Personnel of Other State Institutions and Agencies, and (4) Individuals Who are not Employees of the State of Texas or Firms or Organizations that are not State Agencies reference the following applicable sections of Part One, Chapter III, Rules and Regulations of the Board of Regents of The University of Texas System: Section 19--Division of Salaries for Staff Engaged in Teaching and Non-teaching Activities; Section 22--Absence from Usual and Regular Duties; Section 24--Compensation for Correspondence and Extension Teaching; Section 28--Power to Authorize Expenditures Out of System Funds; Section 30--Power to Bind the System in Fixing its Policies; Section 31--Institutional Control and Administration of Contracts and Grants.

    The following guidelines also apply to specific short-term assignments involving professional services and guest lecturing, and teaching through extended education, correspondence courses, or extension centers. Where the term "Research Consulting" is used, such consulting applies only to inter-departmental consulting (intra-university) and does not address "Consulting Services" discussed previously on the first page of these "Policies and Procedures."

    1. UTSA Faculty and Staff

      1. Fees for research consulting, lecturing or other professional services, in addition to full-time or part-time salaries, shall not be paid to institutional employees, except in cases where unusual circumstances justify such payments as determined by the President or his or her designee. In most cases of research consulting, every effort should be made to provide release time for the consultant. In such cases, the consultant would not receive direct compensation for his or her involvement, but the consulting would be considered a part of his or her normal institutional workload.

        When supplemental payments are justified, such payments must be fully documented. All such payments to institutional employees must be paid through the UTSA payroll system using the Authorization for Services Agreement, and are subject to applicable IRS regulations regarding withholding taxes, and also subject to other payroll salary based benefits deductions and payroll charges, as appropriate.

      2. Applicable sections of the Rules and Regulations of the Board of Regents, as cited above, provide guidance regarding payment of fees for research consulting, lecturing, or other professional services by faculty and staff within a component institution. Under the Rules, each component institution is required to develop procedures for properly administering and controlling the division of salaries for faculty (and staff) engaged in teaching and non-teaching activities. These procedures are described in the next two sections.

      3. In addition to the regular salary which an employee is paid for performance of his or her primary duties, additional compensation may be authorized for research consulting for any employee; however, advance written permission outlining the duties, duration, and compensation proposed must be requested. No such duties are to be undertaken until approval has been received from the employee's immediate supervisor and from the appropriate Vice President. The employee's immediate supervisor is responsible for ensuring that the employee is satisfactorily performing those duties and responsibilities for which the employee is being compensated in either a full-time or part-time basis.

      4. Fees paid by UTSA to UTSA employees for lecturing or other professional services in addition to full-time or part-time salaries shall be subject to the annual (fiscal year) limit established in accordance with applicable rules and regulations of the institution. Rates for these activities must be set from year to year by the President of UTSA and are approved via the annual operating budget approval process. These rates are included in the printed operating budget and cannot be exceeded for the period covered by the budget without advance written approval by the President of UTSA.

      5. Additional Requirements/Research Consulting Fees. Compliance with the requirements of currently applicable Federal Guidelines, in particular OMB Circular A-21, is mandatory for payment of research consulting fees to UTSA employees from federal grant and contract funds and should be observed for fees or other payments from any sources of university funds. According to OMB Circular A-21, intra-university consulting is assumed to be undertaken as a university obligation requiring no compensation in addition to full-time base salary. However, it may be permissible to pay consulting fees in unusual situations where the consultation is across departmental lines or involves a separate or remote operation, and the work performed by the consultant is in addition to his or her regular departmental workload. Supplemental payment for services, when authorized, must be justified through documentation which shows that such services are clearly beyond the scope of service that can reasonably be expected of the faculty member. Such consulting arrangements require the prior written approval of the President or his or her designee and must be specifically authorized in the grant/contract agreement or specifically approved in writing by the sponsoring agency.

        1. The basis for computing charges to sponsored projects for research consulting and other professional services will be the faculty member's budgeted academic salary rate or the staff member's annual salary rate as reflected in the institution's annual Operating Budget. This principle must be consistently applied to all faculty and staff members of the institution. Charges to sponsored projects may not exceed the proportionate share of the faculty or staff member's budgeted salary attributable to the work performed on the grant or contract.

          The basis for computing the charge for a faculty or staff member's services must be shown on the Authorization for Services Agreement form when it is submitted for approval. The estimated number of days and/or hours of the faculty or staff member's time must be provided, and the proposed rate must be consistent with the faculty or staff member's budgeted salary rate. The proposed hourly rate must be calculated as follows for the faculty members: Academic Rate divided by 1560 hours equals hourly rate. The proposed hourly rate must be calculated as follows for staff members: Annual Rate divided by 2080 hours equals hourly rate.

          Forms showing different rates or rates which are not properly documented and consistent with the budgeted academic/annual salary rate will be returned for correction. Under no circumstances will a payment be authorized until the basis for charging the faculty or staff member's time has been corrected.

          Pursuant to OMB Circular A-21, inter-departmental research consulting, when required, is generally assumed to be undertaken as a university obligation requiring no compensation in addition to the faculty member's full-time base salary. This principle also applies to faculty members who function as research consultants or who otherwise contribute to the work under a sponsored agreement which is under the direction of another faculty member of the same institution.

          Exceptions to OMB Circular A-21 guidelines are restricted to unusual cases which may dictate and/or justify a different treatment; however, to be considered as an unusual case the work performed must very clearly be across departmental lines or must involve grant or contract activities or operations at separate or remote operations and the nature of the work to be performed by the employee must be as a research consultant. (Refer also to guidelines presented in III.A.3, above.)

        2. All requests for exceptions to these rules, regulations, and guidelines must be submitted in writing to the president of the university or to his or her designee, to include appropriate justification for making an exception in accordance with applicable UT System and/or other federal or state guidelines.

      6. Teaching Duties and Related Compensation for Full-Time Administrators and other Non-Faculty Employees of UTSA

        1. Occasional Teaching Service

          Full-time administrators and other non-faculty UTSA employees may receive extra compensation as outlined in Section III, A.1, when such teaching assignments occur under rare circumstances or on a one-time basis as an accommodation to the university in a subject area where the employee has particular expertise and the employee's regular, full-time employment responsibilities in his or her primary position are well defined and are not negatively impacted by the extra teaching duties. Any appointment that could result in a potential Fair Labor Standards Act violation should be authorized only after appropriate review to assure full compliance with the provisions of the law. This may be a particular concern where the individual involved is crossing departmental lines or is serving in both a supervised and supervisory role as a result of such assignment.

          If a full-time administrator or other non-faculty UTSA employee works occasionally or sporadically on a part-time basis, solely at his or her option, for UTSA on such teaching assignments, the hours worked in the different job shall not be combined for the purpose of determining overtime liability under the Federal Labor Standards Act.

        2. Regular Teaching Service

          Where an administrator or other non-faculty employee is expected to teach on a regular basis, it is appropriate to treat such appointments as an adjustment to the current workload with a"split" appointment at separate academic and administrative rates through the regular appointment process. The AUTHORIZATION FOR SERVICES AGREEMENT form may not be used for this purpose.

          Where an administrator or other non-faculty employee is qualified for a regular faculty appointment, occasional formal class instruction and/or related academic activities are encouraged. However, if such academic involvement is to be treated as other than a bona fide split appointment, it should normally be on an uncompensated basis and such teaching service should not involve more than one course each year. Such service may best be reflected in the institution's annual operating budget as an academic appointment (adjunct or tenure track, as appropriate) at no ($0000) salary.

      7. Correspondence, Extension Center, and Extended/Continuing Education Teaching by Regular UT San Antonio Employees

        As prescribed by Rules and Regulations of the Board of Regents (Part One, Chapter III, Section 24), full-time employees on twelve (12) month appointments may receive additional compensation for correspondence course and/or extension center teaching, but may not receive additional compensation for summer school teaching; however, full-time employees on twelve (12) month appointments must use accrued annual leave on an hour-for-hour (or day-for-day) basis in order to receive additional compensation for correspondence course and/or extension center teaching, including continuing education courses, anytime these services are performed during normal work hours (Monday-Friday/8 am - 5 pm). Taking annual leave is not required for employees on twelve (12) month appointments if these services are performed in the evenings or on Saturdays, Sundays, or on official university holidays. Full-time employees on nine (9) month appointments may receive additional compensation for correspondence course and/or extension center teaching during the nine (9) month period and also may be paid for summer school teaching. Compensation shall be paid at rates set from year to year by the President and approved via the operating budget.

        These same general guidelines apply to any full-time or part-time employee who teaches extended education courses or who performs other duties related to extended education services where additional compensation is to be paid to such employees. Where institutional faculty, administrators or other non-faculty employees engage in extension or correspondence course teaching for pay, such compensation must be pursuant to an approved institutional rate structure and in compliance with the Fair Labor Standards Act, and it must be shown that there is no conflict with the performance of normal teaching, administrative, or other duties and responsibilities for which the employee is being compensated by the university.

        Payment for Extended Education teaching by non-UTSA employees may not be made until an appropriate Educational Services Agreement has been approved by the Director of Extended Education and the Vice President for Community Services. Any person performing these services is considered an occasional employee of the University. Payment may not be made for Extended Education teaching by a UTSA employee until an appropriate Educational Services Agreement has been approved by the Director of Extended Education, the Vice President for Extended Services and the Vice President for Business Affairs.

      8. Payments for Managing/Participating in Coaching Schools, Clinics or Camps

        Payments to UTSA employees for managing or participation in coaching schools, clinics or other camps held on the UTSA campus will be in accordance with the terms of employment contracts which coaches enter into at the time of their employment or as may be subsequently revised or amended. UTSA coaches are not allowed to receive remuneration directly or indirectly from the participants. All fees and payments must go through the university and coaches are not authorized to set up independent bank accounts for the camps, except through the Vice President for Business Affairs Office. Payments to any other UTSA employee for such services must be made in a manner consistent with all other policies, rules, regulations, guidelines or procedures provided herein.

    2. Faculty and Staff of Other Component Institutions of The University of Texas System and Employees of other Texas Institutions of Higher education or Agencies of the State of Texas.

      1. A component institution of The University of Texas System may pay consulting fees (whether Research Consulting or Consulting Services) or lecture fees to a regular, budgeted employee of another component institution of The University of Texas System only when it is determined in advance and in writing by the President/Chief Administrative Officer/Agency Head of the receiving component institution that it is in the best interest of that receiving component institution and the State of Texas to do so. Such service by an employee of one component institution for the benefit of another component institution must also be approved in advance and in writing by the President/Chief Administrative Officer/Agency Head of the institution by which the consultant or lecturer is regularly employed in a budgeted position (the providing institution). Copies of the specific, written authorization must support the voucher prepared by the receiving institution to pay the employee of the providing institution. Failure to request written approval of the President of either the providing institution or the receiving institution in advance (15 working days) of the date on which the service or services is/are to begin may result in disapproval by either President/Chief Administrative Officer/Agency Head and, for this reason, could result in non-payment by the receiving institution.

      2. Forms requesting services of an employee of a component institution of The University of Texas System or an employee of another Texas public institution of higher education or other agency of the State of Texas must be processed in time to be submitted to the Office of the Vice President for Business Affairs not less than fifteen (15) working days in advance of the date the requested services are scheduled to begin.

    3. Payments for Consulting Services, Professional Services, Guest Lecturers or Correspondence Course Teaching to Individuals Who Are Not State Employees or to Entities Which are Not State Agencies.

      1. External consulting services, professional services, guest lecturers, and correspondence course teaching by non-employees of UT San Antonio may at times be necessary. If a nonresident alien is being considered to perform such services, they must provide documentation that they have an appropriate visa to be in this country allowing them to provide such services. These individuals are subject to special withholding requirements. Contact the UTSA Payroll Office for assistance with obtaining a Taxpayer Identification Number and for further information on this taxation.

      2. Payments for consulting services must be handled in accordance with guidelines provided in Texas Government Code, Chapter 2254 and UT System policy 128 . Where it is anticipated that the total value of a consulting contract will be $15,000 or more, an official Request for Proposals (RFP) must be developed and advertised in The Texas Register as required by applicable state law. Guidelines for development of RFP's may be obtained from the Office of the Vice President for Business Affairs or from the Office of Contracting and General Services.

      3. Payment may not be made to providers of consulting services, professional services, guest lecturers or for correspondence course teaching (or similar services) until an appropriate contract or agreement for providing such services has been prepared and processed and approved by the Office of the Vice President for Business Affairs. Sample formats for such contracts or agreements may be obtained from the Office of the Vice President for Business Affairs. None of the funds appropriated to an institution of higher education may be used to enter into a consultant service contract with any individual who has been employed previously by that institution within the past twelve months, current General Appropriations Act. In addition, Texas Government Code, Section 2254.033 imposes certain disclosure requirements for any proposed consultant who was previously employed during the preceding twenty-four months.

  4. Certification and/or Procedural Requirements for Payments to Consultants, Research Consultants, Guest Lectures, and Providers of Professional Services

    1. To obtain prior written approval for such services, the three-part form (AUTHORIZATION FOR SERVICES AGREEMENT) must be completed and submitted to the appropriate office for final approval as outlined earlier in sections, I.C.1 and I.C.2, and not less than five (5) working days prior to the date on which the proposed services are to be provided .

      Individuals shall be selected on the basis of qualifications and expertise (considering the nature and extent of the services to be performed), and the statement of justification must document that the services are essential to the operations of the University. Written documentation of the individuals professional qualifications must be submitted with the AUTHORIZATION FOR SERVICES AGREEMENT.

    2. Complete and appropriate written documentation must be provided before payments may be made from any source of university funds to consultants, research consultants, lecturers, or individuals providing professional services to the University. A copy of the AUTHORIZATION FOR SERVICES AGREEMENT, form must be provided with the voucher submitted for payment. Where appropriate, an official invoice submitted by the individual upon completion of the services for which payment is being made will usually be considered adequate documentation if the invoice is consistent with payment details shown on the AUTHORIZATION FOR SERVICES AGREEMENT form.

    3. Payroll Vouchers used for initiating payment to UTSA employees who are authorized to receive payment in accordance with this policy will be processed pursuant to standard payroll procedures.

    4. All Purchase Vouchers submitted for payment to persons who are neither regular nor part-time employees of UTSA must contain or be accompanied by the following information regardless of the source of university funds from which payment is being made:

      1. The authorized signature of the person who has responsibility for administration and control of the funds being disbursed.

      2. The signature of the payee if there is no official invoice included with documentation supporting the request for payment. This signature, if required, must be contained on the applicable signature line in the "Certification" section of the purchase voucher.

      3. The permanent mailing address of the payee. (All checks to the payee will be mailed to the permanent address provided by the payee). All exceptions to this practice must be approved in writing by the Vice President for Business Affairs.

    5. Receipts for transportation, lodging, meals, and other authorized travel expenses must be provided with the purchase voucher requesting payment to the payee for such expenses. Reimbursement of such expenses will not be authorized if such receipts are not provided. Any exceptions to this requirement must be approved in writing by the Vice President for Business Affairs. Expense payments to such shall be made in accordance with currently applicable State of Texas and UT System rules, regulations, and guidelines which govern reimbursement of such expenses to employees of the university and be covered in the related contract for services. To the extent possible, travel and lodging arrangements should take advantage of special contract airfare, rental car and lodging rates which are available to all employees of the university. Direct payment for airline fares and/or rental cars on behalf of non-university employees is not encouraged; however, under certain circumstances direct payment of such expenses may be appropriate if it can be shown that such payments will conserve university funds. Any direct payments of this type must be authorized in advance and in writing by the Vice President for Business Affairs.