August 25, 2009
FAQ - Impact of Furloughs on Sponsored Programs
1 . What is the general rule for handling furloughs for individuals whose salaries are reimbursed, in whole or in part, by externally funded grants, contracts, or cooperative agreements?
Answer: The general rule is that CSUN employees whose salaries are 100% reimbursed by externally funded grants, contracts, or cooperative agreements are fully exempt from furlough, while individuals whose salaries are partially reimbursed will have a pro-rata exemption.
2 . How will we calculate overload (the 125% allowable in the faculty collective bargaining agreement and CSU policy) in a furlough situation?
Answer: Faculty can receive overload pay on sponsored programs up to 125% of their pre-furlough base salary. The CSU/CFA 7-28-2009 Furlough Agreement states (p. 6, provision 6.k) with regard to Article 36.4 of the CSU/CFA bargaining contract: "Additional Employment: For the period between July 1, 2009 and June 30, 2010, Article 36.4 shall be revised to read as follows: The "25%" overage as used in this Article shall be calculated as a percentage of the faculty unit employee's pre-furlough full-time workload or, when appropriate, full-time time base or 25% of the Faculty Unit Employee's full-time salary, whichever is greater. The total additional employment of the Faculty Unit employee shall not exceed the 25% overage."
3. How will the furloughs affect employees funded by state general fund or bond-funded grants, contracts, or cooperative agreements?
Answer: The general policy is that employees whose salaries are 100% reimbursed by external grants, contracts, or cooperative agreements are exempt from furlough, and that those whose salaries are partially reimbursed would be exempted on a pro-rata basis. This policy also applies to grants sponsored by state agencies.
4. If grant-funded staff who are employed state-side (CSUN) are paid 100% by an externally funded grant, contract, or cooperative agreement, (whether the grant is managed by the auxiliary or by the university) including via a "pass through" of federal funds for management by a state agency, are they subject to furlough?
Answer: CSUN employees (staff or faculty) who are 100% grant-funded are not subject to furlough, including those whose funding comes from a "pass-through" of federal funds (through state or local agency). With regard to faculty (Unit 3) the CSU/CFA 7-28-2009 Furlough Agreement states (p. 6, provision 7.a) "Faculty Unit employees whose salary is 100% funded from grants and contracts not funded from the state general fund, shall not be subject to this furlough agreement."
5. What about grant-funded staff who are employed by an auxiliary of CSUN? If they are paid 100% by a grant, contract, or cooperative agreement through an auxiliary, are they subject to furlough?
Answer: Auxiliaries establish their own policies. For grants administered through The University Corporation, it is at the discretion of the Principal Investigator, to ask employees to take vacation during State Budget Campus Closure days.
6. What about CSUN employees, who are partially paid by a federal or other externally funded grant, contract, or cooperative agreement? How does the furlough program apply to them?
Answer: An employee whose salary is partially funded from grants, contracts, or cooperative agreements shall be subject to furlough programs on a pro-rata basis, based on the portion of the employee's compensation provided by the state general fund.
7. If reimbursement from a grant, contract, or cooperative agreement is not at full rank and step with benefits, is there still a reduction in the furlough?
Answer: The reduction in furlough will be proportional to the actual amount of reimbursement based on the employee's salary. For example, suppose a sponsored program reimburses the general fund $4,000 for the cost of a replacement lecturer teaching one course, but the full salary for the faculty member for 100% of the faculty member's time for one semester would have been 40,000. In this example, the faculty member's furlough for the semester would be reduced by 10% ($4,000/$40,000).
In general, all sponsored programs-funded faculty and staff should be charged to a grant, contract, or cooperative agreement at their full rate of salary and fringe benefits (in accordance with OMB Circular A-21). If this is not the case for specific grants, contracts, or cooperative agreements in force, we suggest that rebudgeting of the sponsored program to include the full salary and benefits rates be discussed with sponsoring agencies.
8. What if CSUN has agreed to provide a cost match for additional assigned time for the faculty member? Is the cost match portion of effort subject to furlough?
Answer: If CSUN has a formal, written agreement with the sponsoring agency to provide the cost match, in order to maintain the effort commitment, both the portion of the faculty member's time directly reimbursed by the grant and the portion provided by the cost match should be exempted from furlough.
9. How does being partially exempt from furlough work?
Answer: We expect that the dean, chair, and individual faculty member will work out a mutually acceptable schedule so that the faculty member is able to continue the grant-related effort that is being reimbursed at the same level while reducing non-grant-related activities by the amount of the furlough (which should translate to roughly a 10% reduction in time and effort associated with these activities.) The tables below provide a translation into days of furlough.
Answer: The tables below summarize the reimbursement situations that might be encountered, as well as how to calculate the required furlough and the associated salary reduction.
Table 1. Furlough Status Based on Full or Partial Grant Reimbursement
|100% reimbursed (full salary and benefits)||Exempt from furlough|
|Partially reimbursed, n% of effort, full salary and benefits||Exempt from n% of furlough|
|Reimbursed, but not at full salary and benefits||Pro-rata exemption based on % reimbursement, calculated as % of full salary and benefits (calculated based on ratio of salary reimbursement to employee's full salary)|
|University cost match||Exempted from furlough if written agreement with sponsoring agency in place. Note cost match can be greater than 1:1, Not exempt from furlough otherwise|
Table 2. Calculation of Furlough with Partial Reimbursement
|Situation||Starting Furlough||% Reimbursed||Reduction in Furlough Days||Net Furlough|
|Grant reimbursed (full rate) at 20%||18 days||20%||3.6 days (1.8 per semester, 1.2 days per quarter)||14.4 days|
|Grant-reimbursed @ 20% plus cost match commitment 20%||18 days||40%||7.2 days (3.6 per semester, 2.4 days per quarter)||10.8 days|
|Grant reimbursed, less than full salary and benefits Example: reimbursed for 40% time, but at replacement rate; replacement rate for this individual is only 50% of individual's full salary||18 days||40% times 0.5 equals 20% In general: actual dollars reimbursed divided by full salary gives % reimbursed||3.6 days (1.8 days per semester, 1.2 days per quarter)||14.4 days|
11. Will employees working in animal facilities be exempt from furlough?
Answer: No, employees working in animal facilities will not generally be exempt from furloughs. The preference will be to maintain operations with careful scheduling despite the furloughs. However, if compliance requirements and/or operational needs cannot be met using alternate furlough schedules, exemptions may be requested from the Provost and Vice President of Academic Affairs, as the President's designee, for approval.