Addendum

Policy for Faculty Members holding Administrative Positions

The following policy shall apply to Vice Presidents, Associate Vice Presidents, Assistant Vice Presidents, Chancellors, Provosts, Vice Chancellors, Vice Provosts, Associate Vice Provosts, Assistant Vice Provosts, Deans, Associate Deans, Assistant Deans, Directors, and other administrative positions as identified by the Chancellors or President who were not in one of these positions on June 30, 2005. It shall be used to determine the salary of an individual who holds both a faculty and an administrative position when the individual relinquishes or is removed from the administrative position.

When an individual assumes both faculty and administrative positions, a memorandum shall be created setting forth their 12-month salary. The appointing official will then determine the faculty and administrative portions of the salary . From year to year, any raises shall be apportioned between the faculty component of the salary and the administrative component of the salary. These figures shall be maintained by the appointing official with a copy provided to the faculty member/administrator and to the appropriate campus faculty records office.

When a faculty member relinquishes or is removed from an administrative position, the faculty member’s salary shall return to the faculty component of the salary and the faculty member shall no longer be entitled to the administrative component. The faculty component of the salary shall revert to ten-twelfths (10/12) of the faculty component if the individual returns to an academic year teaching position.

Procedure
Since fiscal year 2005, salaries for new faculty administrators (Provosts, Vice Provosts, Chancellors, Vice Chancellors, Deans, Directors, and other administrative positions) have had two components. One component is the traditional 12-month base amount and is budgeted on object code 2000. The specific amount tied to the second component “Administrative,” is budgeted on object code 2000 with a sub-object code of ADM. Twelve-month administrators, whose salaries will be partially funded from their 10-month faculty line, should be converted, spreading their 10-month salary over 12-months (e.g., 25% of the 10-month rate will be 20.83 FTE of the 12-month rate). The administrative component of the salary is incurred on the administrative office account. Each component of the salary will be incremented annually in compliance with the campus budget salary guidelines. The administrative component will be removed if the administrator returns to the faculty and the faculty salary component should revert to ten-twelfths (10/12).

Option 1 example, for salary increases 15% or greater:
Step 1: Faculty A, $150,000/10 ($15,000/mo.) change to 12- month, becomes $180,000 ($15,000/mo.)
Step 2: Official sets the “new” base to be $220,000/12 months ($18,333/mo.)
Step 3: ADM to be 15% of $220,000, $33,000
Salary View: Object code 2000, $187,000 [$220,000 - $33,000], 85% and Object Code 2000 ADM, $33,000, 15% ($18,333/mo.)
RETURN to FACULTY:
Remove ADM, $33,000
[$187,000/12 mo. ($15,583/mo.); $15,583 X 2 mo. = $31,166; $187,000 - $31,166 = $155,834]
Return to 10-month salary level, $155,834 ($15,583/mo.)

Option 2 example, for salary increases less than 15%:
Step 1: Faculty A, $150,000/10 ($15,000/mo.) change to 12- month, becomes $180,000 ($15,000/mo.)
Step 2: Official sets the “new” base to $201,600/12 months
Step 3: ADM to 10% of $201,600, ($20,160/mo.)
Salary View: Object code 2000, $181,440, 90% and Object Code ADM, $20,160, 10% ($16,680/mo.)
RETURN to FACULTY:
Remove ADM, $20,160
$201,600 - $20,160 = $181,440/12 ($15,120/ 12 mo.)
Return to 10-month salary level, $151,200 ($15,120/mo.)

Summer Session Allocations - General Fund Only

Where necessary, instructional RCs are responsible for providing salary and fringe benefit increases for summer faculty and summer SAA appointments. Use object code 2010 for Salary Plan AC1, 2310 for AC2, and 2370 for AC3, AC4 & WSG.

Distinguished Professors

The President selects distinguished professors at IU Bloomington and IU Indianapolis. The Distinguished Professor title becomes effective January 1 and the President will provide $10,000 as supplemental pay. The supplemental pay will be provided each January and remain unchanged (no incremental increases) until their termination from the university. The $10,000 supplemental pay will be reflected annually during budget construction via one of the President’s accounts. Each school may provide research funds if they so choose. Please direct questions to Henry Gabriel (hgabriel@iu.edu).

Rudy Professors

The Provost identifies recipients of the title, Rudy Professor. This title remains with the recipient until termination from the university. Annually, $10,000 will be transferred into a designated Rudy Professor (23 account) (object 9915) which can be used for compensation or research expenses. Please direct questions to Donna Carter (dkcarter@iu.edu).

Budgeting C&G Accounts

The Salary Policy for FY25 applies to employees in ALL fund groups. Those funded in whole or in part by Contract & Grant (C&G) accounts are NOT exceptions to the policy; therefore, salary increases will be given during budget construction, not on the employee’s anniversary date.

Expiring C&G Accounts

Contract and Grant accounts may expire between budget construction and the KFS budget load in late June. Do not request extensions or underwrites to extend the grant account beyond July.

If the grant account has another year of funding expected to arrive prior to July 1, set the employee’s salaries using the current C&G account during budget construction. If the new account is active prior to the budget load, the system will automatically load the salaries to the new account. If the grant funding ends prior to July 1, with no future project funds expected, the system will load the employee’s budgeted salaries to the expiring grant account, and the unit will need to move the salary to another account after July 1. Fringe benefits are not calculated on the budgeted salaries in C&G accounts. Do not budget hourly expenses in C&G accounts. Do not budget vacant positions or non-salary expenses such as supplies, travel, and equipment.

Life Cycle Funding for Desktop Equipment: General Fund Only

IU maintains full life cycle funding for faculty and staff desktop computers, servers, and peripheral equipment for units supported by general funds. Budget desktop life cycle replacement funds using object code 9940, sub-object code LCF.

University Information Technology Services (UITS) no longer provides matching funds. Funds should remain in the 10-XXX-98 account and should not be transferred into the 92-XXX-98 equipment replacement account.

President’s Fund

President’s Fund should be budgeted using object code 9977, sub-object code PFU.

Minor Repairs & Maintenance: All Fund Groups

If facility repairs or maintenance are planned for FY 2024 they should be budgeted. Funds to cover these costs should be reallocated within your available resources. Repairs and maintenance amounting to $75,000 or less need to be budgeted using object code 4700. These types of repairs are primarily intended to improve the aesthetic look of space or are “maintenance” of space. This includes painting a room, small area carpet replacement, replacement of consumables, or localized repartitioning etc. Note: VPCPF approval of these types of projects is necessary before the project can move forward.

Equipment - All Fund Groups

Equipment must meet two specific criteria to qualify as a capital purchase. It must have (1) an acquisition value of at least $5,000 (referred to as Capitalization Threshold) and (2) a useful life expectancy ≥ one year. Other costs such as assembling the asset, installation, freight/shipping, and training should also be capitalized with equipment purchases over $5,000. It is critical that capitalized equipment is correctly recorded in the university asset database using the following object codes:
• 7000 Capital Equipment
• 7015 Computer Equipment

The following are not considered capital equipment regardless of cost or useful life:

• Repair or replacement parts (Object code 4700 - Repair & Maintenance)
• Maintenance and Warranty agreements. (Object code 4776 - Service Maintenance Contracts)
• Software license agreements are not capitalized unless ownership is indicated within the license agreement and the acquisition cost ≥ $500K. (Object code 4616 - Computer Software Purchases)

Please refer to Standard Operating Procedure CSOP 8.0 Capitalization of Movable Equipment for guidelines relating to the capitalization of moveable equipment and object code assignment. Please direct questions to capasset@iu.edu.

Dual-Career Hiring

BL Campus funding support for approved Dual Career (spousal accommodation) appointments will be transferred post July 1, 2024. Cash support is based upon the original hiring amount per percentages outlined in the agreement. A funding pattern such as 75% Year 1, 50% Year 2, and 25% Year 3 is common, however, variations do occur. Please note on the edoc if the hire is Dual Career and attach any supporting documentation. Please direct questions to Donna Carter (dkcarter@iu.edu).

Postage - All Fund Groups

Visit USPS Mailing & Shipping Prices for a complete listing of all the rates in effect. If you have any questions, please contact Mail Services at 855-3503 or iumail@iu.edu.