Many “K” awards have salary caps, yet they require minimum effort commitments. Calculating the cost sharing total and the correct distribution between the sponsored project and the linked cost share account can be confusing.
For example, a “K” award with a $90,000 cap and 75% effort requirement equates to a maximum annual salary of $120,000 (75% of $120,000 = $90,000).
Faculty salaries that exceed $120,000 annually, in this example, are “over the K cap” and the difference (between 75% of $90,000 and 75% of the actual salary) must be “cost shared” by the department or school.
Here’s a simple sheet which allows both calculation of the cost sharing AND gives you the correct distribution for annual LD charging between the sponsored project and the linked cost share account.
Click here for a printer friendly version
|
LD Charging/Scheduling (Effective Effort) |
|||||||||
|
A |
B |
C (A*B) |
D |
E (C-D) |
F |
G (E+F) |
|
H (D/A) |
B-H |
PI’s Name |
Actual Salary (3% annual increase) |
Required Effort |
Actual Salary at required effort |
Salary Cap |
Difference |
Fringe @ 38.5% |
Cost Sharing |
|
Grant Project |
Cost Share Project |
Year 1 |
150,000 |
75% |
112,500 |
90,000 |
22,500 |
8,663 |
31,163 |
|
60.0% |
15.0% |
Year 2 |
154,500 |
75% |
115,875 |
90,000 |
25,875 |
9,962 |
35,837 |
|
58.3% |
16.7% |
Year 3 |
159,135 |
75% |
119,351 |
90,000 |
29,351 |
11,300 |
40,651 |
|
56.6% |
18.4% |
Year 4 |
163,909 |
75% |
122,932 |
90,000 |
32,932 |
12,679 |
45,611 |
|
54.9% |
20.1% |
Year 5 |
168,826 |
75% |
126,620 |
90,000 |
36,620 |
14,099 |
50,718 |
|
53.3% |
21.7% |
Total Cost Sharing: |
203,980 |
|
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