This procedure explains how to establish a UDAK to capture institutional base salary expenditures in excess of the National Institutes of Health (NIH) salary cap. General Guidelines
NIH will not reimburse the University for the direct institutional base salaries of individuals at a rate in excess of the salary limitation that is updated annually in the NIH Guide. Click here for Salary caps by Federal fiscal year from FY 1990 to the current fiscal year. The excess salary must not be charged to Sponsored Project UDAKs, but must be accounted for in a separate non-sponsored UDAK.
The Institutional Base Salary consists of an employee's combined MUSC and Affiliate salary. However, incentive pay must not be included in Federal and State award proposals and may not be charged to Federal and State sponsoring agencies.
Departmental Business Managers or his/her staff are responsible for determining the amount of salary excess to be charged to the new UDAK and for calculating the percentage of MUSC salary to be distributed to the NIH Salary Cap UDAK.
Guidelines concerning identification and documentation requirements for the NIH salary cap (including detailed instructions and an Excel worksheet to be used to determine the amounts and percentages) at MUSC are found in Procedure 4-3.07: Determining Salary Expenditures in Excess of the NIH Salary Cap. Questions regarding establishment of NIH Salary Cap UDAKs should be addressed to the appropriate Grants and Contracts Accounting Accountant based on departmental assignment (see Distribution of Grants by Administrator) or at 792-2850. Procedures
1. The Departmental Business Manager or his/her staff is responsible for establishing a NIH Salary Cap Excess UDAK to account for the amount of excess salary that cannot be charged to the sponsor.
2. The Departmental Business Manager or his/her staff initiates a Chart of Accounts Maintenance Request (CAMR) Form for a NIH Salary Cap UDAK and completes the required information as shown in the sample form (see Forms below). The function code (last two digits of the reporting code) must be 26.
3. The department submits the completed CAMR online to Controller for processing.
4. Controller notifies the departmental requestor that the UDAK is established in the accounting system and expenditures may be initiated.Forms
Chart of Accounts Maintenance Request (CAMR) for NIH Salary Cap UDAK: