Overload Supported by Federally Sponsored Research

Summary

Federal grants and federal flow-through funds generally do not allow overload or additional compensation for grant work, regardless of the funding source used for the payment. Overload may be permitted on qualifying non-federal awards when the award is not supported by federal funds and does not restrict additional compensation; required approvals, including sponsor approval when applicable and Director of Grants Accounting approval for the EPAF, must be obtained before payment.

Body

Question

Can sponsored project funds be used to pay faculty for overload or additional compensation?

Answer

Federal and Federal Flow-Through Awards

Federal grants do not allow additional compensation or overload payments for work performed on a federal grant, regardless of the funding source used to pay the overload. Non-federal awards that are supported by federal funds are also subject to federal grant restrictions.

In general, additional compensation for grant work is permitted only when the grant is:

  • Non-federal.

  • Not supported by federal dollars.

  • Not subject to a sponsor restriction prohibiting additional compensation.

Faculty compensation charged to federal awards is subject to the requirements of 2 CFR 200.430 and USD's policy on Overload Compensation. Faculty salary charged to a federal award generally may not exceed the proportionate share of the faculty member's Institutional Base Salary (IBS) for the period worked, unless an applicable federal exception or prior federal awarding agency approval applies.

Overload Approval Process

Faculty members requesting overload must submit the request through DocuSign. The request is routed to the:

  • Supervisor

  • Chair

  • Dean

  • Vice President for Research & Sponsored Programs

If any portion of the overload compensation is proposed to be paid from grant funds, the faculty member should work with ORSP to contact the sponsor for approval.

  • If the sponsor does not approve the overload: The overload compensation cannot be charged to the grant.

  • If the sponsor approves the overload: The department should submit an EPAF for the additional compensation.

  • Director of Grants Accounting approval: The Director of Grants Accounting must approve all EPAFs and related requests involving overload or additional compensation supported by sponsored project funds.

For allowable non-federal awards, the additional compensation must also comply with USD's written compensation policies, be commensurate with the faculty member's IBS rate and the additional work performed, and meet applicable documentation requirements.

Need More Help?

If you need further assistance, please contact GrantsAccounting@usd.edu or orsp@usd.edu

 

Details

Details

Article ID: 10519
Created
Tue 9/22/26 9:39 PM
Modified
Fri 10/9/26 12:07 PM
KCS Article Status
WIP: Only Problem & some Environment captured
Not Validated: Complete & Resolution captured, confidence lacks in structure, content, no feedback
Validated: Complete & reusable, used by licensed KCS user, confidence in resolution & std. compliance
Validated

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