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Institutional Base Salary

About this Policy

Institutional Base Salary

Policy Number: 27017

Effective Date:
Dec 12, 2017

Last Updated:

Responsible Office:
UM System Controller’s Office

Responsible Administrator:
UM System Controller

Policy Contact:

Campus Sponsored Programs Office


  • Finance

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This policy defines the components of Institutional Base Salary (IBS), to explain the relationship between IBS and Total Allowable Salary.

Reason for Policy

To provide consistent budgeting and expensing of salaries and effort reporting in compliance with federal regulations, including those issued by the Office of Management and Budget (OMB) and the National Institutes of Health (NIH).

Policy Statement

A faculty member's IBS is established in her/his offer letter and updated by any notice of an annual raise, and is identified in the PeopleSoft system for all University employees. IBS may not be increased solely as a result of the University having received an externally sponsored award.

The IBS for faculty members may include the following salary components as defined below:

  • University Base Salary
  • Administrative Stipends
  • Clinical base salary

The IBS excludes the following salary components:

  • Summer Salary
  • Temporary Extra Compensation
  • Incidental Payments or Honoraria
  • Incentive payments under a Faculty Practice Plan
  • Veterans Administration (VA) salary

Salary charges made to sponsored projects must be calculated pro rata based on the IBS, with the salary billed to the sponsor being directly proportional to the effort devoted to the project. If the sponsoring agency has a salary cap, then the portion of an individual’s salary in excess of the cap is considered an unreimburseable cost. The portion of salary over the cap should be charged to a cost sharing chartfield of the project. The sponsor will therefore, not be billed for the portion in excess of the cap.

Faculty members on nine-month contracts may be compensated for work on sponsored projects during the summer, with the salary based on the IBS of the previous academic year and the level of summer effort devoted to the project. Charges to sponsored awards for summer salary must take into account commitments to summer instruction or administrative responsibilities as they may apply in individual cases. Sponsoring agencies may also limit summer compensation.


Institutional Base Salary (IBS) - the annual compensation paid by the University through a school or college or an administrative unit for an individual’s professional services, whether they consist of research, teaching, clinical or other activities, and whether the individual is employed full-time or part-time.

University Base Salary - the salary for performing duties as a faculty member of the University; these duties include but are not limited to teaching, research, service, professional development.

Faculty Practice Plan (Clinical Base Salary) - the portion of the faculty salary paid through the University of Missouri Faculty Practice Plans (i.e., University Physician Practice Plan, UMSL Clinical Psychology Faculty Professional Practice Plan).

Administrative Stipend - the payment for performing administrative duties such as chairing a department or directing a program.

Incentive Component - a bonus or incentive payment for exceeding performance goals or satisfying other criteria established by a Faculty Practice Plan and approved by the University.

Temporary Extra Compensation - compensation approved for a temporary period for assuming additional responsibilities, such as teaching an extra class.

Incidental Payments or Honoraria - for one-time activities not included within the normal workload.

Veterans Administration (VA) Salary - salary paid directly by the VA for VA appointments.

Total Allowable Salary - the total maximum salary paid to faculty members in a Faculty Practice Plan, inclusive of IBS, the Incentive Component of the practice plan, and all other sources. Because of its variable components, the Total Allowable Salary may be greater than the IBS.


Chairs, Deans and/or Provost Office:

  • Ensures that faculty are notified whenever there are changes to their approved Institutional Base Salary.

Sponsored Programs Office (SPO):

  • Reviews and approves proposals (including budgets) requesting funding from external sponsors.
  • Monitors compliance with salary cap.

Principal Investigator (PI):

  • Ensures that all requests for salary support in sponsored project proposals are based on the individual’s correct IBS, or in cases where the IBS exceeds the federal salary cap or any other sponsor limitation, the salary cap or limit amount is used instead of the IBS. At the option of the PI and when permissible under sponsor guidelines, the budget may reflect the full IBS in cases where a legislatively mandated cap applies. The sponsor will then adjust the budget accordingly upon issuance of the award.

Department Administrator:

  • Ensures proposal budgets include accurate salary requests.
  • Ensures that entries into the Job Earnings Distribution (JED) are correctly based on the individual’s IBS.
  • Retains copies of appointment letters and documented changed in the IBS for audit purposes.

Additional Details



Related Information



Formerly Accounting Policy Manual 60.37 – Institutional Base Salary (effective 12/26/2014)


Reviewed 2017-12-06