Payroll Verification Reporting - Overview
PVR Process: PVR Presentation
Payroll Verification is required to ensure compliance with the Office of Management and Budget (OMB) “Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards,” as addressed in 2 CFR §200.430, and the University of Chicago Policy 2112.
All salaries and wages charged to Federal awards must be supported by a system of internal controls that provides reasonable assurance that the personnel costs incurred are accurate, allowable, and properly allocated.
Uniform Guidance: https://www.ecfr.gov/cgi-bin/text-idx?tpl=/ecfrbrowse/Title02/2cfr200_main_02.tpl
University Policy 2112: Individual's workplans should be monitored throughout the life of an award. Retroactive and prospective changes to cost allocation should be made in a timely manner to reflect changes in the individual's workplan.
Institutional Base Salary
2 CFR §200.430
Institutional Base Salary (IBS) is defined in 2 CFR §200.430 as "the annual compensation paid by an IHE for an individual's appointment (9 or 12 months), whether that individual's time is spent on research, instruction, administration, or other activities. IBS excludes any income that an individual earns outside of duties performed for the IHE. Unless there is a prior approval by the Federal awarding agency, charges of a faculty member's salary to the Federal award must not exceed the proportionate share of the IBS for the period during which the faculty member worked on the award."
University Policy
•IBS does not include payments from other organizations or income that individuals are permitted to earn outside of their institutional responsibilities, such as consulting.
•IBS rate must be used as the base salary on all grant proposals. For payroll purposes, total institutional effort is 100% effort, regardless of the individual’s appointment (0.5 FTE, .625 FTE, 1.0 FTE).
•No individual may commit more than 100% institutional or summer effort to be compensated at a rate that would exceed their annualized IBS.