Lapsed Salaries and Grant Release Salaries – 302.4

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University of Arkansas at Little Rock
Policy Name: Lapsed Salaries and Grant Release Salaries
Policy Number: 302.4
Effective Date: July 1, 2013


The purpose of this policy is to ensure understanding of disbursement of lapsed salaries, grant release salaries, and indirect costs.

Lapsed salary dollars, non-classified (non-faculty) positions
  • Eighty percent (80%) is returned to Institutional Reserves
  • Twenty percent (20%) is returned to the vice chancellor or equivalent supervisor
Lapsed salary dollars, faculty positions
  • Essential replacement costs are covered first
  • Ten percent (10%) is returned to the provost
  • Remainder is returned to Institutional Reserves
Faculty Grant Release

Prior to release of these dollars to the college/school, an amount to cover the per course cost of lecturer salaries as determined by the provost will be transferred to the provost’s instructional reserve. The remainder will be returned to the college/school.

Each college/school should develop a policy statement for approval as to how such returned funds will be disbursed taking into account the college/school, departments, and projects involved. It is not assumed that the principal investigator or the project will automatically receive these dollars. If incentives for faculty salaries are offered, the dollars to pay the incentives will come from the grant release salaries.

In addition, it is critical that the institution maximize indirect cost income by being proactive in the early stages of the grant application process. Therefore, the following should be considered standard operating procedure:

  • If a grantor will pay indirect costs, they must be requested at the maximum rate.
  • If a grantor will not pay for indirect costs, that fact must be documented, and the documentation must accompany the proposal during the on-campus approval process.
  • Any “giving away” of indirect cost income in an application must be approved in advance by the chancellor.
  • The vice provost of research is responsible for informing grant proposers of these expectations and for monitoring compliance with them.

Source: University-wide Administrative Memo, July 1, 1993
Revised: December 7, 1995; May 1995; July 3, 1996; September 17, 1996; July 2, 1997; July 6, 2000; April 11, 2001; May 18, 2004; September 25, 2006; April 16, 2007; July 1, 2007; November 17, 2009; July 1, 2013
Approved By: Chancellor
Custodian: Budget Director