For federal grants, OMB Circular A-21 requires that “Compensation for personal services covers all amounts paid currently or accrued by the institution for services of employees rendered during the period of performance under sponsored agreements. Such amounts include salaries, wages, and fringe benefits. These costs are allowable to the extent that the total compensation to individual employees conforms to the established policies of the institution, consistently applied…….”
This policy provides consistency across the college on salary increases regardless of whether the funds for a salary increase have been allocated in a grant award.
Raises on salaries funded by grants are typically built into a proposal budget. Actual salary raises from a grant must be consistent with that for all other college personnel and must reflect the level approved by the State University of New York (SUNY) or the Research Foundation of SUNY (RF). If no pay raises are granted by SUNY, then grant funded salaries will not be raised.
2 CFR, Part 220 J10 (OMB Circular A-21, J10)