Financial Policies

You can find a complete list of offices and programs who have their business affairs handled by our team. 

Policies regarding employment and compensation are available on the University Policies Human Resources page. The following documents provide guidelines and details to supplement the policies. Adobe Reader is required to view the PDF files; a free download.

An updated review of approval responsibility for empployment actions has recently been completed for areas reporting to the Provost. As a result, employment actions outlined in the attached list will require the prior approval of the Vice Provost for Faculty Affiars. Please direct these requests to Vice Provost Peter Hollenbeck (approvalsofficeoftheprovost@purdue.edu). Requests requiring approval by the Executive Vice President for Research and Partneships or the Dean of the Graduate School should be directed to their respective offices. This revises the list issued in February 2014.

If you have any questions concerning the specifics of this information, please contact your Directory of Financial Affairs or Human Resources.


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Purpose

In some situations it has been determined that the use of an administrative supplement is an appropriate way to recognize a specific assignment for a faculty or exempt staff member. This mechanism allows a salary adjustment for increased or temporary duties to be tied to the specific appointment or assignment. When the faculty or exempt staff member completes or relinquishes the appointment or assignment, the administrative supplement is removed.

An administrative supplement may be considered in the following cases:

  • When a person assumes a position with an increased level of responsibility, but maintains the right or understanding that he or she can or will return to a prior position. This would be more common with faculty, for example, where a faculty member becomes a department head, but can return to the faculty at some future time.
  • When a person assumes additional responsibilities over and above those of his or her current position. Often these are associated with an interim or temporary appointment.

Please note faculty and exempt staff members are eligible for administrative supplements. Contact the Human Resource Compensation Analyst assigned to your area for information on payment options for non-exempt staff taking on additional responsibilities.


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Issued November 2015
Effective January 2016 

PAYMENTS FOR PROVOST FUNDED DISTINGUISHED PROFESSOR ALLOCATIONS

Office of the Provost

Discretionary Allocation:

The full allocation will be made available while in pay status regardless of FTE for all Provost Funded Distinguished Professor Allocations. It is recommended that Unit Funded Distinguished and Named Professor Allocations follow this same guideline.

Salary Supplement from Discretionary Allocation (regardless of the source of funds):

The approved salary supplement will be paid on a monthly basis and prorated based on the FTE appointment for each pay period.

Distinguished Professor PRF Stipend:

The full stipend will be paid for any semester in pay status regardless of the FTE. Individuals on VEPR will receive payment for both semester regardless of pay status.

The full stipend will be paid for any semester in paid sabbatical leave status regardless of the FTE.

The full stipend will be paid for the initial semester when the date of the BOT approval of the appointment precedes the processing date of the stipend payment; no payment will be made when the BOT approval follows the processing date of the stipend payment.

The stipend will be prorated for the semester of termination or separation based on the days in pay status for the semester. If notification of a retirement or separation is received after the processing date, no adjustments will be made to the stipend payment.

No payment will be made when in unpaid status for the full semester except in the case of VEPR.

No payments will be made for post-retirement appointments or appointments as emeritus.

Balances at Separation:

Any unexpended balances from the discretionary allocations at separation will be returned to the Provost's Distinguished Professorship Reserve. Consideration will be given to requests to retain balances for appropriate purposes.


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Special Merit pay gives units flexibility in rewarding eligible faculty and staff for extra merit, special projects, and/or achievement of strategic objectives by allowing special lump sum awards outside of base pay.

DEFINITIONS

Special Merit Pay : non-recurring lump sum payment awarded to faculty or staff member for outstanding performance

Major Unit : an area reporting to the president, provost, chief financial officer/treasurer, chancellors, deans, vice provosts, and vice presidents

Executive Officer : a University officer who reports directly to the president, including those individuals who hold a title of or equivalent to provost, chief financial officer, executive vice president, senior vice president, vice president, director of intercollegiate athletics, and chancellor

Control Totals : the number of faculty and staff to whom each major unit may award special merit pay and the maximum amount of that pay as set forth in the formulas provided in the procedures

EXCLUSIONS
  • Student Employees
  • Graduate Staff
  • Temporary Employees
  • Visiting Faculty
  • Limited Term Lecturers
  • Postdoctoral Appointments
  • Regular faculty and staff employed less than one year
  • Employees who have a specific employment contract with the University that links additional compensation to their performance

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Basic Guidelines for the Use of Funds Held at Purdue Research Foundation

(Supersedes January 31, 2000 Guidelines)

West Lafayette Campus November 1, 2003

Background: School Discretionary and Institutional Program (SDIP) funds are unrestricted charitable contributions made by alumni, friends, corporations, staff, and faculty. These contributions are donated to fund expenditures that will enhance program and departmental missions, goals and objectives.

Philosophy: Good stewardship of funds includes expending funds in support of the purpose for which they were given. The unrestricted nature of SDIP funds does not absolve the University and foundation of their stewardship responsibilities. A good test for the appropriate use of gift funds is: Would you ask a donor to contribute money for this purpose?

Procedures: SDIP funds should be expended through the Purdue Research Foundation (PRF) for expenditures that are unallowable on University funds. Any expenditure which benefits the authorizer personally or which might represent a conflict of interest based on relationship to the authorizer is unallowable. SDIP funds will be transferred to the University when expenditures are allowable on University funds. These transfers will be recognized as gift income to the University. When requesting SDIP funding, departments should describe the business reason for the expenditure, in addition to providing proper backup documentation; including original receipts. If original receipts are not available, an explanation must be attached to the request. Requests for reimbursements must be within 12 months of the event.


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The following table is to assist staff in determining the source of funds for purchases within the Office of the Provost


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Issued April 2014
Office of the Provost

GUIDELINES FOR SUMMER SESSION SUPPORT

Executive Memorandum C-26 states: "Academic-year staff may be employed during the summer for a period not to exceed a total of twelve full-time weeks." The following guidelines define the appropriate approvals required for summer employment:

General Funds

Up to 10 weeks of support is allowable for the following purposes:

  • class instruction;
  • course development;
  • departmental administration;
  • as part of a faculty start-up package;
  • any purpose funded from special central general fund allocations (e.g., Research Incentive Funds, Faculty Scholar Funds, Distinguished Professor Funds);
  • for School of Agriculture extension service faculty supported on fund 21020000

Support over 10 weeks for the above activities will require prior approval by the Provost. Support for any purpose not listed above, regardless of the number of weeks, requires approval by the Provost.

Sponsored Program Funds

A maximum of 12 weeks support is allowable if it is within the sponsor guidelines. Gift Funds A maximum of 10 weeks support is allowable; over 10 weeks will require prior approval by the Provost.

PRF Summer Faculty Grants

Supplementation up to the faculty member’s 100% salary during the 8 week grant period is allowable from unrestricted non-general funds or general fund start-up packages; supplementation cannot be for additional assignments, but must support the purpose of the PRF Summer Faculty Grant. Summer appointments before or after the grant period are allowable subject to the summer session support guidelines relevant to the funding source of the appointment.

Split Funding

Support over 10 weeks from a combination of general funds and gift funds will require approval by the Provost. When summer support is from any other combination of funds, up to 12 weeks is allowable if each funding source individually meets the guidelines for that fund as outlined in this document. Provost prior approval will be required when any individual funding source does not meet the above criteria.

Summer Intensive Instructional Activities and Non-Continuing Education Overload Activities

Refer to Executive Memorandum C-40 for guidelines on administering pay for these activities.


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Occasionally, Continuing and Limited-term Lecturers hold additional (concurrent) appointments. Special procedures for appointing and paying concurrently employed Limited-term Lecturers may be required, depending on the exemption status of the additional appointment.

Concurrently employed Continuing Lecturers, since their positions are exempt, benefits eligible, and at least 50 percent FTE, are not subject to these additional requirements.


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Purdue University permits nonexempt employees to be concurrently assigned as Limited-term Lecturers. The nonexempt assignment requires the Limited-term Lecturer assignment to be paid on an hourly basis. The remainder of this communication discloses the conditions under which nonexempt employees may serve as hourly-paid, Limited-term Lecturers, and must be signed by the employee and each department before the Limited-term Lecturer appointment begins.

Any employee who already holds a nonexempt work assignment at Purdue at the time she/he is appointed to a Limited-term Lecturer position must be paid on an hourly basis for all the work performed in the Limited-term Lecturer assignment as well as the nonexempt work assignment.


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