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Outside consulting for those with academic appointments and soft money

  • 1.  Outside consulting for those with academic appointments and soft money

    Posted 04-11-2012 18:21

    This is a question for researchers with academic (university) appointments who are paid with a mix of hard and soft money and who do outside consulting.

    How much outside consulting do you do? How would you be affected by a university policy that limited your outside consulting to X% of 1 day per week, where X% is the percent of your salary from hard (university) sources and 100-X% is your percentage of salary from funded projects?

    Background:

    I am on the Commission on Faculty Affairs at Virginia Tech and we are considering a change in the faculty handbook to limit outside consulting jobs to be proportional to the amount of hard money in your salary. The standard limit for consulting is "1 day per week, and no more than 5 days in any 5 week period." If, for example, a statistician had a 20% appointment (hard money) and was expected to fund 80% of his or her salary on grants, their opportunity for outside consulting would be newly limited to no more than 0.2 days per week and no more than 1 day in any 5 week period.

    Personally, I have a 100% 9-month appointment to direct LISA (Virginia Tech's Laboratory for Interdisciplinary Statistical Analysis) and collaborate with researchers around the university. This appointment means I can do outside statistical consulting for businesses or lawyers or Statistics Without Borders no more than 1 day per week during my 9 month appointment, and then as much as I want during the times I'm not being paid. (My appointment is actually more complicated than what I described.)

    This university consulting policy seems fair and standard. However, I can envision a time in the near future that I would want to hire more collaborative statisticians to be part of LISA, and their appointment might be, say, 20% from university sources and 80% from funded projects and grants. That seems to be a common type of appointment nowadays in many biostatistics departments. But then the proposed Virginia Tech policy on outside consulting would severely limit the opportunity to earn extra income on outside consulting jobs, or even the ability to volunteer time to Statistics Without Borders or other pro-bono consulting gigs.

    Restating the questions of this email:

    Do statisticians who are primarily on soft money have outside consulting jobs more than 1 day per 5 weeks? Do you have any opinions on Virginia Tech's proposal to limit consulting for those on soft money?

    Further explanation:

    Virginia Tech and most other universities require faculty to certify their efforts so that if they are on a grant for 10%, they actually spend 10% of their time working on that project. The university's argument for restricting outside consulting to X% of 1 day per week is that if a prof does outside consulting for more than that, s/he would be taking too much time away from their regular university duties. For example, if a professor regularly works 60 hours per week, and has a 20% hard money appointment (to write grant proposals and advise students) and gets 80% of their salary from grants, they must work at least 48 hours on those grants. If they did outside consulting, it would take away too much time from their 12 hour per week commitment to the university (non-funded project work). If, for example, a prof typically worked 40 hours per week, then 32 hours (80%) must be on the funded projects. If the prof then worked 8 hours extra on an outside consulting job, they would not be working 80% of their time on the grant since 32/48 < 80%. The idea that the university and your funded projects "own" all of your productive time, not just 40 hours per week, seems ridiculous to me, but is now fairly standard policy across the US due to fears of federal audits.

    Thanks for any replies!

    Eric Vance
    http://www.lisa.stat.vt.edu

    -------------------------------------------
    Eric Vance
    LISA (Virginia Tech's Laboratory for Interdisciplinary Statistical Analysis)
    Director and Assistant Research Professor
    Blacksburg VA, United States
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  • 2.  RE:Outside consulting for those with academic appointments and soft money

    Posted 04-11-2012 18:38
    Seems like a model for disincentivizing soft money support during the academic year.  The formula would allow one to consult 1 day per week if they were fully funded by the university, and not at all if they were fully supported on grants.  So, why would one try to bring in soft money during the academic year in so far as it limits one's abilty to make money outside the university while being completely supported by the university does not?  I also suspect the model might be unallowable under A-21 as it provides for different treatment of similarly situated individuals within the institution.  Two individuals in the same appointment (i.e., tenure track at a specific rank) would be treated differently within the institution depending on the extent of the source of their funding at any given point in time.  I would want an A-21 expert to look at that.

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    David Francis
    Hugh Roy and Lillie Cranz Cullen Distinguished Professor and Chair
    Department of Psychology
    Univ of Houston
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  • 3.  RE:Outside consulting for those with academic appointments and soft money

    Posted 04-11-2012 18:38
    I am not an academic and I haven't read the entire post, but I don't understand the logic of this. If a statistician is meeting his work requirements why would you restrict him regarding any supplemental income he makes from consulting.  Any consulting is helpful in making connections and can be helpful in writing peer reviewed articles that enhance his or her chance of producing a succesful proposal for funding to the university.  What happened to academic freedom.  I work for a non-profit medical research institution that depends a lot on outside grants and they don't restrict my outside business at all.  I am always careful about conflict of interest and would not convert an internal consulting opportunity into a private one.  As long as the individual is ethical in what he does I see no reason for restriction. 

    Now if the professor is not meeting his contractual goals that would be a different story.  But I agther that you rpolicy is across the board with no exceptions.

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    Michael Chernick
    Director of Biostatistical Services
    Lankenau Institute for Medical Research
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  • 4.  RE:Outside consulting for those with academic appointments and soft money

    Posted 04-12-2012 07:45
    I have limited experience with internal academic consulting although I have done much consulting to academics from the outside.

    "This university consulting policy seems fair and standard." ??!! Fair?
    When I was younger I worked full time on a research grant in a school system. 100% soft money.  I did consulting evenings and weekends maybe up to another 40 hours a week on a regular basis.  When I worked in a Congressional agency, 80 hour weeks sometimes occurred.
    The outside work certainly built my knowledge, skill, and abilities.

    What is the rationale for limiting outside work unless the main job is not being done?

    Can profs get sufficient grants to pay more than the university salary?

    "or even the ability to volunteer time to Statistics Without Borders or other pro-bono consulting gigs." ??!!
    what if you did other kinds of volunteer work, soup kitchen, firefighter, blood drives, etc.
    Feds often do these things.

    "is now fairly standard policy across the US due to fears of federal audits." ??!!
    Is this fear due to an urban legend?  What is the origin of this idea?
    Audits are a routine part of financial activities. What proportion of audits found that grantees did some outside work? What proportion of grant audits have found that outside work interfered with performing the work called for in the grant? What proportion of audits of grants come up with any adverse opinion?

    is it reasonable to fear that an audit would result in an adverse opinion due to people having outside activities? (Work, public office, sports teams, music performance?) I suggest you search the GAO and NSF web sites.  Also, see if the audit guidelines from whatever departments are giving the grants talk about outside work..


    In the DC area, many universities hire part time people who have other jobs, e.g., Feds, think tanks.  What proportion of the faculty at your institution are part time?

    HTH

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    Arthur Kendall
    Social Research Consultants
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  • 5.  RE:Outside consulting for those with academic appointments and soft money

    Posted 04-12-2012 09:23
    HI

    I am in an academic setting.  Each year, working with my Chair we develop an "Agreement of Academic Expectations"  This outlines what I am expected to do for the year (teaching, research support, etc.) and the relative level of effort to be placed on each activity.   Included are specifications for hard money allocation (such as 20% time on funded project A - which is subject to audit by both the department and university to assure that the time is actually spent on the project). We are a state institution so I am responsible to assure that I serve not only the institution but also the state and the public which supports us.  Once this is all specified I am free to do whatever else I want.  Remembering that my continued association with the institution will be dependent upon my performance of those duties in the academic expectation agreement and my continued association with any outside entities will depend on my performance of their tasks.  We do have a profit sharing process which may or may not involve some payment back to the department depending on the use of departmental resources.  Those are negotiated at the very beginning of every external project.  We work hard to address issues such as conflict of interest, institutional policy limitations, etc.  We keep everything open and above board so that there are no surprises and so that I make certain that my chair and/or my institution are never blind-sided. All that being said, it becomes my responsibility to self-police in terms of time and personal resource allocation.  I expect to be judged on performance and if I choose to work an 80 hours week and still successfully meet my obligations, that it my choice.  As soon as I don't, I expect to bear the consequences. 

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    William Grant
    Professor, Emergency Medicine
    SUNY Upstate Medical University
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  • 6.  RE:Outside consulting for those with academic appointments and soft money

    Posted 04-11-2012 18:49

    fyi, in the Academic Personnel Manual. the University of California limits outside consulting that faculty are allowed to keep to 21 days per year.  that works out to about 9% time for a 12 month appointment and 6 weeks of vacation and holidays.
    http://www.ucop.edu/acadpersonnel/apm/apm-670.pdf


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    Stuart Gansky
    University of California, San Francisco
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  • 7.  RE:Outside consulting for those with academic appointments and soft money

    Posted 04-11-2012 20:28
    Eric, I can't believe the absurdity of that X% approach. I am not currently an academic statistician, but I was for years, and we had some variation on the the 1 day/week restriction for outside consulting.

    I agree with Michael Chernick--why is there any restriction? It seems reasonable to ask professors to declare their outside consulting (type of activity, clients and time), and that can be scrutinized for conflict of interest, excessive time, etc. But if the university believes that it is hiring good people, why do they have to police them that way? And, since there may be some exploiters among any large group of people, just requiring declaration of activities would sniff those people out. Besides, if a professor wants to hide their outside consulting, there is probably no way to detect it without some significant invasion of privacy. 

    Best wishes,

    Nayak



    -------------------------------------------
    Nayak Polissar
    Principal Statistician
    The Mountain-Whisper-Light Statistics
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  • 8.  RE:Outside consulting for those with academic appointments and soft money

    Posted 04-11-2012 20:39
    I have now read your entire post and I agree with your concluding sentence.  It seems to me to be outrageous and silly for the universities to have such policies, standard or not.  I can understand monitoring soft money work on university time but how does trying to restrict personal time make any sense.  Why not just record time on the grants with time and description of work like consultants do with invoices.

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    Michael Chernick
    Director of Biostatistical Services
    Lankenau Institute for Medical Research
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  • 9.  RE:Outside consulting for those with academic appointments and soft money

    Posted 04-12-2012 00:50
    This is a tricky question. First, let's try to define two types of outside consulting. The first type is where someone outside the University pays you money directly in exchange for your help. This is often called "moonlighting." The second type is where someone outside the University pays the University money in exchange for your help.

    There is no restriction on the second type of outside consulting, nor should there be. Make sure that your consulting center gets a piece of the action so you can pay for an extra trip to a conference or for a computer with four monitors or for some other extra perk.

    There needs to be a restriction, though, on the first type of outside consulting. Back when I worked for the federal government, we heard stories about doctors at NIH who would spend their entire weekend helping out at the local emergency room. The pay was really good, and it was, in theory, done outside of work hours. But someone at NIH noticed that all those doctors at NIH who were doing the weekend ER gigs were sleeping on the job come Monday morning.

    You can't serve two masters. If you are a full time employee at a University, too much time moonlighting will interfere with that University work. If you were paid by the hour, it might be different.

    The University is actually being very generous in allowing up to eight hours per week on outside consulting. Most private sector employees wouldn't have anything close to this as an option.

    Now, why would the University want to restrict this more for those who have to bring in grant support? Well, one very real possibility is that you might be tempted to switch some of your grant support to independent consulting. If you do this, you can often get a better deal because the PI doesn't have to pay indirects anymore. This would only happen, of course, if you were bringing in more grant money than your job required you to do.

    Pro bono consulting does not carry this risk, so I would encourage an exemption here. I think that consulting for industry would not be a problem, either.

    But if someone has a grant and they want to hire you as an independent consultant rather than subcontract for your time through your University, that is a big problem. It gets worse if you work for a consulting center that has paying clients from outside the University. Suppose someone approaches you for consulting assistance. Can you ethically steer them away from the University consulting center and convince them to hire you as a moonlighter? But there is a flip side to this coin. Are you obligated to send all your moonlighting work through the consulting center (effectively banning you from doing ANY moonlighting)? What about clients that you had before you joined the University. Do you have to give them up?

    It's a tricky area.

    See if you can carve out an exemption for pro bono work. After all, the University wouldn't care if you worked at a soup kitchen in your spare time (as long as it wasn't an excessive amount of your time). How is pro bono consulting different? Suppose you were elected to president of the local chapter of the American Statistical Association. That's pro bono work. Are they going to restrict that too?

    Once you allow an exemption for pro bono work, you might be able to carve out additional exemptions for work associated with industry consulting.

    Let's do a thought experiment. Researcher A is on hard money, and has no grant support. Researcher B is on hard money but brings in 50% of his/her salary on grants. Researcher C is on soft money and brings in 50% of his/her salary on grants. Are you going to treat A and B the same and allow them both 8 hours per week of moonlighting? How can you justify this, when A has absolutely no audit risk? Are you going to treat B and C the same and allow both of them only 4 hours per week of moonlighting? This effectively penalizes B relative to A--the more money you bring in through grants, the less independent consulting you can do.

    One way to resolve this problem is to say that a University is free to allow you to spend a certain fraction of your time on moonlighting, but they can't be so generous when the federal government is paying part of your salary. If the feds are covering half your salary, then the University loses its ability to be generous on half of your time. It's not whether you're hard money or soft money. It's how much of your salary that the feds are currently paying. Yes, it's unfair to you, but maybe it's more important to be fair to the taxpayers.

    Another way to look at this is that if you are on hard money and you are bringing 50% of your salary on grants, the University should be twice as generous in how you spend the time that they pay for, compared to someone on hard money who is bringing in 0% of their salary on grants. And if the feds are paying for and getting 20 hours a week from you, why should they care what happens with the other 20 hours?

    It is a tricky question, and I'm not sure that my rambling has helped. If it were me, I'd say that everybody gets eight hours of moonlighting with the presumption that the eight hours are above and beyond a 40 hour work week. But you couldn't get any of that moonlighting money from a source that might, in other circumstances, pay the University directly for your time.

    By the way, I am hard money at the University of Missouri-Kansas City, but only at 50% time. I've never had a week where I've had anything remotely close to 20 billable hours as an independent consultant, but if I did, I'd have to talk to my boss about it.
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    Stephen Simon
    Independent Statistical Consultant
    P. Mean Consulting
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  • 10.  RE:Outside consulting for those with academic appointments and soft money

    Posted 04-12-2012 06:46
    Maybe industry guys like me are butting in too much on this issue as we are not so intimately involved in University politics.  But I will add to this anyway.  While I agree with Steve that there is an issue to concern the university about appropriately spending time on government research grants but to use an old cliche, the ends don't justify the means.  I know quite well that there have been abuses at universities that cause concern to the government agencies.  My alma mater, Stanford had a situation where a President had to resign because he misappropriated overhead funds from a government grant to pay for building expenses.  Another cliche, you can't rob Peter to pay Paul.  The university has a legitimate concern.  But what is a sensible way to ensure that faculty spend their grant money on the research rather than spending some of the time sleeping on the job.  But it is not easy to enforce compliance.  There has to be some degree of trust and integrity.  I still maintain that the right way to handle this is to monitor by having work time accounted for rather than trying to enforce some rule about how one spends their free time.
    I recall Richard Nixon's approach to reducing unemployment was to change the formal government definition of it.  I think this is just as ridiculous.  Nobody is actually going to be looking over your shoulder to make sure that all your time at work is spent on the work projects in the amounts specified by the employment agreement.  Am I making sense?

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    Michael Chernick
    Director of Biostatistical Services
    Lankenau Institute for Medical Research
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  • 11.  RE:Outside consulting for those with academic appointments and soft money

    Posted 04-12-2012 11:05
    Eric, I work in a department where everyone is on a mix of state funding ("hard" money) and externally-funded projects ("soft" money).  The term "conflict of interest" on our campus includes conflict of commitment (e.g., time), conflict of interest in the workplace (e.g., supervising or teaching a spouse), and conflict of interest in research (possibly financial, not necessarily so).  The formal section of our operations manual can be found at http://www.uiowa.edu/~our/opmanual/ii/18.htm.

    The idea here (and I would encourage your university to take the same approach), is to put forth guidelines on when such potential conflicts must be reported, and if necessary, managed -- rather than a hard line rule of "X%" of ...   You may or may not be aware that the federal government is now demanding (by fall)  certain language for disclosing and managing possible (significant) financial conflicts of interest for anyone receiving PHS (Public Health Service) funding, which includes NIH, CDC, AHRQ and several others.  Their push is to no longer allow the researcher to decide if he/she has a significant conflict of interest, but rather to demand the reporting (yearly) and put it in the hands of the univerisity to decide, and if needed, manage.  I assume that requirement is for all who receive any type of PHS funding -- not just academics, but I couldn't say that for certain.

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    Jane Pendergast
    Professor of Biostatistics & Director, Center for Public Health Statistics
    Univ of Iowa
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  • 12.  RE:Outside consulting for those with academic appointments and soft money

    Posted 04-13-2012 01:19

    Dear all readers and repliers:

    Thank you for your comments, opinions, sources, hypotheticals, examples, and questions regarding Virginia Tech's proposed policy to limit outside consulting (moonlighting) to X% of 1 day per week. Personal responses are at the end of this email.

    I am a member of the VT Commission on Faculty affairs, which meets on Friday (4/13) afternoon to approve this policy, and hopefully I can influence/change the policy to remove the penalty for success in bringing in soft money.

    Probably the most complicating factor in this issue is that the university and the "Feds" (NSF, NIH, etc.) do not recognize the 40-hour work week. A faculty member is expected to devote X% of her professional time/effort on hard money university activities and 1-X% time/effort on soft money funded projects. So a professor on 50% hard money who normally works 80 hours per week is expected to devote 40 hours per week to her grants. As far as I can tell, the feds and the university administrators have concluded that percentage time/effort is what will be counted, not hours per week worked.

    Every faculty member I have spoken with thinks this is ridiculous, but it's not up for debate. Also, most faculty members would not want to document every single hour of every day (2 hours preparing class, 1 hour lecture, .25 hours answering students' emails, 2 hours project Y, 1 hour project Z, 1 hour preparing for faculty affairs committee meeting, 1 hour reading journal article, ...).

    If everyone believed in the 40 hour work week, we could have a very clean policy that faculty members must spend 40 hours per week doing their university and grant tasks, and that outside consulting could be performed outside of those 40 hours provided that the consulting jobs were reported to the department chair, were deemed not to be a conflict of interest (not diverting normal consulting centers jobs for private gain) and not to be a conflict of commitment (did not interfere with normal 40 hour per week duties).

    Since the 40 hour work week does not mean anything, my solution (after synthesizing all of your valuable input and reading some of the UC system document and the federal A-21) is that we let it be known that exceptions to the X% of 1 day per week policy can be granted for outside consulting provided the faculty member submits a plan with her department head explaining how she will meet all the academic obligations of the university and the grant.

    I will try to push the Virginia Tech administrators writing the policy to be extra generous to faculty on soft money by allowing them the min of (5timesX%, 100%) of 1 day per week, where X% is the percent of their hard money appointment. This would allow someone on 20% hard money to still consult up to 1 day per week, and someone on 10% hard money to consult .5 days per week.

    Extra stuff for those still interested:

    A few days ago I asked the administrator pushing the proposed policy, "What does 1 day per week mean?" She was like, 'What do you mean, what does it mean?'

    I followed up, "Does 1 day per week mean 8 hours per week? Does it mean 20% of my time? Does it mean one-seventh of my time? If I normally work 60 hours per week, does 1 day per week mean 12 hours?"

    The administrator (a retired faculty member, not just a paper pusher) answered, "It means 1 day per week." I got a little annoyed but quickly hid my annoyance because I inferred that her answer really meant, 'I don't know and nobody knows. Nobody has delved that deeply into the situation and frankly we don't want to. We're not trying to punish faculty members. We just don't want to get sued by the Feds.'

    Individual responses:

    David Francis-Thanks for the A-21 tip. I skimmed it and found that the feds require outside consulting to comply with university policies. To get anything more out of that document would require an expert in accounting and legalese, which fortunately I am not! Can you point to where in the document it prohibits two individuals of the same rank being treated differently based on their funding sources?

    I agree that the limit of X% of 1 day per week disincentivizes bringing in soft money.

    Michael Chernick-Yes, conflict of interest is important to consider.

    Art Kendall-You ask, 'Why should consulting outside of 40 hours be limited at all?' Great question. One answer is that as long as someone is doing their normal job, no limits should be placed on outside work. Another answer is that too much extra work will inevitably impact the normal 40 hour job. I agree with both and would propose something in the middle!

    Profs on hard money can get a maximum of 3 months summer salary from grants. Basically nobody can get more than 133% of their base 9-month salary from the university and grants. However, outside consulting could be extra income above the 133%.

    Working in a soup kitchen is not a "professional" activity. Saying this, my mind immediately conjures up a situation in which I spent a day ladeling out soup and then another day eating it with the regulars and then another day analyzing the kitchen's books in the back office and doing something statistical to improve their operations. Still, I'm pretty sure I could get away with not having to report to the university or account for any time volunteering in a soup kitchen.

    The origin of the audit fears are that Yale got punished a few years ago for improper handling of grant money. The urban legend (which I have not verified but believe to be true) is that a professor charged 100% of his time during the month of July to grant Y. The work for grant Y was probably done satisfactorily during the other 11 months of the year, but since it was widely known that this professor spent the entire month of July sailing around the Mediterranean, the university got punished. Policies at universities around the country changed so that no professors are allowed to charge 100% of their salary for any time period to a funded project.

    As for the actual audit risk and the proportion of audits revealing misappropriation of funds, I asked these types of questions two years ago when Virginia Tech was changing other policies and the answer was basically, 'Your questions are irrelevant. We are very risk averse at this university and therefore will be changing policy so that we will have 0.0% chance of a negative audit. Federal auditors don't respond to logic and our compliance officers don't believe in statistical thinking.'

    William Grant-I think the "meet academic obligations and avoid conflicts of interest" plan is a reasonable model for profs adversely affected by the X% of 1 day per week consulting limit.

    Stuart Gansky-The UC document says that the max consulting is 20%, but that departments set their own limit and exceptions can be granted. It sounds like your department (9%) has a more restrictive maximum than that set by the UC system.

    Stephen Simon-"You can't serve two masters." True! Well, actually, of course you can. I have 11 bosses (11 different units provide funding for LISA). I also have a few outside consulting gigs. It's a balancing act and so far so good. But of course I do agree with your sentiment. Too much moonlighting is bad and should be regulated.

    Pro-bono consulting is different from soup kitchen work because of the professional nature of the consulting. The percentage time policy is really weird in that if one has a 50/50 hard/soft money appointment and normally works 40 hours per week, then 20 hours must be on grants. If the person gives a workshop for the AAAS On-Call Scientists group working to advance human rights and spends 10 extra hours one week preparing the workshop, then that person is working 50 hours a week, which theoretically and legalistically means he needs to work an extra 10 hours on his grants so there is still the 50/50 split. 20 hours normal university work, 20 hours grants, 10 hours professional service, and an extra 10 hours on grants!

    Professional service differs from outside consulting at Virginia Tech in that service does not need to be reported. Being president of an ASA chapter would be professional service and would not fall under the outside consulting (moonlighting) category. However, it's still part of one's professional effort and therefore counts toward total percent time/effort. It's crazy but compliance officers expect it! I am grateful I'm not a compliance officer.

    I think faculty investigators can be fair to taxpayers by successfully completing tasks promised on grants. I don't think taxpayers would demand that someone getting 50% salary from a grant should work 30 hours a week on that grant. Most taxpayers would be satisfied that 50% = 20 hours, but that's not how Virginia Tech and other universities are writing their policies.

    Jane Pendergast-A few weeks ago we revised our conflict of interest and commitment policies for the same reasons you guys did. The item currently up for revision is the faculty handbook's text on conflict of interest and commitment, plus this extra wrinkle of outside consulting gigs. The recently passed policy change does indeed require that every consulting job be reported and approved. The detail that concerns me and has prompted this discussion is the X% of 1 day per week rule. There is some language granting the possibility of exceptions, and I will work to strengthen these exceptions.



    -------------------------------------------
    Eric Vance
    LISA (Virginia Tech's Laboratory for Interdisciplinary Statistical Analysis)
    Director and Assistant Research Professor
    Blacksburg VA, United States
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  • 13.  RE:Outside consulting for those with academic appointments and soft money

    Posted 04-13-2012 06:55
    Eric:  I appreciate your preentation of this thought-provoking and controversial topic.  It is obvious that you have a great deal of concern about the policy and understand all our comments. It sounds like you are going to do the best you can to minimize the impact of this unfair policy on those that meet their university obligations.  THe problem is real.  The government will be checking up on the universities.  I just think that if Jane's University can address the problem in a way that doesn't directly restrict how the faculty member spends his/her outside time others can too.  My suggestion that they account for how they spend their "soft money" time is not unreasonable and I think the faculty would find it better than some crazy restriction on how they spend their time away from campus.  It does not mean accounting for every hour of work just the amount spent on the outside grants.  As an industrial statistician who does part time consulting as a side business every client of mine expects that of me before they pay me for my work.

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    Michael Chernick
    Director of Biostatistical Services
    Lankenau Institute for Medical Research
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  • 14.  RE:Outside consulting for those with academic appointments and soft money

    Posted 04-13-2012 08:57
    Some scattered reactions

    "The origin of the audit fears are that Yale got punished a few years ago for improper handling of grant money."
    What a way to establish policy!

    "'Your questions are irrelevant. We are very risk averse at this university and therefore will be changing policy so that we will have 0.0% chance of a negative audit."
    There is a non-zero chance that a meteor will wipe out VT this afternoon.

    "Federal auditors don't respond to logic" and our compliance officers don't believe in statistical thinking."
    Sounds like prejudice and stereotyping.  I spent most of my career with auditors at GAO and although there are a few who like to play gotcha, most do respond to logic. They might not see the whole picture without explanation as anyone would, but certainly could learn.
    Our agency also "audited" auditors, and I believe the same pattern applies in the other agencies.

    "and our compliance officers don't believe in statistical thinking."
    For whom do the compliance officers work? What kinds of incentives are they exposed to?
    And this at a school known as "TECH"!  Also an indictment of management training and of education in general.

    You might do well to set up some get acquainted meetings between representatives of management, talent, funders, and auditors.  Sometimes "mere exposure" can break down prejudice and stereotypes.

    Feds have to avoid conflict of interest. In my experience, it is necessary to get a general approval from an ethics officer and then inform a supervisor about specific clients.  if a supervisor was being Pharisaical, employees would simply say "Let's check with the ethics officer". 

    If employees are seen a predominantly failing to perform their jobs, then preventive policies are called for.  If employees are predominantly doing their jobs, then less draconian approaches are called for.

    Calculating % of time on too short a time basis is intrinsically absurd.
    Supposing one week is the week before mid-terms and an employees spends 50 hours on office visits, test preparation, and extra review sessions.  Then another week is spring break and the employee spends no time on those activities, but works on the grant activities.

    Requiring uncompensated overtime is against statutes in many jurisdictions. Although many university positions are exempt, the notion of fairness still should apply.

    If there are to be numerical goals, it seems more reasonable to look for cumulative days per semester or year, rather than percents.  It should also be possible to estimate, some goal numbers by something like this. 
    There are 260 weekdays per year.
    -- 45 days for overhead (15 days annual leave + 13 state national and federal holidays + an average of 4 sick days + an average of 1 jury duty day + 3 required days at university functions + 2 days for timekeeping reporting etc. + 2 weather days (e.g., snow) + 5 faculty development days;
    -- S days for service (community, school, profession);
    -- H days for hard money work;
    -- R days for regular money work.

    I did not do consulting on government time, but consulted evening, and non-work days.
    Should work on annual leave days, holidays, evenings, and weekend days be  distinguished from that during work hours?

    Also individuals very in how much they want to work.  When I was young routine 80 hour weeks were easy.  As I got into my 50's, intermittent 80 hour weeks were tough.  Now that I am retired 45 to 50 hours a week on pro-bono work are about all I can do.

    the model of time expenditure needs to be realistic. It is also likely that university work is not amenable to overly fixed schedules.  It not like assembling widgets.
    Projects have deadlines. Students turn in papers predominantly at the deadline. There are exam periods. etc. etc.

    Does VT have an Industrial/Organizational psychology?  Does VT have faculty who teach management decision making? Faculty who teach quality management, auditing, mediation, labor law, contract compliance,  etc?  If so these would be resources for ideas on how to come to a win-win solution.

    What kind of training is there for compliance officers?

    Do you a AAUP unit or union at your school? A countervailing power can go go a long way toward minimizing such arbitrary and capricious abuses of power.

    If people want to play gotcha, they have an advantage.  E.g.,if you teach and
    give all A's you are too easy,
    give all D's you are too hard,
    give an equal number of each grade you are too rigid,
    give a normal distribution you are unimaginative
    give a scattered distribution you are organized.

    <tongue-in-cheek> Remember employees are scum who will get away with whatever they can. They ARE guilty, we, the administration (i.e., goof guys) just need to find out about what.
    <remove tongue from cheek.>

    HTH

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    Arthur Kendall
    Social Research Consultants
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  • 15.  RE:Outside consulting for those with academic appointments and soft money

    Posted 04-26-2012 19:32

    Two weeks ago in this CNSL eGroup we discussed the policy change at Virginia Tech to further limit faculty with soft-money from performing outside consulting (moonlighting). The old policy was that faculty members can consult on non-university projects for up to 1 day per week and no more than 5 days in any 5-week period. The proposed new policy is that faculty can consult for up to X% of 1 day per week and X% of 5 days in any 5-week period, where X% is the percentage of hard money (university funds) supporting the faculty member's salary.

    I serve on the Virginia Tech Commission on Faculty Affairs, which approves policy changes affecting faculty at VT. I was about to write "guides" or "advises" policy changes, but "approves" is the more appropriate word. Actually, this commission "resolves" to recommend that the University Council (similar to the Academic Senate at other institutions) approve the policy changes, subject to final legal approval by the Board of Visitors.

    During our meeting almost two weeks ago I argued that this new "X% of 1 day per week" rule was a disincentive for some faculty to get additional grant money. I used the example of my colleague Dr. Chris Franck, the assistant director of LISA (Virginia Tech's Laboratory for Interdisciplinary Statistical Analysis). Chris has a contract that is 100% hard money. His main job task is to collaborate with faculty members in the bioinformatics institute and the new medical research institute. After 1.5 years on the job he's been very successful, as measured by several co-authorships and the fact that he has approximately 50% of his salary paid by soft-money grants.

    Under the old policy, Chris, a young statistician who earned his PhD in 2010, could work on outside consulting projects up to 1 day per week, a nice way to get more experience in statistical consulting, to learn new applied statistical methods, and for staying current with the statistical needs of clients outside academia.

    Under the new policy, because he has been successful in collaborating with researchers and being written into their grants, his opportunity for outside consulting will be cut in half. In a few years he might be successful being the principal investigator on grants of his own, and his hard money might dwindle to 20 or 10%, severely limiting his ability to maintain a professional statistical consulting presence.

    The Virginia Tech administrator hired to push through the policy disagreed with my characterization that the new policy was a "disincentive" for getting soft money. I restated my point that the more a faculty member gets funded on grants, the less time (beyond his regular job duties) he can devote to outside consulting jobs, hence, it's a disincentive for getting more grant money.

    The response was that without soft money, research faculty members wouldn't have any jobs at the university, so I can't say that this policy is any sort of "disincentive" for getting soft money, because getting soft money is what they're here to do.

    The rest of the commission agreed with this administrator.

    Before I had a chance to discuss other parts of the policy I thought were wrong headed or needed more clarification, the chair of the commission called for a vote. With only one dissenting voice (mine) the new policy passed.

    What bugs me the most about this issue is that I felt that I raised reasonable objections to the policy, but that everyone else on the commission either A) didn't understand my arguments (otherwise they would have agreed with me!), B) did understand, but felt that faculty shouldn't really be doing much if any outside consulting anyway, C) may have secretly agreed with me but had an ulterior motive to pass the policy through the governance process anyway, or D) I've misread the situation.

    Two final points before I briefly respond to Art and Michael's comments:

    1. I learned a valuable lesson, not about politics or about people on committees that don't understand or don't care about discussing issues, but about how I ask questions. I tend to be very direct and ask questions in as succinct a way as possible. One example was when I asked the administrator pushing this policy, "What does 1 day per week mean? Does it mean 8 hours, 12 hours, 20% of my time, one-seventh of my time?" It was a legitimate question that I wanted answered, but I could have asked in a much better way. The response I got to my direct question was, "One day per week means 1 day per week."

    I have since started practicing "softening" my questions. I think I would have gotten a better response had I asked, "Please excuse me, but I'm trying to understand all the implications of this policy and how faculty will be applying this in practice. One thing I'm unclear about is: What does 1 day per week really mean? Does it mean 8 hours in a week? Is it contingent on the number of hours one normally works in a week? Is it actually based on a percentage of time, such as 20% of our time, or even one-seventh of a faculty member's work week? So, how does the administration define, '1 day per week?'"

    A student of mine told me that a great piece of advice he got about statistical collaboration from a former LISA lead collaborator was, "Enter the meeting thinking you're the dumbest person in the room. Ask lots of questions and make sure, by golly, that you aren't the dumbest person when you leave the meeting."

    2. Maybe the solution to this new outside consulting policy, the cutting of the Gordian Knot, is that since the administration is leaving "1 day per week" open to interpretation, we should interpret however we want. That might mean to me that a faculty member on 50% hard money is free to consult on outside projects for 50% of 24 hours per week.

    Responses to Art Kendall and Michael Chernick: You guys make great points and of course I agree with most of what you say! I apologize for not responding in detail.

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    Eric Vance
    LISA (Virginia Tech's Laboratory for Interdisciplinary Statistical Analysis)
    Director and Assistant Research Professor
    Blacksburg VA, United States
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  • 16.  RE:Outside consulting for those with academic appointments and soft money

    Posted 04-26-2012 20:44
    Eric in general i think it helps to ask the question in a soft tone.  In this case I think the adminstrator was very hardheaded couldn't supply a good answer in terms of hours and so just dismissed the question. It would not matter how you asked it.

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    Michael Chernick
    Director of Biostatistical Services
    Lankenau Institute for Medical Research
    -------------------------------------------