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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Original Message:
Sent: 04-13-2012 01:19
From: Eric Vance
Subject: Outside consulting for those with academic appointments and soft money
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.
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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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