Meeting Notes from September 15, 2000,

Present: Tony Rogers, Ellen Horsch, Jim Pickens, Anita Quinn, Debbie Lassila, Helene Hiner

Invited Guests: Dan Greenlee, Julie Seppala, Marilyn Haapapuro

Horsch went over comments from the Senate meeting presentation of September 13. Comments included a suggestion that no overhead be charged on fringe benefits and another that Holiday time be direct charged to contracts. It was noted that all institutions apply overhead to allowable direct costs.

Discussion took place of direct charging Holiday and perhaps part of Sick time (5 days) with the remainder of Sick time subsidized through a separate pooled account. Discussion of other institutions obvious subsidizing the fringe rates brought the conclusion that the other schools we are comparing are larger with significantly larger resources which probably has bearing on how each is able to absorb part of the fringe benefit rate cost outside of research.

The committee asked Group Two to work on figures for a two-rate option which would have Summer Faculty at 25% and Soft Dollar and regular Faculty and Staff at 39%. These rates would be the result of removing MPSERS fixed amount from research fringe rates and direct charging Holidays. Group 2 will work up the dollar amount difference which would be subsidized by the university under this option. It was recommended that they also look at an option to additionally direct charge 5 of the sick days to bring the rate down further. Seppala and Quinn will contact a source to find out if direct charging of non-productive time is prohibited.