This policy describes the terms and conditions under which an employee can designate a portion of his or her salary for research purposes. The policy permits an employee to request this designation such that he or she may use it for the purpose of financing the direct costs of research, subject to the terms and conditions of the Canada Revenue Agency (CRA). It is the intent of this policy to ensure that Mount Allison University is in compliance with the Income Tax Act (and Interpretation Bulletins related to Research Grants such as IT-75R4) and related administrative policies of the Canada Revenue Agency, and to provide sufficient scope and direction to faculty members who wish to avail themselves of this opportunity.

Self-funded research grants, or “Research Grants in Lieu of Salary” are permitted by the Canada Revenue Agency to allow researchers to use their personal income (university salary) to carry out research. The Canada Revenue Agency provides tax relief when a researcher incurs research costs from personal income.

The self-funded research grant may be used for all the purposes of a grant-in-aid, except salary for the principal investigator (the applicant). This program covers only research, creative activities, and scholarly activities, including the scholarship of teaching and learning. As per CRA guidelines, it does not cover projects directed solely at teaching activities or the development of teaching-related skills.

Article 29.09 of the Collective Agreement between Mount Allison University and the Mount Allison Faculty Association (full time bargaining unit) specifies that on the application of the employee, a reasonable portion of an employee’s salary may be designated as a research grant.

The income tax implications concerning this policy are complex and employees are encouraged to fully understand all issues concerning receiving and using a grant in lieu of salary. Any questions about taxation regulations should be directed to Canada Revenue Agency or to an external income tax advisor. While the University shall generally make available to employees the relevant interpretation bulletins from the Canada Revenue Agency, it is ultimately the responsibility of employees to ensure they have acquired the most recent interpretation bulletin and other appropriate information. University employees are not able to provide advice or guidance on specific issues concerning eligible expenses, except to direct individuals to Canada Revenue Agency or recommend that advice be sought from an income tax professional.

Once the grant has been awarded, the funds are no longer considered to be salary, but constitute a research grant, which is subject to the regulations of the program and the research-related policies of the University. The employee is solely responsible for complying with the rules and regulations of the Canada Revenue Agency concerning his or her income and his or her expenses against the research grant.

In cases where the agreement provides for the payment of salaries, or portions thereof, for faculty or employees whose salaries are already paid for by the university’s operating budget or by a designated funding source, such payments will be in the form of reimbursement to the University.

Faculty time must be calculated for each University research contract. If the faculty member(s) or staff are directly involved in conducting the research work, the amount of time (in days or hours) s/he will devote to the research must be specified.

The costs of wages and benefits for all other personnel working on the research project, including post-doctoral fellows, shall be included in any calculation of overhead charges.

All direct costs of any research must be included within the budget. The University should not be left in a position in which it must subsidize the cost of the project.

In the context of student-led research only, indirect costs will not be charged where the ownership of the work remains with the University and the student/fellow, and where the results of the research will be incorporated into a thesis, dissertation, or senior level project. The costs of student wages and benefits (undergraduate or graduate) shall not be included in any calculation of overhead charges, including in projects where students are employed by faculty or staff.

Employee applications to designate a portion of his or her salary as a research grant are approved by the Provost and Vice-President, Academic and Research. In cases where the Provost and Vice-President, Academic and Research deems that the application is unsupportable, he or she shall refer the application to the Research and Creative Activities Committee for advice and consideration. Every effort will be made to convene this committee via e-mail or other means should it be necessary to do so during the summer or other periods. The final decision rests with the Provost and Vice-President, Academic and Research.

• For those who are on or will be on sabbatical during the time of the grant award, the maximum allowable portion of salary that may be designated as a research grant is 100% of sabbatical salary (less benefits).
• For those who are not on sabbatical or other types of leave, the maximum allowable portion of salary that may be designated as a research grant is 50% of salary.
  • The grant may not be larger than 50% of the amount of unpaid salary less benefits remaining in the calendar year at the time of approval.

If the salary of the researcher ceases at any point during the term of the grant, the grant arrangement will terminate. It is assumed that the amount of the grant will be spent on a pro-rated basis unless otherwise reconciled between the University and the researcher. The remaining unspent amount shall be returned to the University.

Applications may be submitted at any time to the Office of the Provost and Vice-President, Academic and Research; however, applications should be received at least one month in advance of the intended start date of the grant as specified in the application.

The employee shall submit a completed Self-Funded Research Grant Application Form to the Office of the Provost and Vice-President, Academic and Research. The application must include:

• Applicant’s name, department, and full contact information.
• The type of salary designation – sabbatical leave or regular employment.
• The total portion of the salary requested for designation.
• The calendar year (or portion of each of two calendar years) for the salary designation.
• The amount(s) of (each) lump sum payment requested and the date(s) desired for receipt of each lump sum payment.
• The title of the research activity.
• A short summary of the proposed research.
• A sufficiently detailed research proposal.
• A sufficiently detailed proposed budget.
• A signed declaration by the applicant that the research complies with university policies, and that the applicant will reduce his or her time from normal workload as agreed with by the Dean. Such policies include, but are not restricted to:
  • 5201 Policy on Conflicts of Interest in Research
  • 5202 Policy Statement on Integrity in Research, Scholarly and Creative Activity
• A signed declaration from the appropriate Dean confirming his/her acknowledgement of the proposed research and agreement that the applicant will spend less time on other research or scholarly activities, or administrative duties, commensurate with the amount of grant requested, for requests to designate regular employment salary as a research grant.

If appropriate, proof of approval from an appropriate certification body, if the research activity involves human subjects (Research Ethics Board), animals (Animal Care Committee), or biohazards (Office of Research Services) shall also be submitted prior to the commencement of the research.

The Provost and Vice-President, Academic and Research, shall provide a written letter of the decision to the employee. If the request has been approved, a copy of the letter shall be provided to the Human Resources office for the purpose of facilitating payroll and salary reduction reporting for the employee, and to Financial Services for the purpose of preparing and issuing cheque requisitions payable to the employee. The letter shall specify:

• The date of submission of the application.
• The date of the decision rendered.
• Any explanation of the decision rendered, if appropriate.
• The date(s) on which the cheque(s) is(are) to be issued.