Managing Sponsored Projects
UM SPA, February 2008

Chapter 4: Setting up the project
Section 4.3: Hiring Personnel  Appointing personnel Consultants
If an employee-employer relationship to the University exists or had existed (ie., retired personnel), the individual may not be hired as a consultant. This means that the consultant's services must be: Consultant payments may not be used in order to avoid the withholding of taxes, or the regular employment practices of the University, or to meet unusual, short-term, or peak work demands.
 
For federal sponsors, justification must be available to show that the services were essential to the project and could not have been provided by a person salaried on the project, and that the charge is appropriate and reasonable.
 
To hire a consultant, refer to the University policy on Purchasing a Professional Service, and its related procedures. This policy also lists contacts for further information.
 
To receive payment, the consultant must send the PI an invoice.
 
Payments are made to consultants after the completion of services, and are sent to the home or business address of the consultant.
 
Consulting - intra-University
University personnel in a department different from the applicant's may be hired as a consultant and paid through payroll.
 
The payment voucher (PV) document to reimburse the consultant for out-of-pocket expenses must contain a statement of benefit to the project charged.
 
Out-of-pocket expenses are reimbursed through established employee expense reimbursement procedures.
 
Citizenship
Programs of the federal government may limit participation to U.S. citizens, noncitizen nationals, or to foreign nationals who possess a visa permitting permanent residence in the United States.
 
Foreign nationals who may be PIs, or are otherwise employed on sponsored projects should be aware that federal agencies will not intercede with another federal agency on behalf of such persons to change or amend visa status.
 
For further information, consult with the International Student and Scholar Services Office at (612) 626-7100.
 
Nepotism
The Regents policy on nepotism permits University employment of persons related through blood, marriage, or other committed relationships. Related persons could thus conceivably be employed on the same sponsored project. However, to avoid possible conflicts of interest, unless approved, related individuals cannot "participate in decisions to hire, retain, promote or determine the salary of the other person or to be responsible for the evaluation, supervision or assignment of the work of the other person."

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