Guideline RAG15 FACULTY CONSULTING AGREEMENTS

Contents:

  • Purpose
  • Amount of Consulting Allowed
  • Required Approval
  • Required Reporting
  • Responsibility for Private Professional Services
  • Use of University Facilities and Resources
  • Involvement of Students and Staff
  • Rate of Compensation and Tax Consequences
  • Intellectual Property Issues
  • Terms and Conditions Recommended for Inclusion in Faculty Consulting Agreements
  • Terms and Conditions to be Avoided in Faculty Consulting Agreements
  • Cross References

  • PURPOSE:

    The main Penn State policies and procedures relating to faculty consulting activities include the following:

    AMOUNT OF CONSULTING ALLOWED:

    All those individuals who carry the rank of Penn State faculty are allowed to engage in consulting up to a maximum of four days per month during their appointment period. There are two other limitations:

    1. consulting activities may not interfere with the performance of University duties or other contractual obligations of the University . Likewise, consulting activities may not create the potential for a conflict of interest (such potential conflicts must be disclosed and properly managed or eliminated prior to consulting, in accordance with policy RA20, Individual Conflict of Interest).

    2. the consulting activities should enhance the faculty member's professional stature or academic proficiency.

    In extraordinary circumstances, if faculty need to exceed the monthly limit (but not exceed the annual limit of 48 days), approval must be given by the department chair.

    REQUIRED APPROVAL:

    Faculty members are required to inform their department head or campus executive officer of the nature, type and extent of their consulting activities (undertaken with or without compensation) so that the department head or campus executive officer may judge the appropriateness of the consulting activity in relation to the performance of the faculty member's regular duties.

    A faculty member may not provide special service to the Commonwealth of Pennsylvania for additional compensation without the prior written approval of the President of the University per HR42 - Payment of Personal Compensation by a State Agency or Department of the Commonwealth.

    REQUIRED REPORTING:

    Per HR80 department heads and campus executive officers are required to report annually to their vice president or dean concerning the levels and amount of private consulting by faculty and staff within their authority.

    RESPONSIBILITY FOR PRIVATE PROFESSIONAL SERVICES:

    Per HR80 the University assumes no responsibility for private professional services performed by members of its faculty. The name of the University is not in any way to be connected with the service rendered or the results obtained. The faculty member must make it clear that his or her consulting work is a personal matter. He or she must not use the official stationery of the University nor stationery having a University address or a University telephone number.

    A faculty member shall not accept or retain employment which would bring him or her as an expert or in any other capacity, into conflict of commitment or in competition with the interests and purposes of the University or the Commonwealth of Pennsylvania and federal agencies.

    USE OF UNIVERSITY FACILITIES AND RESOURCES:

    Policy FN14 prohibits the use of University facilities and resources including specialized equipment, specialized software, supplies and services for faculty consulting activities. This does not preclude use of standard office facilities including e-mail, internet, local telephone, PCs, etc., subject to a test of reasonableness. Faculty consultants may access University facilities in the same manner available to non-University personnel. The utilization of University resources for consulting purposes must be approved by University administrators and documented in a Memorandum of Understanding. The Memorandum of Understanding clearly identifies the extent and nature of the facilities being utilized and establishes use charges based on the cost to the University of maintaining said facilities. The financial officer of the College or administrative unit should establish the appropriate charge out rate.

    INVOLVEMENT OF STUDENTS AND STAFF:

    The involvement of students and staff in faculty consulting activities should be undertaken with caution. Faculty may not involve students or staff in consulting activities within the scope of the student's or staff member's University duties. Faculty may hire students or staff to assist with faculty consulting activities outside the scope of the student's or staff member's University duties. Such arrangements require the full knowledge and approval of University administrators and must be codified in a Memorandum of Understanding. Safeguards must be instituted on a case-by-case basis to ensure that the performance of University duties and the scholarly mission of the University are not compromised. In particular, faculty must avoid even the appearance of directing students into research activities that serve their own personal interests at the expense of scholarly achievement.

    RATE OF COMPENSATION AND TAX CONSEQUENCES:

    The University will not comment on or offer input regarding the rate of compensation or the tax consequences associated with faculty consulting activities.

    INTELLECTUAL PROPERTY ISSUES:

    TERMS AND CONDITIONS RECOMMENDED FOR INCLUSION IN FACULTY CONSULTING AGREEMENTS:

    TERMS AND CONDITIONS TO BE AVOIDED IN FACULTY CONSULTING AGREEMENTS:

    CROSS REFERENCES:


    Effective Date: February 3, 2006
    Date Approved: January 27, 2006
    Date Published: February 2, 2006

    Most recent changes:

    Revision History (and effective dates):

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