FINANCIAL ADMINISTRATION (401C)

Updated 03/05

BUDGET: SALARIES AND WAGES

KUAC provides salaries and wages to its staff commensurate with their duties and responsibilities and in compliance with University guidelines.

The Kansas University Athletic Corporation (KUAC) seeks to provide fair compensation to each of it’s employees based upon: a) each individual’s qualifications and experience to perform the position for which he/she is hired; b) the value that the position has for the department; c) the demands that the position places upon the individual; and d) the local, regional and national market established for the position involved.

The final approval for KUAC salary and wage increases rests with the University’s Chancellor upon recommendation of the Board of Directors. All highly compensated employees’ salaries are reviewed by the Compensation Committee of the Board of Directors and must ultimately be approved by the Chancellor. Approved salary and wage amounts are used in formulating the annual budget for KUAC.

For budgetary purposes, salaries and wages for staff, as well as those for graduate assistants, transient employees and student workers, are covered in the designated unit’s or sport’s budget. In addition, any budget allocations for overtime compensation in a designated unit or sport must appear in this same budget. All salary and wage recommendations must comply with KUAC guidelines.

KUAC Department of Human Resources maintains specific job descriptions which outline the conditions of employment for positions within KUAC. For additional information see Policy 404C, Disbursements: Payroll, Policy 601A, KUAC Staff: Hiring, Policy 601B, KUAC Staff: Administrative Performance Evaluations and 601C, KUAC Staff: Coaching Performance Evaluations, in this Manual.

Staff members with supervisory responsibility make annual merit wage recommendations for the employees under their supervision. Associate Directors are expected to consider the results of annual performance evaluations in making recommendations for merit pay. University philosophy generally is that KUAC employees may be eligible to receive the same annual percentage increase as University employees.

Except for unusual circumstances, salaries are set for a 12-month cycle. Most of University and KUAC staff receive notice of their salary for the coming twelve months at the beginning of the fiscal year (approximately July 1). The football, volleyball and soccer coaching staffs receive notice of their 12-month salary in February/March.

BONUS PAY

The Athletics Director has the discretion to provide one-time monetary awards to individuals in the department who have demonstrated excellence in their duties above and beyond the basic expectations assigned to their positions. Any such awards will be made at the end of the fiscal year.

LONGEVITY BONUS

After ten (10) years of service, Non-exempt employees will receive a longevity bonus of $50 per year for every year of service on their anniversary date up to a maximum of $1250 per year.

Example: I attain 10 years of service on March 1, 2001. I will get a bonus of $500 on March 31, 2001. Next year my bonus will be $550, etc. until I reach the maximum of $1250 per year.

MISCELLANEOUS NON-CASH COMPENSATION

Miscellaneous non-cash compensation may be available to employees in a given year. It may include, but not limited to a) tickets to University athletics events; b) clothing apparel; and c) participation in the Athletics Department automobile program. Such miscellaneous non-cash compensation is available to employees only at the discretion of the Athletics Director and may be subject to taxation.

CONSULTING INCOME

Consulting income (e.g. camps, clinics, etc.) benefits only those employees involved in such activities. Consulting income is specifically governed by other KUAC policies and agreements (e.g. camps) as well as by University of Kansas policies (e.g. conflict of interest and reporting outside income) and applicable NCAA rules and regulations (e.g. NCAA bylaw 11.2.2).

FAIR LABOR STANDARDS ACT

As defined by the Fair Labor Standards Act, employees are exempt from the provisions of the Wage and Hour Law if (1) their responsibilities include executive or administrative duties, or (2) their positions require an advanced educational degree or specific experience level within a designated area of responsibility and authority. The August 2004 amendment to the Act further states under §13 (a)(1) that to qualify as an exempt employee under the Act, the employee must be paid at least $455 per week; the equivalent of $23,660 per year. Employees classified as exempt from this law do not receive overtime payments. Most staff members holding professional positions are considered “exempt employees.”

Regular staff positions are reviewed on an individual basis by the Department of Human Resources to determine whether each position qualifies for overtime. Employees designated as support staff, clerical, and service personnel are identified by the Federal Fair Labor Standards Act as non-exempt employees, and as such, are protected by the provisions of the Wage and Hour Law.

Overtime is computed for all hours worked beyond the normal 40 hour week, and is paid at one and one-half (1 1/2) times the employee’s regular hourly rate. Budget allocations for overtime wages belong in the budget for each unit or sport. Non-exempt employees are allowed to work overtime only with the approval of the unit head.

INCENTIVE PAY FOR COACHING STAFF

Incentive pay is provided at the sole discretion of the Athletics Director and is based upon the following criteria:

The following amounts shall be paid to the head coach as a bonus in the event the team achieves any of the goals corresponding to the amount indicated:

Big Twelve Regular Season Championship 1 month’s additional salary

Big Twelve Tournament Championship 1 month’s additional salary

NCAA Tournament Participation 1 month’s additional salary

Team Reaches Final Four of NCAA Tournament 2 month’s additional salary

Team Wins NCAA Championship 3 month’s additional salary

It is the intent of the parties that the amounts above shall not be cumulative with each other. For example, if a team participates in the NCAA tournament and advances to the Final Four of the NCAA tournament during the same season, head coach would receive two (2) month’s additional salary, the single greatest monetary reward; not the sum of all incentives achieved.

Special consideration may be made to provide a one-time monetary award to individuals associated with a sport program when one of its student-athletes earns one of the following:

1. Individual student-athlete named NCAA National Champion;2. Individual student-athlete is named 1st team All American.

The Athletics Director, in consultation with the sport supervisor and the head coach, determines any potential incentive pay for assistant coaches or others affiliated with a team.