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PPS 5.04


Policy and Procedure Statement 5.04 Start-Up Funds
Issued: 12/04 (9 paragraphs)
Review Cycle: Dec. 1, E2Y  
Review Date: 12/01/2011  
Reviewer: Assoc VP, Res & Fed Rel  

Pen and Ink Change to Paragraph 7- 10/18/07 


  1. Start-up funds are defined as funds that are committed to a faculty member at the point of hiring. The funds are provided at the discretion of the Provost to selected new faculty members to allow them to obtain necessary equipment and/or instrumentation, supplies, and other items required to initiate a competitive research/scholarly activity that will generate externally funded grants and/or contracts.
  2. Facilities and Administration (F&A) Costs: The term Facilities and Administration refers to those costs that cannot be charged to a grant or contract as a direct cost. These are the “overhead” or “indirect” costs for operating the university that include, but are not limited to:
    1. Electricity, water, natural gas, and other utilities
    2. Payroll processing, accounts payable, human resources and other support services
    3. Depreciation and use allowances
    4. General administration and general expenses
    5. Sponsored projects administration expenses
    6. Operation and maintenance expenses
    7. Library expenses, departmental administration expenses and student administration expenses
  3. Recovered F&A Costs: F&A costs that have been collected by the university from funding sources. It does not include amounts billed, but uncollected.


  1. Each fiscal year a percentage of the recovered Facilities and Administration Costs will be determined as a basis for funds to be set aside for use by the Provost to provide start-up funds for new faculty hires. The amount of funds made available will be at the discretion of the President.
  2. These funds are not to be used to replace existing funds that have been historically used for start-up purposes, but should be viewed as a supplement to those funds to allow for competitive packages for exceptional faculty. The Provost in consultation with each Dean and Chair will determine the amount of start-up funds that will be offered to a potential faculty member.
  3. The Dean and/or Chair in consultation with the Personnel Committee at the appropriate time in the interview process and prior to any offer being made will, with approval of the Provost, indicate to the faculty candidate(s) the amount of start-up funds that will be made available to the candidate should he/she be hired. The Dean and/or Chair will at the time that start-up funds are discussed with the candidate, clearly state to the candidate the performance expectations of the Department and/or College associated with the use of the start-up funds. For example, yearly publication expectations and external funding expectations over a three-year or probationary period would be clearly stated.
  4. At the time that a formal, written offer is made to a candidate, the amount of the start-up package will be clearly stated. The candidate will be informed that there is an expectation that the start-up funds will be expended during the first year of employment, but with approval from the Dean and Provost, expenditures can be extended beyond one year.
  5. It is the responsibility of the Chair and Dean in consultation with the Personnel Committee to monitor the performance of the new faculty and to determine on a yearly basis whether or not performance expectations are being met. Written comments should be provided to the faculty and records should be kept for annual evaluations.


  1. This PPS has been approved by the reviewer listed below and represents Texas State's Division of Academic Affairs policy and procedure from the date of this document until superseded.

Review Cycle: _______________________ Review Date: _________________
Reviewer: ___________________________Date: ________________________
Approved: ___________________________ Date: _______________________

Gene Bourgeois
Provost and Vice President for
Academic Affairs

Texas State University-San Marcos
Provost and Vice President for Academic Affairs
Last Updated:  9/15/2009
Send comments and questions to: tg12@txstate.edu