Judy Mallon, Sponsored Programs Updated November 2010 Salary Transfer Effort Reporting and Payroll Default Accounts Judy Mallon, Sponsored Programs Updated November 2010

Objectives What effect late cost transfers have on: Describe the university procedures regarding salary cost transfers. Discuss the approval process for all cost transfers. What effect late cost transfers have on: Sponsored accounts. Effort reporting. Financial statement of the university. Importance of clearing the payroll default accounts in a timely manner.

Terminology

Terminology Used to put employees into the Payroll system and make changes Personnel Event Form (PEF) Used for all students in place of PEF Student Employment Assignment Form (SEAF)

Terminology Monthly Funding Report and Effort Information (FEI) Generated Monthly and available in ECR Should be reviewed monthly for accuracy. Used to request changes in the effort expended on sponsored accounts. Always used for faculty effort reallocation and to reallocate from sponsored accounts.

Terminology Time and Effort Certification Report (TEC) access from ECR Faculty Members are required to certify their own document. If no longer employed then the Chair person must certify. Non-faculty either employee or their supervisor must certify.

Terminology Salary transfer request form (FA10). Used to journal salary paid but not effort reportable. Retroactive transfer form non-salary object codes (FA11). Temporary pool charges would be journalized with this form, not FA10.

Terminology Principal Investigator (PI). Payroll Default Account. Desired certifier when employee cannot certify TEC reports. A temporary holding account for salaries, only when account number has not been assigned.

Batch Reference Numbers For Salaries and Fringe Benefits

Batch Reference Numbers for Salaries and Fringe Benefits LD ### Labor Direct Charge is due to payroll running. LDC ### Labor Direct Correction Charge is due to a Salary Journal being Processed LDV ### Labor Direct Void Payroll has processed a batch of checks that were cancelled, usually due to overpayment.

Batch Reference Numbers for Salaries and Fringe Benefits Special or extra payroll has been processed LDX ### Batch generated salary encumbrance LDE ### On line generated salary encumbrance LD #### Fringe benefits CFB

Fringe Benefits LD ### - to lock the fringe benefits to the correct payroll is as follows: Using report 90 “Report of transactions” Which is the detail section of charges to your accounts. For each type of labor transaction go to the appropriate CBF object code and look for the correct payroll by locking the numbers. See example:

Fringe Benefits LDC and LDV batches differ because the labor will be one batch number for both the debit and credit side of a journal. The fringe will be one number for the debit side Federal Accounts and another number for Non-Federal Accounts and the same thing will occur for the credit side of the journal, one number for the Federal Accounts and one number for the Non-Federal Accounts. See Example: Notice that the numbers for the batch are in sequence, this procedure is the same for all LD and LDX transactions.

Example:

COMPOSITE FRINGE BENEFIT RATES UNIVERSITY OF MIAMI COMPOSITE FRINGE BENEFIT RATES FISCAL YEAR 2010-2011 DESCRIPTION   RATE PAYROLL CFB OBJECT OBJ CODES CODE FEDERAL ACCOUNTS CLINICAL FACULTY 19.6% 1021 1022 1024 1029 2012 Medical School Only 1071 1072 1074 1079 2072 ALL OTHER FACULTY 25.3% 1011 1019 1017 2011 1061 1069 1067 2061 NON FACULTY 36.0% 1031 1039 1201 1209 2015 1301 1309 1401 1409 1081 1089 1261 1269 2065 1361 1369 1461 1469 PART TIME EMPLOYEES 8.60% 1013 1018 1033 1038 1203 2018 (LESS THAN 50%) 1208 1303 1308 1403 1408 1063 1068 1083 1088 1263 2068 1268 1363 1368 1463 1468 NON FEDERAL ACCOUNTS 21.3% 1021 1022 1023 1024 1029 27.6% 39.3% TEMPORARY POOL MEDICAL CAMPUS AND SOUTH OBJECT CODE 4214 and 4216 21.70% GABLES AND MARINE CAMPUS OBJECT CODES 4210 & 4213 23.54%

WHICH FORM DO I USE?

Salary Transfer Requirements Changes must be explained Supporting documentation must be attached Corrections should be initiated within 30 days from the date of occurrence. These requirements are for all campuses:

Salary Transfer Requirements Letter of justification if over 90 days Mandatory for this type of request Late award corrections must have copy of late award document showing dates All signatures must be affixed and dated Copy of account reconciliation for all ended accounts Request must be submitted on the appropriate reallocation form

CHANGE EFFORT IN MIDDLE SECTION OF DOCUMENT (PAGE 2) FEI GENERATES MONTHLY ALWAYS USED FOR FACULTY and for NON FACULTY WHEN MOVING SPONSORED EFFORT CHANGE EFFORT IN MIDDLE SECTION OF DOCUMENT (PAGE 2) OBTAIN SIGNATURES

FEI IF REQUEST IS OVER 90 DAYS IT WILL REQUIRE A LETTER OF JUSTIFICATION ATTACH SUPPORTING DOCUMENTATION REMEMBER TO CHANGE the EFFORT PORTION OF YOUR DOCUMENT

JUSTIFICATION

REASON REQUEST IS OVER 90 Day's FROM DATE OF OCCURRENCE JUSTIFICATION REASON REQUEST IS OVER 90 Day's FROM DATE OF OCCURRENCE WHAT PROCEDURE HAVE YOU PUT IN PLACE TO ELIMINATE LATE REQUESTS IN THE FUTURE LATE AWARD ATTACH COPY

A STATEMENT THAT THE CHARGE IS NOT RELATED TO THE ACCOUNT. JUSTIFICATION CLEARLY EXPLAIN THAT THE CHARGE IS DIRECTLY RELATED TO THE ACCOUNT TO BE CHARGED. A STATEMENT THAT THE CHARGE IS NOT RELATED TO THE ACCOUNT.

Insufficient Justification NEED TO CLEAR OVERDRAFT ON ACCOUNT NEED TO CLEAR DEFAULT ACCOUNT CLERICAL ERROR

Insufficient Justification LACK OF STAFF FAILURE TO COORDINATE LACK OF COMMUNICATION BETWEEN DEPARTMENTS OR CAMPUSES

Insufficient Justification FAILURE OF PI OR RESEARCH STAFF TO INFORM THE DEPARTMENT OF CHANGE IN EFFORT INADEQUATE JUSTIFICATION WILL BE RETURNED UNPROCESSED

FA10 Form

FA-10 NON BASE PAY OVERTIME OVERLOAD THIS FORM IS USED TO TRANSFER SALARY FOR THE FOLLOWING: FA-10

Effort Certification Form

Effort Certification Federal mandate Must be Certified by faculty member Must be COMPLETED within 45 days

If request is over 90 days a letter of justification is required Effort Certification If incorrect certifier makes changes this will require a salary journal to be processed by the Department Administrator If request is over 90 days a letter of justification is required

FA11 Form

FA-11 THIS FORM IS TO TRANSFER NON SALARY ITEMS FROM ONE ACCOUNT TO ANOTHER REQUIRES JUSTIFICATION IF OVER 90 DAYS REQUIRES SUPPORTING DOCUMENTATION OF APPROPRIATE REPORT 90 OR DMAS SCREENS

PAYROLL DEFAULT TEMPORARY!

Temporary account to place assignment What is Default? Correct account not available Assignment not 100% distributed Temporary account to place assignment

is the Default Account Charged Default account charged payroll expense when; Project ends before assignment PEF to correct assignment not keyed Account is closed with assignments open

Why is default a problem? Incorrect Billings/Financial Status Incorrect Cost Alignment Reimbursement Deadlines Administrative Cost

PAYROLL DEFAULT ACCOUNTS TOTAL CLEARING ACTIVITY FOR THE UNIVERSITY AS OF 10/31/2010   CURRENT UNRESTRICTED GENERAL CURRENT UNRESTRICTED DESIGNATED OTHER CURRENT RESTRICTED SPONSORED CURRENT RESTRICTED GIFT TOTAL ALL FUNDS PERCENT CLEARED 2.82% 9.17% -1.25% 87.03% 2.23% 100.00% DIVISION 1XXXX 3XXXX 4XXXX/5XXXX 6XXXX 7XXXX 20 11,724.30 -   5,232.51 80,172.87 97,129.68 30 20,046.08 136,066.43 (3,144.59) 1,210,291.51 33,016.99 1,396,276.42 40 3,278.27 (20,605.42) 716.25 (16,610.90) 50 - 60 6,833.34 TOTAL BY ACCT 41,881.99 (18,517.50) 1,291,180.63 1,483,628.54

www.whitehouse.gov/OMB/circulars A110 Uniform Administration for grants. A21 Cost Principals A133 Audits of States, Local Govt. & Non-Profit Org.

OTHER WEB SITES National Institute of Health www.nih.gov National Institute of Health http://grants1.nih.gov NIH Guide for Grants & Contracts http://grants2.nih.gov/grants/policy NIH Grants Policies

JUDY MALLON MANAGER, SPONSORED PROGRAMS PHONE (305) 284-3223 FAX (305) 284-1544