Define the Labor/Payroll Process

Terminal Learning Objective Action: Define the labor/payroll process Conditions: You are a GFEBS user with access to a computer, the GFEBS training database, applicable GFEBS references, and awareness of Operational Environment (OE) variables and actors Standards: With a minimum of 80% accuracy, learners must demonstrate proficiency to: Communicate how GFEBS captures labor and payroll costs Identify the GFEBS interfaced relationship to capture cost Determine the difference between budget relevant and non-budget relevant labor and payroll costs Communicate how standard rates are used to allocate labor costs to the benefiting cost objects Communicate why detailed labor and payroll transactions are loaded into Business Intelligence (BI)

Capturing Labor Cost and Payroll Activities To account for financial impact of labor costs and pay/expenses Payroll costs include salary, benefits (health insurance, workman’s compensation insurance, matching retirement contributions by employer), awards/bonuses, and deductions (payroll taxes, social security, allotments) Defense Civilian Payroll System (DCPS) – System used to capture civilian payroll details

Capturing Payroll Costs Payroll files are received automatically through an interface or entered manually in GFEBS GFEBS posts actual payroll commitments, obligations, expenses, and disbursements ECC sends detailed payroll records to Business Intelligence (BI) Received Automatically thru an Interface Entered Manually in GFEBS

Full Costs The entire cost of goods/services received, whether or not the items were paid for/funded by the receiver FFMIA and the Statement of Federal Financial Accounting Standards 4: Managerial Cost Accounting Standards and Concepts (SFFAS 4) Require Army to record full costs of payroll and labor Require reporting of full costs against benefitting cost objects

Federal Guidelines on Costing DOD Financial Management Regulation (DOD FMR) Defense Finance and Accounting Service (DFAS) Blue Book: A guide to Federal Requirements for Financial Management Systems

Check on Learning #1 Q1: How is labor cost calculated? A1: Q2: Describe a time tracking system? A2: Q3: When capturing payroll costs, what does GFEBS post? A3:  

GFEBS Army System Interface Two payroll entitlement systems that Interface with GFEBS: Defense Civilian Payroll System (DCPS) Army Time and Attendance Production System (ATAAPS) Other associated systems: Italian Local National Payroll System (ILNPS) Korean National Payroll System (KNPS) US Army Europe (USAREUR) Local National Pay System Interface (ULNAPSI)

Budget-Relevant Costs Payroll or labor costs that affect budget and available funds Budget-relevant activities include: Actual payroll expenses – civilian and foreign/local national Reimbursable or direct charge labor transactions Actual payroll expenses – military

Non-Budget Relevant Payroll or Labor Cost Do not affect budget or available funds, and are visible only via secondary cost elements Non-budget relevant activities include: Labor cost allocations within the same fund, FA and funded program Labor cost allocations of military time tracking hours

Standard Rates and Standard Rate Formula Standard Rates: Based on estimated or budgeted costs; used to assign costs to cost objects Standard Rate Formula: Total value of costs planned for an activity type divided by planned output quantity of the activity type Maintenance Cost Center Rate of Activity Type = $37.50 The Number of Hours Worked = 10 $375.00 $375.00 Sender Credited $375.00 Receiver Debited $375.00 The Standard Rate charged is $37.50 per hour worked

Detailed Transactions in BI Conform to policies: Office of Personnel Management (OPM) requirements for personnel reporting Meet Office of Management and Budget (OMB) payroll reporting requirements Enable Analysis: Labor costs for full time equivalents (FTEs) Labor rates and variances Labor and payroll costs for budget and cost planning Labor costs and payroll expenditure details at individual worker-level

Check on Learning #2 Q1: What does full cost include? A1: Q2: Payroll file is either received_____through an interface or entered ______ in GFEBS? A2: Q3: Payroll or Labor costs that affect budget and the availability of funds is considered? A3:  

Module “D” Summary Labor and Payroll Reporting Functions Detailed Labor Costs Report Payroll Audit Report Capture labor cost through time tracking Calculated labor costs Interfaced time tracking files Automated Time Attendance and Production System (ATAAPS) and how ATAAPS Interfaces with GFEBS Job order numbers (JON) and work centers in ATAAPS Manual Time Tracking Direct Activity Allocation Budget and Non-budget Relevancy Time Tracking Errors

Module “D” Summary (Continued) Capturing Payroll Costs GFEBS being the system of record for the general fund Defense Civilian Pay System (DCPS) Interface between (DCPS) Gross Pay (GPR) file and GFEBS Payroll Accruals Military Pay: The Defense Joint Military Pay System (DJMS) and future of Integrated Personnel and Pay System-Army (IPPS-A) Foreign/Local National Pay Systems that Interface with GFEBS (Italian, Korean, and German) Manually pay files in standard file format Maintenance of Personnel Master Records Labor/Payroll Process Time Tracking Full Cost

Statement of Federal Financial Accounting Standards 4 (SFFAS 4) DOD Financial Management Regulation (DOD FMR) Systems that interface with GFEBS Standard rates and standard rate formula Performed Transactions Pulled from BI – Generate Detailed Labor Cost Report Pulled from BI – Generate Payroll Audit Report KB21N – Simulate a Manual Direct Activity Allocation KB23N – Display a Manual Direct Activity Allocation S_ALR_87013611 – Generate Cost Centers: Actual/Plan/Variance Report S_ALR_87012993 – Generate Orders: Actual/Plan/Variance Report KOB1 – Display Actual Cost Line Items for Orders  

Terminal Learning Objective Action: Define the labor/payroll process Conditions: You are a GFEBS user with access to a computer, the GFEBS training database, applicable GFEBS references, and awareness of Operational Environment (OE) variables and actors Standards: With a minimum of 80% accuracy, learners must demonstrate proficiency to: Communicate how GFEBS captures labor and payroll costs Identify the GFEBS interfaced relationship to capture cost Determine the difference between budget relevant and non-budget relevant labor and payroll costs Communicate how standard rates are used to allocate labor costs to the benefiting cost objects Communicate why detailed labor and payroll transactions are loaded into Business Intelligence (BI)