Salary Encumbrances Budget and Financial Planning FAR Meeting May 23, 2018 Tammy Anthony and Javier Martinez Budget and Financial Planning

Salary Encumbrance Project Phase I: Salary Encumbrances and Reports Phase II: Benefit Encumbrances Phase III: Automation for Salary & Benefit Encumbrances Budget and Financial Planning

Timeline Phase I: Salary Encumbrances Monthly employees - Go Live June 1 Hourly Employees – Go Live September 1 Phase II: Benefit Encumbrances – Go Live September 1 Phase III: Automation for Salary & Benefit Encumbrances – Complete by September 1 Budget and Financial Planning

Budget and Financial Planning Issues to Resolve Current process went live in May 2015 and is a PeopleSoft Delivered Process UTSIS and project team began the development of a customized process in November 2017 to resolve the following issues: Incorrect encumbrance calculations and balances Updates for certain employees were missing Negative encumbrances occurred Encumbrances are not refreshed often enough Need to encumber hourly employees and fringe benefits Budget and Financial Planning

Project Requirements: Developed with campus’s input Encumbrance amounts requires accuracy, close to the penny as possible Does not create negative balances Make sure the process is updating balances accordingly Automate the encumbrance process Usage of the “Expected Job End Date” field on the Job record Provide a report on encumbrances using the HR_Acctg_Line table Budget and Financial Planning

What is Required for Encumbrance? HR Status = Active Payroll Status = Active or Leave with Pay Active Position in the Position Table Active DBT Active Contract (for faculty) Compensation Rate exists in Job Table Hourly compensation rate in Job Table Standard Hours in Job Table (for hourly) Budget and Financial Planning

Encumbrance Calculation Salaried Employees Monthly Rate * Full months in the encumbrance period (Monthly Rate = Annual Salary * FTE/12) Plus Prorated amount (if applicable): Monthly rate/working days in the month * effective days the employee is working Budget and Financial Planning

Encumbrance Calculation Hourly Employees Hourly Rate * Standard hours/5 * Working Days in the Encumbrance Period Benefit Encumbrances Based on Actuals for each employee – Stay tuned for more information after Phase II is tested by UTSA Budget and Financial Planning

Budget and Financial Planning Compensation Rate For encumbrance purposes, the process will use the compensation rate code in the Job Table NAANNL – Salaried Employees NAHRLY – Hourly Employees CNTRXX – Contract Employees Budget and Financial Planning

Why do we Encumber Salary and Benefits? Allows for more accurate planning of the funding sources for salary and benefit expenditures for the year Helps to avoid overspending budgets Salary and Benefit expenses is “The Biggest” expense in all of our institutions. Planning and budgeting for this aspect of our operation is critical. Budget and Financial Planning

Budget and Financial Planning Also included… All current and future dated job actions and faculty contracts for the current fiscal year will be included in the calculation. All current and future dated DBT rows for the fiscal year will be included. Funding end dates beyond the end of the fiscal year for projects only can be included or can be stopped by leaving this field blank or including the last day of the current year. UTSA – VPR Office will need to “revisit” this decision. Budget and Financial Planning

Budget and Financial Planning Also included… cont. Employee job records that include a Expected Job End Date will calculate/liquidate based on that date. DBT funding end dates will be used when calculating/liquidating encumbrances so please ensure there is a DBT in place with active funding for the full year. ***Funding end dates prior to the last day of the year will require the next effective dated DBT that will cover the full year for the funding assignment. Most recurring current and future dated additional pay items will be included in the encumbrance calculation. Budget and Financial Planning

Budget and Financial Planning QUESTIONS Budget and Financial Planning

Budget and Financial Planning Thank you! Budget and Financial Planning