Salary Cost Transfers  School of Education  Admin Forum  Kate Kaminski & Jim Feldhausen  March 15, 2007

What is a Salary Cost Transfer?  A salary cost transfer is a request made by an administrator to transfer the salary expenses previously charged to one funding string to a different funding string.  Fringe benefit costs for applicable appointments and accounts are transferred concurrently with salary expenses automatically.

When is a SCT Required?  When an employee’s salary was paid incorrectly and there are no other alternative ways of correcting the error.  When management determines that salary costs should be moved to another funding string and there are no alternative ways of moving the salary.

What Causes the Need for a SCT?  Correction of a clerical error  Reallocation of expenses where multiple projects benefited  Reallocation of shared resource costs  Transfer of pre-award costs from divisional or discretionary project funds to a sponsored project  Reallocation of a salary expense

Are There Alternate Ways to Correct Salary Payments? When time and circumstances permit - YES! Total salary costs should be reflective of the respective accounting periods. Depending on the fund/account in question, fiscal years (101), quarters (some 136), or PAR Periods (Personnel Activity Reports - federal funds only) may be the appropriate period. There are many pay periods in an accounting period. Usually only works when the amount of actual pay is not affected.

Example How It StartedWhat You Want

One Possible Solution 101- A HG94- A /27/ /26/07 4, , , % 02/27/ /28/07 4, , , % 03/29/ /27/07 4, , , % 04/28/ /27/07 4, , , % Fund Totals $19,444.44$58,333.32$77, Fund Percents25.00%75.00% +

Another Solution 101-A HG94- A /27/ /26/07 9, , % 02/27/ /28/07 9, , % 03/29/ /27/ , % 04/28/ /27/ , % Fund Totals$19,444.44$58,333.32$77, Fund Percents25.00%75.00% Easier?

The Form  Appt ID – NOT Person ID!!!  SS# - be careful when doing multiple transfers  Funding string fields – get them from WISDM  Note – explanation always required

Completing the Form Accurately  Check PHIQ – accurate if no previous transfers. Note Appt ID.  Use Appt ID to check WISDM to verify how the appointment was paid. Main Menu – Appointments – Salary/Fringe Search  Sort by Calc ID – especially if prior transfers have been completed.  Check ECBS Payroll Schedules to translate Calc ID.  Use WISDM information for the “Was” section of the SCT.

Completing the Form (cont.)  Using the corrected/updated Pay Data form, complete the “S/B” section.  In the “Amt to Transfer” column, calculate the differences between “Was” and “S/B”. Use common sense.  Pay periods with identical amounts can be combined onto one line.  Submit the corrected Pay Data form, along with the SCT, to Division Payroll.

What’s Wrong? Wrong pay period

What’s Wrong? Wrong SS# Wrong Acct code

What’s Wrong? Only paid once for that amount.

What’s Wrong? Person ID, not Appt ID

What’s Wrong? Amts could all be combined onto one line

What’s Wrong? Unlike amounts can’t be combined. $651 on which pay period???

Timeliness  Salary Cost transfers should be processed immediately after the error is identified  Late transfers (beyond 90 days) of Federal (Fund 144) or Non- Federal (Fund 133) sponsored project charges, raise questions concerning the propriety of the transfer. Requests for transfers made after 90 days will be considered only under extenuating circumstances.  Each Late Salary Cost transfer (144 or 133) must be clearly explained with supporting documentation. The PI or designee has primary responsibility for fulfilling these requirements and maintaining the related records. In addition, the PI or designee is responsible for providing appropriate documentation. Research and Sponsored Programs may also require copies of additional supporting documentation or information beyond what is required with the salary cost transfer request.

To process Late Salary Cost transfers (funds 144 & 133) The 2 nd page….. 1.Why was this expense originally charged to the project from which it is now being transferred? 2.Why should the charge(s) be transferred to the proposed receiving project (how does the project benefit)? 3.Why are the charges allowable and allocable based on the terms and conditions of the receiving award? 4.Why is this cost being transferred more than 90 days after the original date the transaction was recorded? 5.What corrective action has been taken to eliminate future need for cost transfers of this type? 6.Generic or incomplete justifications may be returned to the preparer for additional explanation. EXAMPLE

How do you calculate the 90 day period?  The 90 days begins at the end of the accounting month that the original transaction is posted in WISDM. The “clock” runs until the transfer has been prepared and all departmental signatures have been obtained.  Processing time in the Dean’s Office, Research and Sponsored Programs, and Accounting Services is not included in the determination of whether a transfer has met the 90 day criteria.  For example, if a travel expense charge is posted 9/12, the accounting date would be 9/30. Transfers completed and signed by 12/31 would fall within the 90 day period. Transfers completed and signed after that date would be considered late cost transfers.

Here are some examples of typical circumstances in which late cost transfers may not be allowed:  Reallocation of expenses because the grant has unexpended funds  Reallocation of expenses because the clerical error was not noticed within a 90-calendar day period

PAR PERIODS  Unclassified Employees: a PAR is generated at the end of each academic semester for employees having academic year appointments and at the end of summer session for those individuals on appointment during that period. Employees with annual appointments receive a PAR twice each year after the six-month periods ending June 30 and December 31.  Classified & Student Employees: a PAR is generated quarterly covering three earned months (not three calendar months). Two of the quarterly PARs consist of six biweekly pay periods. The other two quarterly PARs consist of seven biweekly pay periods.

Questions?? Kate KaminskiJim Feldhausen