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

2. 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.

3. Terminology

4. 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)

5. 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.

6. 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.

7. 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.

8. 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.

9. Batch Reference Numbers
For Salaries and Fringe Benefits

10. 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.

11. 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

12. 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:

13. 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.

14. Example:

15. COMPOSITE FRINGE BENEFIT RATES
UNIVERSITY OF MIAMI
COMPOSITE FRINGE BENEFIT RATES
FISCAL YEAR
DESCRIPTION
RATE
PAYROLL
CFB OBJECT
OBJ CODES
CODE
FEDERAL ACCOUNTS
CLINICAL FACULTY
19.6%
2012
Medical School Only
2072
ALL OTHER FACULTY
25.3%
2011
2061
NON FACULTY
36.0%
2015
2065
PART TIME EMPLOYEES
8.60%
2018
(LESS THAN 50%)
2068
NON FEDERAL ACCOUNTS
21.3%
27.6%
39.3%
TEMPORARY POOL
MEDICAL CAMPUS AND SOUTH OBJECT CODE 4214 and 4216
21.70%
GABLES AND MARINE CAMPUS OBJECT CODES & 4213
23.54%

17. WHICH FORM DO I USE?

19. 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:

20. 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

21. 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

24. 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

25. JUSTIFICATION

26. 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

27. 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.

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

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

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

31. FA10 Form

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

34. Effort Certification Form

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

38. 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

39. FA11 Form

40. 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

42. PAYROLL DEFAULT
TEMPORARY!

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

44. 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

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

46. 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

47.
A110 Uniform Administration for grants.
A21 Cost Principals
A133 Audits of States, Local Govt. & Non-Profit Org.

48. OTHER WEB SITES National Institute of Health
National Institute of Health
NIH Guide for Grants & Contracts
NIH Grants Policies

49. JUDY MALLON MANAGER, SPONSORED PROGRAMS
PHONE (305)
FAX (305)