1. MICHAEL ANTHONY MANAGEMENT ACCOUNTING & ANALYSIS MRAM – SEPTEMBER 12, 2013 Salary Cap - Observations & Updated Calculator Tool

2. Salary Cap - Observations Background  Aware many units opted to not establish a separate budget when a grant supplement made with a different salary cap threshold (e.g., SNAP awards - originally Executive Level I; changed to Executive Level II)  Many of these Salary Cap changes occur mid FEC cycle  Not seeing many FEC reports with adjusted salary cap cost sharing

3. Salary Cap - Observations Concern When Salary Cap changes occur mid FEC cycle Salary Cap cost sharing adjustments should be made Usually results in a greater level of cost sharing Potentially overcharge to Federal grants and under cost sharing for UW if changes not made UW possibly being reimbursed more than we should Could result in audit findings University wide

4. Salary Cap - Observations Department Responsibilities & Actions Communicate to all department personnel involved in grants management, payroll distributions and FECs Recommend thorough review of all FECs associated with budgets subject to two Salary Cap thresholds (those with multiple funding actions) Make appropriate salary cap adjustments on FEC reports when separate budgets are not established (Note, will need to reflect adjustment as ‘Shift’ on FEC)

5. Updated Salary Cap Calculator Tool Tool available to assist departments in determining amount of salary cap cost share required and to be reflected on FEC reports Especially useful when  New budgets subject to Salary Cap are added to recertified FECs  Multiple salary caps present during an FEC cycle  Non-DHHS sponsors apply unique salary cap (i.e., different than the DHHS Salary Cap)

6. Updated Salary Cap Calculator Tool Recent changes  Better instructions on the use of the tool – More explicit and includes examples. Separate instructions for single and multiple Salary Cap scenarios  Expanded Salary Cap levels to include up to four “Other” Salary Caps based on department feedback (in addition to DHHS Caps)  Revised existing formulas to recognize and incorporate the four “Other” Salary Caps into the calculation - Previously had to use one of the Executive Level cells  Added separate section to address multiple salary caps within an FEC cycle – Provides ability to adjust Salary Cap cost share on a pay period basis

7. Updated Salary Cap Calculator Tool