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Compensation on Sponsored Programs
Presentation Team
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• Michele Conlin, Associate Director, Post-Award Administration
• Younes Haboussi, Manager, Payroll Operations
• Jessica Mitchell, Sr. Sponsored Programs Coordinator, College of Health Sciences
• Dawn Yasik, Manager of Effort Certification, Post-Award Administration
Learning Objectives
• Understand the myriad of requirements concerning compensation on sponsored
programs
• Learn what auditors look for when auditing compensation on sponsored programs
and techniques to mitigate risks of non-compliance
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The Big Picture
• Compensation for personal services on sponsored programs is by far the
largest category of direct expense on sponsored programs.
• Includes salaries, wages and fringe benefits
• Allowable as a direct expense to extent that the total compensation conforms
to the established policies of the institution and consistently applied
• Ensures salaries are allowable, allocable to a given project, reasonable
• Maintains adequate internal controls and documentation
• Employment-related matters are an area of high risk to the university3
The Rules
• Federal and State Laws and Regulations
• Uniform Guidance 2 CFR 200/ OMB Circulars – A-21, A-110, A-133
• Sponsor Policy
• Program Guidelines
• Award Terms & Conditions
• University Policy
– Contractual Obligations
– Collective Bargaining Agreements
– Effort Reporting4
Audits, Settlements & Investigations
Federal government continues its effort to monitor and audit compensation related to
sponsored programs
• Areas of Focus
• Allowability
• Cost Transfers
• Effort Reporting
• Administrative & Clerical Costs
Summary of University Audits, Settlements & Investigations - Federal Programs 5
Payroll
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PeopleSoft
UDTime
JED:• Hire / Rehire / Terminate / Leave
• Promotion / Demotion / Transfer
• Sets up / Extend / Change funding info
• Rate changes
• Earning Code Changes
• FTE Changes
Additional Assignment:• Add / Terminate additional Job
• Sets up / Change default funding info
• Addl Job rate changes
S-Contract / GNCP: • Pay for teaching credited courses (that are not part of
regular faculty workload)
• Pay academic faculty for summer research
• pay nonexempt, benefitted employees their overtime pay
• Awards & Honoraria
• Missed Pay, Bonuses, Pay adjustments
S-Contract /
GNCPJED
Additional
Assignment
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Payroll Distribution
Payroll Distribution (Salaried)
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LAM
JED
LAM Interface
EarningsJob
Earn Dist
Fringe
GL
LAM
Payroll Distribution (Hourly)
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LAM
JED
LAM Interface
Additional
Assignment
Additional Job
Manual
UDTime
S-Contracts
Other Earn
Earn Dist
Fringe
GL
Why LAM
• Make temporary changes to your employees’ salary funding distributions as often as needed
• Save yourself extra work (fewer salary JVs)
• Make better budget decisions with LAM-generated salary obligations
When to use JED
• Making Earning code changes
Earnings codes vs. Account codes
• Earn Code: 3-character code used to identify the type of earnings paid to an employee
• Account: classifies transactions as a particular category of expenditure, revenue, asset,
liability or net assets
Impact of using the wrong codes / account
• taxes, fringe benefits
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LAM
Payroll Processing
• Retroactive payroll transactions
– Causes
– Methods of correction
• Payroll Adjustment
• JVs
• other
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Payroll Processing
• UD Time
The process
Approvals
Reports
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UDTime Timesheet
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• Default Funding Info
• Manager/timekeeper can change for each time slice
• Default Rate
• Manager/timekeeper can change for each time slice
Result panel
• Pay codes -> Earn Code
• Hours from all assignments
• Rates charged
• Speedtype charged
UDTime reports
UDTime has a select ion of reports to help managers, t imekeepers, and payroll adm inist rators
UDTime reports example
The Time Sheet Detail Query report displays data from the TI ME_SHEET_DETAI L table.
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Payroll Processing
• Line #1 shows salary being cost-shared to a grant
• Line#2 shows UD cost for non-sponsored activity
• Lines #3 & 4 show direct charges to grants
Labor Allocation Module (LAM)
Dist % tells
Payroll how to
allocate the pay
Funding End Date may not
exceed the end date of any of
the sponsored projects
Award Administration
Payroll ≠ Effort
What is Effort ?
– Institutional Base Salary (IBS)
• What is included, what is not
• Effort reports include only IBS
• Importance of correct account codes
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Award Administration
LAM Calculator
What does it do?
http://www1.udel.edu/research/xls/LAM_calculator_6-5-15.xlsx
How to use it
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Award Administration
LAM Calculator
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Award Administration
LAM Calculator – multiple earnings codes
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LAM Calculator Example
• Committed Salary (from COA): $3,500
• Project period: 06/01/17-05/31/18
Award Administration
Effort Reporting
Includes salaried & misc wage employees
Salaried – Effort System
Hourly – UD Time
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Award Administration
Effort requirements for hourly employees
UD Time
Time sheet shows hours and allocations
Report shows rates
Supervisory certification and date required
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Award Administration
Key personnel
– PI, co-PI, other key persons
– What makes someone key personnel?
• Role in the project
• Named in award docs
– Effort commitments
• Minimum level
• Reporting effort when it’s met
• GMQ_EFFORT_CURRENT_BY_PI
• Rebudgeting effort 24
Award Administration
Salary Cost Transfers
– Avoid errors in appointments and allocations
– Communicate personnel changes
• Who is coming or leaving
• Other employment status changes
• Appointment changes (TA, RA, Fellow)
that require JEDs
– Monthly reviews of expenses and credits for
timely corrections (do not wait for Effort
reports!)
Award Administration
Salary cost transfers
– Using webforms vs. via the Effort System
• Timing
• How to JV via Effort System
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Award Administration
Salary cost transfers
– Effort report revisions
• When they are needed, when they are not
• Email request to [email protected]
Include, employee ID, effort period, $s to be credited and debited and
purpose/projects involved, reason revision is needed
• 90 day JVs will require 90-day approval as usual
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Award Administration
Salary JV Instructions
• Make sure your transaction dates match the effort period and that any
previous JVs are JVd in the period in which the salary was earned (don’t
go by the date the JV was done)
• Trans detail to include: name, empl ID, purpose, project, trans descr,
account, class, date, $ amount)
• UDataGlance (download to Excel) or GMQ_TRANSACTIONS_SALARY_JV
• Possible attachments
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Award Administration
Salary cost transfers - examples
– What to do when funding expires or new code is pending
• Grants must not be used to park charges
• Move allocation to a 17E temporarily
• What if effort report is due?
– What to do when an award is overspent
• Move charges to non-sponsored source
• Tag as cost-share if effort already certified
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ABCD17E000
Award Administration
Retroactive salary changes processed by Payroll
What causes them?
Processing appointments incorrectly
(when in doubt, call HR)
Lack of communication of changes
(terminations, appointment changes,
FTE changes, leave status, etc)
Incorrect allocations (confirm charges hit where they belong)
Lack of or lateness of grant management
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Award Administration
Retroactive salary corrections processed by Payroll
What do you need to know and do?
• Remove excess salary charges from grants immediately (don’t wait until
payroll corrections are made)
• Confirm the transactions hit the right funding source
• Timing of the GL posting matters - do the correcting transactions apply to
previous or multiple effort periods?
• Email [email protected] for effort period corrections
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Important Take-aways
• Audit findings are bad
• UG stresses strong internal controls
• Avoid big messes: choose the right sal admin plan, earnings codes & accounts
• UD Time can provide backup for hourly-wage audits
• LAM Calculator helps with complicated entries
• Monitor accounts on monthly basis and make corrections/adjustments timely
• Avoid 90 day cost transfers
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Direct Questions to…
• HR - New hires / Appointment changes – [email protected]
• LAM – Payroll - [email protected]
• UD Time – Payroll - [email protected]
• Payroll – General payroll questions - [email protected]
• Effort Reporting/LAM Calculator/Salary JVs – [email protected]
• Other Compensation Related Questions – Contact your SRA
– https://www1.udel.edu/research/about/directory.html
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On-Line Resources
LAM Calculator: http://www1.udel.edu/research/xls/LAM_calculator_6-5-15.xlsx
LAM instruction manual: http://www1.udel.edu/payroll/docs/LAMProceduralManual.pdf
UD Time instructions: http://www1.udel.edu/payroll/udtime/udtime-guide.html
HR systems processing aids http://www.udel.edu/faculty-staff/human-resources/hr-systems/
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Questions?
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