Compensation on Sponsored Programs

Transcription

1 Compensation on Sponsored Programs

2 Presentation Team 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 1

3 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 2

4 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 university 3

5 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 Reporting 4

6 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

7 Payroll JED: Hire / Rehire / Terminate / Leave Promotion / Demotion / Transfer Sets up / Extend / Change funding info Rate changes Earning Code Changes FTE Changes S-Contract / GNCP Additional Assignment JED Additional Assignment: Add / Terminate additional Job Sets up / Change default funding info Addl Job rate changes PeopleSoft 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 UDTime 6

8 Payroll Distribution 7

9 Payroll Distribution (Salaried) LAM Interface LAM JED Job Earnings GL Earn Dist Fringe LAM 8

10 Payroll Distribution (Hourly) LAM Interface LAM Manual JED Additional Job UDTime Additional Assignment Other Earn S-Contracts Earn Dist Fringe GL 9

11 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 LAM 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 10

12 Payroll Processing Retroactive payroll transactions Causes Methods of correction Payroll Adjustment JVs other 11

13 Payroll Processing UD Time The process Approvals Reports 12

14 UDTime Timesheet Default Rate Manager/timekeeper can change for each time slice Default Funding Info Manager/timekeeper can change for each time slice Result panel Pay codes -> Earn Code Hours from all assignments Rates charged Speedtype charged 13

15 UDTime reports UDTime has a selection of reports to help managers, timekeepers, and payroll administrators

16 UDTime reports example The Time Sheet Detail Query report displays data from the TIME_SHEET_DETAIL table.

17 Payroll Processing 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 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 16

18 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 17

19 Award Administration LAM Calculator What does it do? How to use it 18

20 LAM Calculator Award Administration 19

21 Award Administration LAM Calculator multiple earnings codes 20

22 LAM Calculator Example Committed Salary (from COA): $3,500 Project period: 06/01/17-05/31/18 21

23 Award Administration Effort Reporting Includes salaried & misc wage employees Salaried Effort System Hourly UD Time 22

24 Award Administration Effort requirements for hourly employees UD Time Time sheet shows hours and allocations Report shows rates Supervisory certification and date required 23

25 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

26 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!)

27 Award Administration Salary cost transfers Using webforms vs. via the Effort System Timing How to JV via Effort System 26

28 Award Administration Salary cost transfers Effort report revisions When they are needed, when they are not request to 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 27

29 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 28

30 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 ABCD17E000 29

31 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 30

32 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? effortcert@udel.edu for effort period corrections 31

33 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 32

34 Direct Questions to HR - New hires / Appointment changes hrsystemsadmin@udel.edu LAM Payroll - lam-system@udel.edu UD Time Payroll - ud-time@udel.edu Payroll General payroll questions - pr-staff@udel.edu Effort Reporting/LAM Calculator/Salary JVs effortcert@udel.edu Other Compensation Related Questions Contact your SRA 33

35 On-Line Resources LAM Calculator: LAM instruction manual: UD Time instructions: HR systems processing aids 34

36 Questions? 35