Transcript Payroll Distribution Confirmation Report Training

Payroll Distribution
Confirmation Report Training
June / July 2003
Objectives
• Provide an overview of the key elements of
the new Payroll Distribution Confirmation
Reporting Policy
• Review Payroll Distribution Confirmation
Reports
• Outline Roles, Responsibilities and Process
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Payroll Distribution
Confirmation Policy
• Why a new policy and procedure?
– Regulatory requirements
– Respond to external and internal concerns and
findings
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Overview
• Payroll confirmation replaces the Work Activity
Confirmation reports (WAC’s) sent to Faculty
• Key Differences
– A payroll confirmation is required for every individual
with payroll charges to a sponsored award
– Salary cost sharing is not specifically highlighted in the
payroll distribution report
– 100% of each individual’s charges are listed, not just
the charges to sponsored awards
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OMB Circular A-21
• Section J8.b(2)a
The payroll distribution system will … reasonably reflect
the activity for which the employee is compensated by the
institution…
• Section J.8.c.(1)(e)
At least annually a statement will be signed by the
employee, principal investigator, or responsible official(s)
using suitable means of verification that the work was
performed, stating that salaries and wages charged to
sponsored agreements as direct charges…are reasonable
in relation to work performed.
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Definition
• Payroll confirmation reporting is the formal
verification of the reasonableness of payroll
charges to sponsored awards
• In general each faculty / PI will receive 2 reports
to sign
– Faculty Report (detailing his / her own charges)
– Award Manager Report (detailing the individuals
charging to his / her awards)
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Faculty Report
• How did we identify those individuals who should
receive their own ‘faculty’ report?
– There is no indicator of “faculty” within Oracle
– We relied on:
• “Award manager” designation in Oracle
• “Professorial salaries” expenditure types
• Input from Division Administrators
• If you think that someone should be receiving a
faculty report and not appearing on the Award
manager report let us know and we will add
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them to the list for the next go around
Faculty Report
• Faculty with payroll charges to sponsored awards
receive their own payroll distribution report
• Lists 100% of the faculty members payroll charges
(in %) for the reporting period
• If a faculty charges to an award for which he is
not the award manager, his charge will appear
on his own Faculty Report and not on the
Award Manager’s report
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Faculty Confirmation
“ As principal investigator or cognizant
signatory I confirm that I have suitable
means of verification that work was
performed and that the salaries and wages
charged directly to the sponsored
agreements indicated above are reasonable
in relation to the work performed”
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Award Manager Report
• Format
– Cover page
• lists all the employees that had payroll charges on
the award manager’s awards
• confirmation statement
– Detailed report
• Detail listing of employees’ payroll charges
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Award Manager Report
• 100% of each individual’s time (in %) is
listed
• Award manager only confirms the charges
made to his or her awards
– Identified by an ‘X’ in the confirm column
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Award Manager Report
• If an individual has charges that affect
multiple award managers then that
individual will be listed on each award
manager’s report
• Payroll charges for other PI’s are not
included on the Award Manager Report
(see Faculty Report)
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Award Manager
Confirmation
“ As award manager or cognizant signatory
I confirm that I have suitable means of
verification that work was performed and
that the salaries and wages charged directly
to the sponsored agreements indicated on
the attached report are reasonable in
relation to the work performed”
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Data Source
• What’s included in the payroll charge %?
– All W-2 payroll charges are included in
calculating 100% of the individual’s charges
e.g.
• Basic salary
• Overtime
• Housing allowance
– 1099 / 1042(s) and 592(b) earnings elements
are not included (see appendix)
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Data Source
• The information used to calculate the
payroll % charge comes directly from the
labor distribution module
• It includes all cost transfers processed prior
to the run date of the report
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Data Explanation
• A minimum of 1% has been assigned to every
sponsored award identified on the report
• Except as noted above, all percent figures have
been rounded using normal rounding rules
• A rounding difference line is used when necessary
to obtain a total of 100% for each individual
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Data Explanation
• The non-sponsored charges line item is the
aggregate of all payroll charges for the
specific employee to non-sponsor funded
activity
• This would include payroll charges to
general budget, endowment, etc
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Paid Leave
• Scenario:
– An employee eligible for paid leave
– Paid 100% by a sponsored award
– Takes vacation / sick time during the 6 month
reporting period
• The payroll distribution report will show
charges against both the sponsored project
AND non sponsored charges
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Contact Person
• Each Faculty and Award Manager Report is
associated with a contact person
• The contact person is responsible for distributing
reports to, and receiving from, faculty and or
award managers
• Contact persons were provided by Division
Administrators for the first reporting cycle
• The Award Set Up Form currently requests
that a Payroll Confirmation Contact Person be
designated
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Cognizant Signatory
•
•
Responsibility for confirmation may be
delegated to a cognizant signatory
A cognizant signatory is any individual
who:
1. Has suitable means of verification that work was
performed, and
2. Has the knowledge to confirm that the payroll
charges were reasonable in relation to the work
performed
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Award vs. Project
Manager
• On some larger projects there may be
several ‘project managers’ involved in one
award
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Award vs. Project
Manager
• Departments are free to work out
arrangements that best work for them
– E.g. copying the Award Manager Report and
highlighting the individuals that the project
manager is signing for
– Having the project manager co-sign with the
award manager
• Cost Studies will keep track of the
reports by award manager
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Procedures
• Review the information on the report and confirm that it
represents a reasonable distribution of payroll charges for
the work performed
• If there is a disagreement that the work was performed and
/ or that the distribution is reasonable Cost Studies should
be notified immediately
• Cost Studies will work with the award manager / contact
person to determine the appropriate course of action. A
cost transfer request may need to be processed by the
Division / center through Project Accounting. The Cost
Transfer policy will apply to such requests
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Procedures
• Report Distribution
– Every 6 months
• July and January, for 6 months ending March 31 and
September 30, respectively
• Timing allows for cost transfers to be processed
within 90 days
– Reports distributed to Contact Person
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Procedures
• Report Collection
– Reports should be returned to Cost Studies
within 30 days of distribution.
• Reminders will be sent out as follows:
•
•
•
•
After 30 days – to the Contact Person
After 60 Days to the Division Administrator
After 75 days to the Division Chair
After 90 days to the Provost
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Validation of Report Data
• Comprehensive data testing is being performed by
Cost Studies
• The percentage calculation expresses all payroll
charges and cost transfers for each individual for
each sponsored award as a % of their total payroll
charges
• No adjustments have been made to the payroll
data that is in the labor distribution module
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Special Cases
• Visiting professors / Emeritus professors
– If Caltech is not making payroll charges they
will not receive a Faculty Report.
– May receive an Award Manager Report if they
are responsible for awards made to Caltech
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Report Statistics
• 2,600 individuals charging to sponsored
awards
• 231 Faculty Reports
• 240 Award Manager Reports
• 37 contact persons
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Roles & Responsibilities
•
•
•
•
Principal Investigator
Divisions / Centers
Office of Financial Services (Cost Studies)
Human Resources (Labor Distribution Unit)
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Contacts
• Tracey Fraser, Director Cost Studies &
Property Services, ext 2540
tracey.fraser@caltech.edu
• Ted Lieu, Manager Cost Studies, ext 2579
ted.lieu@caltech.edu
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