Effective Date: |
January 4, 2016 |
Function: |
Labor Distribution |
Contact: |
The payroll encumbrance process allows budgeted labor costs to be set aside from available project funds. By reserving funds from a budget for expenses committed but not expended, a more accurate available funds figure can be maintained.
This procedure describes the Research Foundation's payroll encumbering process.
The payroll encumbrance process allows budgeted labor costs to be set aside from available project funds. By reserving funds from a budget for expenses committed but not expended, a more accurate available funds figure can be maintained.
The payroll encumbrance process automatically encumbers salaries and fringe benefits for
The amount entered for the hourly encumbering element will be used to encumber funds until it is changed or zeroed out.
The payroll encumbering process is run nightly at central office. The process encumbers full and partial pay periods for the life of Assignment/Labor Schedule/Award/Project/Task up to the 8 year, 3 month limitation (99 months).
Encumbrances will not be created under the following circumstances:
Monitoring of incomplete labor schedules should be accomplished by using existing LD RF Projected Suspense Charges report.
The payroll encumbrance calculation associated with each Project Task Award Organization Expenditure (PTAOE) is based on daily rate times the number of working days in the period being encumbered.
The daily rate, which is the rate of encumbrance on a daily basis prorated by the labor schedule line, is based on rules associated with each earnings element.
i.e., A person is paid a biweekly rate of $2,000. The overall daily rate would be $200. If the person had three labor schedule lines LS1 50%, LS2 30% and LS3 20%; the daily rate associated with the PTAOE related to each would be LS1 $100, LS2 $60 and LS3 $40.
The following changes will cause the recalculation of encumbrance to occur the next time the encumbrance process is run (which is nightly):
Encumbrances are created for encumbrance exceptions or encumbrance shortages but are not posted to Grants.
Encumbrance exceptions occur when various conditions are present during the payroll encumbering process. If encumbrance exceptions are not addressed, actual expenditures may or may not be posted to Grants based on the Exception Reason. For a complete list of Exception Reasons, refer to "RF Payroll Shortage and Exception Report".
Encumbrances will not be posted to Grants if there are insufficient funds available. If encumbrance shortages are not addressed, actual expenditures for payroll or grants batches (usage, miscellaneous transactions, or time card) will be charged to a project/task/award which may result in overexpended projects, tasks, and awards.
Frequent monitoring of encumbering exceptions and shortages should be done and corrective action taken. For more information, refer to reports below.
The following reports should run at least weekly to monitor payroll encumbering:
Report Name |
Description |
RF Projected Suspense Charges Report |
Run this report to monitor future payroll dates and potential transactions to suspense resulting from incomplete/incorrect charging instructions or data/status issues with the project/task/award. These will also affect actual payroll charges, if not addressed timely. |
RF Payroll Shortage and Exception Report |
Run this report to monitor Shortages (previously known as Failed Funds transactions) - Identifies payroll encumbrance amounts that will not be posted as encumbrances due to budget limitations. Exceptions - Identifies transactions that will not be posted as encumbrances for the exception reason listed. For a description of the report and exception reason codes, refer to "RF Payroll Shortage and Exception Report" in EPSS under Grants Management, Reports/Queries, GM Oracle Reports. |
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Date |
Summary of Change |
January 4, 2015 |
Removed the following sections: Element caluculations, Determining Number of Working dats and added Monitoring Payroll Encumbering reports because the guidance document is being eliminated. |
January 30, 2004 |
New document |
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