Requirements and Best Practices for Payroll Expense Transfers (PETS)

Transcription

1 Requirements and Best Practices fr Payrll Expense Transfers (PETS)

2 What is a PET? PET Best Practices Reasns fr Cmpleting a PET PET Reference Guide PET Checklist Grant Certificatin Tab and Examples Attachments and Examples Links and Resurces Questins

3 A PET is an after-the-fact cst transfer t reallcate payrll transactins frm their riginal accunt recrded in the general ledger t a new surce. PETs are financial transactins entered within the Human Capital Management (HCM) system which require a detailed review prir t apprval. All cst transfers are subject t meeting audit requirements. CU uses the Grant Certificatin prcess within PETs t meet these requirements

4 Update funding by the 10th f each mnth when pssible t avid PETs Crdinate with faculty, grant managers and/r ther funding crdinatrs befre prcessing any PETs Submit nly ne PET per paycheck Prcess PETs as sn as pssible after payrll runs, r within 90 days Dcument PET with ample details and back-up

5 Award r Accunt (ST) was received late. This PET shuld nly mve payrll ut f a department fund t a spnsred prject fr the time perid f the award. Funding surces d nt have enugh resurces t cver earnings. This PET shuld mve payrll ff f a spnsred prject t a department fund. Change in effrt based upn award amendment/mdificatin This shuld nly mve payrll ut f a department fund t a spnsred prject fr the time perid f the award. Crrectin due t clerical errrs

6 The recipient shuld have systems in place t detect such errrs within a reasnable time frame; untimely discvery f errrs culd be an indicatin f pr internal cntrls. Frequent errrs in recrding csts may indicate the need fr accunting system imprvements, enhanced internal cntrls, r bth. If such errrs ccur, recipients are encuraged t evaluate the need fr imprvements and t make whatever imprvements are deemed necessary t prevent reccurrence. NIH als may require a recipient t take crrective actin by impsing additinal terms and cnditins n an award(s). NIH Grants Plicy Statement fund at: ransfers verruns and_accelerated_and_delayed_expenditures.htm

7 Please cnsider the fllwing questins prir t submitting any PET actins. Is effrt mving frm ne spnsred prject t anther? Is the effrt/expense allwable n the new prject I am mving it t? Is the effrt allcated prperly t the prject(s)? Des this match the spnsr apprved budget? Is the requested PET fr effrt greater than 90 days ld? Des the change impact effrt previusly certified n the prject which wuld cause the PI t recertify their eper?

8 Prvide a detailed descriptin explaining the need fr the PET Wh - Include the emplyee name and EIN r POS number What Prvide speedtypes explaining where the funds are cming frm and ging t. Why Reasn the transfer is being requested, why was this an errr? When Prvide the paycheck dates r mnths being crrected Hw Much - Percent f effrt r ttal dllars being transferred between speedtypes Is this fr effrt mre than 90 days ld? The reasn the request was nt submitted within 90 days f the transactin date Hw requests greater than 90 days ld will be prevented in the future

9

10

11 PET SMIT Crrecting salary fr December 2017 thrugh January 2018 fr emplyee, Jane Smith, Emplyee ID Upn review f the speedtype, Grants Manager fund that due t administrative versight, her salary was allcated incrrectly. Salary is currently charging 10% t and 90% t and shuld be charged per the belw: December CU Gift Fund 95% CU Grant Fund 5% January CU Gift Fund 100% Over 90 days: The department f CU had turnver and this award was nt recnciled since Octber New staff was hired December 2017 t manage this award. The crrectin was fund in review and recnciliatin with PI.

12 Required attachments Optinal attachments Salary Spreadsheet r Timesheet if emplyee is paid frm mre than ne surce. cmmunicatin if transferring payrll between departments. M-FIN Payrll Transactin reprt r Financial Detail highlighting the mnths f payrll being mved. (Highly encuraged when yu are cmpleting a PET with mre than ne emplyee) cmmunicatin if PET requestr is different than the creatr Additinal dcumentatin that may assist in review r audit.

13 Attachment Examples

14 Attachment Examples Salary Spreadsheet

15 Justificatin Statement in the Certificatin Tab must cntain all the required elements fr apprval. The Attachments are backup t supprt the Justificatin Statement. They are nt a replacement r alternative t putting the infrmatin int the justificatin statement.

16 OGC Pst award is respnsible fr review and apprvals fr all PETS t funds 30/31. Office f Grants and Cntracts uses the denial as a tl t make crrectins t the transactin. Based n HCM functinality, the PET must be in denied status fr the field t repen fr any adjustments r crrectins. Pst award will cmmunicate with the persn wh has entered the PET in these instances. If it is determined a PET cntaining future funding will need t be denied it will require re-entry.

17 *University f Clrad Cst Transfer n Spnsred Prjects Plicy: tracts/csttransfersspnsred%20prjects-fp4-12.pdf *Direct Charge Plicy tracts/fp4-07.pdf PET Calculatr Emplyee Salary Template Cming t OGC website Sn with PET Reference Guide and Checklist HCM Cmmunity *These plicies are currently under review with ur new trainer, and will be updated in the future with new guidance as part f ur training initiative.

18