HRMS Default Accounts

1. HRMS Default Accounts Mary Simon, Sr. Director Budget Development & Planning September 16, 2009

2. Agenda • Background • Account Features • Monitoring and Review • Administrative Operational Guidelines • In conclusion

3. Background (1 of 2) • This process is required by HRMS implementation (a UT System-wide project) to streamline processing of salary assignments and payroll services business processes. • Positions must be funded. This is part of our fiduciary responsibility to assure sufficient funding exists to cover the annualized cost of the assignment salary. • What is a Default Account? • An account created at the Dean or VP Level that will be used as a last resort at the time of payroll processing to pay employees their entitled wages when there is incomplete or partial funding information. • It is intended to ensure accurate and timely employee payment and allocation of fringe benefits. • Positions that do not have any or adequate funding associated when incumbent is assigned will result in payment to those individuals and unfunded charges placed in a “default account”.

4. Background (2 of 2) • Why are default accounts being added? • One of the key design features of HRMS is to separate employment details from funding and budgetary aspects. • An assignment can be processed even if account or budget issues prevent the funding distribution from posting.

5. Account Features • Default accounts will not be funded. These accounts will be classified as clearing accounts allowing them to go into overdraft. • Increasing urgent notifications will be issued to department (creator and reports to person of the creator) as payroll deadlines approach for positions not fully funded. • A document creator cannot input a default account number in the funding distribution section. • To clear transactions posted to a default account, a valid funding source must be entered into the funding distribution of HRMS using a Modify Document. This action will automatically move transactions to the correct account and charges removed from the default account. • Default accounts are established under 19 account groups and encompass all account groups. • Default accounts will only be used for encumbered positions with Monthly payment types.

6. Monitoring and Review • Deans’ and VP area financial officers will monitor default accounts and ensure appropriate salary accounts tied to assignments are updated so overdrafts on default accounts may be are cleared in a timely manner. • HRMS assignment documents will route through key financial representatives responsible to review for unfunded accounts to mitigate use of default accounts. • Email notifications will be generated when Default Accounts are utilized. Additionally, email notifications will be sent to Budget Office and will be forwarded to the appropriate Divisional/Dean Financial Officer. • HRMS reports will be available to show any unfunded assignments recorded in the default account • Report will include Position ID (with a link), employee name, email of the creator, and comments/notes on the document • In summary, Default account should only be necessary in very rare circumstances and cleared in a timely manner.

7. Administrative Operational Guidelines Recap • Administrative Operating Guidelines are available: http://www.utsa.edu/financialaffairs/opguidelines/3.4.1.html RECAP • Each Division & College will be assigned an “unfunded” Salary Clearing account as a Default account. • Default accounts will encumber any remaining periods in the fiscal year for the portion of the assignment that is “unfunded”. • Only the amount needed to cover the unfunded portion of the assignment will be charged to these accounts. • Default accounts will only be used for encumbered positions with monthly payment types. • Must be cleared in a timely manner with oversight at the Division/College Level. • The Budget Office will monitor compliance with established guidelines.

8. In Conclusion • Information being provided prior to system testing and reports being made available for review • Established default accounts • HRMS emails generated • HRMS reports generated • Any changes or additional information received on default accounts will be communicated • Any Questions?