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Retroactive funding adjustment

Learn about the payroll retroactive funding adjustment process, including terminology, examples, and when it should be used. Understand the approval process and considerations for making adjustments to salary and fringe charges.

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Retroactive funding adjustment

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  1. KU Payroll office Retroactive funding adjustment Submission and examples

  2. acronyms

  3. Terminology – 1 of 2 • On-cycle - Normal biweekly payroll processing cycle • Vouchers V7002XXX • Off-cycle - Supplemental or adjustment payroll cycle/batch • Vouchers V7003XXX • RFA batches • Vouchers V7004XXX, V7005XXX, V7006XXX, and V7007XXX • Additional Pay • Cell Phone Stipend – paid on-cycle • Cash Award or Overload – paid off-cycle • Additional Fringe Benefit Income (Travel Expense over 60 days, Contractual Pay, Commission, etc.) – paid on- and off-cycle – less common transactions

  4. Terminology – 2 of 2 • Adjustments • Benefit refunds/arrearages • Overpayments (Timesheet corrections, late terminations, canceled class) • Pay Group (Defines Type of Employee) • Hourly & 10 day schedule – CUN & STN • Exempt & 10 day schedule – CUX, LTX & SRX • Exempt & 14 day schedule – LCT, LFC & STX • Can be found in PAAG or Job Data. Note: PAAG only lists primary job pay group • Department Budget Table • Position Funding – RFA changes keyed by Payroll directly • Pool Funding – Payroll cannot change funding for a pool. For RFA purposes, the position must be moved to a pool with the desired funding.

  5. What is a payroll retroactive funding adjustment? • A payroll retroactive funding adjustment (RFA) is a process to correct funding source(s) for one or more pay periods for a specific position. • RFAs are not part of a regular business process and should be avoided if possible.

  6. What does an RFA do? Within HR/Pay, Payroll reverses all original salary and fringe charges and then redistributes those charges based on funding submitted on the ePAF/PAF. Original charges 1510001-730 100% Submitted RFA funding: 1510001-099 50% 1510000-700 50% HR/Pay creates reversing rows to remove the original charges. HR/Pay redistributes charges based on the updated funding. Original Reversal Redistribution

  7. Why could an RFA be necessary? An RFA could be needed for many reasons. Common ones are listed below. • Provisional grant numbers were not applied for in a timely fashion • An employee spent a higher percentage of time on a project than expected • A student exhausted federal work study fund award • Funding changes were submitted late by the department or other staff

  8. Things to think about – 1 of 2 Is an RFA the best way to fix the problem? • Will moving this salary/fringe truly represent the effort for the project? • Example – An employee was never worked on the project. Moving the charges would be appropriate and correctly represent the effort. • Could other expenses be moved via journal voucher or budget transfer? • Example – Salary and fringe has been charged to the project the employee expended effort upon. Perhaps moving overhead charges is a better choice. • Should this transaction be handled as a budget transfer? • Example – Cost center 2800000’s 099 funds were charged for Bill’s salary, but he actually performed work for 8100000. The budget office can handle this movement of charges.

  9. Things to think about – 2 of 2 • How many pay periods are involved? • Are any of the periods partial? • Common when dealing with project start and end dates • Also very common at the beginning and end of the academic year • What type and how many employees are involved? • Salaried, hourly, temp, faculty, etc. • Could someone have already started an RFA? • Has funding been submitted to stop future RFAs?

  10. When should an RFA not be used? • An RFA should not be used if the employee was paid on the wrong position. • If the employee is assigned to the wrong position, a PAF should be completed to transfer the employee (choose Position Data Update workflow – job action code Transfer). HR appointment staff will route the appropriate adjustments to Payroll for processing. • If the employee with multiple positions logged hours on the wrong position, the employee’s time sheet should be corrected. Once the corrections have been approved by the supervisor, the corrections will load through time and labor to Payroll for adjustment. • An RFA should not be used to transfer charges from one cost center to another cost center on the same fund. • Example: moving charges from 2800000-099 to 2800010-099. • These should be handled via budget transfer. If a budget transfer is not possible, please note the contact with the budget office in the comments to avoid duplicate efforts

  11. RFAs will not be processed: • For non work-study funding to work-study funding • For only employer fringe costs such as graduate student insurance • For specific dollar amounts • For fringes only*

  12. RFA Approval Process RFAs go through an approval process outlined below based on funding source and timing. • It may need to be approved by a Dean’s Office depending on the specific school or area involved. • It will need approval by the KUOR PAS teams and/or Financial services if it involves research funding. • If the RFA effective date is more than 45 days from the current date and involves • Non-KUOR funding, it will need approval from the Comptroller. • Grant funding, it will need approval from the Assistant Vice Chancellor. • Non-grant KUOR funding, it will need approval from the Chief Financial Officer of KUCR.

  13. RFA timeline Note: Clock restarts each time PAF/ePAF is returned for corrections KUOR approval timeline Payroll office timeline 45-60 days depending on type of funding involved and number of necessary approvals. 1-2 weeks - RFA KUOR queue – Initial review and forwarding for approvals 2-4 weeks – RFA KUOR Team Lead Review – Approval queue for PAS teams 1-2 weeks – RFA KUOR FincServ Review – Approval queue for Financial Services team 1-2 weeks – RFA KUOR AVC Review – Approval queue for RFAs involving projects over 90 days since first incorrect charge 1-2 weeks – RFA KUOR CFO Review – Approval queue for RFAs involving non-project research funding over 90 days since first incorrect charge 30 days - Payroll has 30 days from arrival in queue to complete RFAs. This 30 days includes time spent obtaining Comptroller approval if necessary. 45 days - During certain periods of the year, Payroll may delay completion up to 45 days due to competing priorities. • Fiscal year end – RFAs cannot be processed for 2-3 weeks during fiscal year rollover in mid to late June. Note: Deadlines to ensure FY processing are posted under announcements on the Payroll website. • Academic year hiring – Keying on-boarding documents (direct deposits, tax docs) for new hires takes priority in August and early September. • Tax year end – Ensuring W2s are accurate takes priority mid November through late December. Note: Deadlines to ensure CY processing are posted under announcements on the Payroll website.

  14. Rfa comment - rush An average RFA can take 90 days or more to process. Sometimes, it is necessary to request faster processing. This can be done by typing RUSH please in the PAF/ePAF comments box. Adding this comment does not guarantee faster processing, but it does alert each person touching the RFA to the request for urgency. Note: Misuse of RUSH by submitters and/or departments may result in need wording related to “crying wolf”

  15. How can an RFA be avoided? • Utilize Project Funded Employee Monitoring in PAAG • Monitor FWS students closely to avoid overspending • Request provisional funding • Use a budget transfer to move the charges • Move charges other than payroll to correct the expenditure if appropriate*

  16. Submitting an RFA Pool RFA Requirements • PAAG RFA Report indicating beginning charges, ending charges, and movement statement • PAF (Personnel Action Form) • PCTF (Research funding) • Specific Reason (non-Research funding) Non-Pool RFA Requirements • HR/Pay Accounting Line and DBT Extracts • Accounting Line spreadsheet indicating beginning charges, ending charges, and movement statement • ePAF (electronic Personnel Action Form) • PCTF (Research funding) • Specific Reason (non-Research funding)

  17. Payroll cost transfer form – 1 of 2 Page 1 Page 2

  18. Payroll cost transfer form – 2 of 2 Payroll Cost Transfer Form can be found in the form list under forms/policies at https://research.ku.edu/ku-research-administration-forms • Required by KUOR for any RFA involving research funding • Requires a department head signature if occurring 90 days after the initial charges were made • Recommend getting signatures if within 60 days to avoid returns if delays occur in approval queues • Highly auditable document. Use clear concise language when completing justifications • Ask PAS team for guidance if needed • DEMIS gross/fringe report requirement has been replaced by the HR/Pay accounting line spreadsheet or the PAAG RFA report depending on type of RFA being submitted. • An updated form is in the works; however, the release date is not yet known.

  19. Pools & the RFA process About Pools Pool Funding PAAG (Payroll At A Glance) PAF (Personnel Action Form) RFA examples

  20. About pools • Used to determine/assign funding source for temporary employees except N99 • Multiple positions can be assigned to the same pool • Multiple pools can have the same funding • Type of employee can be determined by pool number (SS indicates summer salary) • C##/CSS - classified non-student employees • G##/GSS - graduate assistants • L##/LSS – lecturers • N99 – default pool ID used for additional pays unless submitter indicates different pool ID (all employees) • R##/RSS – graduate research assistants • S##/SSS – student employees usually hourly • T##/TSS – graduate teaching assistants • U##/USS – unclassified non-student employees • W## – federal work study (75% 709 funds – 25% other funding including research money) • ### - grant and non-grant research funding

  21. About Pool funding – 1 of 3 HR Department of position combined with Pool ID determines which funding is charged. Often funding cost center matches HR department, but this is not always the case.

  22. About pool funding - 2 of 3 Funding is found in DBT by searching Department and Pool ID. Note: Cost Center may not match HR Department especially in departments using Research funding

  23. About pool funding – 3 of 3 The majority of pools will have Earnings, Deductions, and Taxes assigned to same funding and distribution percentages, but these can be different. Note: The override box must be checked on the appropriate tab or HR/Pay will charge fringes based on the earnings distribution.

  24. How to obtain Payroll at a glance rfa report Log into the OAC portal using your KU User ID and password https://oac.ku.edu/analytics/

  25. PAAG navigation On the OAC home page, you can choose to collapse/expand Financials to see PAAG or scroll past the financials dashboard to reach PAAG. Choose RFA to go straight to the RFA tab. Other options including using the dashboard dropdown or favorites to reach PAAG.

  26. PAAG RFA report - 1 of4 • The default for this tab is salary/fringe for the last 14 days for all positions. • To pull an RFA report: • Type or use the dropdown to locate the position for which the RFA needs to completed. • Enter the begin date in either XX/XX/XX or XX/XX/XXXX format. • Enter the end date in either XX/XX/XX or XX/XX/XXXX format • Click Apply • For RFA purposes • Begin date – First day salary/fringe was charged to the incorrect funding source. • End date – Last day salary fringe was charged to the incorrect funding source

  27. PAAG RFA report – 2 of 4 After clicking apply, all salary and fringe for the position during the period should appear in the report box. If the data is complete, click Export and Excel 2007+. If a pop-up appears, click OK to open with Excel.

  28. PAAG RFA report - 3 of 4 • True Pay End Date – Reflects 2 week earnings period during which work was performed • Pay End Date – Date used by Payroll to indicate processing batch • Pay Run – Number and letter combination used by Payroll to indicate processing batch • P#X indicates on-cycle • P#XOFFX indicates off-cycle • RFA Run – Number and letter combination used by Payroll to indicate RFA batch • Note: # indicates fiscal year of transaction

  29. PAAG RFA report - 4of 4 Beginning Charges Table – PAAG sums wages, fringe, and total by combination code for the RFA period replacing the need for a pivot table. Ending Charges Table – Should be used to indicate how salary and fringe should appear after the RFA has been processed. Rows can be added as needed to the table. Movement Statement – Should be used to indicate how much salary/fringe is moving and to which funding source. Rows can be added as needed

  30. Pool paf – 1 of 6 Pool RFAs are submitted via Personnel Action Form (PAF) through the HR website or myKU. The submitter box autofills based on the person logged in. All required fields are outlined in red. Type in the HR Dept for the position and tab out to fill in department name Be sure to select Retro-Active Fund Rqstin the Personnel Action Workflow dropdown. Note: This form does not validate. Please double-check entries. EXAMPLE

  31. Pool paf – 2 of 6 If the RFA involves a grant or any KUOR non-grant funds, the Office of Research Funded box must be checked to properly route the PAF for approvals. • Funds 908, 918, 928, 938, 958, 967, or 968 KUOR sponsored projects • 717-718 UKANS sponsored projects • 9XX KUOR fund (start-up, matching, facilities & administration, and major project planning grant) • 2301XXX-099 GRF (General Research Fund) • 2302XXX-099 NFGRF (New Faculty General Research Fund) • Any cost share involving a sponsored project Failure to properly route a PAF can result in a significant delay of processing.

  32. Pool paf – 3 of 6 A checkmark in this box will activate the dropdown to select the appropriate School (see list). Check the Dean Funding Approval box • If the RFA involves funding sources administered by a Dean’s Office • If the Dean’s Office needs to approve a retroactive funding change • If the department/Dean’s Office requires it Note: The Payroll Office does not track whether a Dean’s Office needs to approve a transaction. It is the responsibility of the submitter to know if the box should be checked.

  33. Pool paf – 4 of 6 Only the comp rate and frequency are required fields for this section. As this is the first comments box on the PAF, it is the one commonly used to provide movement statement and reason for RFA if necessary. Approvals and returns will also be noted here.

  34. Pool paf – 5 of 6 • Only the job title and schedule must be completed for this section. The standard hours and FTE (full-time equivalent) will update based on the schedule. For RFA processing, the most important part are any comments related to the funding change and standard hours for mid-pay period funding changes.

  35. Pool paf – 6 of 6 This is the most important section of the PAF when requesting an RFA • The effective date of the first funding row should match the effective date of the PAF • The funding row(s) should total 100% of the distribution for each pay period. • The pool ID must be filled in and must already be set up in HR/Pay • Use the comments box to list the desired movement of salary and fringe • Add as many funding rows as needed throughout the RFA period. • There should be a funding row for every funding row in the department budget table (DBT) • Include a funding row to demonstrate how the funding should appear the day after the RFA period ends.

  36. Attachments 1 of 2 1. To attach supporting documents, click the Attachments button 2. Click the Add button on the pop-up box 3. Choose the appropriate file from the File Upload box and click Open 4. Confirm correct file name shows 5. Repeat steps 2-4 until all documents have been attached. Then click OK.

  37. Attachments 2 of 2 After clicking OK on the Manage Attachments box, a count on the Attachments button will show the number of attachments for the RFA Attachment reminders RFAs involving KUOR funding must have at least 2 attachments Modified RFA report from PAAG Payroll Cost Transfer Form RFAs not involving KUOR funding must have a modified RFA report from PAAG

  38. Important things to check before hitting the submit button • Are the effective dates correct and matching? • Are the employee ID and position number correct? • Are the approval boxes checked correctly for routing? • Are the funding rows correct with all necessary designations? • Are the supporting documents attached? • Is a specific reason for the RFA listed somewhere in the comments box if KUOR funding is not involved?

  39. Pool example 1 RFA - Whole pay period - non-KUOR funding to non-KUOR funding RFA Period – 01/13/2019-01/26/2019 Original Funding 100% Pool S01 – 1510001-730 RFA Funding 100% Pool S11 – 1510000-099 Post RFA Funding 100% Pool S11 – 1510000-099

  40. Pool Example 1 Complete the Ending Charges Table and Movement Statement on the RFA report by filling in the appropriate boxes and adding rows as needed. Use caution with the movement statement boxes as text in any of highlighted fields can be typed over.

  41. Pool Example 1 A reason for the RFA is included in the comments since RFA does not involve KUOR funding and will not have a PCTF.

  42. Pool example 1

  43. Pool example 2 RFA - Whole pay period – KUOR CS to KUOR CS RFA Period – 11/04/2018-11/17/2018 Original Funding 100% Pool 381 – 1902054-755-74190CS950-CS RFA Funding 100% Pool 363 – 2331000-099-74190CS950-CS Post RFA Funding 100% Pool 363 – 2331000-099-74190CS950-CS

  44. Pool Example 2 Use combination codes in the ending charges table Use Chartfield strings in the movement statement to allow approvers easier review. Use caution with the movement statement boxes as text in any of highlighted fields can be typed over.

  45. Pool Example 2 - funding rows As this RFA involves grant funds, a PCTF must be completed and attached to the PAF.

  46. Pool Example 3 RFA – Whole pay period – FWS to state funding RFA period – 01/27/19-02/09/19 Original Funding 100% Pool W77 – 2420000-709 75% salary 2420000-700 25% salary/100% fringe RFA Funding 100% Pool S21 – 2420000-700 Post RFA Funding 100% Pool S21 – 2420000-700

  47. Pool Example 3 Reminder - RFAs moving charges off 709 funds can only be completed as whole pay periods. Movement statement for Pool (highlighted above) is optional, but it can help in understanding the movement when all salary and fringe charges are moving from one pool to another pool even though Combination Code may not be changing for all the charges.

  48. Pool Example 3 - funding rows Since no KUOR funding is involved, no PCTF needs to be attached; however, a specific reason for RFA must be included in the comments box. If not included, the RFA will be returned.

  49. Pool Example 4 RFA – Mid-period change – KUOR funding RFA period – 02/01/19-02/09/19 Original Funding 100% Pool 201 – 2330255-907 RFA Funding 100% Pool 443 – 2330250-908-1000630 Post RFA Funding 100% Pool 443 – 2330250-908-1000630

  50. Pool Example 4 – paagrfa report Pay group can help with proration of salary/fringe. Keep in mind only primary job pay group pulls in so this column may not be reliable if an employee has multiple positions. Showing method of calculation or proration (highlighted above) is not required, but can be helpful if a reviewer has difficulty reaching the same amount(s).

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