Salary Cap - Observations & Updated Calculator Tool

1. Salary Cap - Observations & Updated Calculator Tool Michael Anthony Management Accounting & Analysis MRAM – September 12, 2013

2. Salary Cap - Observations Background • Aware many units opted to not establish a separate budget when a grant supplement made with a different salary cap threshold (e.g., SNAP awards - originally Executive Level I; changed to Executive Level II) • Many of these Salary Cap changes occur mid FEC cycle • Not seeing many FEC reports with adjusted salary cap cost sharing

3. Salary Cap - Observations Concern • When Salary Cap changes occur mid FEC cycle Salary Cap cost sharing adjustments should be made • Usually results in a greater level of cost sharing • Potentially overcharge to Federal grants and under cost sharing for UW if changes not made • UW possibly being reimbursed more than we should • Could result in audit findings University wide

4. Salary Cap - Observations Department Responsibilities & Actions • Communicate to all department personnel involved in grants management, payroll distributions and FECs • Recommend thorough review of all FECs associated with budgets subject to two Salary Cap thresholds (those with multiple funding actions) • Make appropriate salary cap adjustments on FEC reports when separate budgets are not established (Note, will need to reflect adjustment as ‘Shift’ on FEC)

5. Updated Salary Cap Calculator Tool • Tool available to assist departments in determining amount of salary cap cost share required and to be reflected on FEC reports • Especially useful when • New budgets subject to Salary Cap are added to recertified FECs • Multiple salary caps present during an FEC cycle • Non-DHHS sponsors apply unique salary cap (i.e., different than the DHHS Salary Cap)

6. Updated Salary Cap Calculator Tool • Recent changes • Better instructions on the use of the tool – More explicit and includes examples. Separate instructions for single and multiple Salary Cap scenarios • Expanded Salary Cap levels to include up to four “Other” Salary Caps based on department feedback (in addition to DHHS Caps) • Revised existing formulas to recognize and incorporate the four “Other” Salary Caps into the calculation - Previously had to use one of the Executive Level cells • Added separate section to address multiple salary caps within an FEC cycle – Provides ability to adjust Salary Cap cost share on a pay period basis

7. Updated Salary Cap Calculator Tool

8. Updated Salary Cap Calculator Tool

9. Updated Salary Cap Calculator Tool

10. Updated Salary Cap Calculator Tool