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Administrative Stipend Processing as of July 1, 2009

Administrative Stipend Processing as of July 1, 2009. Agenda. Changes Effective 7/1/2009 What do you need to do? 7/1 Changes to Recurring Payments – Centrally Processed Examples for Determining Cost Distribution Percentages GLs for Recurring Payments Sample Labor History Report

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Administrative Stipend Processing as of July 1, 2009

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  1. Administrative Stipend Processingas of July 1, 2009

  2. Agenda • Changes Effective 7/1/2009 • What do you need to do? • 7/1 Changes to Recurring Payments – Centrally Processed • Examples for Determining Cost Distribution Percentages • GLs for Recurring Payments • Sample Labor History Report • Maximum Cost Distribution Allowable on Grants • Error Messages • Benefits

  3. Admin Stipends Effective 7/1/2009 • All current 0ADS and 0ADM payments will end 6/30/2009 and new ones will be created centrally for the remaining balance of time • New admin stipends will use the 0ADM wage type and will be called “Salary 2” • 0ADM recurring payments for 7/1/2009 and later cannot have a specified account line; Cost Distribution (IT0027) will drive the accounting • All admin stipends beginning 7/1/2009 must be on the primary assignment (or the PCR will error) • All yearly admin stipends for 9/12 faculty must be dated for the entire year so the “effort” is paid over 12 months, as is the salary

  4. Admin Stipends Effective 7/1/2009 con’t • “Effort” is reflected by the percentages on Cost Distribution because it is a percentage of base pay including administrative stipend • ADL will no longer be calculated as part of “Effort” after 6/30/2009 since ADL is incidental effort • Adjustments can be made to former admin stipend recurring payments but their time period should not be extended beyond 6/30/2009 • The 0SUS wage type should be used for 9/12 faculty summer admin stipends and is not part of “Effort”; therefore, it is not used in the calculation of the Extra Comp hourly rate

  5. What do you need to do Now? • Review the records of each of your employees who have current Administrative Stipends • ZHRPA_14_COST_DIST in R/3 • HR710 in the HR Folder in BW • Calculate the new account line percentages for the sum of base salary plus ADM(s) • Complete a Cost Distribution PCR to adjust for the 7/1/2009 changes, if applicable • When?? You can begin immediately planning & creating your 7/1/2009 Cost Distribution time slice(s)

  6. ZHRPA_14_COST_DIST - R/3 Report Variables Entry Screen HR710 - BW Report Variables Entry Screen Select your Org Unit, Fund, Cost Center, or other variable(s) to narrow the report to your employees

  7. Centrally Processed Recurring Payment Changes for 7/1/2009: Example Original Recurring PaymentNew Recurring Payment $1,000 $1,000 9/1/2007 to 8/31/2012 7/1/2009 to 8/31/2012 D100836-6261200000-0 No cost assignment 0ADS Wage Type 0ADM Wage Type On Dept. Head Assignment On Primary Assignment DELIMITED to 6/30/09

  8. Original Recurring Payment New Replacement Recurring Payment No cost assignment can be made on this payment This one changes to a 6/30/2009 end date

  9. Sample #1Changing the Current Cost Distribution Original Cost Distribution Original Recurring Payment Base Salary = $7,000/mo.

  10. Sample #1 Calculations Original Cost DistributionNew Cost Distribution A100001-6261200000-1 50% A100001-6261200000-1 43.75% E101080-6261200000-0 50% E101080-6261200000-0 43.75% D100836-6261200000-0 12.50% Base Pay = $7,000/month 50% of 7000=.50*7000=3,500 Effort = $7,000 + $1,000 =$8,000 A100001 = $3,500 (50%) 3,500/8,000 = .4375 =43.75% E101080 = $3,500 (50%) 1,000/8,000 = .125 =12.5% D100826 = $1,000 (stipend) Note: If there is only one account line used for costing both the base pay and the admin stipend, the Cost Distribution at 100% DOES NOT need to be adjusted.

  11. Sample #1 New Cost Distribution Includes funding for base salary & admin stipend

  12. Sample #2 Calculating Cost Distribution when amounts are known $6,000 base pay $400 stipend on F100262 $2,000 pay on A100001 $4,000 pay on grant #1001953 • Add the Base Salary amount per month to the monthly stipend amount to calculate the total “effort” pay 6000 + 400 = 6400 • Divide the stipend amount by the total 400/6400 = .0625 = 6.25% • Divide the dollar amount on the first account by the total 2000/6400 = .3125 = 31.25% • Divide the dollar amount on the second account by the total 4000/6400 = .625 = 62.5% • Continue process if other account lines exist

  13. Sample #2 Cost Distribution Includes funding for base salary & admin stipend

  14. Sample #3 Calculating Cost Distributionwhen a combination of amounts and percentages are known Base pay is $9,000 per month $1,000 stipend should be paid by E100001 Grant 1005088 should be 30% Grant 1004727 should be 10% A100001 should be cost shared with Grant 1004727 for 5% A100001 should cover the remainder • Add the Base Salary amount per month to the monthly stipend amount to calculate the total “effort” pay 9000 +1000 = 10,000 • Divide the stipend amount by the total 1000/10,000 = .1 = 10% (which should be charged to E100001) • Add all the known percentages 10% + 30% + 10% +5% = 55% 4. Subtract this total from 100%. The remainder is the amount to be charged to A100001 100% - 55% = 45%

  15. Sample #3 Cost Distribution

  16. GLs for Recurring Payments Salary2 510036 Full Time AAUP Salary2 510038 Full Time Non-AAUP Salary 2 510234 AAUP Part Time Salary2 510236 Non-Represented Adjunct Salary2 511094 Unrep Unclassified Exempt Salary2 ADL 510037 Full Time AAUP ADL 510039 Full Time Non-AAUP ADL 510235 AAUP Part Time ADL 510237 Non-Represented Adjunct ADL 511095 Unrep Unclassified Exempt ADL 511795 Post Doc & Research Fellows ADL SUS (Summer Stipend) Uses current “Other Compensation” GLs

  17. Sample Labor History Postings

  18. Determine the Maximum Cost Distribution % Allowable on Grants • Maximum Grant % allowed = Stipend divided by the sum of Basic Pay plus Stipend as a percentage, subtracted from 100% • Example: $6,950 base pay and $1,500 stipend • 1500 / (6950+ 1500) = .17751 • 1- .17751 = .82249 = 82.24% (ROUND DOWN) =Maximum cost distribution for grants •  **The equivalent amount of the stipend CANNOT be covered by grants

  19. If a series of PCRs are en-route at the same time, it is possible that the system doesn’t have a chance to check all the combinations.  It is the PCR Initiator’s responsibility to follow the rules.  As the PCRs post in R/3, the system checks will occur and a PCR could fail at that time if other PCRs made changes that cause the current PCR to be out of compliance.  Extra Comp for 9/12 faculty is calculated on Base Pay plus Salary 2 Summer Effort for 9/12 faculty will be verified for the new 0SUS-Summer Stipend payments and 0SUM-Summer Teaching while Extra Comp continues to be verified when the payment is requested The NIH Cap is on “Effort” which is the amount of Base Pay plus Salary2 Summer Stipend ( now 0SUS) 1/9 and 2/9 payments continue to be calculated as in the past

  20. Error Messages Assigning too much % on grants for this size recurring payment, this cost distribution, or this decrease in basic pay after 6/30/2009 Maximum 0ADM amount for 9/01/2009 to 11/30/2009 is  7484.58 Extending a 0ADS beyond 6/30/2009 Wage type 0ADS is allowed from 01/01/2004 to 06/30/2009 Trying to extend an ADM payment beyond 6/30/2009 that already has a cost assignment (Note: new ADM recurring payments after 6/30/2009 have account lines pinked out) No Cost Assignment data is allowed for 0ADM Trying to charge an administrative stipend on a non-primary assignment after 6/30/2009 Wage Type 0ADM allowed on primary assignment only

  21. Benefits • Effort percentages are clearly visible • Since Base Pay and ADM will both be on the primary position, the same benefit rate will be applied to the pay • A mechanism exists (ADL) to capture incidental pay that is not calculated as part of effort, though it still cannot be charged to grants or cost sharing • A total of 25 account lines will be available in Cost Distribution to capture grants, cost shares, departmental funding and additional accounts that may be used for admin stipend payments • System checks will prevent PCR initiators from mistakenly charging a grant for admin stipends, removing this risk for the University

  22. In the Future 1. Review/adjust cost distribution percentages whenever the base pay amount is adjusted2. Review/adjust cost distribution percentages whenever the stipend amount is adjusted or when a stipend begins or ends Need Help? Contact Joyce Verkamp or Kathy Stites for Questions/Problems/Assistance Joyce VerkampKathy Stites 556-2088 558-8404 Joyce.Verkamp@uc.edustiteskk@uc.edu

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