Kuali Days Conference May 13 - 14, 2008

1. Kuali Days ConferenceMay 13 - 14, 2008 Sterling George, Indiana University Marcel Villalobos, University of Arizona Suzanne Zimbardo, University of Arizona

2. Labor Distribution and Effort Certification ModulesAgenda • Labor Distribution Module – Components and Accounting Cycle • Demonstration of Salary Transfer, Balance Inquiries and Correction Process • Effort Certification • Demonstration

3. Labor Distribution Module Processes Labor Scrubber Labor Poster Labor Ledger Year End e-Docs Salary Transfer (ST & YEST) Benefit Transfer (BT & YEBT) Labor Ledger Correction Process (LLCP) Labor Ledger Journal Voucher (LLJV)

4. Labor Distribution Module Balance Inquiries Account Status (Base Funds) Account Status (Current Funds) Calculated Salary Foundation Employee Funding July 1 Position Funding Labor Ledger View Labor Ledger Pending Entry Position Inquiry Ledger Tables Labor Ledger Detail Labor Ledger Balance

5. Labor Distribution Module Maintenance Tables Labor Benefits Calculation Labor Benefits Type Labor Object Code Labor Object Code Benefits Labor Position Object Group Labor Reports Labor Account Transactions

6. Effort Certification Module Processes Effort Certification Automated Report Period Update Process Effort Certification Batch Process Effort Certification eDoc Create Process Payroll Accrual Program e-Docs Effort Certification Effort Certification Re-Create

7. Effort Certification Module Inquiries Outstanding Effort Certification Forms by Organization Outstanding Effort Certification Forms Maintenance Tables Effort Certification Automated Report Period Definition Effort Certification Report Period Definition Effort Certification Report Period Effort Certification Report Type Effort Certification Report Period Status

8. Kuali Accounting Cycle Diagram

9. Suspense, Continuation, Fringe, and Sub Fund Options

10. Labor Distribution – General Labor ledger contains detail salary and wage by person, position, type of pay, and pay period – benefits are aggregated by accounting string Payroll encumbrances recorded in labor ledger as internal encumbrances – updated with each payroll closing Document types can be established for Payroll Types – Normal Pay (PAY), Payroll Cancellations (PAYC), Payroll Accruals (PAYA), etc… Entries processed by the labor poster are aggregated and feed the general ledger When Labor transactions reach the GL, offsets are specified by Document Type – i.e., PAYC to hit Cash directly, PAY to run through Salaries Payable, etc…

11. Labor Ledger Specific Fields • Earn Code - A category of pay indicating what an employee is being paid for, i.e. RGA (Regular Academic), SCK (Sick Nonexempt), FNL (Funeral), VAC (Vacation), OVT (overtime), RGN (Regular Pay Nonexempt Biweekly), etc. • Pay Group – Payroll schedule and voucher grouping for different employee pay types, such as BW1 (biweekly staff), A10 (10-month Academic), A12 (12-month Academic), AS0 (10-month Academic Student Appointee), AS2 (12-month Academic Student Appointee), HRP (hourly PERF), HRW (work-study), S12 (12 month professional staff). • Salary Plan - Similar to current appointment types, i.e., professional staff, academic, staff biweekly, hourly. • Salary Grade - Job classification code similar to our current “rank code”.   The salary grade is a graduated scale that includes positions of different occupational groups. • Company - The company is a high-level grouping of our employees. The IU company represents our W2 employees and IU2 represents our 1099R employees. • Setid -The setid represents our campuses in our HR/Payroll System. • Other payroll specific fields - include Employee ID, Position, Pay Run ID, Pay Period End Date, Pay Period Fiscal Year and Period, and Hours. The payroll ledger is a subsidiary ledger to the GL and contains all of the fields found in the GL.

12. Labor Distribution – Levels, Consolidations, and Benefits Payroll Object Codesreport to Levels which report to Consolidations 2000 Academic Salaries -> Academic Salaries (ACSA) -> Compensation (CMPN) 2500 Clerical Professional -> Bi-Weekly Salaries (BISA) -> Compensation (CMPN) 3000 Non-Student Hourly -> Hourly Compensation (HRCO) -> Compensation (CMPN) 5625 Fringe Benefits –> Benefits (BENF) -> Compensation (CMPN) Payroll Object Codes are assigned Benefit Types 2000 Academic Salaries has Benefits Types of FICA (F), Fringe Benefits (G), and Retirement Exempt (R) Benefit Types are assigned Percentages and Object Codes each Fiscal Year FICA (F) – 7.07% on Object Code 5760 Fringe Benefits (G) – 12.74% on Object Code 5625 Retirement Exempt (R) – 18.74% on Object Code 5772

13. Two Views of Labor – Actual (AC) and Effort Certification (AC + A2) • On May 1 transfer April salary of $100 from Account A to Account B • Actual (AC) appears as current month activity: Account Bal Type Period Debit Credit A AC 11 $100 B AC 11 $100

14. Two Views of Labor – Actual (AC) and Effort Certification (AC + A2) • Additional entries for Effort Certification (A2): Account Bal Type Period Debit Credit A A2 11 $100 A A2 10 $100 B A2 11 $100 B A2 10 $100

15. Two Views of Labor – Actual (AC) and Effort Certification (AC + A2) • Both Balance Types together provide full Effort Certification View (AC + A2): Account Bal Type Period Debit Credit A AC 11 $100 A A2 11 $100 A A2 10 $100 B AC 11 $100 B A2 11 $100 B A2 10 $100

16. Labor Distribution Demonstration • Salary Transfer • Balance Inquiry Drilldown • Accounting Cycle Reports and Correction Process

17. Questions?

18. Kuali Days ConferenceMay 13 - 14, 2008 Effort Certification Scheduled for Kuali Release 3.0

19. Effort Certification Overview • KFS Effort Reporting system is fully integrated with the KFS Labor Ledger • Creates routable Effort Report electronic documents based on Labor Ledger data • Reporting periods can be customized by institution • Reports can be approved as generated, or with changes. Changes create automatic payroll transfers in the Labor Ledger

20. Effort Certification Deliverables 2. 3. 4. 1.

21. Effort Certification Process • Process of generating Effort Reports • Effort Certification Administrator logs into the system and instructs it to send out the Effort Certification Documents. • This is the Effort Certification Batch Process • The time periods for certifications are defined by the institution • At this time, Labor Ledger Salary Transfers are locked for the period. Any changes must be made on the Effort Certifications that have just been sent. • Effort Certifications are then either approved as-is, or can be changed.

22. Effort Certification Process (Cont.) • If the Effort Certification is approved as-is, the accounting is unchanged and the report is complete. • If the Effort Certification is changed and fully approved, a Salary Transfer Document is automatically generated by the system to change the affected accounts. • These automatic Salary Transfers book to the last month of the reporting period • After an Effort Certification is fully approved and completed, changes cannot be made for that period except in special circumstances. • The Effort Certification Re-create Document is used for this

23. Relationship between Effort Reporting and Salary Adjustments in Labor Ledger Effort Report Batch Process Effort Report Fully Approved Window of using a Salary Transfer Document for adjustments Effort Certification Document complete. Cannot make changes to salary via Salary Transfer or Effort Certification. Must contact administrator for an Effort Certification Re-create. Effort Certification Documents sent. Cannot use a Salary Transfer to move salary. Must change the Effort Certification which will spawn an automatic Salary Transfer.

24. Effort Certification Re-create • Effort Certification Re-create Documents are used on an exception basis to generate a replacement Effort Report • To replace a previously certified Effort Report • Previously certified periods are locked in Labor Ledger and Salary Transfers are not allowed • Requires adequate justification to meet audit risk

25. Current Project Status • As of May 2008 • Effort Certification coding complete • Now in full scale testing and bug fixes • Enhancement Request Drafts • Route to PI • Identify Posting and Service Dates • Display Additional Pay • Time Paid vs. Gross Pay • Move Percents by Period

26. Live Demonstration and ScreenshotsReport Definition Lookup

27. Report Earn Paygroup Lookup

28. Report Type Lookup

29. Effort Batch Extract

30. Outstanding Certifications by Chart/Org/Report

31. Effort Report(Simple Summary View)

32. Effort Report(Detail View)

33. Labor Ledger Effort Certification Balance View • Example 0001693647 (FY05 – 2005M02 1/1/05 - 6/30/05)

34. Questions?

35. Functional Subject Matter Experts Team Contacts • Wes Buchanan, Cornell • Julianna Douches, Michigan State • Robert Emborski, Cornell • Sterling George, Indiana • Cindy Jones, California • Brenda Mathias, California • Keiko Takahashi, Business Analyst, RSmart • Sharon Underwood, San Joaquin Delta • Mike Wong, Hawaii • Suzanne Zimbardo, Arizona

36. Thanks for AttendingLabor Distribution and Effort Certification SessionComputer Lab Session5/14/08 9:30 AM – 10:30 AM

37. Labor Distribution and Effort Certification Modules Session Contacts Sterling George, Indiana sgeorge@indiana.edu Marcel Villalobos, Arizona marcel@email.arizona.edu Suzanne Zimbardo, Arizona zimbardo@arizona.edu