It is a University policy that all salary distribution adjustments be made in less than 90 days. This is to comply with federal, state, and private agency policies and audit guidelines.
When an over 90 day redistribution is required and the employee is moved from one ledger 5 account (A) to another ledger 5 account (B) or non-ledger 5 account, the sponsor for (A) may ask why they were charged for work not performed on this project. By invoicing we are setting an expectation that more work is being done on a project than is actually happening.
The sponsor for (B) may be wondering why they haven’t received an invoice that includes salary. Is the amount of work we expected being done? Why did we send an invoice much larger than previous invoices? Did this person actually work on our project? Was project (A) over spent and the PI needs to move the salary to another project?
It is imperative that PI reports are consistent with financial invoices.
Identifying 90 Day Retro Actions
A payroll redistribution requires a 90 day retro justification in the following circumstances:
- Bi-weekly- Using your biweekly payroll schedule, find the current payroll ID. Including the current payroll, count back 6 payroll cycles. Anything preceding that 6th cycle would require a retro justification.
- Monthly- Same principle, however, you do not count the current cycle. Skip the current cycle, and count back 3 payroll cycles.
*Note: If the redistribution has no impact on a ledger 5 project, Contracts and Grants may still need to be involved if the request involves a cost share employee on state fund.
Roles & Responsibilities
Principal Investigator Responsibilities
- Communicating salary distribution information to department personnel so appropriate payroll distribution requests can be submitted in a timely manner for processing.
- Communicating salary redistribution changes to department personnel as soon as they are known so appropriate adjustments can be entered in a timely manner (within 90 days).
- Ensuring appropriateness and accuracy of all salary charged to their sponsored projects.
College Roles
- Creating and maintaining documented policies and procedures for processing payroll actions including salary distributions and redistributions.
- Establishing personnel actions for monthly-paid, graduate student, and temporary employees in the University payroll system on a timely basis to ensure accurate payroll charges to sponsored projects based on requests from departments.
- Coordinating retroactive payroll adjustments (redistributions) affecting sponsored projects or other pay sources to ensure all adjustments to payroll charges are completed within the 90-day period allowed for changes.
- During the monthly project reconciliation process, post award consultants will review projects for salary overages and will communicate with PI/Dept. to make any necessary adjustments.
- Review the Out of Compliance Justification form for all redistributions affecting sponsored projects not processed within the 90-day period allowed for changes. The form and a copy of all monthly project reconciliations for the projects included in the redistribution are submitted to the Office of Contracts and Grants for final approval.
90 Retro Justification Form
Review Justification Form:
Check the upper portion of the form to ensure it has been properly completed:
- All payrolls impacted are identified
- Employee name and ID are included
- Redistribution number(s) are listed (Will be provided by the budget office upon request)
- All impacted SL-5 projects are listed
- Preparer’s name and contact information is listed
- Box indicating whether or not redistribution is a reconciling item on a Closeout is checked
Check the facts stated in the justification for completeness and accuracy:
- Facts must agree with WRS, Labor Distribution, Distribution Set-up, etc.
- Dates / payroll periods included are correct
- Facts included are complete and thoroughly explain what actually transpired (additional pages can be submitted with form if necessary)
- Justification is specific to the redistribution and not copied and pasted from a prior justification or for another redistribution
- Be sure to submit all supporting documentation with the justification, i.e., e-mails, letters, etc.
- Check to be sure there is funding available on the project receiving the charges
* Note that all facts presented will be reviewed for accuracy. If they are found to be questionable or inaccurate, additional information may be requested or the redistribution denied.
Language to avoid using as it will automatically be denied:
- “I want to spend out this account”
- Any references to “money left on the account…to spend this out, or 0 the account”
- “Spread these salaries over other 5 accounts”
- “I didn’t notice this until notified of the account closing”
- The employee was paid on another project until funding came in
- “We forgot to move them”
