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Within PeopleSoft, each department and project is assigned a Budget Administrator, who is responsible for the financial and budgetary operation of that department and project. Budget administrators can designate certain authority and responsibility to other exempt and non-exempt employees, but ultimate authority and responsibility rest with the budget administrator.
For Academic Chairs, the level of budget/fiscal responsibility is referenced in the Faculty Handbook Chapter 2-29: Department Administration:
The Chair is responsible for the efficient operation of the department as an administrative structure within the University. According to the school’s written policy on the roles of chairs, this responsibility may include:
Administrative Support Positions
For non-exempt staff positions, the level of budget/fiscal responsibility is noted on the position’s Position Information (PI) form consistent with the USM Job Specification. Overall, these positions gather, retrieve, consolidate budget information and run reports, as well as may assist with the developing, preparing, updating accounts, and monitoring/tracking. They should not be making final budget decisions; this is the purview of the budget administrators.
As noted above, budget administrators can designate authority, in case signing authority to other exempt and non-exempt employees. Signing authority is the authority assigned to SU employees to allow them to approve expenses charged to their departments and projects (i.e., grants, fellowships). Budget Administrators (BAs) by default have signing authority for their respective departments and projects. This allows BAs to approve SU requisitions, work orders, expense accounts and any other documents that result in expenses being incurred. The signing authority policy can be found here.
General PIN Staff Position Information
PIN employees have regular positions that include the full benefits package (health insurance, retirement) of the State of Maryland. Procedures for hiring a PIN employee can be found on the HR website.
Budgeting for PINs
The University assigns each PIN to a department code and budgets for that PIN (salary and benefits) each fiscal year regardless of whether the PIN is currently filled. If during the fiscal year, a PIN is vacated the unspent budget will typically remain in the 01 Budget Pool, unless the department has had to hire contractual employees as backfill. In those cases, a department should request that the Budget Office process a budget transfer to move budget from the 01 to the 02 Budget Pool.
Additional PINs should be requested through the enhancement process after first receiving approval from the appropriate VP. Departments must identify a vacant PIN to use in case an additional PIN is not approved by USM. Once approved, the department would go through the normal HR hiring process.
Replacing a PIN
Same Job Title: Request replacement through the appropriate VP. Once approved, the department would go through the normal HR hiring process. Any changes in salaries and benefits should be communicated to the Budget Office.
Different Job Title: Obtain preliminary approval from VP and submit a classification request to HR. Depending on the change, this may need to go through the enhancement process. Once approved, the department would go through the normal HR hiring process. Any changes in salaries and benefits should be communicated to the Budget Office.
General Faculty Position Information
PIN faculty have regular positions that include the full benefits package (health insurance, retirement) of the State of Maryland. Procedures for hiring a PIN faculty member can be found on the HR website.
Budgeting for Faculty PINs
The University assigns each faculty PIN to a department code and budgets for that PIN (salary and benefits) each fiscal year regardless of whether the PIN is currently filled. In the case of a faculty PIN vacancy, an amount up to 50% of the prior incumbent’s salary will be transferred as follows: 40% to the 02 Budget Pool to hire adjuncts and/or overloads and 10% to the 03 Budget Pool for search costs. If the vacancy is known prior to the budget submission process, then discussions will occur between the Budget Office and the Department Chair to account for the needs to transfer. If it happens unexpectedly mid-year, then you must contact the Budget Office to discuss the funds needed to get through the remainder of the year and determine when the search funds are actually needed. Timing of the vacancy will be taken into consideration as well as the action plan. However, unused funds that are transferred into the 02 and 03 Budget Categories should NOT be used towards other departmental expenses without first contacting the Budget Office to discuss.
If there is a change after July 1, then the need to transfer a portion of unused salary budgets will require a Budget Revision Form.
Additional Faculty PINs
Additional faculty PINs should be requested through the enhancement process after first receiving approval from the Dean and Provost. SU would need to get approval for the new PIN from USM. Once approved, the department would go through the normal HR hiring process.
Replacing a Faculty PIN
Same Position: Request replacement through the Dean and Provost. Once approved, the department would go through the normal HR hiring process. Any changes in salaries and benefits should be communicated to the Budget Office.
Different Position: Obtain preliminary approval from the Dean and Provost. Depending on the change, this may need to go through the enhancement process. Once approved, the department would go through the normal HR hiring process. Any changes in salaries and benefits should be communicated to the Budget Office.
Splitting Percentage of Faculty PIN Costs to Various Departments Budgets
There are many times when a faculty member teaches classes across multiple departments and centers on campus. It is important to allocate these costs to the proper department. The payroll system will show the faculty member as being charged to their primary department code. However; the Payroll Office has the ability to break out those charges each pay period by a percentage of time/instruction and charge to the appropriate department code.
When submitting your budget submission, if you are aware of the expected breakout of time to allocate, please note these percentage breakouts within each department’s budget and communicate with the other Budget Administrators and Deans involved to ensure all costs are accounted for across the various codes. If you are unsure at the time of the submission, it is advised that you record the full salary in the faculty member’s main department code and then submit the breakout to us as soon as it is determined in the class scheduling process. It is very important that this breakout be provided to the Budget and Payroll Offices no later than 2 weeks prior to the beginning of the appropriate semester. If this percentage is determined on an annual basis and not by semester, then we request the information be given to our offices by June 15theach year.
Additional expenditures are expected to be included in your Budget Submission for any faculty members that will be on Transitional Leave for the upcoming academic year. Typically, the percentage maximums allotted to transfer to the 02 Budget Category (40%) for temporary replacement and the percentage allotted to the 03 Budget Category (10%) for search expenses that may begin in that year are the same as that of a vacant position. Be sure to state in the notes/comments field of your budget template the details of the calculation used in your budget.
Additional expenditures are expected for the temporary adjunct or overload replacement to cover the courses for a faculty member on sabbatical leave. When preparing your budget, make note of the faculty members and the semesters they are on leave, along with the details of the calculation.
General Information – Staff & Students
Pre-approval from your Dean or Vice President should be obtained prior to budgeting for the addition of any contractual employees. For the formal definitions of each of the employment classifications below, please view the Manager’s Toolkit on the HR website.
Generally, these are contracts for up to six months with no benefits. For budgeting purposes, the template has an automatic calculation built in to add 7.93% of the salary for FICA and unemployment insurance (UI). Occasionally this position is offered health insurance. However; If this is a position that does have health insurance benefits, please be sure to update that amount based on the current charges.
Generally, these are contracts for up to twelve months with limited benefits. For budgeting purposes, the template has an automatic calculation built in to add 35% of the salary for health insurance, FICA and UI if you don’t know exact costs. If you do because you have been budgeting for this position for a number of years, use the appropriate amount for the budget.
Graduate Assistants typically receive a semester stipend plus up to nine credit of tuition remission. A GA can receive no more than 18 credits of tuition remission in an academic year. Both the stipend and the tuition remission must be included in your budget submission.
Please refer to the GA Hiring Guidelines when requesting a GA through the Graduate Office. You are not granted the approval merely by placing the request within your Budget Submission. Some very helpful information can be found on the Graduate Assistantships website.
Students must be enrolled in classes during the Fall and Spring semesters to work under a student contract (as opposed to a Contractual I). Students are limited to 25 hours per week during the Fall and Spring semesters. Budget submissions should include the estimated wages to be paid. Students who are enrolled in at least six credits during Fall/Spring semesters are exempt from FICA/UI, so do not include those for Fall/Spring. FICA and UI (7.93%) should be added to estimated wages for any students working during the summer and not enrolled in at least one class.
General Information - Faculty
As a general rule, the Faculty Handbook and Provost’s Office website contain a wealth of information. This document is generated to supplement that (not replace) and discuss the budgeting aspects for employees. Another useful page to view is the Faculty Contract Page.
Approval from your Dean should be obtained prior to budgeting for any contractual faculty payment. Contractual faculty payments include chair stipends, adjunct contracts, overload contracts,
All chair stipends should be budgeted in the department for which they chair for the amount of the stipend plus 7.93% (FICA and UI). If you do not know the current amount, you can contact the Budget Office for that information.
Adjuncts and Overloads
All adjuncts and overloads should be budgeted for the amount of their contract plus a 7.93% for FICA and UI.
Any contracts for Graduate and Doctoral program that have tuition differential and continue throughout the year should be charged to the applicable department code for those programs.
All contracts for the Centers should be charged directly to that department code.
Fall & Spring Contracts
All adjuncts and overload contracts for the fall and spring semesters should be budgeted and charged in the department for which the individual is teaching. In preparing your budgets, please keep in mind your faculty vacancies, sabbaticals and transitional leave replacements needed for the upcoming year as that will influence your adjunct and overload needs.
Summer & Winter Contracts:
All adjuncts and overload contracts for the summer and winter sessions should be budgeted and charged to the Summer department code (116501) or Winter department code (116506).
PTNTT (Part-Time Non-Tenure Track Faculty)
Please see the Faculty Handbook for the complete benefits of a PTNTT employee.
For budgeting purposes, you must determine if there are any benefit costs other than FICA and UI (7.93%). We recommend a benefits rate of 35% if there are benefits besides FICA and UI.
FTNTT (Full-Time Non-Tenure Track Faculty)
Please see the Faculty Handbook for the complete benefits of a FTNTT employee.
For budgeting purposes, add 35% of the salary for health insurance, FICA and UI if you don’t know exact costs. If you do because you have been budgeting for this position for a number of years, use the appropriate amount for the budget.
When preparing your budget submission, please review any overtime costs (account number 010420) for the last few fiscal years and budget an appropriate amount for this fiscal year based on that history plus any future considerations.
If you are completing the template from scratch online – there is a section added to include estimating overtime for PIN 01 Budget Category employees. However; if you are using your prior year template, please add a note in the notes/comments tab regarding your overtime estimate so that we can incorporate that in your original budget.
The amount of overtime allotted should be as minimal as possible. The form to track the hours during the fiscal year can be found at http://www.salisbury.edu/hr/Current-Employees/toolkit.html.
Overtime in the 02 Budget Category should be a separate line item you insert on the “02-Contract’Student’Grad Asst” tab within the proper employee classification section and providing the reason for the anticipated overtime.
Tuition Remission for those eligible employees will be covered by the University. These expenses will be charged to the employee’s department. Please review prior fiscal years for account code 018100 to determine an appropriate budget amount. If you are aware of individual faculty and staff in your department that may be utilizing this benefit in the following year, please mention that in the notes/comments section of your budget template when submitting. This would be helpful to the Budget Office to determine the amount to increase for projected tuition remission expenditures.
Position reclassification may occur when significant and substantial changes occur in the primary duties of the position and that may result in a salary change. Information about the process can be found on the HR website here.
For budgeting purposes, if you are aware of positions within your department you anticipate requesting a reclassification for, please consider that and note within your Budget Submission Template. It is also requested that you email HR to notify them in advance of how many positions reclassifications you are anticipating for their planning purposes. They should also be able to help you estimate a salary difference for these positions so they can be accounted for in the budget. Please keep in mind that budgeting for this does not grant the overall approval of the position change nor the increase requested.
Payroll accruals are wages, salaries and related benefits that have been earned by employees, but have not yet been paid to them. Payroll accruals are required by the State and are only posted at fiscal year-end (June 30). The Accounting Office posts these expenses to departments and projects for both regular and contractual payrolls. Whatever is posted at June 30 is subsequently reversed at July 1. Accruals at June 30 increase expenses while accrual reversals at July 1 decrease expenses. An example might help explain.
Let’s assume a department has a $14,000 payroll (includes salaries and benefits) each pay period. Accounting records a $14,000 expense to the department’s budget on each pay date. However, let’s assume the last pay period ending (PPE) in June is June 20. That $14,000 payroll will be paid on June 28. Note though that the department’s employees will be working from June 21-30 (10 days), but that payroll will not end until July 4 and will not be paid until July 12. Because those payroll expenses are earned/incurred, Accounting must record the expenses at June 30. We calculate the accrual as follows:
Payroll Amount X (Number of Days Accrued/14 days in pay period) = Payroll Accrual
$14,000 X (10 days/14) = $10,000
Accounting will post $10,000 of expenses at June 30 and reverse the $10,000 on July 1. We have to post the reversal, because we will be recording that $14,000 for PPE July 4 on July 12. Subsequently, the $14,000 payroll for PPE July 4 will be split between the old FY ($10,000) and the new FY ($4,000) as follows:
|June 30 FY||July 1 FY|
|Recording of Jun 21-30 accrual||$10,000||-$10,000|
|Recording of PPE July 4 actual||0||$14,000|
|Net Expenses by FY||$10,000||$ 4,000|