1.   Systemwide Business and Finance Bulletin (BFB)

   G-6 Substantiation of Salary and Wage Charges to U.S. Government Contracts and Grants

   IA-101 Internal Control Standards Departmental Payrolls

2.   University of California Accounting Manual

   General Assistance Time Reporting

   Employee Leave Records

3.   Academic Personnel Manual (APM)

   Sick Leave

   Vacation

4.   Payroll/Personnel Information System Time Data Recording and Leave Accounting Manual

5.   UCSD Policy and Procedure Manual (PPM)

   Non-Payroll Expense Transfer

   Timekeeping: Attendance Records

   Timekeeping: Time Reporting to Payroll

   Internal Control Standards for Departmental Payrolls

   Vacation Accounting System

6.   Hospital Instruction Manual

   HU-109.5 Administrative Overtime Control Policies

   HU-783.1A Overtime Timekeeping Procedures

   HU-786.1A Time Clock: Time Card Procedures

   HU-786.2A Employee Departmental Attendance Record (EDAR)

*See PPM 395-4.1 for other references and related policies

POLICY

In compliance with University policies, adequate control must be maintained to ensure that only authorized payments have been recorded against departmental funds. One recommended procedure is to compare the monthly Distribution of Payroll Expense (DOPE), Exhibits A-1 and A-2, with 1) Payroll Time Records (PTR's) and 2) Automated Change in Employment Status (ACES). These two documents relate to time reported for pay purposes and/or fixed percentage of time paid to salary roll employees.

This section deals with the Distribution of Payroll Expense. The Distribution of Payroll Expense provides a detail of charges for the monthly General Ledger. The report includes for every employee the gross salary and staff benefit charges in detail for the month being reported, transactions resulting from earnings adjustment forms being processed and expense transfer transactions generated from the Payroll Expenditure Transfer, UPAY 646, Exhibit B-1 and B-2.

The Vacation Leave Liability Account Activity report, which also provides a detail of charges as a result of payroll activity for the monthly General Ledger, is addressed in Section 395-9, Vacation Accounting System. .IP \f3III.

PROCEDURES

1.   Department administration, other than the departmental timekeeper and the employee distributing the payroll checks, will review the Distribution of Payroll Expense with all employee attendance records to ensure that only the employees concerned are included on the listing.

   For those individuals who are also responsible for reviewing payroll entries in the General Ledger, the pay activity entry from the Distribution of Payroll Expense is identified by the last three digits of the voucher number as a "D 10".

2.   Department administration will review the time and rate factors for each employee listed on the Distribution of Payroll Expense with copies of time reporting forms to determine any errors in salary and benefits assessment.

3.   If the review of the Distribution of Payroll Expense discloses an error, the Distribution of Payroll Expense should be annotated and the following corrective actions will be initiated:

   1. Salary Roll (subbudget 0 and subbudget 1) Time and/or Rate Factor.

      Contact the Payroll Division immediately to determine if the error can be corrected by the Payroll Division.

   2. General Assistance (subbudget 2) Time and/or Rate Factor

      If the error is the result of an erroneous item either on an Employment Certification U1600 or an Automated Change in Employment Status (ACES), a correct form and correcting Payroll Time Record must be prepared by the department. If incorrect time was reported, only a correcting Payroll Time Record is required.

   3. Employee Benefits Paid by the Funding Source

      Any error in employee benefit assessments paid by the funding source (retirement, unemployment insurance, etc.) should be reported to the Payroll Division as soon as possible in order to ensure that corrective measures are initiated prior to the next scheduled payment to the employee.

   4. Account and/or Fund Number

      If an employee is associated incorrectly with an account and/or fund number on the Distribution of Payroll Expense, the department should investigate the reason for the error and determine the correct account and/or fund source. (The Payroll Division will assist if necessary). If the error is the result of an incorrect form U1600 or ACES, or Funding Change Only form, FO2128, (including key entry errors), then a correcting form and a Payroll Expenditure Transfer UPAY 646, Exhibit B, must be prepared. The Payroll Time Record must not be used to transfer payroll expense from one fund source to another. Refer to PPM 350-3 for special policy limitations established for all transfers of expense.

   5. Justification of Retroactive Transfers (UPAY 646)

      Original certification of charges against federal contracts and grants are considered by auditors to have been reviewed for appropriateness and to have been correct. When a retroactive Payroll Expenditure Transfer UPAY 646 is submitted, an explanation of how the error occurred and documentation of the appropriateness of the newly assigned fund source must be provided along with an Automated Change in Employment Status (ACES) form and a Personnel Activity Report (PAR) form. Transfers that affect contracts or grants must be signed by the principal investigator. On Federal Funds, payroll transfers must take place within 120 days after the original ledger month of entry in order to be considered timely. Once the transfer is over 120 days old the explanation must be expanded to include a credible reason for the delay. Clerical error in itself is not considered sufficient justification for tardiness.

4.   The following is a description of the content of the Distribution of Payroll Expense Report:

   1. Report Headings	Standard heading information is printed in the first three lines of the report. The process month, page number, depart- mental name, location/account/fund number and fund description.
   2. Line Number	A consecutive count of detail lines on each page.
   3. Employee Name	The employee's last name followed by first name appears on only the initial line if more than one detail line is needed for the employee.
   4. Employee ID	The University six digit identification number preceded by three zeros.
   5. Title Code	Identifies the title under which the expense is being charged.
   6. Period End Date	The six-digit pay period end date in MM/DD/YY format. Prior pay period adjust- ments will show the original pay period end date for the service.
   7. Object Code	The four-digit code identifying the type of expenditures made; for example, 1000 = Academic Salaries.
   8. DOS	Description of Service - a three-digit code which identifies the type of service the employee provided for payment. (See Exhibit C)
   9. Time	The pay period time in hours or in percent for which the payment was made. Time is not present on the report for by-agreement type payments.
   10.. Pay Rate	The rate of pay used to calculate the payment.
   11. ADJ	An adjustment code to indicate if the line item was one of the following types of adjustments: C - Cancellation O - Overpayment H - Hand-Drawn Check T - Expense Transfer
   12. Gross Earnings	The amount of salary charged to the fund source for the employee's services during the pay period. A negative sign following the amount denotes a credit item.
   13. PLAN	An alpha code identifying the employee's retirement plan. N - Not eligible B - UCRS (no employee deduction) U - UCRS (employee is contributing) P - PERS Blank - No retirement plan
   14. Matching Contrib	The amount of employer contribution to the employee's retirement plan.
   15. Special Contrib	The amount of Special Regents' contribution for tax-deferred annuity for eligible employees.
   16. FICA	The amount of employer contribution to FICA (Social Security) for eligible employees.
   17. Dental/Health/Annuit	The combined amount of employer contributions for dental insurance, employee health insurance at the prevailing rate for the employee type of coverage and for health insurance for currently retired employees.
   18. UI	Premium for unemployment insurance for eligible employees.
   19. Workers Comp	Premium for workers' compensation insurance for pay items subject to workers' compensation.
   20. Life/NDI	The combined amount of premiums for Term Life Insurance for employees who are UCRS members and for Non-industrial Disability Insurance for employees who are members of either UCRS or PERS.
   21. Total Benefits	The sum of all benefit expenses on the line for the employee's payment item.
   The report contains for each sub-budget within an account/fund of gross earnings and benefit amounts. After each Location/Account/Fund departmental totals are printed and a listing of benefit charges by benefit object code.

   
   
   

5.   The following is a description of the content of the Payroll Expenditure Transfer:

   1. Page	Space to indicate if multiple pages are being submitted.
   2. Department Name	Name of the department where the form is originating.
   3. Date Prepared	Date the form was prepared.
   4. Prepared By	The name of the individual preparing the form.
   5. Signature	The signature of the person who prepared the form and the telephone number where the person can be reached if a question should arise.
   6. Employee Name	Name of the individual whose expenditure is to be transferred.
   7. Employee Number	The employee's six-digit identification number.
   8. Dist of Pay Exp	Identification of the transfer set by the month, year page, and line of the Distribution of Payroll Expense Report on which the original expense was recorded.
   9. Transfer From	The thirteen-digit account number of the account/fund source to which the salary expense was originally charged.
   10. Transfer To	The new thirteen-digit account number to be charged for the expense.
   11. Title Code	The title under which this expense was charged.
   12. Pay Period End	The pay period end date of the original expense.
   13. Desc Serv	The Description of Service (DOS) code which describes the type of service for which the original expense was charged. (See Exhibit C)
   14. Time	The time in hours or percent for which the payment was made.
   15. H/%	An indicator which defines the type of time reported in Item 14 above.
   16. Pay Rate	The pay rate or amount for which payment was made.
   17. Ret	The employee's retirement plan code.
   18. FICA Amount	The amount of FICA (Social Security) if any associated with amount of transfer.
   19. Dntl/Hlth/Anniutant	The combined amount of employer contribution for dental insurance, health insurance and anniutant health insurance associated with the expenditure to be transferred.
   20. Life/NDI Amount	The combined amount of premiums for Term Life Insurance and Non-industrial Disability Insurance associated with the expenditure to be transferred.

RESPONSIBILITIES

1.   Department Administration

   1. Review the Distribution of Payroll Expense to ensure that correct payments are made to proper individuals.

   2. Review time and rate factors on the Distribution of Payroll Expense with time reporting forms to check accuracy.

   3. Report any errors to the Payroll Division as soon as possible.

2.   Payroll Division

   1. Distribute payroll review documents, for example, Distribution of Payroll Expense, to departments.

   2. Assist department administration in making corrections when necessary.