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Financial Planning & Budgeting

LABOR EXPENSE DISTRIBUTION

Anticipated account distribution for labor charges are established through the budgeting process for each position throughout the fiscal year. Changes to anticipated account charges by position, and variations for employees sharing pooled positions, are indicated via the Personnel Action Form (PAF) for each employee and each assignment. The expense distribution section of the PAF identifies the manner in which the labor expense for a given assignment should be allocated to one or more accounts.

Labor distribution reports (EBC 424) of actual charges, by account, are distributed on-line to departments at the conclusion of each pay period. Account administrators are responsible for reviewing the reports for thoroughness and to ensure that all transaction charges are appropriate. Monthly reports, comparing actual labor charges to position budgets, are provided by the Accounting Office.

LABOR EXPENSE REALLOCATIONS

If revisions to prior labor charges are needed, a Labor Expense Distribution Reallocation Form must be completed, as well as a Personnel Action Form (PAF) retroactively changing labor charges (so that budget encumbrances and actual charges will continue to balance).

A copy of the correcting Personnel Action Form (PAF) must be attached to the Reallocation Form, as well as a copy of the original Labor Distribution Report (EBC 424) showing the original charge(s) being reallocated . The reallocation amount may not exceed the amount actually charged for the employee in the pay period identified; however, a partial amount may be reallocated.

Information needed to complete the Labor Expense Distribution Reallocation Form is contained on the original Labor Distribution Report: the employee's name, social security number, the position and account number against which the labor expense was charged, the amount, and pay ID. The new 10-digit account number to charge must be provided.

The reason for the reallocation is required on the form and requests that are not appropriately justified will be returned to the initiating department. Appropriate reasons include the correction of data entry errors and adjustment of expenses to reflect actual efforts. A correction to utilize unexpended grant budget dollars is not acceptable.

Signed approval of the charged Account Administrator must be obtained before forwarding through normal channels to the Payroll Office.

For questions regarding Labor Expense Distributions and Reallocations, contact Nila Mehta in the Payroll Office at 977-2470.

Revised: Friday, 25 Apr 2003

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