1. Salary Encumbrances Budget and Financial Planning FAR Meeting
May 23, 2018
Tammy Anthony and Javier Martinez
Budget and Financial Planning

2. Salary Encumbrance Project
Phase I: Salary Encumbrances and Reports Phase II: Benefit Encumbrances Phase III: Automation for Salary & Benefit Encumbrances
Budget and Financial Planning

3. Timeline
Phase I: Salary Encumbrances Monthly employees - Go Live June 1 Hourly Employees – Go Live September 1 Phase II: Benefit Encumbrances – Go Live September 1 Phase III: Automation for Salary & Benefit Encumbrances – Complete by September 1
Budget and Financial Planning

4. Budget and Financial Planning
Issues to Resolve
Current process went live in May 2015 and is a PeopleSoft Delivered Process
UTSIS and project team began the development of a customized process in November 2017 to resolve the following issues:
Incorrect encumbrance calculations and balances
Updates for certain employees were missing
Negative encumbrances occurred
Encumbrances are not refreshed often enough
Need to encumber hourly employees and fringe benefits
Budget and Financial Planning

5. Project Requirements: Developed with campus’s input
Encumbrance amounts requires accuracy, close to the penny as possible
Does not create negative balances
Make sure the process is updating balances accordingly
Automate the encumbrance process
Usage of the “Expected Job End Date” field on the Job record
Provide a report on encumbrances using the HR_Acctg_Line table
Budget and Financial Planning

6. What is Required for Encumbrance?
HR Status = Active
Payroll Status = Active or Leave with Pay
Active Position in the Position Table
Active DBT
Active Contract (for faculty)
Compensation Rate exists in Job Table
Hourly compensation rate in Job Table
Standard Hours in Job Table (for hourly)
Budget and Financial Planning

7. Encumbrance Calculation
Salaried Employees Monthly Rate * Full months in the encumbrance period (Monthly Rate = Annual Salary * FTE/12) Plus Prorated amount (if applicable): Monthly rate/working days in the month * effective days the employee is working
Budget and Financial Planning

8. Encumbrance Calculation
Hourly Employees Hourly Rate * Standard hours/5 * Working Days in the Encumbrance Period Benefit Encumbrances Based on Actuals for each employee – Stay tuned for more information after Phase II is tested by UTSA
Budget and Financial Planning

9. Budget and Financial Planning
Compensation Rate
For encumbrance purposes, the process will use the compensation rate code in the Job Table NAANNL – Salaried Employees NAHRLY – Hourly Employees CNTRXX – Contract Employees
Budget and Financial Planning

10. Why do we Encumber Salary and Benefits?
Allows for more accurate planning of the funding sources for salary and benefit expenditures for the year
Helps to avoid overspending budgets
Salary and Benefit expenses is “The Biggest” expense in all of our institutions. Planning and budgeting for this aspect of our operation is critical.
Budget and Financial Planning

11. Budget and Financial Planning
Also included…
All current and future dated job actions and faculty contracts for the current fiscal year will be included in the calculation.
All current and future dated DBT rows for the fiscal year will be included. Funding end dates beyond the end of the fiscal year for projects only can be included or can be stopped by leaving this field blank or including the last day of the current year. UTSA – VPR Office will need to “revisit” this decision.
Budget and Financial Planning

12. Budget and Financial Planning
Also included… cont.
Employee job records that include a Expected Job End Date will calculate/liquidate based on that date.
DBT funding end dates will be used when calculating/liquidating encumbrances so please ensure there is a DBT in place with active funding for the full year. ***Funding end dates prior to the last day of the year will require the next effective dated DBT that will cover the full year for the funding assignment.
Most recurring current and future dated additional pay items will be included in the encumbrance calculation.
Budget and Financial Planning

13. Budget and Financial Planning
QUESTIONS
Budget and Financial Planning

14. Budget and Financial Planning
Thank you!
Budget and Financial Planning