Salary and Additional Pay Encumbrances

1. Salary and Additional Pay Encumbrances July 2, 2015

2. What are salary encumbrances? • Salary encumbrances represent estimates on expected future salary expense • Primary purpose of tracking encumbrances is to avoid overspending a budget • Salary encumbrances are based on current job records and funding assignments • Changes in encumbrances are due to job changes or position funding changes Who is encumbered and how often? • Salary encumbrances are on all active salaried employees • Includes recurring additional pay on active salaried employees • Encumbered through the end of the Fiscal Year – August 31, 2015 or for faculty on employment contracts through the end of their contract • Updates to encumbrances will be nightly once an automation process is in place

3. Formula for Encumbrance Calculations • 12 Month Employees (365 Days in a Year) • (Annual Rate/365)*# of days left in the fiscal year = Projected Encumbrance • # of days left in a fiscal year for projected encumbrance May 1st forward is 123 days • Faculty – 9 Month Contract (273 Days September 1 through May 31)(Academic Compensation Value/273)*# of days left in the academic year = Projected Encumbrance • # of days left in academic year for projected encumbrance May 1st forward is 31 days • Faculty – 4.5 Month Contract (136 Days for 4.5 Months – Fall or Spring) • (Semester Compensation Value/136)*# of days left in the spring academic semester = Projected Encumbrance • # of days left in spring academic semester for projected encumbrance May 1st forward is 31 days

4. Key Reminders • For 9 month faculty that spread their salary over 12 months - after 5/31/2015 of any year, the portion of 9 month faculty salary that is spread and paid over the summer months is not encumbered. • If you think you see a discrepancy in the encumbrance value remember to check changes in the following areas: • Job Records • Position Record • Funding Change • Look for Additional Pay • Termination of an employee will unencumber salary the next time the nightly process is run. • Hourly Employees are not encumbered • At the end of a fiscal year, the residual salary encumbrance will be removed. A new baseline encumbrance will be posted for the new fiscal year based on job records effective 9/1/20XX.

5. Custom Reports Currently Available • Payroll Liquidation • Budget Actuals to Encumbrance Details • Encumbrance Details by Employee ID and Salary Access to these custom reports was given automatically to all Administrative Staff with the PeopleSoft HCM Admin Role. Access for others that have a job responsibility that includes budget reconciliations and currently has access to the FMS Commitment Control Budget Overview function should use the following form to request access. http://www.utsa.edu/utshare/News/2015/Salary%20Encumbrances%20Announcement.html

6. Navigation to Custom Reports Main Menu UTZ Customization Commitment Accounting Reports Note: Data included in the custom reports are limited by role level security currently.

7. Communications Budget Planning and Development Website http://www.utsa.edu/financialaffairs/budget/ Salary Encumbrance Communication - Revised June 23, 2015.pdf

8. Fringe Benefit Encumbrance Planned Go Live September 1, 2015 ********** Thank you for all your support as well as the support of your staff. We could not have done this so quickly without you. Questions?