Salary Cost-Sharing Allocation to Grant Accounts

Salary Cost-Sharing Allocation to Grant Accounts

Salary cost sharing (hourlies vs. faculty or FT staff)

Salary cost sharing must be tracked in each grant. Salary cost sharing is required for all payroll charges.

Salary Employees -

Program Office:

• Salary employees (i.e. those who fill out a monthly absence record rather than a time sheet) must fill out monthly Time & Effort forms certifying the percentage of their time that they devoted to a particular grant. The employee may devote more effort to the grant than the portion of their salary that is charged to the grant; however, the grant may not pay for a larger percentage of effort than was actually devoted to the grant.
• Recipients of stipend payments, in the absence of any other documentation (i.e. informal timesheet), may fill out a Time & Effort form. Stipends can only be paid for extra work. The time devoted to the grant should be documented as if the work were a second job: 100% of their effort for the second job/stipend payment was spent in support of the particular grant effort.
• Employees with multiple cost objectives (i.e. teaching, grant work, administration) require the employee’s signature, and must be submitted monthly.

Grant Accountant Process for Time and Effort

Hourly Employees -

Program Office:

1. Hourly employees should have separate PA’s for each grant account on which they are working. This will generate a separate timesheet per account and will ensure that each grant account is directly and correctly charged. The e-time system documentation will suffice as evidence of their effort. No addition time and effort form is needed.

Grant Accounting:

1. In the event that an hourly employee’s salary does need to be moved from one account to another, create a journal entry to transfer the salary and benefits from the grant to the 10-acct or vice versa .
   • If the hourly employee was charged to the department 10 account but should have been posted to the grant account, the journal entry should be as follows:
   1. Debit the grant hourly subcode (5410)
   2. Credit the 10-acct hourly subcode (5410)
   3. Use the same date as the original payroll entry and include GL
2. Hourly employees’ benefits are 2.95%. This is allocated 1.45% to 5907 and 1.50% to 5910.
   1. Credit the grant (object codes)
   2. Debit the 10 account (object codes)
   3. The dollar amount should match with the original payroll entry's XLDR.
3. Scan and email a copy of the journal entry to Payroll. This information is required for their reconciliations.
4. These types of journal entries should be avoided as much as possible.