Financial Services Policy 9.3 – Changes and Corrections to Payroll Labor Charges

The current policy at UNCG, which requires a position to be established, classified/designated and sufficiently funded prior to employing an individual for the position, is fundamentally sound. The PD-6, the personnel action form that reflects the funding source for the position, is required to be prepared in advance and approved by the appropriate Provost/Vice Chancellor, the Office of Financial Planning and Budgets, and the appropriate personnel office (Office of the Provost or Office of Human Resources). The fund and account number(s)/funding source must be reflected on the employment personnel action forms (EAF, PD-6, PD-7, PD-101, HRS-04, etc.). Thus, the funding for every personnel position at UNCG must be approved before an employee is ever hired and paid.

Payroll reallocations caused by funding changes should be rare and, generally, should only occur due to actions by some external agency (e.g., the federal government, the North Carolina legislature, the UNC Board of Governors). However, there will be instances where changes are necessary due to personnel actions initiated by internal management. Regardless of the funding source, changes in funding for an employee/position require that the appropriate personnel actions be prepared and approved prior to the effective date of the change.

Once sufficient funding has been secured and approved for a position, and the employee has been properly paid from the approved funding source, any changes in funding may require the reallocation of prior months’ labor and benefit charges. The reallocation will be calculated by Payroll personnel based upon personnel action forms submitted by the employing department head/dean, and approved by the appropriate Provost/Vice Chancellor, the Office of Financial Planning and Budgets and the appropriate personnel office.

Disbursement of state and federal funds must be in accordance with applicable laws, rules and regulations. In order to avoid any audit findings related to the misuse of state or federal funding, all personnel action forms must be prepared by the employing department within thirty days of the effective date of the funding notification. In addition, these forms must be submitted to all relevant offices (e.g., the appropriate personnel office, the Office of Financial Planning and Budgets, the Office of Contracts and Grants, and the Payroll Office) by established due dates in order for the change to be reflected in the employee’s next paycheck. If applicable, revised Time and Effort Reports should be submitted to the Office of Contracts and Grants within thirty days of the funding notification.