PAYROLL ENCUMBRANCE PROCEDURES
FOR PRINCIPAL INVESTIGATORS
REAL TIME FINANCIAL MANAGEMENT PROJECT
Payroll Encumbrance Procedures for Principal Investigators
TABLE OF CONTENTS
1.
INTRODUCTION
3
2.
DEFINITION OF PAYROLL ENCUMBRANCES
3
3.
ROLE OF UCD PAYROLL UNIT
3
4.
CALCULATION OF RESEARCH PAY COMMITMENTS
4
5.
RECALCULATION OF COMMITMENTS
4
6.
STUDENT SCHOLARSHIP AND FEE COMMITMENTS
4
7.
WORKFLOWS
5
7.1 Research Project Set-up
5
7.2 Salaried Staff Appointments
6
7.3 Salary Increases
7
7.4 Early Termination of a Contract of Employment
8
7.5 Scholarship Appointments
9
7.6 Scholarship Increases
10
7.7 Early Termination of Scholarship
11
7.8 Student Fees
12
8.
PAY BUDGET ISSUES
13
9.
MOVING FUNDING FROM PAY TO NON PAY
13
10.
TRAVEL EXPENSES
13
11.
FORMS AND USEFUL LINKS
14
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REAL TIME FINANCIAL MANAGEMENT PROJECT
Payroll Encumbrance Procedures for Principal Investigators
1.
INTRODUCTION
The aim of this document is to provide a clear guide to setting up new research
employees in the UCD Payroll system and details of how payroll encumbrances
extracted from research funding may be budgeted and tracked during the lifetime
of the research project.
The advantage of Real Time Financial Management is that total research project
costs including Payroll Encumbrances are available at all times thus enabling
researchers to make informed planning decisions with regards to staffing and to
more effectively control their pay budgets.
Management tools developed to
enable Principal Investigators with real time financial management of research
project funds will be delivered through Business Objects Reporting.
2.
WHAT ARE PAYROLL ENCUMBRANCES?
Payroll encumbrance comprises actual pay costs to date plus future committed
pay costs.

Pay costs include Salaries, Scholarships and Student Fees.

Salaries include Employer’s PRSI and Pension Costs.
When the total of these two figures is subtracted from the original research
account pay budget the remainder represents uncommitted amounts.
3.
ROLE OF UCD PAYROLL OFFICE
UCD Payroll Office is responsible for the timely and accurate payment of the
weekly and monthly salaries of all UCD PAYE staff. The Payroll Office manages all
statutory and voluntary deductions and submits statutory returns and taxes to
the Revenue Commissioners each month. This includes responsibility for
PAYE/PRSI returns, and the year-end P35. The Payroll Office issues P60's, P45's,
Certificates of Income and Letters of Introduction.
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REAL TIME FINANCIAL MANAGEMENT PROJECT
Payroll Encumbrance Procedures for Principal Investigators
4.
CALCULATION OF PAY COMMITMENTS
Principal Investigators may accurately calculate and extract real time commitments
from the UCD payroll system using Business Objects Reporting.
Once web-based
Business Objects [Business Objects XI] is available, all researchers will have reader
access to a suite of reports, which will provide accurate financial management
information for their projects. Pay Commitment for a given post may be expressed
by means of the following formula:
Post Cost = [(Salary x Period) + Pension Cost]
Where:Post Cost:
is the total cost in Euro of a given post for a particular time scale
Salary: is the monthly salary in Euro for the post
Social Cost: is the total cost for the period and comprises:
10.75% employer’s PRSI
20% pension contribution
5.
RECALCULATION OF COMMITMENTS
Pay Commitments are recalculated under the following conditions:
6.

Changes to Pay Budget

In the case of Scholarships

Student Fees

Pay Increases

In the event that an employee leaves before the end of their original contract

In the event an employee moves from one research project to another
STUDENT SCHOLARSHIP AND/OR FEE COMMITMENTS
In order to enable PI’s to have real time management of total payroll
commitments, all relevant research projects will be charged fee commitments
through eFinancials at the start of each project.
The Fees and Grants Section of
UCD Bursar’s Office are responsible for information on procedures and paperwork
required for Research Scholarship and Research Demonstratorship positions.
Information and documentation including set-up forms, is available from the UCD
Fees and Grants website at www.ucd.ie/fees.
Note: The process for setting up a research scholarship student as an employee differs
slightly from other contract employees, as detailed in 7.5 below.
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REAL TIME FINANCIAL MANAGEMENT PROJECT
Payroll Encumbrance Procedures for Principal Investigators
7.
WORKFLOWS AFFECTING PAYROLL ENCUMBRANCES
7.1
Research Project Budget Set-Up
1. BUDGET ALLOCATION WORKFLOW
UCD Bursar’s Office
S.F.I.
P.I.
P.I.
Science Foundation Ireland
Budget
submission
Value X
UCD Bursar’s Office
Grant
awarding
Value Y
[Grant is
Awarded]
Account creation
[Grant is Not Awarded]
Budget
creation
in eFinancials
PI
Manage Research funds

Principal Investigator submits an approved proposal to the Funding Body.

If the proposal is deemed acceptable funding is awarded and the PI informed
through a Letter of Offer [LOO].

In general the researcher employees due to carry out work on the project are
already known.

UCD OFRSS Pre-Award Office is provided with a budget breakdown by the PI
detailing both Pay and non-Pay Costs.

UCD Post Award Office sets up a multi-annual project budget.

The pay budget is established and an “R” or “V” code is assigned.

(R codes = non-VATable, V codes = VATable)

Data is uploaded to the eFinancial system.
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REAL TIME FINANCIAL MANAGEMENT PROJECT
Payroll Encumbrance Procedures for Principal Investigators
7.2
Salaried Staff Appointments
P.I.
Head of School
UCD Post Award
Receives contract
from PI
Download and
complete contract
of employment
UCD Personnel
PA receives
contract
from
PI/Personnel
Personnel receives
Contract from PI/PA
[Approved]
Sign contract
and send to Head of School
[ Signed by PA]
PA checks budget vs
actual on eFin and
compares to
current contract
[ No]
[ No]
[ Budget OK]
[ Yes]
[ NO]
PI receives contract
from Dean
[ YES]
Personnel sends
contract to PA
for approval
Returns to PI
PI sends contract
to Post Award
for approval
PI sends
contract to
Personnel
PI notified
insufficient budget
YES
PA signs
contract and
sends to
Personnel
Personnel sets
up employee
PI receives
notification from
PA
[ Amend Budget]
[ YES]
[ No:Shorten contract/reduce pay]
[ YES]
[ No]

PI fills out COE and forwards to Head of School for approval and signature.

The PI then forwards the COE to the Post Award Office for endorsement.

This must occur before any formal offer of employment is made.

The endorsed COE is either returned to the PI for onward submission to
Personnel or, upon request, is sent directly to Personnel. The Post Award
Office retains a copy of the signed COE.

UCD Personnel Department verifies the conditions of employment and certifies
that the engagement is consistent with employment legislation and University
policy.

UCD Personnel forwards the COE to the employee for their signature and
return. The COE facilitates the commencement of an employee on the
University's payroll system and must be signed and returned to the Personnel
Department. No payment of salary will occur until this form has been
submitted and processed

UCD Personnel distribute copies of the valid contract to the PI and the Pay &
Conditions Unit.
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REAL TIME FINANCIAL MANAGEMENT PROJECT
Payroll Encumbrance Procedures for Principal Investigators
7.3
Salary Increases
Salary Increase Form:
P.I.
Obtain
Salary Increase
Form from
Personnel
UCD Post Award Office
Head of School [HOS]
UCD Personnel
Receive form
from PAR
Receive Salary Increase
Form
PI completes form
& submits to
HOS for signature
[ Approved]
Receive form
from PI
Form received
from Dean
and sent to PAR
Process form
onto Core Pay
[No]
[ Yes]
PAR inform PI
no budget
available
Check sufficient budget
Form returned to PI
[Budget OK]
PI checks for
budget
amendment
[No]
[ Amendment Possible]
[ No]
[Yes]
Sign form and
send to
Personnel
[ Yes]
[Contact Funding Holder]
[No]
Refer to PI
[Approved] [Yes]
[ No]
[ Yes]
Amend budget
& inform PAR

PI completes and signs salary increase form and obtains employee’s
signature.

PI submits form to the Head of School approval and signature .

PI sends form to UCD Post Award Office for funds approval.

If funds are sufficient, UCD Post Award sign authorising salary increase and
submit to Personnel for processing by the Pay and Conditions Unit.

If insufficient budget is available, UCD Post Award refers matter to PI. The PI
may alter the project budget however depending on grant conditions the
matter may require referral to funding body for approval.

If budget is altered, Post Award endorses form and submits to Personnel.
Salary increase Form
The salary increase form is available for download from the Personnel website
http://www.ucd.ie/personl/html/staffing/funded.htm#forms
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REAL TIME FINANCIAL MANAGEMENT PROJECT
Payroll Encumbrance Procedures for Principal Investigators
7.4
Early Termination of a Contract of Employment
P.I.
UCD Pay & Conditions
UCD Personnel
Receive notification
from Researcher of
intention to
leave
Receive
details from
PI
Receive notification
from Personnel
Telephone/e-mail/
write to Personnel
with details
Immediately ingform
Pay & Conditions
of leaver
details
Ask PI to confirm
departure in writing
if initial contact was verbal
Stop employee
payments form
and data
Receive request from
Personnel to send written
confirmation of
leaver
Send
written confirmation
Receive written
confirmation
MIE
It is the responsibility of the PI to inform UCD Personnel immediately they become aware
of any employee leaving their project. Should a member of staff leave before the end of
their contract, and UCD Personnel are not informed, the pay commitments and
encumbrances reported will be inaccurate.
UCD Personnel Procedure for early COE leavers:
PI or research employee to inform UCD Personnel of early termination of COE.

UCD Personnel immediately inform UCD Pay & Conditions Unit who remove
the employee from the payroll.

UCD Personnel request written confirmation of COE termination from relevant
PI, either of e-mail or letter is acceptable.
UCD Personnel Procedure for all other contract employees:There are two ‘ordinary leaver’ forms in existence for employees due to leave at
the end of their contract.
UCD Personnel write to the PI 8 weeks before the
contract end date, and then 4 weeks later if there is no response. Both letters
include renewal forms, which may be completed by the PI as required.
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REAL TIME FINANCIAL MANAGEMENT PROJECT
Payroll Encumbrance Procedures for Principal Investigators
7.5
Scholarship Appointments & Increases
P.I.
UCD Fees & Grants
UCD OFRSS
Download forms
from F&G
website
UCD Pay & Conditions
Receive a/c setup
& budget request
from F& G
Receive 3 forms
from PI
Receive from F&G
1)Payroll setup
2) Scholarship authorisation
form
[Correctly Completed?]
[ A/C set
up?]
Scholarship
Authorisation
Form
Revenue
Exemption
Form
[ No]
[ Yes]
[ Yes]
Contact PI by
phone/e-mail to
rectify forms
Payroll
setup
form
[ No]
Send Revenue forms
to Revenue
Inform F&G
Office
Check Student
registered on
Banner
Complete forms
and send to
F&G Office (NB student to
complete Revenue form)
P&C setup
student
on CorePay
[ No]
[Budget Sufficient?]
[ Student Registered]
[Yes]
Follow up
[ No]
[ Yes]
Receive request
to correct
form
Inform F&G
Check R/V a/c
setup and sufficient
budget with OFRSS
Issue amended
information to F&G Office
Receive NO a/c setup
or budget from
OFRSS
OFRSS notify
budget setup
Contact PI
F&G send
1)Payroll setup
2)Scholarship
authorization
forms to P&C
F&G inform
PI no a/c setup - Liaise
with OFRSS
Students receiving scholarship payments on research projects are paid through Core
the UCD payroll system. PI’s may monitor annual and total project scholarship and fee
costs through Business Objects Reporting.
The PI together with the student completes the following forms:-

a)
Scholarship Authorisation Form or Research Demonstratorship Form
b)
Payroll Set Up Form
c)
Revenue Tax Exemption Form
Scholarship Authorization Form is completed and signed by the student,
Principal Investigator and the Head of School where the student is registered.
The Scholarship Authorisation Form includes details of:
-
Start Date
-
End Date
-
Annual value of scholarship (There is no PRSI or Pension and Social Costs liability)
-
Cost Centre Code
-
Project Account Number
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REAL TIME FINANCIAL MANAGEMENT PROJECT
Payroll Encumbrance Procedures for Principal Investigators

PI completes Payroll Set-up Form

Student completes and signs Revenue Tax Exemption Form.

PI submits all three forms to the UCD Fees and Grants Office.

UCD Fees and Grants Office contact UCD Post Award Office to ascertain if
project account has been set up and if sufficient budget is available to meet
the liability.

If no budget is available UCD Fees and Grants refer to PI and PI adjusts
budget. This may require referral to the funding agency.

If/When budget is available both the Scholarship Authorization Form and
Payroll Set up Form are sent to UCD Pay and Conditions.

7.6
UCD Pay and Conditions set up student on payroll.
Scholarship Increases

PI submits scholarship authorization form to UCD Fees and Grants with
increased stipend amount and date from which applicable.

UCD Fees and Grants check with UCD Post Award Office that adequate
funding is available.

If funding sufficient, UCD Fees and Grants will notify Pay and Conditions.

If insufficient funding, PI adjusts budget. This may need referral to the
funding agency if prior permission is required.
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REAL TIME FINANCIAL MANAGEMENT PROJECT
Payroll Encumbrance Procedures for Principal Investigators
7.7
Early Termination of Scholarship
Scholarships Leavers:
P.I.
UCD Pay & Conditions
UCD Fees & Grants
Receive notification
from student of intent
to leave
F & G Insert
F&G receive notification
from PI
A
Receive notice
from F&G to
stop payment
Forward details to
F&G
Is
notification
written
[Yes]
A
Has
student
submitted
Thesis
before
leaving
[No]
Stop payment to
student
Ask PI for written
confirmation
[No]
Receive request
from F&G for written
confirmation
Continue….
Has student
already left &
been overpaid
Submit
written confirmation
[No]
[Yes]
Inform PI to chase student
for repayment
Receive F&G request for
repayment of scholarship
Loses student status
since now employee
Contact Student
[No]
PI Liable

Funds
repaid
UCD liable for
PAYE & PRSI
F&G inform
Pay & Conditions
to stop payment
[Yes]
Lodge funds
PI and/or student notify Fees and Grants (in writing) if a scholarship holder
leaves the project before the scholarship end date.

Fees and
Grants
inform
Pay
and
Conditions about
early scholarship
termination.

Pay and Conditions Unit promptly remove scholarship leaver from payroll.
11
[yes]
REAL TIME FINANCIAL MANAGEMENT PROJECT
Payroll Encumbrance Procedures for Principal Investigators
7.8
Student Fees
P.I.
General Ledger
UCD Fees & Grants
Download Internal
Transfer [I.T.] form from
Fees & Grants [F&G] website
Fee payment
request received
from F&G
Receive Completed
IT Form from P.I.
Return
to
P.I.
Complete I.T. form
and sign
[
Completed Correctly:NO]
EFT drawn
to pay fees
[ Completed Correctly:YES]
Enter details
on Banner
Research account
is charged with
fee amount
Send IT form to
Fees & Grants
Banner issues
fee payment
request
to Finance
Incorrect IT
form returned
Correct &
Send back
Student fees are processed through the Banner system.
Fees, whether full or
concessionary, may be charged to a research project account if eligible and if sufficient
allowance has been made in the budget.
To charge fees to a project account the PI
should download an internal transfer form from the UCD Fees and Grants website.

The internal transfer form is completed and signed by the P.I.
The form includes:-
-
Student Name
-
Fee for the academic year to be charged - either full or half fee;
(Half fee is available for approved tutors/demonstrators.)

The form is returned to the UCD Fees and Grants Office.

Details are entered on Banner.

Banner issues fee demand.

Fees paid by Accounts Payable by automatic transfer.

Fee is charge to research account under student fees category.
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REAL TIME FINANCIAL MANAGEMENT PROJECT
Payroll Encumbrance Procedures for Principal Investigators
8.
PROCESS TO FOLLOW IF PAY BUDGET EXCEEDED
If a pay budget is about to be exceeded the PI should refer in the first instance to
the Post Award Office, who will ascertain if project budget amendment can be
made in accordance with the terms and conditions attached to the grant.
9.
MOVEMENT OF FUNDING BETWEEN PAY AND NON-PAY BUDGET
At the start of current SFI funded research projects both Pay and Non-Pay
budgets are fixed. In the case of SFI funded projects only, discretion to move
funds from non-pay to pay and vice versa may be permitted, provided the total
involved is not greater than 20% of the annual allocation for each category.
Discretion is also permitted to move unspent funds from one year to the next up
to a maximum of 20% of each individual annual budget category.
Scholarships:
The pay commitment for a scholarship post is the same as
for salaried staff except that there is no PRSI or social
cost element.
Fees:
Fee commitment is the fee charged/chargeable for a student
working on a project.
10.
TRAVEL EXPENSES
Travel Expenses are a further cost, which may have significant bearing on the calculation
of total project commitments.
However as expenses are only charged once occurred,
committed travel expenditure is not possible.
The current process does however ensure
a residual travel budget check at the time of processing claims.
All travel claims are
processed through the Core Expense Module and payments made via electronic bank
transfer only after the residual budget check on the overall travel budget has confirmed
funds are available. Finally a link-load journal transaction is performed regularly in order
to charge travel expenses to the appropriate research account in eFinancials.
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REAL TIME FINANCIAL MANAGEMENT PROJECT
Payroll Encumbrance Procedures for Principal Investigators
11.
ON-LINE FORMS AND INFORMATION
UCD Fees and Grants Office:
www.ucd.ie/fees/html/homepage/feesandgrantsforms.htm
Includes:
Internal Transfer Form
Tutor / Demonstrator Fee Concession Form
Research Scholarship Forms:
- Scholarship Authorisation Form
- Payroll Set-up Form
- Revenue Commissioners Scholarship Exemption Form
- Instructions for completion of Revenue Commissioners Form
UCD Personnel:
www.ucd.ie/personl/html/info_for_staff
Includes:
Post Authorisation Form *
Employee Set-up Form
Contract of Employment for Research Funded Staff
Contract of Employment for Research Funded Staff
Timesheets
Salary Increase Form
*Note: The Post Authorisation Form may be completed after downloading the MS Word
document, however salary commitments are not automatically calculated when
payroll details are entered. A new Excel form, or ‘Calculator’, has been posted to
the web to assist PI’s in calculating salary costs.
On-line calculator link: http://www.ucd.ie/webtest/on-costscalculator.xls
UCD Post Award Office:
Website currently under re-development please see Funded Research Support Services at:
http://www.ucd.ie/research/support_office.htm
14