Faculty Effort System Replacement Terms

  1. A-21 (OMB Circular A-21)
  2. Certification
  3. Cost Center
  4. Cost Object
  5. Cost Sharing
  6. Cost Sharing-Mandatory
  7. Cost Sharing-Voluntary
  8. Cost Sharing-Committed
  9. Distribution of Effort Form (DOE)
  10. FES Client
  11. Future Grant (Expected Grant)
  12. Matrix (Payroll Distribution)
  13. Monthly Threshold
  14. NIH Salary Cap
  15. Person ID
  16. Personnel Assignment Number
  17. Track
  18. Version of the DOE

 

1

Current Terminology: A-21 (OMB Circular A-21)

SAP Terminology: A-21 (OMB Circular A-21)

SAP Definition: Federal Circular A-21 “Cost Principles for Educational Institutions” issued by the U.S. Office of Management and Budget (OMB) to all federal agencies negotiating grants or contracts with colleges and universities. It describes the principles (cost accounting standards) for determining the eligibility of costs charged to grants and contracts for direct or indirect costs. A-21 establishes the standards for documenting or supporting these charges.

Module(s): IRIS FES

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2

Current Terminology: Certification

SAP Terminology: Certification

SAP Definition: OMB Circular A-21 regulations require certification of effort. Full-time faculty employee certifications are based upon a planned confirmation system and are required annually. As part of this type of system, the certifications are required to be signed annually by the faculty member or responsible official. The information entered on the DOE form will result in a certification of the faculty member’s activities. Staff employees who are paid from a grant will have their sponsored effort certified after the fact. Faculty non- contract payments that are paid from a grant will be certified after the fact. Part-time professorial and professional staff certifications are required each academic term. For all other employees, certifications are required at least monthly unless alternate arrangements are made.

Module(s): IRIS FES

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3

Current Terminology: Subsidiary Ledger Account

SAP Terminology: Cost Center

SAP Definition: An organizational unit within a controlling area that represents a clearly delimited location where revenue and costs occur. Organizational divisions can be based on functional requirements, allocation criteria, physical location and/or responsibility for costs. Cost centers will be used for certain current SL accounts. Cost centers begin with “1.” They will replace FRS ledgers 1, 2, 3 (except 3-5XXXX, 3-6XXXX), 5, 8 and 9.

Module(s): CO

SAP Example(s): Financial Systems Office cost center – 1012013080

Haggin Designated gift cost center – 1023170850

FRS Example(s): Financial Systems office subsidiary ledger – 201308

Haggin designated gift subsidiary ledger - 317085

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4

Current Terminology: Account Number

SAP Terminology: Cost Object

SAP Definition: A generic term referring to cost centers, internal orders, and WBS elements.

Module(s): All

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5

Current Terminology: Cost Sharing

SAP Terminology: Cost Sharing

SAP Definition: An agreement by the University to support the costs above and beyond that of certainsponsored projects through University funds, third party sponsors or volunteer time. Cost sharing is normally broken into three categories:

1) Reportable/Mandatory;
2) Non-Reportable/Voluntary; and
3) Committed.

SAP will allow cost sharing to be budgeted and recorded along with the grant in Grants Management (GM) by identifying the funding sources in the grant master data.

Module(s): GM

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6

Current Terminology: Cost Sharing-Mandatory

SAP Terminology: Cost Sharing- Mandatory

SAP Definition: An agreement by the University to support the costs above and beyond that of certainsponsored projects (through University funds, third party sponsors, or volunteer time) that is a condition of the grant or contract. Sometimes termed “reportable” in context that it is required to be reported to the sponsoring agency.

Module(s): IRIS FES, FES Client

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7

Current Terminology: Cost Sharing-Voluntary

SAP Terminology: Cost Sharing- Voluntary

SAP Definition: The University may voluntarily elect to absorb a portion of project costs such as salary charges. Voluntary cost sharing is not contractually required by the sponsoring agency. The effort a faculty or staff member expends on a sponsored project which is not reimbursed through salary charges by the sponsoring agency falls into the category of voluntary cost sharing.

Module(s): IRIS FES, FES Client

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8

Current Terminology: Cost Sharing-Committed

SAP Terminology: Cost Sharing- Committed

SAP Definition: An agreement by the University to support the costs above and beyond that of certainsponsored projects (through University funds, third party sponsors or volunteer time) that is a condition of the grant or contract, but not originally required by the sponsoring agency in the RFA/RFP/RFQ. The University is required to document committed cost sharing in the official University financial accounting system.

Module(s): IRIS FES, FES Client

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9

Current Terminology: Distribution of Effort Form (DOE) 

SAP Terminology: Distribution of Effort Form (DOE)

SAP Definition: T he University of Kentucky Administrative Regulations II-1.0-5 contain a requirement that states a “Distribution of Effort (DOE) form will be part of the biennial performance review for all faculty employees for each contract period. The DOE form describes the projected effort the faculty employee will direct toward specific activities within ‘mission areas’ defined by the University. The work is expressed in percentages of the total effort the faculty member expects to work in the contract period. This component is referred to as the Detailed Effort Block. The DOE form also has a component that describes the payroll distribution planned for the contract period. This component is referred to as the Payroll Distribution Block.

Module(s): FES Client

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10

Current Terminology: Not Applicable 

SAP Terminology: FES Client

SAP Definition: An application that is used for DOE entry, validations, printing drafts and final versions of the DOE, and approval through the college level. It sends the college approved DOE data to IRIS FES for Sponsored Projects Accounting approval.

Module(s): FES Client

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11

Current Terminology: Four Partial 

SAP Terminology: Future Grant (Expected grant)

SAP Definition: Acost center for one or many expected future grants. It can be used in FES where sponsored cost objects are entered on the DOE to indicate the percent of effort that will be expended. Each department will be assigned a designated cost center to use for labor distributions.

Module(s): IRIS FES, FES Client

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12

Current Terminology: Matrix

SAP Terminology: Matrix (Payroll Distribution)

SAP Definition: The matrix contains monthly payroll distribution percentages, monthly components of the Annual DOE percentage, and estimated monthly payroll distribution labor amounts. It is used for validating the DOE payroll distribution block, as well as building the payroll cost distributions for future payrolls. It can be thought of as a table.

  • There is a row for each cost object that is entered on the DOE payroll distribution block.
  • If a sponsored cost object has an associated cost sharing cost object, then the cost sharing cost object also has a row in the table.
  • There is a column for each monthly payroll period covered by the DOE. The DOE covers a fiscal year, starting with July and ending in June.

 

Module(s): FES Client, IRIS FES

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13

Current Terminology: Monthly Threshold

SAP Terminology: Monthly Threshold

SAP Definition: The monthly component of the faculty contract period. It is the maximum monthly effort that can be distributed by the matrix formula for a month. The maximum monthly thresholds are:

  • For an 11- or 12-month contract, 1/12 th of 100% or 8.3333% effort per month
  • For a 10-month contract, 1/10 th of 100% or 10% effort per month.
  • For a 9-month contract, 1/9 th of 100% or 11.1111% effort per month.

 

Module(s): FES Client, IRIS FES

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14

Current Terminology: NIH Salary Cap

SAP Terminology: NIH Salary Cap

SAP Definition: For 17 consecutive years, Congress has legislatively mandated a provision for the limitation of salary on National Institute of Health Grants. The Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations Act, Public Law 109-149, restricts the amount of direct salary charges an individual may distribute to one or more NIH grants or cooperative agreements (referred to here as grants) or applicable contracts to Executive Level I of the Federal Executive Pay scale.

Module(s): FES Client, IRIS FES

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15

Current Terminology: Not Applicable

SAP Terminology: Person ID

SAP Definition: IRIS HR assigns a unique identifier to each employee, rather than using the social security number.

Module(s): HR

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16

Current Terminology: Not Applicable

SAP Terminology: Personnel Assignment Number

SAP Definition: Used to associate an employee with a position in HR.

An employee may have multiple assignments.

Module(s): HR

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17

Current Terminology: Track

SAP Terminology: Track

SAP Definition: A DOE track defines the effective dates of the data on the DOE form. It indicates which monthly payroll periods in the fiscal year are covered by the DOE form. This is at most an entire fiscal year. If the faculty employee changes positions or departments, there may be a need to change the payroll periods covered by the current DOE form. The ending date of the current DOE would be in the middle of the fiscal year and a new DOE form will be prepared covering the rest of the payrolls for the fiscal year. This process of accommodating two DOE forms is called “splitting a track”.  Tracks will not be split mid-month. When a faculty employee separates from the University, the ending date of the track is updated to reflect this. This is called “closing a track”. If the faculty member returns during the same year, a new track will be created. Track splitting and track closures do not happen automatically. They are approved by the Sponsored Projects Accounting office.

Module(s): FES Client, IRIS FES

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18

Current Terminology: Version of the DOE

SAP Terminology: Version of the DOE

SAP Definition: A number that is used to identify the initial DOE form data for the fiscal year and any revisions to the DOE. The first version will be version one. The initial version can be created by the FES client for continuing faculty members at the beginning of the fiscal year or when detecting newly hired full-time faculty members in IRIS HR/Payroll. A version one of the DOE data may be entered by the department before the faculty member is added to HR (if the faculty appointment has been entered in the faculty database.) Subsequent versions may be created for an effort change or a payroll distribution only change or a change due to a change in IRIS FI (Financial information) data.

Module(s): FES Client, IRIS FES

Updated: 5/72012

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