University Supported (Ledger-2) collective bargaining increases (including fringe benefits and workers' compensation) are funded centrally by the Budget Office. The budget allocation is usually applied permanently and is based on the actual increase for individual employees. Because the increases occur at various times during the fiscal year, the annualized cost may include a portion that is not part of the cost of the current fiscal year. Current procedures call for the current fiscal year cost to be added permanently to the budget and the portion that is not needed in the current fiscal year is added permanently to the future year budget. This ensures that budgets are adjusted appropriately for the annualized cost.
Listed below is an example of how the procedure works.
For payroll purposes, FY09 begins on June 6, 2008 and ends on June 4, 2009.
Unclassified Employee A, effective July 1, 2008, will receive a total increase of $2,000.
| Annual Salary Increase | = | $2,000 | ||
| Cost of the Increase for FY 2009 | = | (2,000/26) x 24.3 pay periods | = | $1,869.23 |
| Unused Portion | = | (2,000/26) x 1.7 pay periods | = | $130.77 |
| $2,000.00 |
The transactions in FRS for this particular example will be as follows:
| Transaction Code | (TC) Description | Amount |
| (1) 021 Perm | Cost of CBI for FY 2009 eff. 7/1/08 | $1,869.23 |
| (2) 029 Future Year | To annualize CBI for FY 2010 | $130.77 |
| $2,000.00 |
(1) In FY 2009, the departmental account will be increased permanently by $1,869.23 plus fringes and workers' compensation, the current year cost of the CBI.
(2) In FY 2010, the departmental account will be increased permanently by an additional $130.77 plus fringes and workers' compensation to provide the total annual cost of the FY 2009 CBI.
(3) Please note that classified annualized increases are divided by 26.1 pay periods.
Updated: 3/11/08