Salary Savings Plan Incentive

Initiated by Chancellor J.Petersen on a memo dated 3/26/2001

Per the Chancellor’s memo, this process is intended to replace the Research Fund Contingency Fund at the University.  Faculty working on a grant or contract whose salary is paid from the grant or contract will have that portion of their salary directly charged to the sponsored award. The freed-up salary funds revert back to the college’s general revenue pool (ledger 2) and can be used at the discretion of the dean.  Dean’s may provide an incentive for the faculty who put a portion of their academic year salary on the sponsored award.  Below is the process that resulted from this plan.

Faculty Member

1. Prepare revised PA to charge salary and fringes to the grant account.
2. A copy of the PA will be sent to the Dean.

Dean

1. Will prepare memo indicating Salary Savings to faculty member, amount and (ledger 2) account.
2. Will send the memo and copy of the PA to Office for Sponsored Programs (OSP).

Office for Sponsored Programs

1. Will establish ledger 4-1171-fnc 15 project account for the faculty member. All of these ledger 4 subsidiary ledger accounts will map to one general ledger.
2. Create worksheet indicating transfer amount needed.
3. Send the above information to Budget.
4. Notify Budget each year of any needed transfer.
5. OSP will be responsible for budgeting the faculty member’s ledger 4-1171-fnc 15 account.

Budget

1. Will transfer Salary Savings amount indicated in the Dean’s memo and specified on the OSP worksheet. Reduce budget funds on a non-recurring basis from the ledger 2 account where the faculty member was previously charged.

• If budget funds are not adequate, Budget will notify the Dean. The Dean will be responsible for locating the funding.
• OSP will notify Budget annually of any necessary transfers including transfers initiated in a prior year.

2. Complete a T1 Form to transfer funds between the general ledgers (GL's) using subcodes 5092 and 4092.
3. Complete an A1 (fill it out but don’t enter to FRS yet) to make the funds available through the budget.
4. Have the T1 approved and signed in Budget (see T1 Procedures).
5. Enter the A1 manually into FRS.
6. Make copies of all the information:
                 1 for the book of documents used to reconcile GL 011161
                 1 for the A1 folder
                 1 for OSP
7. File book and folder copies; send OSP their copy (OSP has a mailbox in Accounting).
8. File the original copy of the T1 in the correct years folder on the second floor.
9. Budget will notify OSP of the transfer to the general ledger.

Updated: 7/28/08