Equipment
Can equipment partially be paid for out of a sponsored program and partially from state funds?
Yes. The equipment must be purchased through the University, who in turn invoices the sponsored program for the relevant amount. Please contact Mary Rueda at x6567 for more detail
Vacation Accruals
How are vacation liability properly allocated towards projects?
Since July 1, 2004, the University Corporation is accruing vacation liabilities for project staff and charging them towards projects. Vacation accruals are automatically calculated and booked at each pay period. This new procedure ensures the precise allocation of project related personnel expenses for vacation towards projects.
What are vacation accruals?
An employee working on a project is proportionally also earning the right for vacation time. The liability resulting from the "right to vacation time" is immediately charged to the project at the end of each pay period and collected in a liability account. At the time the employee actually takes the vacation, the project is no longer affected, but the liability account is charged.
Is vacation calculated as part of the Fringe Benefit Rate?
No. Vacation accruals are not included in the Fringe Benefit Rate. The Fringe Benefit Rate includes only additional costs for insurances such as health insurance, dental insurance, vision, workers comp. retirement insurance, the employer portion of state (SDI) and Federal (FICA) taxes, etc. Vacation on the other hand is considered paid time off, such as holidays, personal day, or sick days. The regular salary will continue to be paid to the employee, although he/she is not expected to be present at work, but can be on vacation.
How can vacation accruals affect the project budget?
Although, the future expenses for vacation are properly charged to the project and put away in a vacation savings account (liability account) from which the employee's salary is paid from during the vacation time, the employee should still take the vacation during the project period to avoid cost overruns. This is particularly the case for full-time employees. If an employee is not taking vacation during the course of the project and continues on working, the employee is actually working "over-time" for exactly the time he/she is entitled to vacation.
Example: An employee is entitled to 2 weeks of vacation per year. Consequently, the employee should work 50 weeks and go on vacation for 2 weeks. As a result, 52 weeks will be charged to the project. If the employee does not take the vacation and continues working through the entire year, the employee is actually working 52 weeks and still has a vacation accrual of 2 weeks. As a result 54 weeks will be charged to the project.
Scheduled Payments
What if scheduled payments were not cancelled?
Principal Investigators and Project Administrators are able to schedule multiple identical payments within the same Fiscal Year through a one-time Check Request. Common applications can be monthly payments for the rent/lease of buildings and office space, lease of cars, regular stipend payments etc. However, it is the responsibility of the Principal Investigator/Research Administrator to ensure that the recipient continues to be eligible to receive the payment. If the reason for the payment (e.g. lease, rent) or the eligibility (e.g. stipends) ceases to exist, or there are doubts please contact TUC-Accounts Payable at extension 5298 or email aptuc@csun.edu to cancel or interrupt the payments.
Cost-Overruns Caused by Employees Not Taking Vacation
What are vacation accruals?
An employee working on a project is proportionally also earning the right for vacation time. The liability resulting from the "right to vacation time" is immediately charged to the project at the end of each pay period and collected in a liability account. At the time the employee actually takes the vacation, the project is no longer affected, but the liability account is charged.
How can vacation accruals negatively affect the project budget?
Although, the future expenses for vacation are properly charged to the project and put away in a vacation savings account (liability account) from which the employee's salary is paid from during the vacation time, the employee should still take the vacation during the project period to avoid cost overruns. This is particularly the case for full-time employees. If an employee is not taking vacation during the course of the project and continues on working, the employee is actually working "over-time" for exactly the time he/she is entitled to vacation.
Example: An employee is entitled to 2 weeks of vacation per year. Consequently, the employee should work 50 weeks and go on vacation for 2 weeks. As a result, 52 weeks will be charged to the project.
If the employee does not take the vacation and continues working through the entire year, the employee is actually working 52 weeks and still has a vacation accrual of 2 weeks. As a result 54 weeks will be charged to the project.
Forgot to Cancel Scheduled Payments
Principal Investigators and Project Administrators are able to schedule multiple identical payments within the same Fiscal Year through a one-time Check Request. Common applications can be monthly payments for the rent/lease of buildings and office space, lease of cars, regular stipend payments etc.
However, it is the responsibility of the Principal Investigator/Research Administrator to ensure that the recipient continues to be eligible to receive the payment.
If the reason for the payment (e.g. lease, rent) or the eligibility (e.g. stipends) ceases to exist, or there are doubts please contact TUC-Accounts Payable at extension 5298 or email aptuc@csun.edu to cancel or interrupt the payments.