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 particulary 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 yer.
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 7289 or email to cancel or interrupt the payments.