Understanding Department Default and Catch-All Funding Sources

How to Identify Expenses Recorded to the Department Default Chartstring

Transactions posting to the department default chartstring can be identified using the MyReports Distribution of Payroll Expense Report (by Account or Alt Account) or the Transaction Detail Report. Default values are applied to the Fund, Dept ID, Project, Function and Flexfield chartfields.

Correcting Payroll Expenses Posted to the Department Default Chartstring

The use of default funding reduces the occurrence of payroll suspense items and gives greater visibility to funding distribution issues, making it easier for departments to identify and correct missing or invalid funding. While payroll suspense items are cleared with the assistance of the Payroll Office (See Guidance on Clearing Salary and Benefit Expenses in Payroll Suspense), payroll expenses that post to department default funding must be transferred by the department from the default chartstring to the correct funding source(s) using the UCPath salary cost transfer process.

As a best practice, departments should regularly monitor and take action to correct expenses that are recorded to the department default chartstring by the following month-end close. 

• Campus department Salary Cost Transfer Initiators and Approvers enter and approve salary cost transfers directly in UCPath online.
• UCSF Health departments use the Salary Cost Transfer PeopleConnect Management Action form to notify UCSF Health Human Resources of salary and benefits costs requiring correction.

The Default Funding Profile – Salary Cap/MCOP Funding Worksheet

When entering funding using the Salary Cap/MCOP Funding Worksheet, you are required to enter at least two catch-all lines in the Default Funding Profile section:

1- OTC Indicator = No
Any up-to-the-salary-cap earnings not accounted for in the Funding Distribution Worksheet section will be charged to the OTC = No funding source in the Default Funding Profile section. 

• When entering OTC = No funding, the general guidance is to use a unique chartstring(s) that is not used elsewhere for the position. This will help identify that earnings charged here were unplanned and may need to be transferred.
• One option is to use the department default chartstring so it will be obvious to the department to move earnings that hit the OTC = No chartstring.

When setting up funding using the Salary Cap/MCOP Funding Worksheet, carefully review distributions on the Preview page before submitting your transaction. Check if any funding rows were distributed to the funding established in the Default Funding Profile where the OTC Indicator = No.

2 - OTC Indicator = YES
All over-the-cap earnings will be charged to the OTC = Yes funding source(s) specified in the Default Funding Profile section.

Using the MyReports Employee and Position Distribution Report to Proactively Monitor Default Funding Sources
 
The MyReports Employee and Position Distribution Report can help identify positions where funding has been established using the department default chartstring or where the department default chartstring will be applied during payroll processing. As a general rule, funding distributions are available in MyReports two days following the date they are approved in UCPath. You can schedule the report to be emailed to you at a frequency of your choosing (See the Managing and Scheduling MyFavorites in MyReports Job Aid).
 
As a best practice, departments should regularly search for distributions to their default chartstring prior to each payroll cycle. Make note of pay confirm dates and corresponding funding entry deadlines in UCSF’s Payroll Processing Calendar to ensure any funding updates can be entered and approved prior to the next pay cycle. 

Review the Employee and Position Distribution Report Job Aid for instructions on running the report. Use the filter combinations below to monitor when the department default chartstring will be charged for upcoming funding.

Some reasons why salary expenses post to the department default chartstring are outside of the control of Initiators and Approvers (for example, timeout errors when a combo/edit chartfield validation fails during payroll processing). However, Initiators and Approvers can proactively look for data entry issues that may result in unintended distribution of expenses to the department default chartstring.

As a general guideline, Funding Entry Initiators and Approvers should review transaction data carefully prior to submission or approval in UCPath. Addressing the following common data entry issues will help to reduce postings to the department default chartstring and the extra effort required to perform salary cost transfers.

General Funding Entry Issues:

1a. The department default chartstring is being used to fund earnings codes (or the catch-all earnings code). The department default chartstring was designed to signify when funding fails to post to the intended funding source. This chartstring is intended to be unique to easily identify funding errors that need to be addressed. Best practice: Funding Entry Initiators should not use the department default chartstring to intentionally fund any earnings code or the catch-all funding distribution. Departments may choose to use the department default chartstring when setting up the Default Funding Profile within the Salary Cap/MCOP Funding Worksheet; however, any resulting transactions must be moved to the correct funding source using a salary cost transfer. 

1b. A position has moved from one department to another. In UCPath, funding is unique for each department-position combination. If a position with existing funding moves to a different department, then new position level funding needs to be set up under the new Dept ID for the position. If new funding is not entered, the default funding established for the new department will be used. Position funding associated with the former department does not automatically get applied. Best practice: Funding Entry Initiators need to be notified when a position moves between departments. We recommend that the Funding Entry Initiator be added as a Reviewer to PeopleConnect Management Action Forms involving a change in position departments. An email notification will be sent to Reviewers to notify them when UCPath is ready for funding to be added or updated. 

1c. Funding has not yet been established for a new position. Funding entry is performed by departments in UCPath directly, after a position has been established. If a new position is created in UCPath via a PeopleConnect Management Action Form submission without notifying the department Funding Entry Initiator, funding will not be established for the position. Any payroll expenses for the position will be charged to the department default chartstring until position funding is established. Best practice: Add your department Funding Entry Initiator as a Reviewer on any PeopleConnect case that contains a funding component. An email notification will be sent to Reviewers to notify them when UCPath is ready for funding to be added or updated.

Entering Funding on the Main Funding Entry Page 

2a. When specific funding is entered for the REG earnings code, related earnings will post to the catch-all distribution. If you create a specific funding distribution using the REG earnings code (or similar regular-like earnings, including FEN, FEL, SPR, SPN, etc.), other earnings (including vacation, sick, holiday, overtime, shift differentials) will post to the catch-all funding source. The catch-all funding source may be different than the funding used for the REG earnings distribution row(s). If the department default chartstring has been entered for the catchall funding source, these earnings will post to that chartstring. 

Best practice: Unless you need to distribute charges for specific earnings codes to specific funding sources, enter funding for all regular job data compensation using a catch-all funding distribution row (where the earnings code is blank). Do not use your department default chartstring to fund the catch-all earnings distribution row. This row should be funded using the distribution(s) to be used to fund regular compensation. 

2b. Entering a Funding End Date results in expenses beyond the end date posting to the department default distribution. Earnings distributions entered with a Funding End Date will not be applied to any earnings periods beyond the end date. Earnings beyond the Funding End Date will be charged to the catch-all funding source or to the department default chartstring. In addition, earnings distributions with a Funding End Date prior to the last day of the fiscal year will not roll over to the next fiscal year and will need to be re-entered after the fiscal yearend rollover process. 

Best practice: For all earnings distributions on the main Funding Entry page, leave the Funding End Date blank. If funding changes, create a new effective-dated funding row for the new funding sources as of the new effective date.

Entering Funding using the Salary Cap / MCOP Funding Worksheet

3a. When entering funding using a new Salary Cap / MCOP Funding Worksheet with a new Begin Date, you must re-enter funding for any additional pay earnings codes once you are back on the main Funding Entry page after completing the new MCOP worksheet. If funding already exists for a prior effective date for additional pay earnings codes (e.g., HZA, RGN, STP), the system will not automatically carry these distributions forward to the new funding effective-dated row once you enter a new Salary Cap/MCOP worksheet with a new begin date. You must re-enter the funding distributions for HZA, RGN, STP, etc. on the new funding effective dated row in the Main Funding Entry Page.

If you do not re-enter the funding for additional pay earnings codes and the employee has recurring additional pay(s), future earnings will be charged to the chartstring established in the Default Funding Profile where the OTC Indicator = No. In many cases, this has been established using the department default chartstring.

Best practice: With the entry of each funding transaction, review Additional Pay details in the Job Data Snapshot (Job Details 2 tab) to confirm whether the employee has recurring additional pay. If the employee does receive recurring additional pay, ensure the funding for each earnings code is set up in the main Funding Entry page after completing the Salary MCOP worksheet.

3b. Re-Entering past Begin and End Dates along with the current/new begin and end dates on the same MCOP worksheet could result in incorrect distributions to the department default chartstring. When updating funding using the Salary Cap / MCOP Funding Worksheet, some users are re-entering past Begin and End Date(s) where funding distributions have already been recorded along with the new Begin and End dates on the same MCOP worksheet. This could result in distribution of future expenses to the default distributions established in the Default Profile Funding section. 

Best practice: When updating existing funding using the Salary Cap / MCOP Funding Worksheet, enter as the Begin Date the first day that the new funding begins. Do not re-enter historical periods that were previously entered. If you need to correct past funding distributions, initiate a salary cost transfer. 

3c. End Dates in the Salary Cap / MCOP Funding Worksheet are earlier than the last day of the fiscal year. When a funding update does not span the full fiscal year - from the begin date of the new funding update through the last day of the fiscal year (6/30/xx) - the system will distribute salary costs for any future months not indicated to the distributions established in the Default Funding Profile section (OTC Indicator =No). 

Best practice: When setting up funding using the Salary Cap / MCOP Funding Worksheet, enter the End Date as the last day of the fiscal year. Carefully review distributions on the Preview page before submitting your transaction. Do not submit your transaction if you see any funding rows distributed to the funding established in the Default Funding Profile where the OTC Indicator = No. 

3d. UCPath does not support entering more than one Salary Cap / MCOP Funding Worksheet per funding entry transaction. Although UCPath allows you to enter more than one worksheet per funding entry transaction, doing so will result in all components of pay being charged to the default distributions established in the Default Funding Profile section. UCPath only supports one Salary Cap/MCOP worksheet per funding entry transaction. 

Best practice: When setting up funding using the Salary Cap / MCOP Funding Worksheet, carefully review distributions on the Preview page before submitting your transaction. Do not submit your transaction if you see any funding rows distributed to the funding established in the Default Funding Profile where the OTC Indicator = No.