NCASBO Conference 2013
Salary Audit Issues
NCDPI – Financial Business
Services
School Business Division
◊
Tiandra Alli & Susan Holly
Salary Analysts
1
Agenda
We want to hear from you!
p Legislative Updates
p Salary Overview
p National Boards (NBPTS)
p Installment Pay Requirements
p ROTC
p Correct & Incorrect SSNs
p Audit Exceptions Causes & Prevention
p
2
Agenda
BUD
n Functions
n Instructional Personnel Changes (IPCs)
n Cheat Sheet
p Common BUD Errors & Their Fix
p BUD Reminders
p Allotment: Months Allocated vs. Months
Used
p
3
Agenda
How to Resolve…
n Underpayments
n Overpayments
n Incorrect/Invalid Budget Codes
n Closed PRCs
n Prior Year & Prior, Prior Year SAE
p Who Does What?
p Questions / Areas of Concern
p
4
Legislative Updates
n There is a 1.2% increase to the salary
schedules for teachers, principals and assistant
principals (also applies to noncertified
personnel) effective July 1, 2012.
n BENEFITS:
n
Session Law 2012-142, Section 25.10
n
n
The State employer’s contribution rate for retirement
and related benefits is 14.23% effective July 1, 2012.
Session Law 2011-145, Section 29.22 (f)
n
The annual hospitalization rate is $5,192 for nonMedicare-eligible employees effective July 1, 2012.
5
Legislative Updates
n SPECIAL LEAVE BONUS – Session Law 2012- 145
n SECTION 25.5.
n
n
n
Any person (i) who was on July 1, 2012 a full-time permanent
employee of the State, a community college institution, or a local board
of education, or was under contract on July 1, 2012 to be employed for
the 2012-2013 school year in such a position, and (ii) who is eligible to
earn annual leave, shall have a one-time additional five days (5) of
annual leave credited on July 1, 2012. Annual leave bonus not used
during FY 2012-2013 shall expire on June 30, 2013 and shall not be
paid in a lump sum upon termination of employment unless the person
effects a retirement from a State-supported retirement system
immediately upon termination of employment. Part-time permanent
employees shall receive a pro rata amount of the five days.
Applies to certified and non-certified personnel.
Question & Answer online at
http://www.ncpublicschools.org/docs/fbs/finance/legislation/raises/bonu
sleave12-13.pdf
(See Salary Manual pgs. A-3 through A-4)
6
Salary Overview
p
p
Salary Manual & Salary Schedules
n Salary Manual contains legislative updates &
all salary related information.
n Salary schedules are approved annually by
the General Assembly and sets a minimum
pay based on the educator’s years of
experience and education level.
Attach A – lists certified budget codes and
their required licensure areas for salary
calculation purposes.
n online at
www.ncpublicschools.org/fbs/finance/s
alary
7
Salary Overview
p
Chart of Accounts – provides the allowable
current year accounting codes for each
program funded from state or federal
funds; shows how these funds were
expended.
n Most accurate COA can be found in
AS400 (BUD) (updated daily).
However, the COA is also on the FBS
website (updated monthly).
n Financial communication between LEAs
& DPI.
8
Salary Overview
p
Salary Administration System
n LicSal
p License Information
§ Renewal
§ Initial Issue Date
§ Expiration Date
p Teaching / Non-teaching experience
p Licensure Areas
p Degree(s) with date received
p Employment History
p Form G information
n Contact Helpdesk for access/login at
(919) 807-HELP (4357)
p
Email: dpi.incidents@its.nc.gov
9
Salary Overview
n
LicSal
p Voucher Inquiry – detailed check info.
§ Net gross amount
§ Days pd/emp
§ %emp
§ Dayspp
§ Sch#
p Avoid a number of BUD errors by referring
to voucher inquiry before submitting
batches. Source of “incorrect payline gross”
denials.
10
Voucher Inquiry
Voucher Inquiry
Salary Overview
11
National Boards (NBPTS)
n
National Board for Professional Teaching Standards
(NBPTS)
¡
¡
To qualify:
Teacher must spend at least 70% of their time teaching in the
classroom.
n
n
This does not mean they must be 100% employed. If a teacher is 50%
employed, 70% of that time must be spent in classroom instruction.
NO PAY DECREASE FOR TEACHERS THAT BECOME ASSISTANT
PRINCIPALS
¡
¡
Get to keep NBPTS if last assignment was classroom teacher.
Other areas that qualify for NBPTS pay (70% not applicable):
n
n
n
Media Coordinator
Guidance Counselor
Career Development Coordinator
¡
These 3 areas need to be coded to specific budget codes
12
National Boards (NBPTS)
n
Additional questions regarding NBPTS,
contact:
¡
¡
¡
¡
Dr. Sonja Brown
Office: (919) 807-3358
Fax: (919) 807-3362
Email: sonja.brown@dpi.nc.gov
13
Installment Pay Requirements
• Must be a 10 month employee to be
eligible for installments.
• Must opt-in at beginning of the year –
not midyear or otherwise.
• If employee is split funded, installments
must be paid proportionate to how the
person is paid during the year.
– Example: paid 50% State & 50% Federal
• Then 50% of installments must come out of
state; all installment pay should not come out
of state funds.
14
ROTC
u The
contracts between the military
and LEAs for the ROTC programs
require that ROTC instructors are
compensated at their military
active duty pay level (MIP).
u ROTC instructors should be coded
to 5110-001-123.
u The state will pay up to 50% of the
MIP.
15
ROTC
u Calculations:
1. ROTC mandated monthly salary x 50% = Amt to be
paid btw state & local or all local
u $6,327.94 x 50% = $3,163.97
2. Amt from step #1 ÷ Certified Salary = % payable
out of state funds (% of cert salary).
u $3,163.97 ÷ $3,711 (A10) = 85.26% (pd out of
state funds)
3. Mandated monthly salary (#1) – Certified Salary
(#2) = Differential Amt (pd out of local funds obj.
187)
u $6,327.94 - $3,711 = $2,616.94 (coded to obj.
187)
4. 100% - % payable from state funds (#2) = % pd
from local funds
u 100% - 85.26% = 14.74% pd from local funds
16
ROTC
u Calculations:
5. % pd from local funds x Certified Salary =
Dollar Amt pd from local funds
u 14.74%
x $3,711 = $547.00
Note:
ØAmount in step #1 (amt pd from state), + #3
(amt pd from local differential) + #5 (amt pd from
local) = total amt. of JROTC mandated monthly
salary.
o Total should be as close to MIP as possible.
o $3,163.97 + $2,616.94 + 547 = $6,327.91
o $6,327.94 - $6,327.91 = $0.03.
ØAmount pd from State obj. 123 + Local obj. 123 =
Cert Salary
17
Correct & Incorrect SSNs
Salary Analysts do not change SSNs.
l Incorrect SSNs come from the LEAs
payroll data; usually a result of miskeying.
l Notify Salary of incorrect SSNs.
l
l Analysts
will move vouchers from incorrect
SSN to correct SSN (likely to clear audit
exceptions).
l Analysts will also notify Licensure for them to
delete incorrect SSN from the system.
18
Audit Exception Causes & Prevention
¡
What is a Salary Audit Exception?
l
DPI reviews the salaries of public school
employees and compares what they are paid to
what they should be paid.
¡ Certified
salary in voucher inquiry is
what DPI says they should be paid and
Payline Gross is what the LEA is actually
paying the employee.
¡ When Certified Salary & Payline
Gross differ OR
¡ When days pd/emp, or %emp do
not mesh with the certified salary,
you get an audit exception
l
Audit Exceptions are only created on State and
Federal paid certified budget codes.
19
Audit Exception Causes & Prevention
¡
¡
¡
¡
¡
¡
¡
¡
¡
¡
Held Harmless
Form G
LEA paying incorrectly (difference between
cert salary & payline gross)
Days pd/emp on adjustment vouchers
Incorrect days pd/emp, %emp, or absences.
Teacher Count for Principals
Experience added or decreased
Employee coded to incorrect/invalid budget
code (not certified to be paid from that
code)–“Zero Salary Probable Out of Field”
Timing Issues / No License Info.
BUDs
20
Audit Exception Causes & Prevention
¡
Held Harmless
l
l
l
Teachers employed during the 2011-2012
school year who did not work the required
number of months to acquire an additional year
of experience on their license shall not receive
a decrease in salary. Their salary should be
held harmless and reflect the 1.2% raise.
If an employee was not in pay status during
the 2011-12 fiscal year, their salary is not held
harmless and should be paid based solely on
their years of experience.
If the employee was on an approved leave of
absence during the 2011-12 fiscal year, their
salary should be held harmless. Contact the
Salary Analysts to manually certify the salary.
21
Audit Exception Causes & Prevention
¡
Held Harmless
l Changes in years of experience, education, or
area of assignment are not held harmless.
l
Principal salaries are not held harmless. Their
salary should be adjusted, either up or down,
based on teacher count.
Resolution – Double check the system. The
system does not correctly recognize held
harmless.
(See Salary Manual pg. A-3)
l
22
Audit Exception Causes & Prevention
¡
System error
l Due to held harmless, if experience is
added to the license and the employee
worked less than 6mos. in a previous
FY, the system may bump up an extra
year in error. May create an
overpayment once corrected.
Audit exceptions that appear may not be
true audit exceptions.
¡ Resolution - Please pay attention to this!!
The State holds the LEA responsible for
any overpays that may result.
¡ A fix is currently being reviewed.
¡ Contact Salary Analysts if you are unsure.
¡
23
Audit Exception Causes & Prevention
¡
Form G
l
Licensure Section grants approval for pay to the
teacher/administrator who holds a master’s, advanced,
or doctorate degree in a non-teaching area and the
degree is directly relevant to the
teacher’s/administrator’s area of assignment.
¡
LEA and school specific.
l
¡
Submit forms early; comply with Licensure deadlines.
LEA paying incorrectly
l
Difference in years of experience, education, and/or
certification area
¡
Pay NEW employees that have never worked with your LEA
before as an A00 $3080 until you receive confirmation from
Licensure and Salary Administration (audit exception) that
the employee should be paid at the higher salary.
l
SAVE TIME, MONEY, & HEADACHE!
24
Audit Exception Causes & Prevention
¡
Days pd/emp on adjustment vouchers
l
l
Days pd/emp should not be on adjustment
vouchers. Submit IPC batch to change
days pd/emp to zero.
Negative checks should not have negative
days pd/emp.
¡
¡
¡
Creates underpayment
Incorrect days pd/emp, %emp, or absences
l Submit IPC batch to correct.
Teacher Count for Principals
l
Be sure not to award 1 for 3 starting
FY2009-2010.
25
Audit Exception Causes & Prevention
¡
Teacher Count for Principals
l
l
Teacher Count calculated at 3pp
(September), 7pp (January) and
11pp (May). Any changes to count have
to be made before these pay periods and
salary is retro to July 1st.
Teacher Count includes state funded
teachers, student service personnel, and
Assistant Principals with at least 5
months of service.
¡ Refer to Salary Manual pg. C-4 –
“Determining Teacher Count”.
26
Audit Exception Causes & Prevention
¡
Experience added or decreased
l
¡
Can verify years of experience and salary with
Salary Analyst. May need to contact Licensure if
question regarding years on license.
¡ Licensure – (919) 807-3310
Employee coded to incorrect/invalid budget
code (not certified to be paid from that code)
l
“Zero Salary Probable Out of Field”
¡
Salary system could not calculate a salary,
therefore a zero certified salary was assigned.
l
l
l
Incorrect budget code
Manual Teacher Orientation certification needed
No License information available.
¡ Submit BUD batch to change budget code
according to certification area and position
responsibilities.
¡ Refer to Attach A for position descriptions. 27
Audit Exception Causes & Prevention
¡
Timing Issues
l
l
l
The LEA receives documentation from the
teacher (a copy of the degree) and
assigns the new salary in the system at
M-10.
The Licensure Section has not updated
license information on employment
inquiry screen in the LicSal system.
As a result, you get an audit exception
because DPI would still pay at A-10
instead of M-10.
The adjustment will be made to the salary
once the Licensure Section has updated the
teacher’s license information.
¡ It’s best to continue paying at the lower rate
until the license has posted.
28
¡
Audit Exception Causes & Prevention
¡
BUDs
l
Moving Partials
¡ Negative
record does not have to
match days pd/emp or %emp.
l Refunding
Overpayments
¡ Days
pd/emp should be zero
¡ %emp = %emp on voucher
inquiry on both records
29
Audit Exception Causes & Prevention
¡
Notes
l
l
Audit exceptions are now popping earlier
for those on installments. They are
currently showing for your review before
June 30th.
Expiring PRCs (ex. PRC 155)
Underpayments must be paid from local
funds. Notify Sue or Tiandra with voucher#,
budget code, and amount paid to manually
clear underpayment.
¡ Overpayments must be submitted to DPI with
paper 202 and paper check.
¡
30
Audit Exception Causes & Prevention
¡
Notes
l
l
Supplemental coding, especially for
federal, should be coded to object 181
without days pd/emp and absences.
List of individuals on the web by LEA
that currently have Form G approval.
¡ Log onto LicSal
¡ Click on Licensure
¡ Scroll down and click on “Form G
approval list”
31
Form G
Audit Exception Causes & Prevention
32
Audit Exception Causes & Prevention
¡
Notes
l
Substitute Teachers &
Non-Certified Personnel
¡
¡
¡
The State sets the minimum & maximum
salaries by grade for non-cert employees.
The LEA determines the specific salary
amount.
When non-certified personnel become
certified make sure to move the sub
vouchers to the certified budget code.
33
BUD – Budget Utilization
Development System
Used by the LEA’s Finance
Department to clear salary audit
exceptions that were created
from your monthly payroll data
file transactions.
34
BUD
¨ Functions
performed in BUD:
UTR – transfer within same fund
¨ Moving from PRC 001 and 007 within State
Funds
n REF – refund from one fund to a different fund
¨ Moving from Fund 1 (State) to Fund 2 (Local)
n PYR – refund from one fund to a different fund in
the prior year
¨ Usually refunding overpayments from local
funds.
n
35
BUD
¨ Functions
performed in BUD:
n IPC (Instructional Personnel Changes) –
to change non-financial information on
vouchers such as:
¨Days pd/emp, dayspp
¨%employed
¨School location
¨Absences
¨Installment indicators (remove or add)
36
BUD - IPC
37
BUD – IPC Notes
n
n
The net gross amount field is the only field
that should have a negative sign to indicate
the Negative (FROM) record.
Once the system locates the match in the
Negative record, the Positive (TO) record
overlays the original record. Make sure that
all other fields are completed. For example:
If you have absences on the original record,
and did not key them on the positive record,
your absences will be deleted.
38
BUD - IPC
Installment
indicator not on
positive record so it
will be removed.
39
BUD Cheat Sheet
Field
Full Transfer
Partial Transfer
Full Refund
Partial refund
IPC
Unit
X
X
X
X
X
SSN
X
X
X
X
X
School
X
X
X
X
X
Voucher Number
X
X
X
X
X
Voucher PP
X
X
X
X
X
Budge Code
X
X
X
X
X
Payline Gross
X
X
X
X
X
Days Paid
X
X
X
Days Employed
X
X
X
Salary Adjustment
X
X
X
Percent Employed
X
X
X
Note: Items marked with an ‘x’ must match voucher inquiry on negative record.
40
Common BUD Errors & Their Fix
n
n
n
n
n
n
Incorrect payline gross amount
Adjustment amount greater than voucher
net gross
Multiple updates to same voucher on same
day
Incorrect budget code/school combination
Days pd/emp, %emp or salary adjustment
do not match voucher
Budget code not changed on transfer
41
Common BUD Errors & Their Fix
n
Incorrect payline gross amount
n
n
Adjustment amount greater than voucher net
gross
n
n
Payline must match voucher inquiry.
Pay attention to voucher inquiry
n Exception: Negative Net Gross batch. NOTIFY
SALARY BEFORE SUBMITTING.
Multiple updates to same voucher on same day
n
Send batches on different days.
42
Common BUD Errors & Their Fix
n
Incorrect budget code/school combination
n
Voucher is not in budget code indicated in batch.
n
n
Days pd/emp, %emp or salary adjustment do
not match voucher
n
n
Pay attention to voucher inquiry.
Pay attention to voucher inquiry.
Budget code not changed on transfer
n
Probably should have been submitted as an IPC.
n
DPI does not read the school location part of the budget
43
code.
BUD Reminders
Please be sure to check voucher inquiry before
submitting BUD batches since voucher detail
information can change daily. This will reduce
the chances of denied batches.
¨ You cannot split vouchers in BUD within the
same budget code. Contact Sue or Tiandra to split
a voucher before transmitting a BUD batch on the
voucher.
¨ Please email both Sue & Tiandra if you have
Negative Net Gross batches. Batch will
automatically deny if you don’t.
n
44
BUD Reminders
n
n
Always use “F6” to create your offsetting entry for
Transfers (UTR), Refunds (REF), and Instructional
Personnel Changes (IPC).
When refunding or transferring a dollar amount
only, not involving changing percent or days
pd/emp, you should always key “0” days pd/emp.
If you do not change the days pd/emp to “0”, you
could create an exception, add additional
experience on employment history, or create an
allotment overdraft.
45
Allotment: Months Allocated vs. Months
Used
lPosition Allotment Overdrafts
¡LEA used more positions than was allotted for the
year.
¡View Positions Allotted vs. Months Used on LicSal
website (Allotment Reports).
lAllotment Overdrafts should be refunded through BUD.
lRefund both days & money.
lAlways leave at least 1 day pd/emp on voucher.
¡Running total updated instantly after changes to
days pd/emp on a voucher.
lContinue to check your prior year audit exceptions and
allotment balances for changes to avoid penalties.
46
Allotment: Months Allocated vs. Months
Used
lOverdraft Calculations
¡Everyone except Admin. are paid based on 21.5 days in
the pay period.
lNegative amt. x 21.5 = # of days to be refunded.
lCalculate daily rate of lowest paid person paid
from that PRC (their certified salary); preferably
not on installments.
lMultiply daily rate x # of days to be refunded =
net gross amount to refund
¡Administrative Personnel calculated on 22 days in the
pay period.
47
Allotment: Months Allocated vs. Months
Used
48
How to Resolve…
o
Underpayments
n
n
n
n
Taking installments out of employee’s net gross
and not total adjustment amount
Not paying on the correct education (degree)
and/or years
Days pd/emp on adjustment vouchers
Incorrect days pd/emp or %emp
49
How to Resolve…
Underpayment – Installment Pay
The employee was underpaid two
months $624. The $624 should
have been the adjustment and
installments taken from the
$624, which would net $519.99
50
How to Resolve…
Underpayment – Incorrect Days pd/emp
Negative check to take
money back, but did not
adjust days pd/emp
51
How to Resolve…
Underpayment – Incorrect Days pd/emp
Changing days pd/emp
cleared audit exception
(IPC).
52
How to Resolve...
o
Overpayments
n
n
n
n
LEA paying too much in salary
Incorrect days pd/emp or %emp
Paying all installments out of one fund when the
employee was split funded between two funds.
Teacher with NBPTS became AP (salary has to
be manually adjusted)
53
How to Resolve...
Overpayments – Incorrect %emp
See the difference in %emp.
54
How to Resolve…
Overpayments – Incorrect %emp
Overpayment was cleared
by correcting %emp.
55
How to Resolve…
o
Incorrect Budget codes
n
A budget code is assigned to the individual that is
incompatible with their assignment.
o
Example: A psychologist coded as a classroom
teacher.
n
o
Submit BUD batch to change code.
Invalid Budget code
n
A budget code not currently in the chart of accounts.
o
Example: Expired/Closed Federal PRC
n
Solution: Paper 202 & Paper check
o
Refer to Attach A for correct codes.
56
How to Resolve…
o
Prior, Prior Year SAE
n An audit exception in FY2011
o
Used for prior, prior year refunds &
prior, prior year transfers (within the
same fund and PRC).
n
Solution: Paper 202 (can be submitted
electronically to Sue or Tiandra)
o
and Paper check for refunds only
57
Who Does What?
• Licensure Section: (919) 807-3310
– Education & License Updates, Experience Changes,
Form Gs
• Roxane Bernard: (919) 807-3725
– General Reporting Issues, Chart of Accounts,
MFR/AFR Issues
• Richard Smith: (919) 807-3729
– Zero-Out, Datafile, Invalid Account Codes
• Chris Pond: (919) 807-3721
– State Expenditures and Adjustments, RttT Budgets,
Disability Reimbursements
58
Who Does What?
• Sue Holly: (919) 807-3735
– Susan.Holly@dpi.nc.gov
• Tiandra Alli: (919) 807-3736
– Tiandra.Alli@dpi.nc.gov
• Salary Manual, Salary Audit Exceptions,
Salary Administration System, BUD
processing, Position Allotment
Overdrafts, Paper 202s.
59