Guidelines for Establishing Clinical Personnel Budget for FY10
and
Clinical Department Hiring Review Process for FY 10
Tracking Process:
We would like to be able to eliminate the entire hiring review process, but we cannot.
There continue to be tracking requirements that all entities within UNC-CH must
undergo. All positions, in all departments and centers, will continue to be requested
through SOM HR using a revised Hiring Review Form as the Chancellor is requiring
review, approval and tracking at the Vice Chancellor level for all university organizational
units within UNC-CH. (This does not include the Hospital.)
In lieu of the ongoing hiring review process, the following guidelines will be followed for
FY10. These guidelines are intended to allow departments flexibility with their staffing
requirements, but they must ensure that they remain within the dollars budgeted for their
personnel costs. The authority and responsibility for this process rests with the Chair
and the CADA with UNC P&A providing administrative support and guidance.
Individual hiring decisions will be made by the clinical department leadership as long as
they are performing within their personnel budget guidelines. Clinical departments will
have the authority to hire both new and replacement positions as long as funding for
these positions can be demonstrated and attested to. So, going forward from April 1,
2009, all positions that are to be filled, regardless of funding, will be communicated to
SOM HR using the attached simplified form. This is a tracking form. It must be filled out
with funding sources identified, or the individual hiring process will be stopped by HR or
the Finance and Business Office for lack of funding.
For FY10, we are projecting no growth in the personnel budget over the position base
established in FY09. The calculation should include base salaries for FY09 including
those positions filled as of December 31 (faculty, residents and fellows, and staff on
University or HCS payroll) and the projected incentive compensation payments for the
current fiscal year. In addition, positions previously approved through the hiring review
process but that are currently vacant will be added to the base as a part of the FY10
budget. The amounts added to the FY 10 budget for these positions shall be
calculated at an amount net of grant and all other forms of external funding.
Potential adjustments may be needed for situations involving state funding swaps,
positions funded by contracts, salary source changes, etc. New positions needed for
strategic plan initiatives should NOT be included in the base, since they are to be funded
at the HCS level through a strategic plan pool. If they are not funded through the
strategic plan, the expectation is that departments can fund as long as a negative salary
variance does not occur.
Expenditures for staffing through temporary hiring or outside agencies should fall within
the overall approved salary budget. Overtime object codes are part of the baseline
salary budget plan and will need to be managed within the personnel budget.
For Clinical Departments, at the monthly departmental review meetings between the
CADA and the CFO for UNC P&A, actual personnel costs will be compared to the
budgeted amounts. If budget overages occur, a correction plan will be developed to
address the variance. If a clinical department is unable to remain within its budget for
personnel expenses, its ability to hire will be curtailed until either the correction plan is
approved by the COO and CEO of P&A or the expenditures are brought back within
budget. If a clinical department’s ability to hire becomes restricted, the CFO will notify
the Assistant Dean for HR so that hiring for that department can be frozen, going forward
from that date.
Departments may decide to hire positions included in the budget, or they may choose to
reallocate funding to provide market adjustments or incentive compensation for existing
faculty. Due to the uncertainly surrounding promotions, no amounts should be added to
the FY10 budget for these occurrences. If a raise is needed to recognize a promotion, it
will be handled as a budget variance. It is expected that this will happen very
infrequently.
While the total salary budget for clinical departments is planned to be flat for FY10, it is
important to note that increases are expected in benefit costs for health insurance,
retirement and professional liability. These costs are estimated to increase by 10% for
FY10.
Forward these forms as electronic attachments (either Excel or PDF) to Pete Johnson in
the SOM HR Office at peter_johnson@med.unc.edu (and to Hunter Wagstaff at
hunter_wagstaff@unchealthcare.org if there are any P&A funds requested on the
HERF). Pete will review the forms for completeness and forward to the Business and
Finance Office for verification of budget. After review, a copy of the approved HERF will
be sent to the HR Facilitator in the requesting unit.