Leave Accruals
Each full-time and part-time employee eligible to receive benefits will accumulate paid
vacation, sick leave and holiday leave. The following procedure will detail the tasks to
be completed to record and document this benefit as well as notify individuals of their
leave benefits.
Accounting of Leave Benefits
Earned Leave
Leave Record information will be maintained for each employee eligible to receive leave
benefits. A hard copy is kept in each employees personnel file in the Executive
Director’s office.
Upon hiring a new employee, the Office Manager will pro-rate vacation, holiday, and
sick time. The Office Manager shall record the earned leave benefits for each
employee.
Information needed to complete the earned section of the leave record:
 Type of employee, i.e., full- time or part-time with benefits.
 Date of employee - for prorated vacation days; for accrual of additional days by
years of service.
Any policy changes implemented with respect to the accrual of leave benefits will be in
writing with signature of Executive Director.
Refer to the most current Personnel Policy Handbook for the accrual of leave benefits.
Used Leave
The vacation, sick, holiday and personal leave taken is documented on the employee
time sheet. The important internal controls necessary for recording leave taken are:
Time sheet completed in ink by the employee listing all absences from work.
Executive Director’s signature on Request for Leave Form indicating the requested use
of time including dates and amounts of time. This form is stapled to the appropriate
time sheet which reflects the requested time taken.
Accounting of Leave
Leave accrual information is distributed to staff on their payroll checks. A copy of the Benefit Hours
Accrual & Usage Report is the respective employees’s personnel file after each payroll run.
It is the responsibility of each employee to monitor the use of time in compliance with the personnel
policies.
Fiscal Year-End Recording of Vacation Accrual
For purposes of recording the accrued leave liability, the Office Manager shall summarize in an Excel
spreadsheet listing every employee by program and the value of their accrued leave benefits. This is
calculated by multiplying the hourly rate of pay in effect on the date the accrual is prepared by the
sum of the vacation and holiday hours earned but not used. The general journal entry is a debit to
Salaries Expense to the management General Cost Center and a credit to Vacation payable.
It should be noted that effective January 1, 1998, the Agency adopted a vacation decapitation policy.
Vacation hours exceeding ___ will be forfeited.