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UC DAVIS: ACCOUNTING & FINANCIAL SERVICES
June 30, 2006
DEANS, DIRECTORS, DEPARTMENT CHAIRS, AND ADMINISTRATIVE OFFICERS
RE: PPS Modifications in Preparation for Proper Effort Reporting
The University will unveil a new Effort Reporting System (ERS) next fall
for summer quarter 2006. The ERS will use data derived from the payroll
expense distribution process, DaFIS, and the Effort Commitment & Cost
Share Tracking System. Therefore it is critical that all effort is
correctly reported in the University's accounting and payroll systems.
Several issues have been identified as needing modification necessary to
bring UC Davis' PPS entries into compliance with Federal research
regulations. The issues are as follows:
1. NON-RATED DESCRIPTION OF SERVICE (DOS) CODES AND PAYRATES
Any DOS code that represents a portion of Institutional Base Salary
(IBS) must have a percent of effort indicator assigned to it in order to
be recognized in effort reporting on federal awards. Historically,
UC Davis has established non-rated DOS codes in the Payroll/Personnel
System (PPS) for salary components that actually represent IBS. The
Off-Scale Compensation increment paid to academic appointees ('OSC') is
an example of a non-rated DOS.
To rectify this situation, as of July 2006 all salary that represents
IBS must be combined into a single unit payrate, up to the documented
salary cap limits. This is necessary to accurately calculate effort as
well as to ensure compliance with federal guidelines that restrict
charging payroll expenses at payrates in excess of the Executive Level I
of the Federal Executive Pay Scale.
A PPS automated program has been designed to accomplish the task of
combining (i.e., compressing) existing salary components to ensure
compliance. This automated program will end the existing DOS codes that
represent the regular and non-rated salary components and will add a new,
single DOS code. For example, Regular pay (DOS code 'REG') and the
Off-Scale Compensation increment (DOS code 'OSC') will be combined as a
single new DOS code called 'REO' (Regular salary + Off-scale increment).
The PPS automated program will be run in PPS the week of July 10, 2006.
Details will be announced on the PPS listserv.
2. USE OF APPROPRIATE TITLES FOR PAY FROM FEDERAL FUNDS
Historically, some colleges at UC Davis have funded professorial titles
with dollars from federal research projects. However, APM 190 s
pecifically restricts what fund sources might pay professorial salaries.
Beginning in July 2006, all faculty members who are paid salary from
federally funded projects are to be paid under a separate professional
research title rather than the professorial appointment.
Details will be forthcoming from Office of the Provost; however, please
note this is simply a pay mechanism and will not impact the permanent
professorial appointment and the entitlements thereof.
3. SALARY CAP
The National Institute of Health (NIH), the Agency for Healthcare Research
and Quality (AHRQ), and the Substance Abuse and Mental Health Services
Administration (SAMSHA) are legislatively restricted to charging payroll
expenses at payrates in excess of the Executive Level I of the Federal
Executive Pay Scale. For federal agencies subject to a legislative salary
limitation, the campus will require all payrates representing IBS above
the applicable salary limitation to be established in PPS as non-rated pay
and must be paid from fund sources that exclude federal and federal flow-
through awards, as well as general funds. Doing so will exclude pay above
the salary limitations from effort reporting.
The automated PPS program will convert existing faculty salaries paid from
federal and federal flow-through awards subject to the legislative salary
limitation in excess of established salary cap limits into a non-rated pay
component with the DOS code of 'CAP'.
4. PPS DECISION SUPPORT REPORTS
Reports detailing the changes in DOS codes and payrates will be available
in PPS-DS. A new report is in development that "decompresses" the single
unit salary back to its component parts. Future details will be announced
on the PPS listserv.
Please contact Cindy Jones, Payroll Services at (530)757-8542 if you
require further information.
J. Michael Allred
Associate Vice Chancellor - Finance/Controller
06-073
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