Revised Policy Concerning "Late" Salary Distribution Changes

MEMORANDUM
To: MIT Administrative Community
From: Michelle D. Christy, Director, Office of Sponsored Programs
Gillian C. Emmons, Director of Accounting Services and Controller
Subject: Revised Policy Concerning "Late" Salary Distribution Changes
Date: November 10, 2008

We write to bring to your attention the revised policy for processing retroactive salary distribution changes.

Effective July 1, 2006 when the new SAP payroll system was implemented, the Institute moved from a monthly to a quarterly salary certification process. The quarters are: July through September, October through December, January through March, and April through June.

Effective with the first quarter of the 2009 fiscal year, salary distribution changes for charges within the quarter may be made via the electronic salary distribution system (eSDS) without written justification for up to three months following the end of the quarter.

Example: For quarter one, July through September, retroactive changes may be made within eSDS to charges posted back to July 1 until the cut-off date when December payroll is run. This is a change from the previous
policy, which allowed retroactive changes for two months following the end of the quarter without written justification.

This change is being implemented to synchronize the salary certification schedule and the window for making salary distribution changes within eSDS. During the third month following the end of each quarter, faculty supervisors are certifying DACCAs to verify that salaries are appropriately distributed to cost objects. By extending the window for making changes within eSDS by one month, and by synchronizing the eSDS window for making changes with the end of the certification period for each quarter, we will have an effective process for facilitating distribution changes in a timely manner, and expediting the reflection of these changes within eDACCA, while assuring compliance.

The Controller, in consultation with the Director of Office of Sponsored Programs (OSP) when needed, is responsible for reviewing and making decisions on requests for distribution changes beyond the three-month window following the end of a quarter. Retroactive salary changes impacting time periods more than six months past the end of the eSDS review period will not be approved unless the changes are necessary to correct an over billing to a sponsor.

The process for handling late change requests is documented as part of the salary certification policy on the Vice President for Finance (VPF) website, and appropriate sections are being updated to reflect this change in policy. See http://vpf.mit.edu/payroll/policies_procedures/salary_certification_policy/7_0_salary_distribution_change_requests

The impact of the above polic change will be evaluated at the end of fiscal year 2009 to determine if the change has allowed the Institute to reduce the number of late changes while improving documentation for compliance.

Thank you for your assistance in distributing this policy change within your areas.