Office of Accounting Services Monthly Newsletter - Finance and ...

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Sponsored Program Accounting continued...Service CentersSalary for employees charged to accounts establishedas a service center cannot be used as cost sharing on asponsored agreement. If the employee was committedto cost share on a project, one of the following actionsmust occur:1. Assign a replacement person who will work on theproject to fulfill the cost sharing obligation. If theperson is considered key personnel, the sponsormust be notified of the change in personnel.2. Request a reduction in the cost sharingcommitment. A letter would have to be submittedto the sponsor and routed through OSP.3. Process a change in source of funds for theemployee to put them on the appropriatedepartmental funds. In this case, the charge ratefor the service center will be reduced.Internal Prior Approval FormWhen processing an Internal Prior Approval Form forequipment acquisitions, a budget adjustment must beattached to transfer the funds from the appropriatecategories to the equipment category. Equipment isdefined as an article of nonexpendable, tangiblepersonal property having a useful life of more than oneyear and an acquisition cost of $5,000 or more per unit.Internal No-cost ExtensionsLSU can only grant one no-cost extension for up to 12months on certain grants and cooperative agreementsusing the Internal Prior Approval Request Form. If a PIrequests a six-month extension internally andadditional time is subsequently required, anotherrequest must be submitted by the PI to the sponsorthrough your campus OSP.Sponsor DeadlinesIn order for us to meet agency deadlines for submissionof invoices and financial reports, we request principalinvestigators (PIs) or their designees to ensure that:1. appropriate charges are reflected on the officialUniversity ledger,2. cost sharing is documented,3. the required monitoring/technical reports aresubmitted, and4. property and patent reports are returned promptlyto the SPA contactMonthly and quarterly invoices and financial reportsare usually due within 10 to 30 days of month-end andfinal invoices within 10 to 90 days of expiration.2Final invoices will not be revised for additionalexpenditures. It is essential that departments notify usof any pending items in process, such as personnelaction forms, before the final is billed.Subrecipient invoices should be forwarded to SPA forreview after it has been approved by the PI. We willreview the invoice and forward it to Accounts Payablefor processing. Please remember to reference the LSUaccount number on the invoice prior to sending it toSPA. In addition, refer to the PI Checklist forSubcontractor Invoices on the SPA webpage at http://w w w . f a s . l s u . e d u / a c c t S e r v i c e s / s p a /paaManual/2006/31.pdf to expedite processing ofinvoices.Travel Expense Reimbursement RequestsWhen charging travel expenditures to a sponsoredagreement account, the purpose on the travel expensereimbursement request must relate to and/or benefitthe sponsored project and the travel must be within thetime frame of the agreement.Early TerminationIf an agreement is terminated for any reason, pleasenotify OSP and SPA in writing (e-mail is preferred). Ifthe sponsor sent any written correspondence relating tothe termination, including e-mails, it must also beforwarded to both offices. Our offices will work withthe PI, department, and sponsor to close the project.Board of Regents (BOR) Graduate FellowsGraduate fellowship status reports are due to MarieHamilton, Assistant Dean, Graduate School. She willforward them to SPA to include with invoices which aredue to BOR by January 31, 2011.Personnel Activity ReportsThe following FY 2011 have been forwarded todepartments:PAR A & B Due 11/08/10PAR C & D Due 12/06/10PAR 5 Due 11/29/10Please certify and return all outstanding 2010 PARs. Ifapplicable, please ensure cost sharing is documentedbefore returning the PARs. Also, copies of PARs shouldbe kept in the departments for three years.
PayrollTax TopicsAdvanced Earned IncomeFor tax year 2011 and beyond, there will be no moreadvance payment of the earned income tax credit.Eligible individuals will still be able to claim it on theirpersonal income tax returns, but employers may nolonger advance a portion of it with each paycheck.This change is a provision of HR 1586 (Public Law 111-226, Section 219), signed into Law by President Obamaon August 10, 2010.W-4 UpdatesPlease remind employees to review their withholdingstatus. Employees can complete and update their W-4,L-4 and L-4E forms through PAWS by selecting theEmployee Resources link from the PAWS desktop, thenselect Tax Withholding. Changes will take effect withintwo business days.2011 Contribution LimitsThe IRS has announced the dollar limits applicable topension plan contributions for calendar year 2011. Thelimits will remain the same as those for calendar year2010:403(b) Plans - $16,500457 Plans - $16,500Both 457 and 403(b) plans allow catch-up contributionsfor individuals age 50 or over. Catch-up contributionamount remains at $5,500 for 2011.Employees who wish to change contribution amountsto their supplemental retirement account shouldsubmit a new Salary Reduction Authorization form toPayroll. This form can be found atwww.fas.lsu.edu/acctservices/forms/pay/403(b).pdf.No Mismatches PleaseEmployee names as reported on Form W-2 must matchSocial Security Administration (SSA) files. Employersare subject to a $50 penalty for name mismatches.Additionally, employees may not receive proper creditfor Social Security or Medicare earnings if SSA cannotidentify the individual.The name and social security number (SSN) on theemployee’s card should match the name and SSN thatappears on HRM/HRS and Directory. If the employeewishes to be employed under another name, they mustfirst go to the Social Security Administration and havetheir card changed before Payroll or HRM can make thechange.Employee names on the W-4 form should match thename on the employee social security card. If anemployee completes the W-4 form using a differentname, Box 4 should be marked on the W-4 form andSSA should be contacted at the number indicated onthe W-4 form.The Federal Patient Protection and Affordable CareAct (PPACA) had originally required employers toreport the value of health insurance coverage onemployee’s 2011 W-2. In order to allow time for theIRS to provide more guidance to employers, thisprovision has been delayed until 2012.The Fair Labor Standards Act (FLSA) dictates thatemployees must be paid for all hours worked and thepayment should be made for the pay period in whichthe work was performed.Supplemental Timesheets should include LSUID, legalname, and hours worked for week 1 & 2. Monday-Friday hours must match hours in the total column foreach week. Be sure to reference the correct payperiod. Please double check these timesheets foraccuracy and sign and date before sending them toPayroll. Backup timesheets should be included forWork Study if applicable.When negative supplemental vouchers are sent toPayroll, please write “Negative Timesheet” in red at thetop of timesheet.Time Should Be Estimated CarefullyRemember that we are approaching yearend whenearly due dates mean time may have to be estimated.Please be careful as some students chronicallyoverestimate their time and this causes anoverpayment. Their W-2 earnings cannot be adjusted3
Page 4 and 5: Payroll continued...for overpayment
Page 6 and 7: Accounts Payable & TravelThe final
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