Archived Data from prior periods is available in the FYI Archive.

Recently, Karen Daniell and Donna Brownell brought several budget issues to our attention that were related to year end activity and encumbrance rolls. As we investigated, we found that corrections for incorrectly processed POB activity had caused the Banner system some confusion with the budget rolls and the dual year processing that occurs at the beginning of each year.

The general encumbrance form in Banner finance is not the best tool Banner offers. I am being very kind here - all of you who work with this form have had frustrations of one kind or another, so you are more aware than I of the difficulties this form poses. One of the poor behaviors of this form is it allows users to simply type over a line in an existing encumbrance with a new FOAPAL. Although this appears to function at the moment, because there were dollars associated with the line in the ledgers - it raises havoc with the ledgers, reporting and year end processes.

At year end this past year, there were 117 of these types of documents. Each had to be manually corrected to bring the ledgers back in balance and allow the year end reporting and processing to be performed. This is a multi-step process that cannot be performed by the users - but must take place each year before the rolls etc can be preformed. Many of the transactions simply had the account code changed. While this has to be corrected for the year end processes, it has little impact on other processes when the accounts are within the same budget pool. However, 36 of these transactions were related to activity where the FOAPALs were altered between funds and/or budget pools. These are the transactions that caused the issues Karen and Donna noted.

The analysis and corrections for these 36 lines has been completed and posted. Below is a listing of the encumbrance numbers that were the source of these budget imbalances. If you have any questions or concerns, please send email to Banner Finance. And thanks to Karen and Donna for the heads up on this.

ORIGINAL_POB_NUM
E3HBT37
E3HUKW12
E3IBA03
E3IFFI2
E3IRCBX
E3JBA43
E3JBT12
E3JJX10
E3JRN03
E3JRN6
E3KBT11
E3KT611
E3KT612
E3KT614
E3KTC21
E3LB061
E3LF012
E3UBAE4
E3UBL3C
E3UCZ16
E3UDES19
E3UDMS49
E3UDMS49
E3URN26
E3UXA58
E3UXR11
E3UZC44
E3UZO17
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During the first few months of HR being live this year, there were some earn codes in HR that were mistakenly marked as being exempt from fringe benefits and should not have been. During the later part of September, a project was undertaken in HR to review all the earn codes for the accounting, encumbrance and fringe impacts. This is when these errors were noted. The earn codes were then corrected so that future transactions would be correct, but the adjustments required for those that had already been processed were not calculated or adjusted at that time.

The analysis on all these codes and the required adjustment has just been completed and posted to the finance system. No adjustments have been made to the amounts in the HR tables. The document number relating to these changes is F4ADJ004 using the rule codes that would have been used (HFRD, HFNL). Please note - this only has impact on fringe items. There is no impact on any salary dollars - they were calculated and posted properly.

The most significant issue involved in this change is related to deferred pay. As you are all aware, deferred pay operates differently in Banner than it did in HUM. The portion of pay that is held for the employee to be paid over the period the employee is not actually working is charged to the department expense at the time the work is performed. Because it is charged to the account at that time, the related fringes should also be charged and liquidated, if appropriate. This did not occur for the first few payrolls of this year. The first 6 payrolls processed this year did not have these earn codes coded properly. For many of the deferred pay issues this really only impacted 3 or 4 payrolls as many deferred pays did not begin until late August.

The earn codes that were not coded properly are listed below, however out of all of them, only 5 had been used prior to the corrections in HR. From that number, 93% of the changes required are related to the deferred pay issues (earn code 180).

180 Deferred Pay - Liability Used prior to correction 93% of activity
430 Housing Allowance-Suppl Payment
433 Jury Earnings (NE)
439 Sick - Workers Comp Used prior to correction 1% of activity
442 Sick Pool Usage Used prior to correction 4% of activity
455 Workers Comp-ET-VAC-Sk
533 Jury Earnings (NE) - 3P Used prior to correction 1% of activity
542 Sick Pool Use Pay - 3P Used prior to correction 1% of activity
633 Jury Earnings (NE) - UNH
642 Sick Pool Use - UNH
911 Compensatory Time @ ST
912 Compensatory Time @ .5
913 Compensatory Time Usage

The adjustment for the deferred pay relates to both a liquidation and an expense. This should mean for most accounts the budget balance available will remain unchanged - the mix between open commitments and expenses will be impacted.

This was posted in BPRD today. The results should be available in MR reports tomorrow. As always, if you have any questions, please contact Banner Finance.

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During October, a review was made of all the earn codes established in Banner HR for appropriate coding. Several issues had been noted where the appropriate overrides for items such as College work studies OT, Non-status non-regular earnings etc, had not been coded properly, so we thought it best to review the entire list. This work was completed on September 26th, the end of pay period 20.

As we reviewed these codes there were several types of changes that did occur which

  • rule code changes, where an earning may have been liquidating encumbrances and should not have been, or visa versa
  • and eligibility for fringe calculations, that is - some earnings are exempted from fringe calculations even before they come under Banner's calculations model

The more significant issue of encumbrances being off by significant amounts was identified at approximately the same time - and preempted all resources from working on the issues caused by these earn code changes.

The first group, rule code changes, was adjusted with the transaction adjustments made last Friday. If an earning had been liquidating for either salary or fringe - and should not have been, or if it was not liquidating and should have been, these adjustments were made in aggregate with the corrections to salary and fringe encumbrances made on Friday. Please note - none of this activity affected the expenses - only encumbrance activity was impacted by these types of changes.

The second group was raised as a question late last Friday relating to deferred pay. Deferred pay was one of the earn codes which had been marked as not-fringe eligible at go-live and was corrected on September 26th. The full list of all earnings codes that were altered on September 26th as it relates to fringe eligibility is below. The group impacted both encumbrances and expenditures, that is, when the earn code was marked as being exempt from fringe, neither a fringe liquidation or a fringe expense were processed for the dollars associated with those earnings. The encumbrance on the full salary is calculated correctly. The original encumbrance and any subsequent adjustments are not dependent on what earn codes the person will be paid from, only the liquidation and expenses are impacted by the earn codes.

The net result is that for any person who has had earnings reported under the earn codes listed below - the fringe liquidations and fringe expenditures are understated in Banner finance for the first 7 pay periods. The most significant dollars are associated with the 180 (Deferred Pay) earn code. For most areas, these did not begin getting paid until payroll 18, therefore there were only 3 pay periods impacted.

We have recalculated all the fringe liquidations and expenditures for all the of earn codes used prior to payroll 21 (the first payroll when all were coded correctly in the PTREARN form). This entry is being reviewed at the moment and will be processed as soon as the review is complete. An FYI will be sent out when this entry is made.

If you have any questions or concerns, please send email with the details of your concern including full FOAPAL, position, suffix and earn codes as appropriate to Banner Finance and we will research the issue and get back to you.

Listing of earn codes whose fringe eligibility was changted on September 26th.

code description ptrearn_rucl_code Change Number of lines
180 Deferred Pay - Liability Expense and Liquidate Was exempt - should not be 2,971
430 Housing Allowance-Suppl Paymnt Expense Only Was exempt - should be -
433 Jury Earnings (NE) Expense and Liquidate Was exempt - should not be -
439 Sick - Workers Comp Expense Only Was exempt - should not be 6
442 Sick Pool Usage Expense and Liquidate Was exempt - should not be 38
455 Workers Comp-ET-VAC-Sk Expense Only Was exempt - should not be -
533 Jury Earnings (NE) - 3P Expense and Liquidate Was exempt - should not be 4
542 Sick Pool Use Pay - 3P Expense and Liquidate Was exempt - should not be 17
633 Jury Earnings (NE) - UNH Expense and Liquidate Was exempt - should not be -
642 Sick Pool Use - UNH Expense and Liquidate Was exempt - should not be -
911 Compensatory Time @ ST Expense Only Was exempt - should not be
912 Compensatory Time @ .5 Expense Only Was exempt - should not be -
913 Compensatory Time Usage Expense Only Was exempt - should not be -
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We are pleased to report that late on Friday, October 31st an entry was processed to finance which should have brought HR encumbrances for both salary and fringe amounts in sync with HR amounts. This adjustment should have corrected for all the known issues with the encumbrances as of that date. The values were posted on Friday and the results were then verified against the current balances in HR. From what we have seen, this looks very good.

Two different rule codes were used for these transactions and a slight variation on the document numbers were used all to allow these to be clearly identified as finance adjustments. The document numbers are F4ADJ### where the ### is a sequential number beginning with 001. The rule codes used are HEAD and HELQ which represent Encumbrance Adjustments and Encumbrance Liquidations, respectively.

The adjustments were processed in time for month end reports and for the MR snap on Friday night so you should see the impact in your WEBI reports on Monday, 11/3/03. Should you continue to see unusual activity or believe your encumbrances are not correct, please send email to Banner Finance with the details of the FOAPAL, person and position you believe to be incorrect and we will research the issue.

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Last Modified: 6/21/2012 12:25 PM
Last Published: