All sources.  To say this a different way, we follow GAAP rules of accounting, which says to expense the vacation liability when it is earned, regardless of when it is actually paid out.  As such, we expense vacation little by little as it is earned/accrued each pay period.  To the extent vacation is earned/accrued during a pay period in which employee's distribution includes grant-funded activities, the grant picks up that pro-rated portion of the vacation expense.  Doesn't matter what the distribution mix is down the road when the employee is actually paid out the vacation pay, however far into the future that is.

And we do this for all sources of funds, not just research grants.

-----Original Message-----
From: Patty Siebenmorgen [mailto:xxxxxx@UARK.EDU]
Sent: Monday, August 12, 2002 12:06 PM
To: xxxxxx@HRINET.ORG
Subject: Re: [RESADM-L] Accrued vacation charges

So, when the person actually "takes" his/her vacation, the pay for that
day(s) comes from a "pool" that has been collected, rather than to follow
the employee's current pay distribution?   Do you do this only for grants,
or all sources of funds?

Patty Siebenmorgen

At 11:52 AM 8/12/02 -0500, Kaufman, Patrick wrote:
>Larry,
>
>We charge grants at the time the vacation liability is accrued/earned
>(each pay period), not down the road when the vacation is actually taken
>(it is baked into our fringe benefits rate).  As such, it doesn't matter
>when the vacation time is actually taken (or paid out) because the grant
>pays for it when accrued/earned.
>
>Pat Kaufman
>Director of Accounting & Grants Admin.
>Stowers Institute for Medical Research
>Kansas City, MO
>816-926-4027    xxxxxx@stowers-institute.org
>
>
>-----Original Message-----
>From: Larry Waxler - Office of Sponsored Research
>[mailto:xxxxxx@USM.MAINE.EDU]
>Sent: Monday, August 12, 2002 10:53 AM
>To: xxxxxx@HRINET.ORG
>Subject: [RESADM-L] Accrued vacation charges
>
>
>Greetings.
>
>I am investigating potential solutions to an
>issue that has been a long-standing problem -
>accrued salary costs against terminating
>grants or contracts.
>
>By union/University agreement, most
>employees are allowed to accrue and carry-
>over up to 40 days of vacation from one fiscal
>year to the next. (Most employees earn 20
>days/year.) We often have grants that
>terminate under which employees have
>earned vacation time, but have not taken it. By
>union/University agreement, employees
>cannot be forced to take vacation time prior to
>the termination of a grant.  With the grant
>terminated, and the ability to fund the vacation
>time from the grant gone, the liability becomes
>a cost to the University when the employee
>uses the time.
>
>We have similar issues with sick time and with
>retroactive pay raises. (We have had
>union/University negotiations extend beyond a
>year, during which time we have had to close-
>out grants and lost the ability to charge pay
>raises there.)
>
>So, how do you handle these situations? How
>do you minimize the cost to University funds
>and maximize the charge against grant and
>contracts?
>
>Larry
>
>
>
>~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
>  Larry Waxler, Director                 |
>  Office of Sponsored Programs           | TELEPHONE: 207-780-4413
>  University of Southern Maine           | TELEFAX:   207-780-4417
>  P.O. Box 9300                          | E-MAIL:    xxxxxx@usm.maine.edu
>  96 Falmouth Street                     | WEB:       www.usm.maine.edu/osp
>  Portland, Maine  04104-9300            |
>~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
>
>
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======================================================================
 Instructions on how to use the RESADM-L Mailing List, including
 subscription information and a web-searchable archive, are available
 via our web site at http://www.hrinet.org (click on "Listserv Lists")
======================================================================

======================================================================
 Instructions on how to use the RESADM-L Mailing List, including
 subscription information and a web-searchable archive, are available
 via our web site at http://www.hrinet.org (click on "Listserv Lists")
======================================================================