Payroll encumbrance maintenance updates

posted Jan 26, 2017, 11:29 AM by Barbara Thiss
From MITI: 10 and 11 Month Payroll Encumbrances: The MITI Team has been working with our developers and with Oracle to update the calculation of payroll encumbrances for 10 and 11 month employees. The delivered encumbrance processes uses 1/12th of annual salary to encumber for the remaining months of the year. This causes 10 and 11 month position encumbrances to be under stated. The encumbrance process is very complicated so as we continue working toward a solution to have the system calculate these encumbrances, we are very aware of the need for accurate encumbrances. Starting with the January payroll run we will utilize the existing encumbrance process and then we will perform a manual calculation of an encumbrance update to recalculate 10 and 11 month employees and adjust their encumbrances as needed. Both salaries and labor related costs will be included in the adjustment.

Each LEA will receive a report that shows the adjustment by employee and by account number. This means that for employees that are split funded, the adjustment will be split accordingly.

The following update will applied to the January payroll:

For a very few employees, some encumbrances for certain LRCs were overstated. This generally happens when an employee has multiple earnings codes and the only difference in the account number to which each is charged is the object. This issue has been solved and the program update is being migrated into production prior to running the encumbrance updates.

The following updates are still in development:

We continue to work with the developers on the following two issues. We will keep you posted on our progress as we develop and test a solution.
  • For exception hourly employees, Social Security, Medicare, and Unemployment Insurance are not encumbering unless the employee has another type of extra pay that encumbers. 
  • Certain extra pays that are not multiple components of pay are encumbered but the LRCs on those extra pays are not encumbered.