Deferred Fringe Corrections

  • Which personnel are potentially affected by this issue?

    Any personnel on deferred/spread pay may be affected by this issue.  However, only personnel who are both charging salaries to one or more sponsored projects AND on deferred/spread pay need to have their payroll reviewed to determine whether a fringe adjustment needs to be made.

  • What should I do if I see that fringe benefits are not expensing at the correct rates for sponsored projects personnel in my department?

    If the project runs through the end of this fiscal year (6/30/11) AND the personnel are scheduled to work on the sponsored project through the end of their current employment contract then it is likely that no corrections will need to be made.  However, if either the project, or the employee’s appointment on the project, are scheduled to end earlier than 6/30/11 then an adjustment will need to be made to correctly reflect fringe expenditures on the project.  This adjustment will be done by OSP based on the information provided by the department.

  • Are there recommended “best practices” for addressing this issue?

    The University recommends the following procedures:

    1. Identify employees on deferred/spread pay.
    2. Identify the current pay source for those employees.
    3. Identify any of those pay sources that are sponsored projects with an end date earlier than 6/30/11.  These employees will need an adjusting entry and projected fringe should be recalculated for an accurate assessment of expenses on the project.
    4. When EPAFs are done for deferred pay personnel on sponsored projects an analysis of fringe expenses should be made and if corrections are needed that information should be submitted to OSP for adjustment.
  • What do I need to do to initiate the fringe corrections?
    Deferred Fringe Correction spreadsheet has been created to help determine the amount of fringe that needs to be transferred off of or onto a sponsored project.  You will need to enter the information by employee and send that spreadsheet to for journal entry into Banner.  We will transfer the over- or under-charge to a holding account, which should be zeroed out by the end of the fiscal year.  Note that if there are any employees with balances still in the holding account at the end of the fiscal year those balances will be evaluated and posted to the appropriate budget number based on where the employee worked.  If there is a shortfall in those budgets then the department will be responsible for providing another budget to charge for the expense.
  • Who should I contact if I have questions?
    Heather Nelson ( is the contact person within the Office of Sponsored Programs.  The University is not anticipating that adjustments for deferred fringe will be required for non-sponsored project budgets.  However, if you have concerns regarding these accounts please contact Business and Accounting Services.