To: MOU Leads
University Business Managers
Research Administrative Support Group
Cc: Human Resources Officers and Secondary Contacts
From: Dennis Press, University Controller
Frances A. Dykstra, Assistant Vice Chancellor for Enterprise Applications
Date: February 20, 2015
As reported in a memo last week, the ConnectCarolina team has been investigating reports of inaccurate distribution of actual expenses for some biweekly and monthly December and January payrolls. We now have more information on the distribution variances.
To begin, we wish to emphasize that employees were paid correctly. However, we discovered that the costs of about 17% of the individuals paid in the Monthly 06 and 19% in the Monthly 07 payrolls, as well as about 11% of the individuals paid in the Biweekly 10 through Biweekly 15 payrolls were incorrectly distributed. To clarify, the issue relates to the distribution to the GL only, not the amount paid to employees, nor the direct deposits.
After the team examined the data, we found that 85% of the variances were less than $10. While most of the variances were small, and represented only 0.5% of the total amount paid for December and January payrolls, corrective action is essential. The problem was caused by a PeopleSoft-delivered process that reallocated actuals when lump sum payments, including the Annual Raise Process (ARP) lump sum payment, reduced the remaining balances in the Department Budget Table. This was not a problem until encumbrances were calculated in late November. The team did test this delivered functionality, but the actuals distribution issue wasn’t discovered due to the complexity of variables associated with funding, including encumbrances, the ARP, and funding end dates.
Programming is underway to prevent recurrence of this problem and to correct the errors that have occurred since December. The team expects the fix to be tested and implemented next week. As a result, the Biweekly 16 (B16) payroll will not be distributed to the General Ledger until next week. Additional information will be provided to you as we progress through our corrective action plan, including the schedule for correction of the GL distributions for the affected Biweekly and Monthly payrolls. For reference, the 2014 and 2015 biweekly and monthly pay schedules can be viewed at payroll.unc.edu.
We are continuing to investigate whether the program affected retroactive funding transfers. There is evidence that some retros processed correctly. All retros that have been processed on converted data have been distributed correctly.
We understand the seriousness of this issue and will keep you informed as we work to take corrective actions. If you have questions, please contact Dennis Press at firstname.lastname@example.org or 919-962-7007.