Labor Cost Distribution (LCD) and Release Time Authorizations
Labor Cost Distribution (LCD)
Labor Cost Distribution (LCD) is the way SJSU processes and distributes labor costs (payroll expenses) on a monthly basis at a detailed chartfield level (i.e. DeptID, Fund, Account, Class, etc.). The process involves both the HCM (Human Capital Management) system and CFS (Common Financial System). The monthly processing involves team members from Human Resources and Finance Support. Generally, this processing begins the last working day of the month and takes about three to four days to complete.
Release Time Authorizations
Effective for Fall 2018 and beyond.
Reimbursed Time: Personnel time (typically faculty time) that is reimbursed by a third party, usually the Research or Tower Foundation.
Reimbursed Time Authorization (RTA): the RTA form is initiated by the Foundation and defines the term, reimbursed increment (e.g., 0.20 = one course for one semester), funding source, and other information about the reason for the reimbursement. The form also gathers all necessary authorizations.
Financial Process for RTAs
Once an RTA is fully signed, the initiating Foundation will send a copy to SJSU Accounting. The RTA serves as an “invoice request” and will be used to generate an invoice to the Foundation for the personnel reimbursement.
When the bill is generated, credits will post to the SJSU department, which serves as the reimbursement. Two credits will post: account 601817 reflects the reimbursement for academic salary costs, and account 603810 reflects the reimbursement for benefits costs.
Sample Situation with Finance Data Warehouse Report
In the image above, the Spartan Studies Department received $14,618.40 in salary reimbursement and $4,459.05 in benefits reimbursement for Professor Jesson. Professor Jesson is working on sponsored research (she has a grant), and the grant will pay 20% of her salary for the year. An RTA was processed to reimburse Spartan Studies for an amount equivalent to one course in fall and one course in spring (0.20 Academic Year).
Once the RTA was processed, the reimbursement amounts posted to the Actuals column, and then under the new Centralized Compensation Pool, Budget entries were made to match the amounts in the Actuals column.
The Spartan Studies Department now has authority to hire instructors to cover the courses normally taught by Professor Jesson in fall and spring while she is working on her research project.
Prior to Fall 2018 RTAs, departments completed an employee profile to split faculty time using funds 78005 or 78006. These profiles are no longer necessary. Please do not send employee profiles to Finance Support that use these funds.