Compensation Planning and Management
Centralized Compensation Pool
Campus leverages a centralized compensation pool for SJSU Operating Funded-positions, similar to the established centralized benefits pool. Division salary budgets are updated at the beginning of the fiscal year for all active ongoing filled and vacant positions that were reported in position listing reports submitted by Divisions. After the monthly labor cost distribution process completes, budget will be allocated from the centralized compensation pool to departments to cover salary expenditures.
Please contact your division resource management team for more information about their position management process with regards to the compensation pool.
The university maintains a centralized staff benefits pool. After the monthly labor cost distribution process completes, budget will be allocated from the centralized benefits pool to departments to cover benefits expenditures.
When changes are made to Operating Fund budgeted positions, adjustments are also made to the university benefits pool. The 2020/21 budgeted benefits rate for most purposes is 48%.
All permanent positions are to be budgeted for an entire fiscal year. The full twelve months of funding for each position must be budgeted even for a position that is new or vacant and is not expected to be filled until later in the fiscal year. The sum of the salaries on the position listing either balances to, or is less than, the salary total of your department’s budget.
Compensation Increases (GSIs/IRPs)
Salary increases are granted per individual bargaining unit agreements with the CSU. Some common types of compensation increases are General Salary Increases (GSI), one time bonuses/stipends such as Long-Term Satisfactory Service Bonus (LTSS), Educational Achievement Stipend, Budget Shortfall Mitigation Bonus (BSM), and Rural Health Stipends, and Specific Retroactive Settlements. Generally, compensation adjustments that are “base” related are General Salary Increases (GSI).
CSU Operating Fund - Budgeting for Salary Increases
Compensation funding for CSU Operating Fund bargained increases are generally funded by the University.
Funding can be effective any time of the fiscal year. Any “Base” increases with an effective date of July 1st would be funded for a full 12 months of that current fiscal year. If the effective date is January 1st, departments will receive funding for six months in the effective fiscal year and a full 12 months in the following fiscal year.
Compensation increases provided outside of the bargaining unit process typically reflect decisions made by campus administrators and are not funded by the university. Some examples would be faculty and staff promotions, in-classification-range progressions, reclassifications, and reassignments.
Trust Funds - Budgeting for Salary Increases
For trust funds other than the CSU Operating Fund, all salary increases must be funded within existing resources. When developing the budget, include any anticipated compensation increases to be awarded during the fiscal year. Updated information pertaining to specific bargaining unit agreements can be accessed via the CSU Labor and Employee Relations website.
Budgeting Student Assistants in the Operating Funds
Student Assistant expenses are paid by the SJSU Operating Fund compensation pool. At the time of the Compensation Pool implementation, each division was provided a copy of the compensation a budgeted equivalent of student hours, which serves as the basis for spending authority.
Regular reporting of student hours is therefore required. Please contact your division’s resource manager to obtain a report.
Budgeting Student Assistants in Other Funds
For non-70000 student assistant budgets, budgets may be treated the same as any other account code. There is no compensation pool in any other fund.
Federal Work Study
What is it?
Federal Work Study is a type of student financial award that provides students with part-time based on their financial needs. The federal government provides a grant (70%) and there is a department matching component (30%), which make up the total department work study budget. The Office of Budget and Financial Management only budgets federal work study in Fund 70000; though there are other types of work study programs: On Campus employers (various departments); On-Off Campus employers (Student Union, University Housing Services, Foundation, etc.); and Off Campus employers (school districts, city and county governments, etc.).
What is the correlation between the student awards and budgets?
There is NO automatic correlation between the student federal work study awards in your department and your department federal work study budget (account code 602XXX) in the SJSU Operating Fund 70000.
What does the budget process look like?
At the beginning of each fiscal year, the Financial Aid and Scholarship Office provides the Office of Budget & Financial Management with an on-campus federal work study allocation amount for each division. Budget & Financial Management allocates these amounts to the divisions. Base budgets have rolled from historical arrangements; and any divisional requests for an increase in budget allocation should be sent to Financial Aid by the spring. Budget & Financial Management adjusts the divisional budget based on the amounts provided by Financial Aid and Scholarships.
Budget & Financial Management also transfers the 30% matching requirement from each division’s OE&E budget into the work study account if it isn’t included as a base budget already. The on and on-off campus agencies’ work study allocations are sent to Accounting Services. The on and on-off campus’ payrolls are processed through the university payroll system and off campus payrolls are processed by agencies’ payroll systems. The agencies then receive reimbursements from the university for the Federal portion. Please see Accounting Services for information on moving work study expenses and processing of the on-off campus and off campus work study for agencies and auxiliaries.
At mid-year, Budget & Financial Management conducts a budget check-in and reallocation of projected savings. Because FWS funds are limited, any surplus balances of the 70% grant budget are reallocated to divisions who request more funds. The 30% matching portion returns back to divisions who are projecting a surplus, and divisions who received a portion of the reallocated grant funds allocate the additional 30% portion of their OE&E to FWS. Budget & Financial Management coordinates all these activities with divisions.
It is the responsibility of the departments and agencies to manage their student work study award and their On Campus Federal Work Study budget each fiscal year. Departments must fund all overruns, often by processing adjustments to charge overruns as Student Assistant charges.
At year-end, a similar reallocation process occurs. If you have any questions about the FWS budget process, please contact us.
For additional information about FWS from a student-award perspective, visit the Financial Aid and Scholarship Office website.
Faculty Release Time
What is Release Time?
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.
What is the Financial Process?
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. The salary credit represents the authorized amount now available to the department to hire temp faculty to cover the courses not being taught be the faculty on release time who is working on their research project.
Sample Situation with Finance Data Warehouse Report
In the image below, 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 pays 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 is processed, the reimbursement amounts post to the Actuals column. For transactions in Fund 70000, Budget entries are made to match the amounts in the Actuals column via the monthly salary allocation process.
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.