The Office of Research Administration (ORA), in collaboration with Financial Management Services (FMS), and University Human Resources (UHR) have implemented changes to more accurately reflect payroll commitments on sponsored project accounts resulting in more accurate balances. These changes to encumbrances are in effect for all employee types except for biweekly paid employees (which will be addressed in a future release).
The change to payroll encumbrances automatically applies encumbrances to the expiration date of the grant account instead of the fiscal year-end.
- If a sponsored account expires prior to fiscal year-end (e.g. April 1), payroll encumbrances will be reduced on the account to match the end date.
- If the account expires after fiscal year-end (e.g. August 1), encumbrances will be increased to align with the account expiration date.
This change is reflected in payroll encumbrances in the Kuali Financial System (KFS) and in the Grants Management Toolkit (GMT).
- Current year encumbrances are “internal encumbrances” and use the Balance Type code of “IE”.
- Future-year encumbrances are “pre-encumbrances” and use the Balance Type code of “PE”, with special document number “Future20”.
- To see balances without these encumbrances, remove balances with the “PE” Balance Type code.
ORA encourages PI’s and departments to utilize the Grants Management Toolkit (GMT) located at one.iu.edu to view proposals, awards, related documents, and financial balances. The changes to the payroll encumbrances are reflected in both KFS and GMT.
Questions regarding these changes should be directed to Jim Becker, ORA, at firstname.lastname@example.org.