To: Principal Investigators for externally sponsored projects

From: Cecil Burge, Vice President for Research and Economic Development

Date: May 2, 2006

Re: Salary Encumbrances for externally sponsored projects


We are always looking for ways to make the operation of grants and
contracts by our researchers easier.  When the Grants modules were
implemented on our ERP, we had two goals. One was to integrate with
the financial module and institute budget controls on active grants
and contracts.  Two was to improve the timeliness and ease of access
of the monthly budget reports.


During the recent process of upgrading the financial modules and
implementing the Grants modules of SOARFIN, the decision was made to
activate the budget controls which were made available to the
University as a result of the upgrade/implementation. This feature
is to assist you with monitoring your bottom line budget or an
individual budget category should the agency require this.  With the
application of these budget checking controls, there have been a
large number of transactions rejected (budget failures) on externally
sponsored projects due in part to the encumbrance of salaries.  As a
result of this issue, and after much research and discussion
regarding the issue, the decision has been made to no longer encumber
monthly salaries on externally sponsored projects.  This will become
effective July 1, 2006.  The decision was based on the fact that
monthly employee salaries were being encumbered and not biweekly or
fringe benefits.  Since encumbrances involve a manual process and
entries are prepared only once a month, SOARFIN does not reflect
"real-time" balances.  Keep in mind, the SOARFIN ending balance will
only reflect expenditures that have been processed.


As always, SPA and OCGA will be glad to assist you with this
transition in any way.