Table of Contents>Payroll Reallocations


· To ensure the following when correcting a source of salary support:

o The change is based on actual effort expended;
o The reallocation is processed in the appropriate timeframe;
o The reallocation is processed is accordance with University, sponsored agency, and other relevant guidelines


· Financial Policy Manual: 2400 Payroll
· Grants Policy Statement
· OMB Circular A-21


· To allow for the appropriate adjustment of source of salary support to accurately reflect effort expended.


· Deans
· Center and Institute Directors
· Department Chairs
· School of Medicine Administration
· School of Medicine Faculty/Investigators
· Business Administrators
· Office of Research Support Services
· Penn Research Services

TYPES OF REALLOCATIONS in order and as categorized in the payroll system
It is unallowable to charge salary to an expired account.

· Transfer to continuation year

o When an Advance Account number has not been obtained before the start date of a continuation year and anticipated resources has not been used, transfer salary charged on an expired fund to the continuation year fund upon receipt of AIS. It is preferable to establish an Advance Account to eliminate the need for reallocations of this type. Refer to Advance Account SOP.

o When a budget period ends and a new fund number is to be established, request an Advance Account number. In the absence of an Advance Account number, use Anticipated Resources. Refer to Anticipated Resources SOP.

Another example of a transfer to continuation year includes:
o Anticipated resources corrections
The anticipated resources fund is used occasionally in lieu of an advanced account number, e.g. when the advance account was not requested soon enough (see Anticipated Resources SOP and Advance Account SOP). Using the anticipated resources fund necessitates payroll reallocations to the new fund number once assigned. If Anticipated Resources were used, reallocations MUST be done in the same fiscal year as the expense date.



· Error correction identified by Principal Investigator

A principal investigator may request salary adjustments after he/she reviews GRAM or other reports containing expenditures and PI realizes that the employee has shifted effort to a different project.

An example of an adjustment requested by a PI includes:
a.) Technician A has been paid 100% from project X. Technician A has actually worked 50% on project X and 50% on project Y.
b.) If a faculty member's salary is above the current NIH cap, the difference between the NIH Cap and the total salary must be charged to non-federal funds.

If someone has been paid over the NIH salary cap, any excess over the salary cap needs to be reallocated prior to submission of the FSR and certification of effort report. To determine the current NIH salary cap, refer to

· Data Entry error

A Data Entry error correction is needed when any segment of the account combination was incorrectly entered in the job assignment screen of the payroll/personnel system, i.e. a wayward transaction.

Examples of data entry error corrections include:
o Suspense correction/wayward transactions
Suspense or wayward transactions occur when a frozen fund is charged or one of the following errors occur in the account combination entered in the job assignment screen of the payroll/personnel system:

1: an invalid CNAC/ORG is entered;
2: an invalid BC/Fund is entered;
3: an invalid CNAC/CREF is entered

Note: A wayward transaction occurs when ANY segment is not correct!
To identify payroll suspense transactions see Suspense SOP and Reporting on Sponsored Programs SOP.


· Salary reallocations must be processed within an active budget period or adjustment period and must reflect the correct effort certified for that individual.
· Reallocations must be processed within 90 days of the original transaction.
· If the reallocation involves a student retroactively reclassified from Educational Fellowship Recipient to Research Fellow, or vice versa, notify the Payroll Accounting office so that a retroactive tax adjustment is made.
· When processing reallocations, make sure that the fund is not frozen. If a salary reallocation involves a frozen fund, contact the Office of Research Support Services for approval to initiate the "un-freeze" process. Refer to Unfreeze Grants SOP.
· Ensure that fund is scheduled to remain unfrozen until the transaction is scheduled to post to the general ledger.
· Prior to processing the reallocation make sure the payroll distribution in the Job Assignment screen reflects the proper allocation going forward that this reallocation will beget. Also confirm that the effort being reported on this account actually took place during the award period of the grant.
· Set up an active salary reallocation folder or binder that contains the original salary distribution, reason for processing a reallocation, revised effort report (if necessary) copy of the salary reallocation page or a completed copy of the payroll reallocation template signed by the PI. See point 2 under Miscellaneous below. Use this form to elaborate on the reason for the reallocation; justify the reason.
· A copy should also be maintained in the grant transaction folder or binder.
· The status of all pending salary reallocations will be updated the following day but will not post to Salary Management until weekly payroll runs, usually Monday evening.
· Pending reallocations can be updated or deleted as necessary until the close of payroll for the next weekly cycle.
· Because FinMIS is a separate system, the actions you take in salary management will not update the accounts until Thursday nights. Therefore, salary management reports and general ledger reports may not reflect the same information Tuesday through Thursday each week.

PROCEDURES for entering a reallocation

· Compare salary reallocation to be processed with the salary and/or percent of effort that was originally budgeted against an award/contract or departmental fund.
· Discuss any salary reallocations/changes with PI and get his or her approval (i.e. written or electronic).
· Ensure the fund is enabled
· Ensure the fund is not frozen
· Enter the transaction before 3 p.m. on Monday; results in transaction being posted to the General Ledger Thursday night during GL posting

· Entering payroll reallocations into UMIS
a. Select [06 Reallocations] from the main Function Menu of the payroll/personnel system.
b. Select [1 Add Reallocations] from the Reallocation Menu. Enter the name (Last Name, First Name) or Social Security number of the person for whom you need to do the reallocation.
c. Enter the check date that needs to be reallocated and press [enter]. This brings you to the add reallocations screen. Enter the 26-digit account combination(s) to which the salary is being reallocated, paying close attention to the object code. If the reallocation is being split over more than one account, make sure that the total is appropriately distributed among the multiple accounts.
d. Select a reason by pressing [PF4]. Once you have selected your reason by placing your cursor in front of the appropriate choice, press [enter]. After this, press [PF5] to add the reallocation. Note that the explanations provided on-line may not be adequate to explain the transaction. You will need to elaborate your explanation on your file copy.
e. At the main screen, select [2 Browse Reallocation]. Note that if you have done more than one reallocation you need to press [PF11] to move to another page to check the next reallocation. Reallocations retrieved are based on the user's access to School/Center or Payroll Home Organizations. Print browse screens out for file. This is where you should elaborate your explanation. See bolded section of bullet d. above. Note this also would be where you would justify if transaction exceeds 90-day rule.
f. You can update and/or delete a pending reallocation under the browse screen as necessary.
g. Verify pending reallocation(s) has/have posted (can be done Tuesday after reallocation was entered into the system)

Helpful hints:

Payroll reallocations for any given Spring term can be done until the February of the following calendar year; payroll reallocations for any Fall term can be done until the end of August of the following calendar year.

Payroll reallocations will remain pending when processed against frozen or disabled funds. To identify these unprocessed payroll reallocations, follow these steps:
o Go to Payroll Reallocations from the Payroll Menu (06)
o Choose Browse Reallocations (02)
o Tab past the Name field and enter your Org
o Pending reallocations, if any, will appear

· Deleting unprocessed payroll reallocation(s)

a) Select [06 Reallocations] from the main Function Menu of the payroll/personnel system.
b) Select [2 Browse Reallocations] from the Reallocation Menu. Enter the name (Last Name, First Name) or Social Security number of the person for whom you would like to delete the reallocation.
c) Press [enter]. This brings you to the browse reallocations screen and displays all unposted reallocations.
d) Type a 'd' in the 'U/D' field on the line(s) reflecting the reallocation(s) to be deleted. Press [Enter] to update the screen and type 'Y' and [Enter} to confirm the delete when prompted

A message informs the user that the reallocation has been deleted. A deleted reallocation will remain visible in the Browse Reallocations screen until the screen is exited and re-entered.

· Departmental Business Administrators
· Office of Research Support Services
· Research Services
· Payroll
· SOM Department of Finance

· Payroll Reallocation Form

Also check the following SOPs, if applicable:
Effort Reports
Monthly Reconciliation
Wayward/Suspense Transactions
Anticipated Resources Account
Advance Account
Cost Sharing
Unfreezing Grants
Reporting on Sponsored Programs


Download Payroll Reallocation Form:

Reallocations needed to correct typographical errors such as wayward transactions, do not require a PI's signature.

If salary for one of your departmental personnel inadvertently posts to another department thereby creating a wayward salary transaction, send a copy of the browse reallocation screen, reflecting the correction, to the other department.


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