ERE (Employer Related Expenditures) Flat Rate Proposal

Quick View

Summary:

This project will change the Employer Related Expenditures calculated by Payroll from an actual basis to a flat rate basis. We currently interface the actual rate (PS delivered/calculated as part of the regular payroll processing) to Advantage and this will continue without changes. The new calculation will also be interfaced to advantage.

Start Date:

July 9, 2008

Go Live:

October 30, 2009

End Date:

November 30, 2009

Current Milestone:

10/23/09 - Testing Complete - Ready for Production

Stage:

Recently Released - Completed in last 3 months.

People

Sponsor/Champion:

Morgan Olsen, Executive Vice President and Chief Financial Officer

Lead Customer:

Kevin Salcido, Interim Associate Vice President/Chief Human Resource Officer

Project Manager:

Myra Elias

Contact for more information:

myra.elias@asu.edu

Associate VP University Technology:

John Rome

University Technology Director:

Clara Adams

More Info

Source:

Executive

Department:

Business and Finance

Priority:

High

Scope:

The HURON Consulting Group was brought in by the Office of Budget and Planning to make a recommendation for a flat ERE (Employer Related Expenditure) rate. They were to analyze our data and propose their findings. Once approved, they would submit a plan to the Government for approval of the ERE rate(s). Then become an integral part of the implementation project.

Associated Case

CRM Case #375199 -ERE Encumbrances - have been moved to another project

CRM Case #407627 -ERE Encumbrances for RA/TA Tuition Remission

All Milestones and Schedule:

Fringe Benefit Rate Implementation Approach

Obtain actual FY08 fringe benefit costs
Determine all programs that should be included
Develop categories
Obtain FY08 salaries by category
Develop allocation methodology and cost model
Calculate FY08 fringe benefit rate from each category

Review results of FY08 fringe benefit rate
Determine cost recovery impact
Review draft fringe benefit rate with University management
Finalize methodology and cost model
Contact DHHS (Department of Health and Human Services) and request approval

Obtain FY10 projected finge benefit costs
Obtain FY10 projected salaries by category
Calculate FY10 fringe benefit rate

Define requirements
Document the Functional Specifications
Document the Technical Specifications

Submit fringe benefit rate proposal to DHHS (Department of Health and Human Services)
Document rate calculation processes and assumptions for the cost model
Revise payroll system to apply fringe benefit rate
Create new accounts/object codes in Advantage to track costs and allocations

Fringe benefit rate calculated fro each category
Application of calculated fringe benefit rate for employee categories
Fringe benefit costs are recorded accurately

Negotiate a fringe benefit rate with DHHS (Department of Health and Human Services)
Implement fringe benefit rate for FY10
File an amended Disclosure Statement

Scope Discussions

7/10/2008 - The Office of Budget and Planning host Huron Consulting Group for a pre kick-off meeting with ASU

July to Decmeber 2008 - Data compilation for determination of rates.

9/3/2008 - Project Status meeting with HURON

1/20/2009 - ERE scope discussion

1/26/2009 - Further ERE scope discussion

2/4/2009 - Tuition Remission scope discussion

2/17/2009 - Payroll setup discussion

2/18/2009 - Review Earnings used for determining fringe benefit rate and Continued payroll setup discussions

2/19/2009 - Tuition Remission discussion

2/27/2009 - Tuition Remission Specification discussion

3/3/2009 - ERE Payroll setup discussions

3/5/2009 - Update Deston with information regarding rates

3/13/2009 - Payroll set up pros/cons/feasibility

4/2/2009 - Prepare Functional Spec for development

4/15/2009 - Finalized Spec requirements

4/21 to 7/14/2009 - Standing touch point meetings - Complete

4/20/09 - Refine ERE functional spec

4/27/09 - ERE UAT - complete

05/04/09 - Create RA/TA functional spec - complete

05/11-29/09 - Refine RA/TA functional spec - complete

06/01/09 - RA/TA specs complete - complete

06/22/09 - CMT communication for ERE - complete

06/22/09 - RA/TA coding complete - move to STG for testing (use prior pay periods for testing) - complete

06/22-8/15/09 - RA/TA UAT testing (FALL 2009, SPRING 2010 and SUM 2010)- In progress

06/26/09 - Communication about ERE changes with departments (Financial Services) - Complete -

06/26/09 - Query/Report Changes (Financial Services) - Complete

09/02/09 - Provide a draft Business Process Guide for ERE - draft to Financial Services, complete

07/02/09 - ERE project in production - Complete

08/31/09 - Provide a draft Business Process Guide for RA/TA- not complete

07/15/09 - CMT communication for RA/TA - Complete

09/01/09 - Communication about RA/TA changes with departments (Financial Services) - not complete -

09/07/09 - RA/TA project in production - not complete -

09/01/09 - Turn over support of projects to support team - not complete

Deliverables:

Create a process to calculate ERE based on a flat rate

Create a process to calculate RA/TA tuition remission for Fall, Spring and Summer

Create a process to interface the ERE flat rate amounts and RA/TA from Peoplesoft to Advantage

Create a Business Process Guide for ERE

Create a Business Process Guide for RA/TA for each semester Fall, Spring and Summer

Query and report changes.