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DUAL EMPLOYMENT

Financial Planning and Budgets (FPB)

PROCEDURE 6

Effective Date: 12/01/2003

Last Modified Date: 01/05/2004
Links Added: 05/31/2005


Written Agreement, Payment, and Accounting Procedures

Summary

When the need to borrow an employee from another State agency is determined, the borrowing agency should initiate a written agreement to secure the services of the specific employee required. Since dual employment normally applies to one-time services, any continuing arrangements must be renewed at least annually by a letter of agreement and, in all cases, at the time of a change in source of pay for the services, and/or at the beginning of each fiscal year. After the services have been rendered, the borrowing agency should initiate a Form CP-30, which is the Dual Employment Certification Form, and a Check Request to have a check drawn payable to the loaning agency for the amount of the services plus applicable benefits.

Blank CP-30 Forms

Forms CP-30 can be obtained from the Financial Planning and Budgets Office (FPB) or online. The borrowing agency completes only Section One of the form and submits a copy of the written agreement along with the CP-30 and the check request. The loaning agency completes Section Two of the CP-30 upon receipt of the check and CP-30 from the borrowing agency, and payments for services to the employee will be made through the loaning agency's regular payroll process.

Dual Employment Instructions

The following specific instructions must be observed:

Fixed Time Period

The period of time to be covered and the rate of pay (even if the exact payment cannot be computed because of possible variation in the services required) must be clearly fixed.

Limited Time Period

The dual employment arrangement must be confined to the fiscal year under the State budgetary system (July through the following June). Exception: If an employee is being borrowed for services under a sponsored (usually Federal) contract or grant, Form CP-30 should be limited to the period of the contract or grant.

Payments Spread over a Period of Time

Payment arrangements should be agreed upon; however, reimbursement payments cannot be made until after the services are rendered. When services are to be spread over a period of time (such as a semester), the payment to the loaning agency, as well as to the employee, may be spread over the same period but must be made on a pay-period basis after the services have been rendered.

Payments for Services of Employees on Loan

Payments for services of borrowed employees must be charged under object 1941 (Employee on Loan Payments). They may not be charged to salaries and wages object codes, but favorable consideration will be given to requests for transfer of budgeted amounts in these object codes to the 1941 object. Appropriate budget arrangements should be made before or at the same time that reimbursement requests are submitted.

Payment Check

The payment check will accompany the CP-30 when sent to the loaning agency.

UNC–Chapel Hill as Borrowing Agency: Agreement and Payment Procedures

Initiation of Form CP-30 by Borrowing Department

The UNC–Chapel Hill borrowing department is responsible for initiating a written agreement with the loaning State agency to secure the services of an employee from that agency. After the dual employment services have been rendered, the borrowing department must initiate Form CP-30 in accordance with the instructions set forth herein and on the form, and forward it, along with a copy of the written agreement, for processing.

The borrowing department completes Section One, including Analysis of Payment to Parent Agency. The date is entered to the right of Certificate by Borrowing Agency. The various headings in Section One are generally self-explanatory, but please note the following special instructions.

Appropriate Object Code

On the line Agent Code and Subhead, include the appropriate departmental account number, using object 1941 (Employee on Loan Payments).

Signature Information

The Signature of Contracting Agency Official is the department head's signature. The space below this line must not be used, as it is reserved for the signature of the UNC–Chapel Hill approving officer.

Necessary Salary and Benefit Information

The Analysis for Payment to Parent Agency will not include indirect expense or direct cost, unless special approval is obtained from the UNC–Chapel Hill Director of Financial Planning and Budgets. It will include salary for services and the applicable matching (employer's) Social Security. It will also include the matching (employer's) retirement contribution if applicable (when the borrowing agency is supporting a portion of employee's regular salary; not applicable for additional compensation beyond the employee's regular salary).

NOTE: Any form CP-30 or letter of agreement that cannot be approved at any of the review levels will be returned to the borrowing department head with an explanation for the disapproval.

EPA Employees

In cases involving an EPA employee and/or EPA service, the borrowing department must complete Section One of Form CP-30 in triplicate. (See FPB Appendix 5, CP-30: UNC–Chapel Hill Borrowing Agency, Supplemental Payment; and Appendix 6, CP-30: UNC–Chapel Hill Borrowing Agency, One-Time Payment—Joint Appointment.)

SPA Employees

In cases involving SPA employees, the borrowing department must contact the UNC–Chapel Hill Director of Workforce Planning and Recruitment, to ascertain if the proposed dual employment can be authorized. If approval is given by the Director of Workforce Planning and Recruitment, the borrowing department must see that a letter of agreement is prepared and signed by the borrowing department head, loaning agency head, and the Director of Workforce Planning and Recruitment.

Check Request Form AP-1 to Accompany CP-30

A check request must be prepared to accompany the CP-30. The check request should be completed in accordance with standard instructions and should, in addition, state the following: that it is payment for dual employment, the name of the employee, the date of the services, and the type of services performed. Also, the amount of the payment should agree with the CP-30. (See FPB Appendix 7, Check Request: UNC–Chapel Hill Borrowing Agency, Supplemental Payments; and FPB Appendix 8, UNC–Chapel Hill Borrowing Agency, One-time Payment—Joint Appointment.)

All three copies of the CP-30 are forwarded with the completed Check Request, along with all other attachments, through administrative channels to the provost or appropriate vice chancellor. If the request is in accordance with the dual employment policy, the UNC–Chapel Hill agency approval is indicated by the appropriate signature in the blank spaces just below the line Signature of Contracting Agency Official under Section One on each copy of the CP-30. All copies are then forwarded, with all attachments, to FPB.

After the services are rendered, the borrowing department must complete Section One of the CP-30 in triplicate. (See FPB Appendix 9, CP-30: Supplemental Payments; and Appendix 10, CP-30: UNC–Chapel Hill Borrowing Agency, Base Pay.) A check request must be prepared to accompany the CP-30. The check request should be completed in accordance with standard instructions and should, in addition, state that it is payment for dual employment, the name of the employee, the date of the services, the type of services performed, and the amount of the payment. (See FPB Appendix 11, Check Request: UNC–Chapel Hill Borrowing Agency, Supplemental Payments.)

All three copies of the CP-30 are forwarded with the completed check request, along with all other attachments, through administrative channels to the UNC–Chapel Hill Director of Workforce Planning and Recruitment, Office of Human Resources, for approval. If the request is in accordance with the prior agreement and with the dual employment policy, the UNC–Chapel Hill agency approval is indicated by the signature of the Director of Workforce Planning and Recruitment in the blank space just below the line Signature of Contracting Official under Section One on each copy of the CP-30. All copies are then forwarded with a copy of the letter of agreement, the check request, and other attachments, to FPB.

Separate Forms Needed for Each SPA Payment

Although the letter of agreement for the borrowing of an SPA employee may be for variable services over a limited period of time, a separate Form CP-30 and related check request must be processed through the Director of Workforce Planning and Recruitment each time there is a payment to be made.

Audit of CP-30 Form

FPB audits each CP-30 for compliance with FPB Policy 7 and this Procedure. If University contracts, grants, and/or special funds are involved, the CP-30 is forwarded to the accountant administering such funds for clearance before approval. When all requirements have been met and discrepancies have been corrected, each CP-30 is approved for budget.

Check to Loaning Agency

FPB will request a check payable to the loaning agency and will send the approved CP-30 and the check to that agency.

Completion of Form CP-30 Section Two by Loaning Department

The loaning agency is required to complete Section Two of each CP-30 and to return the pink copy to FPB for filing. This completes the CP-30 with all required signatures.

UNC–Chapel Hill as Loaning Agency: Agreement and Collection Procedures

The UNC–Chapel Hill department lending an employee to another agency receives the CP-30 and payment from that agency, with Section One of the form completed. The loaning department verifies Section One and then completes Section Two, Certification by Parent Agency, of the CP-30 in accordance with the instructions contained on the form, except as modified here and by FPB Policy 7. The current date is entered in the heading of Section Two as the first step. The portion of Section Two to be completed by the loaning department includes all required information and signatures except for the items Agency Code and Subhead Code, which should be left blank to be completed by the Director of Financial Planning and Budgets during certification. The department head should always sign as indicated on the form. (See FPB Appendix 12, CP-30: UNC–Chapel Hill Parent Agency, One-Time Payment—Joint Appointment, Base Pay; and FPB Appendix 13, CP-30: UNC–Chapel Hill Parent Agency, One-time Payment, Supplemental.)

Required Signatures for Supplemental Payments

The signatures of the employee, the immediate supervisor, and the department head are required if the payment received is to be paid to the employee as a supplement. This applies if additional pay is authorized under FPB Policy 7 and the work (including preparation) is performed outside the employee's regular work schedule. (See FPB Appendix 13, CP-30: UNC–Chapel Hill Parent Agency, One-time Payment, Supplemental.)

Payments Not Made Directly to Employee

When the payment is not to be made to the employee as a supplement, it will become part of his base pay. The head of the loaning department will delete the printed statement and add the following statement (see FPB Appendix 12, CP-30: UNC–Chapel Hill Parent Agency, One-Time Payment—Joint Appointment, Base Pay): "Printed certification is not applicable. Reimbursement is for portion of employee's base pay."

Base Pay under Joint Appointments

When the payment is part of the employee's base pay, a Form PD-7 or PD-105, as appropriate, should accompany the CP-30 in order to limit the portion of the base pay that should be charged to the University salary accounts and to charge the portion of the base pay from the borrowing agency to the object Employee on Loan Payments. The amount of the base pay to be charged to the account Employee on Loan Payments should be entered on the Personnel Action Form, but the account number should be left blank to be completed by the Director of Financial Planning and Budgets during certification.

NOTE: Contact FPB before any agreement if the proposed payment is not appropriate as base pay under a joint appointment or as supplemental pay.

Loaning Agency Approval of EPA Employee

In cases involving an EPA employee, the loaning department must complete Section Two of the Dual Employment Form CP-30 in triplicate as indicated above (see FPB Appendix 12, CP-30: UNC–Chapel Hill Parent Agency, One-time Payment-Joint Appointment, and FPB Appendix 13, CP-30: UNC–Chapel Hill Parent Agency, One-time Payment, Supplemental). All copies are forwarded with all attachments through administrative channels to the provost or appropriate vice chancellor. If the request is in accordance with the dual employment policy, the UNC–Chapel Hill agency approval is indicated by the appropriate signature in the blank space just below the line "Agency Code—Subhead Code" under Section Two on all copies of each CP-30. All copies are then forwarded with all attachments, including the check from the borrowing agency, to FPB.

Loaning Agency Approval for SPA Employees

In cases involving SPA employees, the loaning department must complete a Dual Employment Request form and secure approval from the Director of Workforce Planning and Recruitment, to ascertain if the proposed dual employment can be authorized.

Letter of Agreement

If approval is given by the Director of Workforce Planning and Recruitment, the loaning department should see that a letter of agreement is prepared and signed by the borrowing agency and the loaning department.

Submission of Time Records after Services Are Completed

After the services are rendered, the loaning department should coordinate the preparation and submission of time records and other data as may be required by the Wage-Hour Officer, Human Resources Administration, to fix the compensation due the SPA employee. Upon the Wage-Hour Officer's approval, the loaning department should transmit this information to the borrowing agency with a request that it initiate a Form CP-30 in triplicate (see FPB Appendix 14, CP-30: UNC–Chapel Hill Parent Agency, Base Pay) to cover the services rendered and forward the CP-30 in triplicate to the loaning department along with a check to pay for the services.

The loaning department should see that the borrowing agency has properly completed Section One, and then itself complete Section Two, of the CP-30 in triplicate, as indicated above.

All three copies of the CP-30 are forwarded, along with the check and other attachments including the approved UP-31B, through administrative channels to the Director of Workforce Planning and Recruitment, for approval (see FPB Appendix 14, CP-30: UNC–Chapel Hill Parent Agency, Base Pay). If the dual employment is in accordance with the UP-31B and Dual Employment Policy 7, the UNC-Chapel Hill agency approval is indicated by the signature of the Director of Workforce Planning and Recruitment in the blank space just below the line "Agency Code—Subhead Code" under Section Two on all copies of each CP-30. All copies are then forwarded, with the check and other attachments, to FPB.

SPA Payments Spanning a Period of Time

Although the letter of agreement for the loaning of an SPA employee may be for variable services over a limited period of time, a separate CP-30 and a separate check for payment must be received, each time payment is made, in the same manner as stated in the preceding paragraphs.

Payments Deposited to Salary Reimbursement Account

The check in the same amount as shown on the CP-30 will be deposited to the salary reimbursement account for Employees on Loan under State Budget codes and/or special funds as appropriate. The original (white) copy of the CP-30 will be sent to the Payroll Department, if the payment is to be made to the employee. The Payroll Department will include the payment in the employee's next regular paycheck.

Inquiries into Payments

All inquiries regarding payment to the employee involving dual employment should be made by an authorized departmental representative, not the employee, to FPB.

UNC–Chapel Hill Dual Employment Accounting

UNC–Chapel Hill Borrowing Agency

Inter-agency dual employment accounting, as indicated in the following paragraphs, complies with the State's policy and the UNC–Chapel Hill Business Manual, FPB Policy 7. The UNC–Chapel Hill FPB audits all CP-30 forms to ensure correct accounting and reporting.

Payments to the loaning agency are to be charged against the borrowing department's appropriate account number, State code, and/or special funds, including function and UNC–Chapel Hill object 1941, Employee on Loan Payments. The payment includes gross employee salary along with employer-paid fringe benefits as shown under Section One on the CP-30. All CP-30s and check rquests for Employee on Loan Payments are reviewed and then forwarded to Accounts Payable by FPB. Accounts Payable returns all checks payable to loaning agencies to FPB for transmittal.

Accounting for receipts and related disbursements from funds received from borrowing agencies under Inter-agency Dual Employment is as indicated below. The UNC–Chapel Hill payroll system prepares computer-generated subsidiary schedules to facilitate the accounting for gross pay and fringe benefit payments for each employee on loan by UNC–Chapel Hill for each payroll period.

Joint Appointment/Supplemental Pay

If the certification by the UNC–Chapel Hill loaning department indicates that the salary of the employee is to be supported in part by the borrowing agency (joint appointment) and/or is supplemental pay, the accounting, as indicated below, is required for that portion of the salary coming from the borrowing agency. This accounting enables UNC–Chapel Hill to handle all payments ultimately going to an employee on loan under a State budget purpose with objects and functions as required for reporting and interagency billing purposes. These expenditures need to be segregated, since they are not University expenses and should not be included as such on UNC–Chapel Hill financial reports.

UNC–Chapel Hill Loaning Agency Accounts to Be Handled under State Payments to Employees on Loan Codes (allocation applicable to borrowing agency)

Requirements:
Academic Affairs: 2-30017
Health Affairs: 2-40007

and one of the following objects:

1141 EPA Non-Teach—On Loan Base Pay

1142 EPA Non-Teach—On Loan Sup Pay

1241 SPA Emp On Loan—Base Pay

1242 SPA Emp On Loan—Sup Pay

1341 EPA Teach On Loan Base Pay

1342 EPA Teach On Loan Sup Pay

1811 Social Security—State

1821 State Retirement—State

1871 TIAA Retirement—State

1881 Law Officers Retirement—State

(Medical and disability insurance is to be borne by the loaning agency and not recorded under this purpose.)

Receipts

Academic Affairs: 1-04131-091 Salary Reimbursement

Health Affairs: 1-04132-0911 Salary Reimbursement

Supplemental Payments Deposited to Base Salary

If the certification by the UNC–Chapel Hill loaning department indicates that the payment is not to be made to the employee as a supplement, and no PD-7 or PD-105 is received to reallocate charges proportionately, the payment from the borrowing agency should be deposited to the State code from which the employee's base salary is paid.


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