How to you account for Comp absences in your yearly
budget? And how to you set aside money for it? How often to you
accrue comp absences? Monthly? Quarterly? Yearly?
Scott Nagel
Fiscal Manager
Des Moines Valley Health and Human Services
Jackson, Minnesota 56143
507-849-7281
2 comments:
Hi Scott, What do you mean by 'comp absences'? Is this the comp time earned that staff use (in lieu of taking vacation time, etc.)? If so, I treat comp as overtime when it's earned -- since the time earned is the same as if staff were paid dollars. I track overtime earned (hours and dollars)each pay period, and at year end I review it with management. If the OT seems typical, then I budget for the same dollar amount to be earned the following year. If there is a known COLA or labor union increase for the following year, I increase the budgeted OT by the same percentage.
The one thing I forgot to consider when calculating my first budget, was retirements. We had several long time employees retire, with very high vacation balance payouts. Unless someone announces a retirement, you can't really budget for it. But, it's something to be aware of, especially with long time employees who earn a higher rate of vacation days.
Scott, I believe for audit purposes the comp absences are just put on the county wide financial statement unless paid out in the first 60 days of the new year. If they are paid out in the first 60 days those amounts are reported at the fund level. As far as vacation severances we used to budget a certain amount each year, but we don't do that anymore. We pay the severance out of SS if it is an SS employee as it is a valid cost. We earn federal dollars on that expense. The HR department forecasts and budgets for severance county wide and reimburses us for the amount we wouldn't have been reimbursed by with the federal dollars earned. You can call if you have any questions.
Thanks
Jill Frisell, Douglas County
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