February Tip of the Month Total Personnel Compensation is a two part section. In January we dealt with the first part, and that was the Salary and Benefit lines (TOE). Hopefully you are now tracking these numbers to see if any changes are taking place. The second part you want to look at is, Other Personnel…Lines 2A, 2C and 2D. If you got a cash bonus last year because you were maxed out on your salary range it is going to end up in line 2A. This needs to be made whole in your Plan to offset this amount. Headquarters gives money to the District to do this….just watch it to make sure it happens. Also, the benefit of rewarding your employees is very important and the payback can be far more than what it cost. These award dollars end up in line 2C. But remember, sometimes you have to spend money to make money and this is one of those times, spend wisely. The next line to look at is 2D, Miscellaneous Compensation. This line is where EEO, grievance and arbitration costs get charged. It used to go in line 44, but now is in line 2D. The only thing to watch here is when and who the settlement was for. If you are new to the office it may not be your cross to bear. The last two lines in this group, Workers Compensation Expense and Workers Compensation Chargeback, have caused a lot of problems in the past and will continue to do so. At the Post Office level you should not see any charges in line 2I but you will in line 2J. These expenses can come from injuries that happened long before you ever stepped foot in your office. If it is a cost from an employee that was hurt while working for you, remember that this is not always just an impact in the year the injury took place but can be a cost to be shouldered for some time. It includes cash payouts and all medical expenses for employees hurt under your finance number. Once again, there are many Districts that try to make this a non-impact line and flex it to make you whole, others just let it go. If you are not made whole and it is an employee that was hurt before your watch, it could definitely be a mitigating circumstance. We are done looking at Total Personnel Compensation. Next we will review Total Non- Personnel Expense, or Non-Pers as it is affectionately called. The March tip of the month will cover these lines, we will post the April tip early as it will give tips for your mid-year meeting. We will try to answer questions about what to do if some of these lines are not right at your mid-year meeting. What you want to remember about all these lines on the Financial Performance Report (FPR) is that you can drill down. If your FPR is posted to a District web site it will not allow you to drill down, but you can use the EDW FPR to do it. By clicking on each individual line you can see the subtotals that go into that line, and you want to do this every month. This is especially true for those lines you control, such as line 31 Supplies and 34 Services. You may catch charges that do not belong to you.
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