When an overpayment of payroll occurs on a sponsored project, we often experience two issues. Allowability issues and ongoing draws and invoicing are occurring based on those expenses. And Effort certification issues when the charges are not properly identified and removed. It is important to identify and correct overpayments as soon after they occur as possible.   

We have a great new update to share related to the overpayment process. HCM has now provided guidance for overpayments on sponsored projects and the ability to override how the repayment is applied when the employee pays back the overpayment.  

Overpayments of Salary should NEVER remain on a sponsored project. 

When overpayment expenses are distributed to SpeedTypes funded by a sponsored project, the effort reported will be inaccurate. To reflect actual effort, the best practice is to complete a PET (Payroll Expense Transfer) to move overpayment expenses to a department SpeedType. 

In the past to remove these took two or more PETS. One to remove the overpayment from the sponsored project and another to PET after the repayment is booked. (Which was being applied by HCM to the current funding distribution at the time of repayment.) Any variance from this may have caused a negative Effort report on hold or an inaccurate effort report. This delayed certification of effort until corrections were made.   

Now the repayment process and HCM Sponsored Project Award Overpayments job aid will guide you to remove all overpayments from sponsored projects to a department speedtype via a PET, and the Notice of Overpayment Form will allow you to apply the repayment to that same department ST.

For more information from Post-Award Administration, click here.