Harvard's PeopleSoft Implementation:
The Basics of Time & Labor    top

Beginning with this issue, the e-News will present a series of topics relating to the new PeopleSoft systems being implemented by the HR Project in addition to our regular coverage of University financial systems, policies, and procedures.

In this issue, we will explain the basics of Time & Labor, a PeopleSoft application that overtime-eligible staff members will use to enter the hours they work each week. This is expected to be one of the biggest changes affecting staff in local units. In addition to the Time & Labor module, Harvard is implementing the payroll, human resources (HR), benefits, and pension modules of PeopleSoft as well as building an HR data warehouse. Here are some answers to frequently asked questions about Harvard's Time & Labor implementation.

Why do we need to collect time worked?
Because it's the law. The Fair Labor Standards Act requires daily working hours to be tracked for overtime-eligible employees, to make sure that they receive overtime if they are entitled to it. Using an electronic time collection system allows Harvard to capture the hours people work more consistently, accurately, and efficiently for our large overtime-eligible employee population.

Who will report time?
About 8,500 overtime-eligible employees. This includes HUCTW and non-HUCTW overtime-eligible clerical and technical staff, service and trades workers, and temporary employees.

Departments may choose whether staff enter their own hours worked directly in PeopleSoft or submit paper timesheets to a designated Timekeeper who will do it for them as a "proxy." Staff in UOS and Dining services who currently use an electronic time system will continue to use that system, with the data to be fed to the PeopleSoft system.

The HR Project will provide viewable simulations and step-by-step instructions for Time Reporters on the web and hold walk-in clinics after go-live for people who need extra help entering their hours. Most local units are providing briefings and training for their own Time Reporters, using customizable materials provided by the Project.

Who else is affected?
In addition to the overtime-eligible employees who will report time, many supervisors and managers have been assigned roles (similar to Oracle "responsibilities") as online Time Approvers. There will also be a smaller group of Time Adjusters and Time Administrators, typically tub-level financial or HR officers, who perform other functions. People in these roles will receive formal classroom training provided by the Project beginning in mid-August.

Our goal is eventually to use the system to track paid time off (vacation, sick, personal, etc.) for both overtime-eligible and exempt employees, but the date when this will happen has not yet been set. Exempt employees will not be using the system to record their time at go-live. Overtime-eligible staff will report time worked and paid time off (vacation, personal sick, etc.) taken, but the system will not be configured to calculate paid time off accruals initially.

When does this happen?
Overtime-eligible employees who are paid semimonthly (clerical/technical workers) will start using the system on October 1. Employees who are paid weekly (service and trade workers outside of Dining and UOS, temporary employees) will start using the system on September 23.

How does the business process work?
The work week, like the calendar week, is Sunday through Saturday. Weekly deadlines for time entry and approval are noted below.

What about positive pay?
Positive pay is the business practice of preparing the payroll based on affirmative time reporting and approval for each overtime-eligible staff member each week. Temps and some service/ trades workers are paid this way today, and this will continue under this system. Harvard's clerical and technical workers are not.

Beginning in October, overtime-eligible clerical and technical workers will need to have their hours entered and approved in order to be paid overtime, but they will receive their regular pay regardless. Regular (non-overtime) hours and most common types of paid time off (holiday, vacation, sick, and personal time) will be automatically approved by the system, although Time Approvers can still review these hours and "unapprove" them if need be.

Because it will take time to get used to the new system and work out its kinks, the University will not shift to "positive pay" until January, 2003 for clerical and technical workers.

What about holidays?
Although the details have not yet been determined, the weekly timeline will need to be adjusted each time there is a holiday or an extended break such as Thanksgiving or the week between Christmas and New Year's Day.

For example, for a Monday holiday this schedule is anticipated:

• Time reporting will need to be completed by Thursday at 5 p.m., with estimated hours entered for Friday and Saturday.
• The batch Time Administration process will be run Thursday evening.
• Adjustment and approval will need to be completed by Friday at 5 p.m. If the actual hours wind up differing from the hours recorded, the tub's Time Adjuster can change the reported hours retroactively.

What about unplanned absences?
One concern for many users is how the process will work when someone is out due to illness or another unforeseen event. Here are some suggested workarounds.

Summary

PeopleSoft will automate and formalize time reporting practices that have been done manually, and in some cases inconsistently, in the past. It will not work perfectly on day one; however, an array of user and business support resources are being assembled, including helpdesk and business systems analysts, trainers and peer coaches, along with communications, technical support, and functional specialists. More specific details will be provided in the coming months.

Want to learn more?
This article represents a high-level overview of the business processes and roles associated with the new Time & Labor system. For more in-depth information, download:

• the Briefing on Time & Labor located at: http://www.hrproject.harvard.edu/documents/Briefing_on_Time_Labor.pdf
  
  
• the related screen shots located at: http://www.hrproject.harvard.edu/documents/Time_Labor_Screen_Shots.pdf

Please send your questions or comments to askhrproject@camail.harvard.edu.

Revisions to Internal Interest Policies
Effective July 1, 2002     top

During the past year, a group of tub and central representatives met to review and revise the University's internal interest policies. These policies govern what the Central Bank pays and charges on short-term balances held in the General Operating Account.

The committee's objective was to create rational and equitable policies and procedures for paying interest on or charging interest to tub net asset balances. These new policies will be effective beginning in FY2003. Although the actual effective date will be July 1, 2002, due to the development and testing of the proposed allocations, some of the changes will be delayed and retroactive calculations will be made.

Key highlights of the new policies are:

• All affected surplus balances will receive 3% interest.
• Most deficit balances will be charged 5% interest.
• No interest will be charged on nonfederal sponsored award and grant deficit balances.
• Underfunded balances for both gifts for construction and construction in progress will be charged the blended debt rate.
• Interest will be paid or charged through automated general ledger transactions, replacing some of the current manual processes.
• Balances will be automatically invested, eliminating the need for tubs to submit requests for temporary investments.

The following table presents each fund group with details of the new interest policy:

For more information about how interest on these balances will be paid and charged as well as details regarding the coding for each balance, please refer to the attached memo by Vicki Johnson, Director of Finance and Accounting.

Questions about the accounting for these new policies should be forwarded to Joe DeCristoforo, General Accounting, at 495-4592 or joe_decristoforo@harvard.edu.

Questions about interest rates should be directed to Lisa Talacci, Office of Treasury Management, at 496-3040 or lisa_talacci@harvard.edu.

The New Web Voucher-TAF Process:
Step-by-Step Instructions    top

As discussed in detail in the May 12, 2002 e-News, the existing paper Travel Authorization Form (TAF) process has been replaced by a new Web Voucher TAF. Please note that the Harvard Travel Center will no longer accept paper TAFs after June 30, 2002.

Here are step-by-step instructions for using the new WV-TAF:

The Travel Office has provided a step-by-step process flow of the new WV-TAF procedure for you to refer to, if necessary.

MBTA T-Passes: New Location
and Group Sales Option    top

After a successful pilot, we are pleased to announce that T-pass sales will now be held at Harvard's Information Center, in the Arcade on the ground floor of Holyoke Center. As usual, sales will be held on the last three business days of every month, from 9 a.m. to 4 p.m.

Group Sales
You may use group sales if you are picking up T-passes for five or more people.

• If you are picking up passes for five or more people, you must fax a list to 496-2035 (attn: Al Savina) anytime during the month but at least two days prior to the start of that month's sale.
• The list should contain each Harvard employee name, ID number, pass type, and pass amount. The total amount due should also be noted.
• Pick up your group sales passes from the 3rd floor of Holyoke Center on the day before the start of that month's sale, from 8 a.m. to 4 p.m.
• Please bring a copy of your list along with full payment.
• The person picking up the passes need not be the same person every month.

Individual Sales
You may pick up a T-Pass for yourself or for up to four people.

• If you are picking up a pass for yourself only, bring your Harvard ID and payment. If paying by check, please make the check out beforehand.
• If you are picking up passes for others, you must bring a list containing each employee name, ID number, pass type, and amount.

Please note: It would be greatly appreciated and helpful if you do not pick up Group Sales T-passes during the three-day general sale period. We are offering this option to help alleviate the wait sometimes incurred when buying T-passes.

Revised Financial Policy:
University-wide Business Expense     top

The University-wide Business Expense Policy has been revised in an effort to clarify existing Harvard policy pertaining to what is and is not deemed a reimbursable personal expense. The full text of the revised paper is available at http://vpf-web.harvard.edu/documents/pdf/ ACTTS_UBEP_5_06_02.pdf.

The revised paper now contains two appendices:

• Appendix A: "Personal and Unallowable - No Exceptions" (items listed are not reimbusable under any circumstances).
• Appendix B: "Reimbursement or Payment Meeting Exception Criteria Only" (items listed may be reimbursable if the reimbursee meets the required exception criteria).

Various air, rail, and other travel-related listings have been updated, so all preparers and authorized signors should carefully examine the new paper. For example, two signficant changes follow:

• The Minibar/Alcoholic Beverages category, which used to be on the unallowable list, may now be allowable at the discretion of the tubs since minibar receipts are not always itemized on the hotel folio and there is no way to identify alcohol versus other beverage charges. Minibar receipts must always be charged to object code 8450.
• Saunas and Massages remain on the unallowable list. However, given the trend toward offering chair massages to office workers, these items have been separated to make clear that all massages, chair or otherwise, are never reimbursable by the University.

New Financial Policy:
Reimbursements: Travel and Non-travel    top

The new University financial paper Reimbursements: Travel and Non-travel serves to clarify existing University policy regarding both travel and nontravel reimbursements. It supercedes the paper Non-travel Reimbursements (12/06/01). The full text of the new paper is available at http://vpf-web.harvard.edu/documents/pdf/actts_reimbursements_02_03_03.pdf.

Highlights of the new paper are:

• Reimbursements for both travel and nontravel expenses must be submitted within 60 days from the date of expenditure. If submitted after 60 days, Financial Dean (or equivalent) approval/signature and written explanation of the extenuating circumstances for exception to University policy must accompany the reimbursement request.
  
  There is one exception to the above: the Extended Business Trip Reimbursement Exception. Reimbursement for extended business trips may be processed up to 60 days from the end of the trip without exception approval if:
  
  
  1. the trip lasted at least 21 consecutive days, and
  2. the associated reimbursable expenses were incurred within the trip's beginning and end dates.
     
     
• Prepaid expenses (plane tickets, conference registration fees, etc.) are subject to the 60 day rule. These expenses should be reimbursed as they are incurred and always processed within 60 days of the date of expenditure. It is the responsibility of local units to monitor such expenses. In the event that a trip or conference is cancelled, the local unit must recover any reimbursements and return them to the appropriate account.
  

About the e-News   top

The Financial Administration publishes this semi-monthly electronic newsletter for users of Harvard University's financial, HR, and reporting systems, policies, and procedures. Generally, the e-News is published on or around the 12th and 26th of each month.

It contains:

• updates on projects underway to build or improve University administrative systems;
• information about new University policies, procedures, and forms;
• reminders about upcoming deadlines and cut-over dates;
• tips and tricks for working more easily or productively.

We welcome questions and suggestions for improvement from readers. If your questions are of general interest, we will answer them in future issues.

Please send comments, questions, or suggestions for improvement by email to us at: fad_communications@harvard.edu