STATE OF NEBRASKA

ACCOUNTING SYSTEM MANUAL

 

 

 

 

Effective

 

 

 

 

CATASTROPHIC ILLNESS DONATION

 

 

Date

 

 

 

 

POLICIES AND PROCEDURES

 

 

10-06-08

 

 

 

 

 

 

DESCRIPTION:    This procedure provides a description of the policies and procedures used to calculate and complete the Accumulated Leave Adjustment Request forms to transfer donated leave in accordance with the Catastrophic Illness Donation Program.

 

SCOPE:  This policy is in effect for all State employees who meet the Catastrophic Leave eligibility criteria.  Title 273 – Nebraska Administrative Code Classified System Personnel Rules, Chapter 10, 004.04C.  

 

PURPOSE:

1.  To ensure that any employee meeting the eligibility criteria may participate in the program.

 

2.  To ensure that the leave transfer process is being calculated and completed in the correct manner.

 

POLICIES:

 

Eligibility of Donor Employees:

 

1.  Vacation leave donated must be no less than 4 hour increments. 

 

2.  Must not have solicited or accepted anything of value in exchange for the donation.

 

3.  Must have remaining to his/her credit at least 40 hours accrued vacation leave.

 

 

 

Eligibility of Recipient Employees:

 

1.  Must be suffering a serious illness or injury resulting in a prolonged absence of at least thirty work days during the past six months.

 

2.  Must produce satisfactory medical verification.

 

3.  Must have completed original probationary period.

 

4.  Must have exhausted all earned paid leave including compensatory time off, sick leave and vacation leave.

 

5.  Must not have offered anything of value in exchange for the donation.

 

 

 

PROCEDURES:

 

1.   Calculate the value of the donated vacation leave by multiplying the hours to be donated by the donating employee’s current hourly rate of pay (round the result to the nearest cent). 

 

2.   Calculate the hours of sick leave to be received by dividing the above value by the recipient employee’s current hourly rate of pay (round the result to the nearest hundredth of an hour).

 

3.   Follow the following example:  (REFERENCE FLASH MEMO)

 

 

Pay-Type 888 and 889 will be used when someone DONATES leave.

 

Pay-Type 890 and 891 will be used to record the donated leave for the person RECEIVING the leave.

 

 

On the timecard for the person donating leave, two entries need to be made (see below):

 

For Pay-type 888 the hours donated are recorded, along with the hourly rate or with a Lump Sum amount.

For Pay-type 889 a NEGATIVE Lump Sum dollar amount, equal to the hours donated times the employees hourly rate is entered.  No Hours are recorded.

 

The two entries work together.  The sum of the dollars for the two entries is Zero, so there isn't an effect on the pay-check, but the number of Hours donated is recorded correctly -- see the timecard entry and pay-stub examples below.

 

 

 

            Remember how donated hours are converted.  Here's an example:

 

            Donor:  donated hours (8 hours) times hourly rate ($28.48) equals gross dollars of $455.68.

 

            Recipient:  gross dollars ($455.68) divided by the hourly rate of the recipient ($11.97) is the Sick Leave Hours received (38.07 hours). 

                       

 

 

The entries on the Timecard of the person receiving the leave is similar.  Two Pay-types are used, 890 and 891. 

 

Pay-type 890 shows the number of hours donated and the dollar value.  It is recorded as a NEGATIVE, because it is reducing the Sick Taken and increasing Sick Available. 

 

            This is IMPORTANT point to understand.  The way the system works is that it sums Pay-type 40 (Sick Used) and Pay-type 890 (Sick Leave Donated) and uses that number to subtract from the sum of the Beginning Balance plus YTD Accrual -- it doesn't directly increase the hours available.  See the example at the bottom of this note.

 

Pay-type 891 has the lump sum value without hours.  It is recorded as a Positive because it is balancing the 890 dollars so the net to pay is Zero.

 

 

Example of how Pay-Type 890 functions in NIS:

 

            Receiving Employee Calculation BEFORE any leave is donated:

 

                                                Beginning Sick Leave Balance                  85.10 hours

                                                YTD Accrual                                          +70.33 hours                                        

                                                Total Sick Accrual                                                          155.43 hours

 

                                                Pay-Type 40 (Sick Used) YTD                155.43 hours

                                                Pay-Type 890 (Donated Leave)              -    0.00 hours

                                                Total Sick Used                                                 155.43 hours

 

                                                Available Balance (total Accrual minus total Used)                     Zero hours

 

 

            Receiving Employee calculation AFTER leave is donated:

 

                                                Beginning Sick Leave Balance                85.10 hours

                                                YTD Accrual                                          +70.33 hours

                                                Total Sick Accrual                                                          155.43 hours

 

                                                Pay-Type 40 (Sick Used YTD                 155.43 hours

                                                Pay-Type 890 (Donated Leave)                 -8.00 hours

                                                Total Sick Used                                                 147.43 hours

 

                                                Available Balance (total Accrual minus total Used)             8.00 hours                 

                            

                                                                                                                                                           

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