This information replaces FIS 401-07/08 Vacation, Sick and Compensated Absences

 

Effective: 01/01/2003
Revised: 03/10/2016

 

Vacation and Sick Leave Accrual

See Human Resources website

 

Compensated Absences

The value of employee vacation and compensatory time that has not been taken as of June 30th of each fiscal year is considered compensated absences.  As part of the annual closing of the books process, the University accrues the year-end amount of compensated absences as a liability in the financial records. This liability does not include sick leave. 

The value of employee vacation time and compensatory time that has been earned, but not yet taken, will accrue as a liability of the University.  The liability is determined on the maximum allowable balance.  The amount is calculated each year end based on vacation hours balance as of May 31, and adjusted for an estimate of June usage.  Any compensatory time is added to that figure.  The dollar amount of the liability is determined for each individual employee by taking the time x salary rate + OPE/fringe benefits (PERS, FICA, Unemployment).

The liability is distributed to the Auxiliaries, Service Centers and Statewide organizations.  The liability for all other employees is booked against the general fund.  The year-end entry is:

  • Liability for Compensated Absences (+/-)
  • Compensated Absences Expense (+/-)