Vacation Reserve

Vacation Reserve

Effective July 1, 2015

Under the Office of Management and Budget Uniform Guidance, 2 CFR 200.431, terminal vacation leave compensation must be handled consistently under an equitable method established for all funding sources.  Therefore, effective July 1, 2015, the extramural vacation reserve fund for extramurally funded projects has been terminated. 

Effective for fiscal year 2016, the vacation accumulation fringe rate will not be charged to extramurally funded accounts.  Any terminal vacation leave compensation for fiscal year 2016 must be charged against institutional funds and cannot be charged to the project account.

When submitting the Form G-2, Application for Payment in Lieu of Vacation, please type the departmental account to charge the terminal vacation leave compensation in Section B of the form.

Starting July 1, 2015, institutional funds/departmental accounts should be used to record any vacation credit transfers required for employees transferring from one position to another funded with a different means of financing.