Chapter 11: Retroactive Changes to Salary Expense
11.1 Purpose
The purpose of this policy is to define the conditions under which retroactive salary expense changes may be made at The University of Texas at El Paso (University). It ensures that such corrections are completed within required timeframes, comply with funding agencies and institutional rules, and maintain accurate and responsible financial management.
Retroactive corrections that impact salary expenses are limited to 90 days from the original payment date of the salary transaction. Salary expense is defined as compensation for employees and supplemental compensation paid to employees. Funding Agency restrictions on grants and contracts may prohibit other types of retroactive expense changes.
11.2 Retroactive changes permitted within the 90-day period may include:
- Cost center or funding source changes;
- Changes in percent distribution among funding sources; or
- A combination of changes in funding source and distribution.
11.3 Retroactive changes are not allowed:
11.4 Retroactive changes that are not in compliance with this policy will only be permitted in extenuating circumstances when supported by written justification, approval by authorizing officials (Chief Financial Officer for cost center exceptions and Research and Innovation Grant Management Accounting for projects), and available funding.
11.5 Definitions
Funding Agency: A Funding Agency is an external entity that provides financial support for a Sponsored Project through a grant, contract, cooperative agreement, or similar funding instrument. Funding Agencies may include federal, state, or local government entities, private foundations, nonprofit organizations, or commercial sponsors. The Funding Agency establishes the terms and conditions governing the use of funds, reporting obligations, and compliance requirements for the Sponsored Project.
Retroactive Salary Expenses: Retroactive Salary Expenses are compensation costs charged to a funding source for work performed during a prior pay period when the salary distribution was not recorded correctly at the time the expenses were originally incurred. These expenses include salary and associated fringe benefits and are generally processed through payroll redistribution or cost transfer mechanisms. Retroactive Salary Expenses must be allowable, allocable, reasonable, consistently treated, and adequately documented in accordance with institutional policy and applicable federal, state, and sponsor requirements.
Sponsored Projects: Sponsored Projects are externally funded activities supporting research, instruction, training, or public service that are conducted under the terms of a formal agreement, such as a grant, contract, cooperative agreement, or memorandum of understanding. Sponsored Projects typically include specific objectives, performance periods, reporting requirements, and conditions for the use of funds as established by the sponsoring entity and accepted by the institution.
11.6 Dates Approved or Updated
August 7, 2026
April 11, 2017