Introduction

This chapter summarizes the applicable federal, state and agency requirements governing personnel issues.  In the event of conflict between these standards and federal statute or regulation, federal statute or regulation will apply.

Record retention and access requirements are provided in Appendix K to this manual.  All financial and programmatic records, supporting documents, statistical records, and other records pertaining to an award of federal or state funds must be retained and made available to authorized entities or their representatives in accordance with applicable administrative requirements.

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Personnel Policies

Written personnel policies and procedures must be developed, maintained and distributed to each employee.

The Contractor's written policies and procedures must describe the following:

  • Measures to ensure the physical security of personnel records relevant to this chapter
  • Methodology utilized to ensure compliance with policies relating to conflicts of interest (see Chapter 14 of this manual)
  • Measures to ensure compliance with applicable workplace laws and regulations, including, but not limited to:
  • Employment benefits of the organization
  • Personnel actions of the organization, relevant to Section 10.3 of this chapter
  • Complaint and grievance procedures of the organization

In addition, the Contractor’s written policies and procedures must provide the following as it pertains to personnel compensation:

  • Payrolls shall be reviewed for accuracy and validity, and are signed by the reviewer
  • Appropriate approval authority is exercised as outlined in an established approval process
  • Payroll registers be reconciled to independent controls (such as totals to the prior month’s totals)
  • Fringe benefit charges are supported by an approved system or plan
  • All staff and participants be paid only by check or direct deposit
  • Preparation of the payroll is separate from and independent of delivery of the paychecks
  • Distribution of paychecks shall be performed by persons not involved with timekeeping or bank reconciliation
  • Removal of a terminated employee from the payroll system shall be performed by persons not involved in the processing of payroll

Program Specific Consideration:
Workforce Investment Act (WIA).  As provided in WIA Regulations at 20 CFR §667.200(g), no individual may be placed in a WIA employment activity if a member of that person’s immediate family is directly supervised by or directly supervises that individual.

Authority

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Personnel Compensation

Payrolls must be based on time and attendance records that reflect the actual and total activity for which the employee is compensated.  Such activities must be documented and maintained in written policies and procedures.

Payrolls must be based on time and attendance records that reflect the actual and total activity for which the employee is paid.  Employees charged to more than one cost objective must be supported by records reflecting an after-the-fact determination of the actual activities performed by such employees.  These records must be signed by the employee and the employee’s supervisor.  The employee’s signature will certify, at a minimum, that the employee actually worked the total hours reported on the time and attendance record.  In addition, all employees should maintain written notes regarding their activities if the time and attendance reports do not allow for sufficient detail.

See also Section 10.3 in this manual, regarding state salary classification, and Section 8.3.13 in this manual regarding the allowability of compensation.

Authority:

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State Classification Salary Schedule

Salary expenditures of a council of governments, regional planning commission, local workforce development board, or mental health-mental retardation community center that receives funds from the Texas Workforce Commission must conform to state salary classification requirements.

A council of governments, regional planning commission (or similar regional planning agency created under Texas Local Government Code, Chapter 391), local workforce development board (Board), or mental health-mental retardation community center that receives a grant or a contract directly from the Texas Workforce Commission must comply with the state salary classification requirements set forth in the current General Appropriations Act (Act).  The provisions do not apply to these entities' subcontractors.

Affected entities must, at a minimum, develop a schedule of positions, job titles, and salaries identifying the corresponding state position job title and salary for each position, or it may formally adopt the state salary schedule.  The state positions and salaries are set forth in the Classified Positions and Salary Schedules of the Act.  The schedules published by the Act are applicable for the period covered by the Act. 

In the event that a Contractor formally adopts the state salary schedule, it should list the positions, job titles, and salaries in use.  The information should be provided for all salaried positions, including those not directly paid with grant funds.  The grant recipient of a grant or contract from the Texas Workforce Commission must submit its Salary Classification Schedule to the Agency as part of the grant application process.  For Boards, the schedule is submitted along with its Board-approved operating budget that is required for House Bill 1 reporting requirements in Chapter 6 of this manual.

In complying with the classification requirements, the salary for a given position classification shall not exceed the maximum salary for that classification for the applicable biennium.  Employees working less than full-time (75 percent, 50 percent, 25 percent) are to be paid a proportionate amount of their monthly salary identical to the percent of time worked.

Entity Specific Considerations:
Entities Not Covered by the Act.  Institutions of higher education, university system offices and the Texas Higher Education Coordinating Board are not subject to these requirements.  The salaries of entities not governed by the Act must meet the allowability criteria established in applicable cost principles, including being necessary and reasonable for the proper and efficient performance and administration of federal or state awards.

Authority:

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