Some labor accounting functions are performed outside the financial accounting organization. For example, employee records to support the general ledger are currently maintained in the DOI accounting system. The objectives of the department's time, attendance, and leave reporting are to assure that employees are paid correctly, and in a timely manner, and that an accurate record of their attendance and leave becomes a part of the permanent records. Time and attendance processing provides information to determine gross pay and distribution of labor to the cost classification structure from hours worked and leave taken. Time and attendance records must be safeguarded together with SF 71s, Applications for Leave, and overtime approvals to preclude unauthorized changes to approved documents.
Annual leave is an expense which accrues as it is earned by employees.
DOI policy treats unfunded leave differently depending on whether it accrues to a general appropriation fund or a working capital or revolving fund. In general appropriations, DOI policy is that no obligation is recorded for annual leave until it is used. For working capital and revolving funds, the expense for annual leave is recorded as a liability, and serves to bridge obligations to the total cost of personnel compensation. Initially, a liability accruing annual leave is recorded at the wage rate at which it is earned. A revised balance reflecting the annual leave liability shall be computed at least annually to reflect current pay rates and leave balances.