When a State agency determines the need to borrow an employee from another State agency, the borrowing agency should initiate a written agreement to secure the services of that employee from the parent agency. After the services have been rendered, the borrowing agency should then initiate a Form CP-30 and attach to it a copy of the written agreement which approved the dual employment arrangement.
Forms CP-30 can be obtained from the University Business Office.
Dual employment applies to emergency and one-time service requirements involving special skills and abilities, and not to continuing arrangements unless valid joint appointments exist. Continuing arrangements must be renewed at least annually by a letter of agreement and, in all cases, at the time of a change in source of funds to pay for the services, and/or at the beginning of each fiscal year. The preparation of Form CP-30 can wait in such cases until payment is to be made with a copy of the letter of agreement attached.
The following specific instruction must be observed:
Initiation of Form CP-30 BY Borrowing Department
The East Carolina University borrowing department is responsible for initiating a written agreement with the parent State Agency to secure the services of an employee from that agency. After the dual employment services have been rendered, the East Carolina University borrowing department must initiate Form CP-30 in accordance with the instructions set for the herein and on the form and forward along with a copy of the written agreement for processing.
The borrowing department completes "Section One," including "Analysis of Payment to Parent Agency." The date is entered to the right of "Certificate by Borrowing Agency." Under "Section One" the various headings are generally self-explanatory.
On the line "Agency Code and Subhead" include the appropriate departmental account number including object 1940, Employee on Loan Payments. The "Signature of Contracting Agency Official" is the department head's signature.
The "Analysis for Payment to Parent Agency" will not include Travel, Subsistence, Matching Retirement, Indirect Expense, or Direct Cost. It will include Salary for Services and Matching (Employer's) Social Security applicable thereto. It will also include Matching (Employer's) Retirement if applicable (applicable when borrowing agency is supporting a portion of employee's regular salary; not applicable for additional compensation beyond the employee's regular salary).
Any Form CP-30 or letter of agreement that cannot be approved at any of the review levels will be returned to the borrowing department head with an explanation for the disapproval.
In cases involving an EPA employee and/or EPA service, the borrowing department must complete "Section One" of the Dual Employment Form CP-30 in triplicate (see Appendix Statement 1, CP-30). All three copies of the Form CP-30 are forwarded through administrative channels to the University Budget Office.
In cases involving a SPA employee, the borrowing department must contact the East Carolina University Director of Human Resources to ascertain if the proposed dual employment can be authorized. If approval is given by the Director of Human Resources, the borrowing department must see that a letter of agreement is prepared and signed by the borrowing department head, parent agency head, and the Director of Human Resources.
After the services are rendered, the borrowing department must complete "Section One" of the Dual Employment Form CP-30 in triplicate (see Appendix).
All three copies of the Form CP-30 are forwarded through administrative channels to the East Carolina University Personnel Director for approval. All copies are then forwarded to the University Budget Office.
The University Budget Office audits each CP-30 Form for compliance. If University contracts, grants, and special funds are involved, the CP-30 Form is forwarded to the accountant administering such funds for clearance prior to approval. When all requirements have been met and discrepancies have been corrected, each CP-30 Form is approved for budget.
The Budget Office will hold the approved Form CP-30 for distribution pending receipt of the check, and will forward to Accounts Payable for a check to be drawn payable to the parent agency. The check is sent to the Business Office for transmittal and distribution as follows:
The Parent Agency is required to complete "Section Two" of each CP-30 Form and return the blue copy to the University Budget Office for filing. This completes the Form CP-30 with all required signatures.
Completion of Form CP-30 "Section Two" By Parent Department
The East Carolina University department lending an employee to another agency receives Form CP-30 and payment from that agency with "Section One" of the form completed. After verification of "Section One," the East Carolina University parent department completes "Section Two-Certification by Parent Agency" of Form CP-30 in accordance with the instructions contained on the form except as modified. The current date is entered in the heading of "Section Two" as the first step. The portion of "Section Two" to be completed by the parent department includes all required information and signatures except for the items "Agency Code" and "Subhead Code," which should be left blank to be completed by the University Budget Office along with his certification.
The signature of the employee, the immediate supervisor, and the department head are required if the payment received is to be paid to the employee as a supplement. This applies if additional pay is authorized and the work (including preparation) is performed outside the employee's regular work schedule.
In cases involving an EPA employee, the parent department must complete "Section Two" of the Dual Employment Form CP-30 in triplicate as indicated above. All copies are then forwarded with the check from the borrowing agency to the University Budget Office.
In cases involving a SPA employee, the parent department must contact the East Carolina University Director of Human Resources, to ascertain if the proposed dual employment can be authorized.
If approval is given by the Director of Human Resources, the parent department should see that a letter of agreement is prepared and signed by the borrowing agency, parent department and the East Carolina University Director of Human Resources.
After the services are rendered, the parent department should coordinate the preparation and submission of the time sheets and other data as may be required by the Wage Hour Officer, East Carolina University Department of Human Resources, to fix the compensation due the SPA employee. Upon the approval of the compensation due the employee by the University Department of Human Resources, the parent department should transmit this information to the borrowing agency with a request that it initiate a Form CP-30 in triplicate to cover the services rendered and forward the Form CP-30 in triplicate to the parent department along with a check to pay for the services.
The parent department should see that the borrowing agency has properly completed "Section One." The parent department should complete "Section Two" of the Form CP-30 in triplicate as indicated above.
All three copies of the Form CP-30 are then forwarded with the check and other attachments to the University Budget Office.
Although the letter of agreement for the loaning of a SPA employee may be for variable services over a limited period of time, a separate Form CP-30 and a separate check for payment must be received, each time payment is made, in the same manner as stated in the preceding paragraphs.
The University Budget Office audits each CP-30 Form for compliance with Policy Statement 7 and Procedure Statement 6. In case University contract, grant and special funds are involved, Form CP-30 is forwarded for clearance, prior to approval for budget by the University Budget Office, to the accountant administering such funds. When all requirements have been met and discrepancies corrected, each CP-30 Form is signed by the University Budget Office as required on the line "Budget Officer (Parent Agency)."
The check in the same amount as shown on Form CP-30 will be deposited to revenue object 9910 and disbursed from either 1140 EPA Employee on Loan, 1240 SPA Employee on Loan, or 1340 EPA Teacher on Loan under state budget codes/or special funds as appropriate.
The distribution of the Form CP-30 by the parent agency is as follows:
All inquires regarding payment to the employee involving dual employment should be made by the Office of the department head, not the employee, to the Business Office.
Interagency dual employment accounting as indicated in the following paragraphs complies with the State's policy and the East Carolina University Business Manual, Policy Statement 7. The East Carolina University Budget Office audits all CP-30 Forms to assure correct accounting and reporting.
Payments to the agency are to be charged against the borrowing department's appropriate account number, State code and/or special funds, including function and East Carolina University object 1940, Employee on Loan Payments. The payment includes gross employee salary along with employer fringe benefits as shown under "Section One," Form CP-30. All CP-30 Forms to pay parent agencies for Employee on Loan Payments are reviewed and distributed by the University Budget Office. The East Carolina University Accounts Payable Department returns all checks to parent agencies to the University Budget Office for transmittal.
Accounting for receipts and related disbursements from funds received from borrowing agencies under Interagency Dual Employment is as indicated below. The East Carolina University Payroll system prepares the checks for gross pay and fringe benefit payments for each employee on loan by East Carolina.
Payments to Employees on Loan
If the certification by the East Carolina University parent department indicates that the salary of the employee is supplemental pay, the accounting as indicated below is required for that portion of the salary coming from the borrowing agency. This accounting enables East Carolina University to handle all payments going to an employee on loan under a State budget purpose with objects and functions as required for reporting and interagency billing purposes. These expenditures need to be segregated since they are not University expense and should not be included as such on East Carolina University financial reports.
*XXX (Purpose Code and Title)
1140 EPA Employees on Loan
1240 SPA Employees on Loan
1340 EPA Teachers on Loan
1810 Social Security - State
(Medical and disability insurance to be borne by the parent agency are not recorded under this purpose.)
*XXX 9910 Salary Reimbursement - Payments for Employees on Loan
* Purpose code as appropriate
If the certification by the East Carolina University parent department indicates that the payment is not to be made to the employee as a supplement, the payment from the borrowing agency should be deposited to the State code and purpose and/or special fund from which the employee is paid his base salary as follows:
9910 Salary Reimbursement - Payments for Employees on Loan
Semi-annual Reports to State Budget
The extent of the practice of cross-hiring in State government must be periodically assessed. Accordingly, the University Budget Office is required to prepare and submit to the Office of State Personnel and the Office of State Budget of the Department of Administration, in January and July of each year, a summary for the preceding six-month period containing the following information for each instance in which East Carolina University has borrowed an employee:
Copies of the parent agency head's approval must be attached. This is accomplished by attaching a copy of each applicable CP-30 Form.