BOP Program Statement 8570.02 § 6

Quarterly, the Department of Justice provides FPI the Leave Liability Report, which is a listing

of all FPI employees and their total leave liabilities. FMB’s Corporate Reporting Section is to

accrue the total dollar value of annual leave and compensatory time accumulated but not taken

by that location’s employees. The accrual includes compensatory time because employees who

have unused compensatory time to their credit at the time of transfer or separation are to be paid

for that time.

The total amount of the adjustments is to be debited or credited to the profit center’s liability

account, Contingent Annual Leave (261000). The corresponding entry is to be made to

Contingent Annual Leave expense account 610700 or 620700 by appropriate cost center.

The Business Manager or designee is to review the spreadsheet in the close-out file containing

the hours and amount of annual leave for each staff member and ensure the correct cost center is

used.

The Business Manager or designee must ensure the supporting spreadsheet agrees with the end-of-year general ledger balance for the Contingent Annual Leave account.

It is not necessary to redistribute contingent annual leave amounts during the year when an

employee transfers to another FPI location. The receiving factory or Corporate Reporting Section

will make any necessary year-end adjustments for the employee’s annual leave to the Contingent

Annual Leave expense account (610700 or 620700) using the receiving factory’s cost center. At

year end, the factory from which the employee transferred will establish its contingent annual

leave balance by not including the departed employee in its valuation.

When an employee retires or otherwise separates from the Bureau, the Contingent Annual Leave

account is to be reduced by the amount of the annual leave settlement as it appears on the ASPM.

Any variances in the liability account caused by this entry will be rectified when annual leave

balances are re-computed at year end.