Personnel Cost Savings occur when the costs the system determined in the current commitment run are lower than the commitment in the previous commitment run. Savings can happen when;
- An employee reduces his/her working time and this reduces the encumbrance requirement
Savings from vacant positions and on-hold positions occur:
- At the start of the fiscal year – when savings are incurred from the time of the initial encumbrance until the position is filled.
- During the course of the fiscal year – when savings are incurred from the time of the vacancy or on-hold status until the position is filled.
Savings from vacant positions and savings from on-hold positions releases budget. The released budget is made inaccessible by the creation of a funds block for the amount of the cost savings in Funds Management. The budget can only be used for another purpose when the funds block have been removed.