Time and Effort Documentation
Best Practices
Tiffany R. Winters, Esq.
twinters@bruman.com
@Trwinters
Mike F. Bender, Esq.
mbender@bruman.com
@MBender1230
Brustein & Manasevit, PLLC
Fall Forum 2013
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Audit Findings and Amounts
2006 – Columbus – $2.3 million
2008 – Detroit – $49 million
2010 – Philadelphia – $123 million
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Time and Effort Documentation 101
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OMB Circulars Time and Effort
Rule
 If federal funds are used for salaries, then time
distribution records are required.
 How staff demonstrate allocability
 If employee paid with federal funds, then must show
that the employee worked on that specific federal
program cost objective.
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Who must participate?
 All employees paid with federal
funds!!
 Some employees paid with non-federal
funds
 When salaries are used for match
purposes
 NOT contractors
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Does Celine Dion have to keep time
and effort records?
Is she an employee?
Yes
No
Is she paid with federal
funds?
No T&E Required
Yes
T&E Required
Ask HR
No
Is her salary used for match?
No
No T&E Required
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I don’t know
Yes
T&E Required
Brustein & Manasevit, PLLC
The Current OMB Rules
 A-87: State and Local Educational Agencies
 A-21: Institutions of Higher Education
 A-122: Nonprofit Organizations
 48 C.F.R. Part 31: For Profit Agencies
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A-87: If employee works
100% on single cost objective
 Semi-Annual Certification
 Completed at least every ___________
 After-the-fact record (dated)
 Signed by ___________
 Accounts for the total activity for which employee compensated
 Must coincide with one or more pay periods
The Administrator’s Handbook on EDGAR, page 233.
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A-87: If employee works on
multiple cost objectives
 Personnel Activity Reports (PARs)
 After-the-fact record
 Accounts for the total activity for which employee compensated
 Completed at least ___________
 Signed by ___________
 Must coincide with one or more pay periods
The Administrator’s Handbook on EDGAR, page 233.
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OMB Circular A-21:
Institutions of Higher Education
3 Options:
 Plan Confirmation:
• Budgeted allocations for professional/professorial staff;
• Updated to reflect any significant changes in actual work
 Multiple Confirmation Records:
• Variety of records kept in combination at least monthly
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OMB Circular A-21: IHEs (cont.)
 After-the-Fact Activity Reports:
 Professional/Professorial staff keep records every _______
 All other employees keep _______ records
 Signed by employee, principal investigator, or responsible official
using suitable means of verification
 Must reflect activity applicable to each sponsored agreement and to
each category needed to identify F&A costs
The Administrator’s Handbook on EDGAR, pages 192 - 194
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OMB Circular A-122:
Nonprofit Institutions
 Need PARs to support salaries and wages of ALL staff paid (in
whole or in part) with federal funds
 Similar to A-87 (but not identical)
 After-the-fact record and dated
 Accounts for the total activity for which employee compensated
 Completed at least _________
 Signed by _______________________
The Administrator’s Handbook on EDGAR, page 270
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For-Profits ??????
48 C.F.R. Part 31
 Silent on required documentation…
So what does that mean???
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Time and Effort Guidance by
OCFO!!!
http://www2.ed.gov/policy/f
und/guid/gposbul/time-andeffort-reporting.html
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OCFO Guidance (cont.)
 It is possible to work on a single cost objective even if an employee
works on more than one Federal award or on a Federal award and a
non-Federal award.
 The key to determining whether it is a single cost objective is
whether the employee’s salary and wages can be supported in
full from each of the Federal awards on which the employee is
working or from the Federal award alone if the employee’s
salary is also paid with non-Federal funds.
The Administrator’s Handbook on EDGAR, page 322
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Substitute Systems
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Substitute Systems Generally
 Substitute systems may be used in place of these reports if
approved by the cognizant agency.
 These systems are subject to approval if required by the
cognizant or oversight agency.
 May include random moment sampling, “rolling” time
studies, case counts, or other quantifiable measures of
employee effort.
The Administrator’s Handbook on EDGAR, page 319
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Substitute System
May an employee working on multiple cost objectives at
the same time document time and effort under a substitute
system?
A.Yes
B. No
C. It Depends.
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AUDIENCE Q & A
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Time and Effort – Advanced Topics
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Questionable Questioned Costs
 Going above and beyond can backfire.
 Example 1
 Recorded time in six minute intervals
 Up to 1000 different program codes.
 Too many user errors.
 Example 2
 “At least semi-annually”
 Using monthly PARs for employees that worked on single
cost objectives.
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Federal Stipends
If a State-funded employee is paid a stipend with federal
funds for attending professional development, does time
and effort documentation have to be kept?
A.Yes
B. No
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Federal Stipends
 Federal funds can generally be used to pay for stipends for
professional development or other extra-curricular activities.
 Time and Effort documentation must be kept.
 Maryland January 2013 ARRA Audit  Documentation not kept for employees partially funded with
federal funds.
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De Minimus Benefit
If a teacher works on a single cost objective but also has
limited other responsibilities, such as cafeteria or bus
duties. This teacher must keep:
A. Monthly PARs
B. Semi-annual certifications
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De Minimus Benefit
 Limited work on another cost objective does not need to be
captured in time and effort records.
 Employees may work 5% or less on another cost objective.
 The worked performed on these limited duties cannot
deprive a benefit from the intended beneficiaries.
The Montana Compact on Time Distribution, at p. 8, Q11.
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Substitute Teachers
Are substitute teachers paid with federal funds required to
track their time?
A.Yes
B. No
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Part-Time Employees
Are part-time employees required to track their time?
A.Yes
B. No
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Blanket Certification
Multiple employees working on the same single cost
objective can be identified on a single semi-annual
certification.
A. True
B. False
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Blanket Certification
 Provides flexibility.
 Identifies multiple employees working on the same single
cost objective.
 Must be prepared at least semi-annually.
 Signed and dated by supervisor with firsthand knowledge of
the employees’ work.
The Montana Compact on Time Distribution, at p. 3.
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Contractors v. Employees
The district has a Title I, Part A funded contract with a
vendor for afterschool tutoring of Title I students. Do the
contractor’s employees need to keep time and effort
records?
A. Yes
B. No
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Characteristics of a Contractor
 Provides goods or services within normal business




operations.
Provides similar goods or services to others.
Operates in a competitive environment.
Provides goods or services that support the Federal program.
Subject to terms of a contract but not compliance
requirements of program.
OMB Circular A-133(B) §__.210(c)
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Time and Effort Flexibility
An employee teaches a special education classroom during school
hours and provides additional instruction at the school’s afterschool
program. The regular school position is paid for with IDEA funds
while Title I, Part A funds pay for the after-school position. The
employee must keep a PAR.
A. True
B. False
The Administrator’s Handbook on EDGAR, page 323, Example 5
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Time and Effort Flexibility
An employee works on IDEA, Part B and local-funded cost
objectives during school hours and provides additional instruction at
an after-school program. Title I, Part A funds pay for the after-school
position. The employee may:
A. Keep a PAR for all activities
B. Keep a PAR and a semi-annual certification
C. Either A or B
D. None of the above
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Bonus Question
A school receives funding through the USDA National
School Lunch Program and direct charges its janitorial
staff. If the janitorial staff cleans the entire school, what
type of documentation should it keep?
A. PAR
B. Semi-annual Certification
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Examples - Right or Wrong?
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PAR Example
I certify that for the month of August 2013 I, Michelle
Obama, spent my time working on the following programs:
Title I, Admin
State programs
20%
30%____
Total 50%
Signed: ___/s/____
September 10, 2013
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Semi-Annual Certification Example
I, Britney Spears, certify that I worked 100% of my time on
IDEA, Part B from February 1, 2012 to July 31, 2013.
Signature of Employee
____/s/______________
Date: August 1, 2013
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Semi-Annual Certification Example
I, Taylor Swift, certify that I worked 100% of my time on
Title I, Part A Administration from January 1, 2012 to June
30, 2013.
Signature of Employee
____/s/______________
Date: June 20, 2013
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PAR Example
I certify that for the month of October 2013 I, Justin Beiber,
spent my time working on the following programs:
21st CCLC, Admin
State programs
Annual Leave
20%
30%
50%
Total 100%
Signed: ___/s/____
November 10, 2013
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Blanket Certification Example
This is to certify that the following individuals have worked 100% of their time on the
following cost objectives for the months of March 1 to August 31.
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Position
Name
Cost Objective
Teacher
David Copperfield
Title I, Part A - Programmatic
Teacher
Chris Angel
IDEA, Part B – Programmatic
Guidance Counselor
Penn Jillette
Title III, Equitable Services
Tutor
Ray Teller
21st CCLC - Programmatic
Signed: ___/s/____
September 10, 2013
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PAR Example
I certify that for the month of October 2013 I, Barack
Obama, spent my time working on the following programs:
21st CCLC, Admin
State programs
Signed: ___/s/____
November
15,
2013
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85%
15%____
Total 100%
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Semi-Annual Certification
I certify that for the month of October 2013 I, Orlando
Bloom, spent 60% of my time working on Title I, Admin.
I certify 100% that the above information is accurate.
Signed: ___/s/____
November 5, 2013
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Questions??
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Disclaimer
This presentation is intended solely to provide
general information and does not constitute
legal advice. Attendance at the presentation or
later review of these printed materials does not
create an attorney-client relationship with
Brustein & Manasevit, PLLC. You should not
take any action based upon any information in
this presentation without first consulting legal
counsel familiar with your particular
circumstances.
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