Time and Effort
Reporting
Grants Office
4/13/2015
4/13/2015
Know The Basics
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When is Time and Effort
Required?

Time and Effort reporting is
required when any part of an
employee’s salary is:
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Charged to a Federal program
Used as match for a Federal program
Paid with non-Federal funds (State)
Where are the
Requirements?
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Time and Effort reporting is required
under 2 CFR Section 225 (formerly
Federal Office of Management and
Budget’s Circular A-21, Cost
Principles for Educational
Institutions)
Who is considered an employee?


Salaries, wages and benefits
are charged under object codes
1, 2, and 3
An employee is NOT a vendor
or independent consultant
Time and Effort isn’t needed for
non-employees
 Time and Effort isn’t needed for
employees using time sheets or
honorariums
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What is Effort?

Total effort is defined as
whatever amount of time a
person devotes to fulfilling
his/her program-related
responsibilities
OMB Circular No. A-21, J10c(2)(a)-(f)
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Effort Reporting is…
A way for an employee to certify
that…
1. Effort supported (paid) by a
grant sponsored project has
been performed as promised
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Effort Reporting…
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Is required by Federal regulation
and District policy for all
individuals working on grant
funded sponsored projects
Makes salary sources for the
period congruent with effort
spent for the period
Why Does Time & Effort
Continue to be an Audit
Problem?
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Large % of Federal Education Funds
Used for Staffing
Staff Turnover
Decentralized responsibilities
Communication
Complexity of applying requirements
to variety of situations
People don’t like it!
Why should We Care?
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1.
2.
Signed effort reports are considered legal
documents in which an individual attests to
the accuracy of the effort spent on
sponsored projects
Erroneously certifying effort reports can be
viewed as fraud
We are obliged by Federal regulations to
exercise good stewardship of those funds
Effort is a part of that stewardship
Personnel costs are the majority of
program costs
False Claims Act, 31, U.S.C., sections 3729 & 3721
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What type of reporting is
needed?
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
Single cost objective
→Semi annual certification
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Multiple cost objectives
→Monthly time reports or
Personnel Activity Reports
(PARs)
What is a “cost objective”?

A particular set of work activities
for which cost data is
accumulated
A-21 Definition: Compensation for
personal services covers all amounts paid
currently or accrued by the institution for
services of employees rendered during the
period of performance under sponsored
agreements. P. 255 EDGAR
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What are some typical examples of
single cost objectives?
Example 1: An employee funded 100% by the
grant who provides services only to the
special population identified in the grant
Example 2: An office assistant who works
100% of the time for a sponsored program
and is funded partially with local funds.
Example 3: An early childhood education
teacher funded 80% with “pass-through”
and 20% with district funds if there isn’t a
difference in activities performed.
Since there is no difference in the activities
Semi-Annual certification is only needed.
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What are some typical
examples of multiple cost
objectives?
Example 1: An employee provides counseling
services to TRIO student 60% of the time
and college counseling services to the
general student population 40% of the
time. The counseling objectives are
different for the TRIO students and must
be documented for verification and
continuation of the program.
Since the counseling is intended for different
purposes, PAR is required monthly.
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Another example of multiple
cost objectives
Example 2: An accountant manages several
categorical budgets as well as the college’s
Work Force Training Center budget.
Although the budgets within the Center
deals with multiple categorically-funded
grants, the categorical programs are
intended for different purposes, multiple
cost objectives are reported.
Time and Effort reporting is required monthly.
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What is a semi-annual
certification?
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A statement that individual(s) worked
solely on activities related to single
cost objective
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Completed at least every six months
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Signed and dated by employee and
supervisor with first-hand knowledge
of work performed
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What is a monthly time report?
(PAR)
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Accounts for total time / activity
Prepared & signed at least
monthly
Signed and dated by employee
and supervisor
Reflects actual work performed
(not budgeted)
Agrees to supporting
documentation
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What type of supporting
documentation is needed?
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Requires a judgment call
Examples include, but are not
limited to:
Grant activities and goals
 Number of students served
 Number of reports generated
 Calendars or work logs
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Contact the Grants Office for advice
Ext. 6948
When is an accounting
adjustment required?
If the difference is 10% or more:
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Payroll charges must be adjusted at the
time of the comparison
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AND: The following quarter’s estimates
must be adjusted to more closely reflect
actual activity
If the difference is less than 10%:
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No action required until the end of the year
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BUT: At year-end any payroll charges to
federal awards that exceed actual time and
effort must be reconciled
Who should sign the
reports?
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Monthly reports (PARs) must
be signed by the employee
Semi annual certifications
must be signed by employee
and supervisor having first-hand
knowledge of work performed
Internal controls through the
District requires the employee &
supervisor to sign both forms
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Time and Effort: Tracking / Calculation
Employee Name:
Position/Title:
Track Hours Worked
FUNDING SOURCE
July
Restricted Program
Account
Hrs.
Subtotal
August
Effort %
0
Hrs.
September
Effort % Hrs.
Effort %
October
Hrs. Effort %
November
Hrs.
Effort %
December
Hrs. Effort %
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0
0%
0
0%
0
0%
0
0%
0
0%
Unrestricted Program
Subtotal
0
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0
0%
0
0%
0
0%
0
0%
0
0%
Match Fund To Program
Subtotal
0
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0
0%
0
0%
0
0%
0
0%
0
0%
Other Leave
Sick/Vac/Holiday
Other
Subtotal
Total Hours/Month
Total Actual Work Hours
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Total Distribution of Efforts
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0%
0%
0%
0%
0%
0%
Caution:
Beware of
Re-organization!
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Administrators: Changes can
affect program activities

President, Vice Presidents,
Deans usually not allowable
charges to federal program
Requires good documentation to
support
 Could be a supplanting issue
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Other Requirements for Charging
Compensation to Federal Programs
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Reasonable and necessary
Compensation consistent with
nonfederal activities of the District
Leave buy-out at termination is an
indirect charge or may be charged to
the Division
Other leave (vacation/sick) is subject
to OMB Circular A-21, J 10 and
Appendix A, Part 225
Tips……
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Know the Basics
Train employees on the mechanics
of filing out forms (new employees)
Identify which program cost
objectives they are working on
Communicate:
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Who needs to communicate what
changes (budget/personnel changes)
Be ready to redirect work of
employees or adjust grant salary
Ask the Grants Office for help if
needed
Discussion
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4/13/2015
Missing Time and Effort report
documentation is one of the
most frequent and costly audit
findings in the state.
How can your department
ensure that every employee
required to report time and effort
does so?
For Additional Information

See OMB Circular A-21
Examples
 Sample forms
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Time and Effort FAQs
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Questions?
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