Effort Reporting and Certification for Sponsored Activities (A-68)
Original Implementation: January 29, 2008
Last Revision: None
This policy establishes requirements for recording and reporting employee effort to comply with federal and state laws and regulations [Office of Management and Budget Circular A-21 and Texas Uniform Grant Management Standards II (B)(11)(h)(1-5, 7)].
Effort reporting is a process that uses after-the-fact activity records to certify that only allowable payroll expenses are charged to or contributed (cost-shared or matched) to grants, contracts, and other sponsored agreements, and that effort commitments to sponsored agreements are met as specified in the agreement.
- Effort reports are required for faculty and staff who devote effort (paid or cost-shared) to one or more sponsored agreements that are funded by state or federal sponsors.
- Effort is defined as the amount of time spent on a particular activity and is not based on a traditional 40-hour work week. The total effort associated with institutional base salary is defined as 100% effort. This includes instruction, departmental administration, departmental research, sponsored projects, and other activities.
- Effort reports should reasonably reflect the activities for which employees are compensated by the institution. However, in the use of any methods for apportioning salaries, it is recognized that, in an academic setting, teaching, research, service, and administration are often inextricably intermingled. Therefore, a precise assessment of factors that contribute to costs is not always feasible, nor is it expected. Reliance, therefore, is placed on estimates in which a degree of tolerance is appropriate [OMB A-21, J.10.b.(1).(c)].
- Tolerance is defined by the university as +/- five percent (5%) of the committed effort. Effort certification report adjustments may be required when: 1) certified effort does not match salary expenditures within the tolerance limit for the time period covered by the report; 2) there are payroll cost transfers; or 3) revised PARs are generated.
- Project directors (PDs) or principal investigators (PIs) are responsible for ensuring that effort certification reports are completed accurately and in a timely manner for each individual subject to this policy and paid and or cost-shared from a grant, contract, or other state/federal sponsored agreement for which they serve as PD/PI.
- Effort certification reports are generated for individuals by payroll when any portion of a salary is paid or cost-shared in a reporting period from state of Texas and/or federally sponsored accounts. Completed forms are returned to the controller’s office for review, filing, and retention.
- Effort attributed to any state/federal sponsored agreement (grant, contract, or cooperative agreement) must represent work specific to the agreement. Intentional falsification, forgery, or fraudulent alteration of effort certification reports constitutes fraud. Criminal and/or employee discipline measures may be pursued.
Effort expended for extra compensation, such as salary supplements, stipends, or additional compensation as defined in SFA Policy E-9, or for work not compensated by the university is not included in effort calculations.
To confirm that the distribution of activity represents a reasonable estimate of the work performed by the employee during the period, reports will be signed by the employee, PD/PI, or other responsible person with suitable means of verification that the work was performed [OMB A-21, J.10.c.(2).(c)].
Detailed procedures for effort reporting and certification; information on training; timelines for distribution, completion, and submission of effort reports; for modifications to salary charges based on variances between the estimated and actual effort; and for correction of effort reports are outlined in the Technical Assistance Manual published by the Office of Research and Sponsored Programs (ORSP).
Cross Reference: ORSP Technical Assistance Manual; Office of Management and Budget Circular A-21; Texas Uniform Grant Management Standards II (B)(11)(h)(1-5, 7); SFA Policy E-9, Salary Supplements, Stipends and Additional Compensation.
Responsible for Implementation: Provost and Vice President for Academic Affairs
Contact for Revision: Director, Office of Research and Sponsored Programs; Controller
Forms: Effort Certification Reports for Faculty and Salaried Employees