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Effort Reporting What the Big Deal

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					    Effort Reporting:
Who, What, When, Where,
     Why And How



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                           Agenda
Definition of Effort

Definition OMB Circular A-21

The Cycle of Effort Reporting

Difference between Effort Reporting and Payroll Distribution

Overview of Reporting Requirements
    • Who, What, When, Where, Why (but not in that order)

Important Things to Consider…


                                                               2
        Definition Of Effort

ef·fort (n.) - the proportion of time spent
on any activity and expressed as a
percentage of the total professional activity
for which an individual is employed by the
institution


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  Why Is Effort Reporting Required?
Effort reporting is a Federal requirement. It is mandated by
the Office of Management and Budget (OMB) in regulation
OMB Circular A-21

Requires a confirmation of effort of all individuals
performing services on a sponsored project when all or a
portion of their salary is charged to the sponsored project

After-the-fact Activity Records is the method NYU uses to
demonstrate that individuals who are paid on federal funds
have contributed the required effort
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     The Cycle For Effort Reporting
A grant is awarded with specified level of effort to
perform the Research

Investigator/ Department Administrator establishes
payroll distribution based on estimated effort

If estimated effort changes
     • Process payroll adjustments for prior pay period
     • Change salary distributions for future pay periods

End of the semester effort reports are produced based
on the salary distributions

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WHAT Is The Difference Between Effort
 Reporting And Payroll Distribution?
Payroll distributions and effort reports are not the same thing

 • Payroll distributions are the distribution of an individual’s salary
 • Effort reports describe the allocation of an individual's actual
   effort spent for specific projects, whether or not reimbursed by
   the sponsor. Thus, effort reporting is separate from and can be
   independent of salary charges
 • Effort is not just a verification of the salary or payroll distribution.
 • Cost sharing must be included in effort reports




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WHAT Types Of Costs Are Included?
Includes
 • Mandatory Cost Sharing
 • Voluntary Committed Cost Sharing

Does Not Include
 • Voluntary Uncommitted Cost Sharing
 • Any Effort Not Contained in IBS




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WHAT Is The Difference Between Effort
 Reporting And Payroll Distribution?
 • Salary serves as the proxy for calculating effort

 • Significant differences between S&Ws and effort should be
   addressed in ERS. Correct effort should be certified to in the
   cases of significant pay differentials among functions.
    • This must be done through Notes to the certification record
    • S&W adjustments cannot be made for this purpose
    • For account codes 51131 and 51141

 • Under FAR IV funding, 100% effort charged to research means
   that there cannot be any funded teaching effort for that individual




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        WHO Has To Certify Effort?
Any NYU employee (e.g. Faculty, Administrative, Staff,
Temporary) who works any portion of his/her time on
sponsored projects or activities (Fund 25) whether
compensated or uncompensated by that project

Principal Investigators are required to certify to their
effort and any other non-faculty effort contributed on their
sponsored projects




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       WHEN Should One Certify?
THREE TIMES PER YEAR
 • At the end of each semester
 • FALL
 • SPRING
 • SUMMER

We are investigating ‘floating’ academic semesters for
the December 31, 2009 certification



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           3 Types Of Cost-Sharing
Mandatory: cost sharing that is required by the sponsor,
documented in the proposal and agreed to in the sponsor’s
awarding documents. This cost sharing must be reported to the
sponsoring agency.

Voluntary Committed: cost sharing that the sponsor did not require,
but the proposal nonetheless included, and subsequently became a
condition of the award. This cost sharing must be documented but
not reported to the agency, unless requested.

Voluntary Uncommitted: cost sharing that the University expended
on the project, but was not required by the sponsor nor included in
the proposal document. No documentation or reporting is
necessary.
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     Effort Reporting – A Reasonable Estimate

Exact Assessment: Activities that comprise an individual’s total effort (teaching,
   research, service, administration, etc) are often difficult to separate and that
   “an exact assessment of factors that contribute to costs is not always
   feasible, nor is it expected”

Degree of Tolerance: Certification must rely on a reasonable estimate of effort
  during a specified time period, and when estimating, a degree of tolerance
  is acceptable and appropriate. NYU recognizes this degree of tolerance to
  be no more than +/- 5%

Payroll Adjustment: Anytime that payroll does not accurately reflect how the
   employee spent his/her time on the certified effort report by a margin of +/-
   5%, a payroll transfer request is necessary, except in the case of significant
   pay rate discrepancies for certain graduate students.
Effort Reporting – A Reasonable Estimate

 Total Effort must equal 100%. The total effort
 expended cannot be more than or less than 100%
 regardless of the FTE

 Total effort is not based on the number of hours
 worked




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     Managing Effort Commitments

Key personnel usually may reduce their effort
on sponsored programs by less than 25%
without sponsor approval

 Sponsor guidelines may be more restrictive and
will be signaled in the award terms and
conditions



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Faculty Function Distribution – one model




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   Summer Effort On Sponsored Projects

Summer salary on sponsored projects is
allowable subject to regulations of the funding
agency and the University’s policies

   • Faculty who receive summer salary must
     expend effort during the summer period
   • No more than 95% effort may be charged
     in any summer month to any sponsored
     project

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             Summer Salary Funding

Maximum monthly PI summer salary on sponsored
project is 95%

Additional 5% may be charged to project during AY with
release time approval of Chair & Dean

5% AY salary savings for release time will need to be
charged in the Summer or be transferred to a
designated Fund 20 research account

Fund 20 research account serves as PI discretionary
funding
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For example:
    Dr. X has an academic year salary of $135,000 in a department where 3 courses per year is the
    norm and where the default distribution of time is 45% for research, 45% for teaching and 10% for
    service. X serves on the tenure and promotion committee of the department. X is granted
    permission to buy out of one course and X also devotes the summer to a research grant. In
    addition, X will charge academic year research time to the grant. The time distribution during the
    academic year is thus 60% research (of which 43.44% is paid by NYU and 16.66% by a grant),
    30% teaching and 10% service, and during the summer, 95% research, 0% teaching and 5%
    service.
    Buy out: 1/3 x 45% = 15% x $135,000 during the academic year (or 30% for one semester) =
    $20,250
    Summer: $135,000 x 3/9 x 95% = $45,000 x 95% = $42,750 (charged to grant);
    Additional academic year research time: 135,000 x 1.66% = $2,250 (charged to grant);

A research account gets established in the amount of $2,250 which X may use for the remaining 5% of
    summer salary or for other research expenses.




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Faculty AY distribution, inc. buyout (15% time)
           16.6% charged to grant
       1.66% goes to research account




                                                  20
           Fund 20 Research Account

 Procedures:

• Forms & Instructions available at:
  http://www.nyu.edu/financial.services/cdv/pdf/MDP1000.pdf
  http://www.nyu.edu/financial.services/cdv/pdf/Fund20ReqInst.pdf


• Email completed Fund 20 request form to:
  BudgetOffice.fund20@nyu.edu




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Effort Certification Process




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Effort Certification Process - Adjustments

Excerpt from the T&E Policy:

Effective 9/1/09, once effort has been certified on a sponsored
program, it may not be recertified without explicit permission from
the Chair, Dean and a designated official in the Controller’s Division.
Substantive changes in certification may not be implemented by a
charge to the Federal government. The term “recertification” does
not include the correction of failures to implement the original
certification, e.g., paperwork errors or payroll adjustments which
were requested, but not enacted. Requests for such corrections
must be accompanied by documentation substantiating the claim.




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Effort Reporting Must Completed In A Timely Manner
 Employee certifications must be submitted to the Contract Office
 within 30 days of the initial opening of the ERS system for any
 reporting period

 PI is responsible certifying their effort


 ERS will keep the Certifier and the Departmental Coordinator
 apprised of any delinquent effort reports




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               Related References
Office of Management and Budget, Circular A-21; found online:
http://www.whitehouse.gov/omb/circulars/a021/a21_2004.html
(1) Council on Government Relations March 1, 2007 Recent COGR
News: http://www.cogr.edu/
Office of Management and Budget, Memorandum # M-01-06,
Clarification of OMB A-21 Treatment of Voluntary Uncommitted Cost
Sharing and Tuition Remission Costs (January 5, 2001); found
online: http://www.whitehouse.gov/omb/memoranda/m01-06.html
(1) Council on Government Relations March 1, 2007 Recent COGR
News: http://www.cogr.edu/



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New York University Related Policies
 CDV Website
 http://www.nyu.edu/financial.services/cdv/


 Cost Transfers on Sponsored Projects
 http://www.nyu.edu/financial.services/cdv/pdf/COST_TRANSFER_INTERIM_GUIDELINES.pdf


 T&E Faculty Announcement
 http://www.nyu.edu/financial.services/cdv/restricted/pdf/TE_Faculty_Announcement.pdf


 Policy on Effort Reporting for Sponsored Programs at Washington
 Square (PDF 969kB)
 http://www.nyu.edu/financial.services/cdv/restricted/pdf/TE_Policy.pdf


 Faculty Effort Guidelines (PDF 143kB)
 http://www.nyu.edu/financial.services/cdv/restricted/pdf/Faculty_Effort_Guidelines.pdf


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               When In Doubt?
Teresa Maryniak
ERS Central Administrator
Email: teresa.maryniak@nyu.edu
Phone: 212-998-2941

Ken Heck
Assistant Controller for Research
Email ken.heck@nyu.edu
Phone: 212-998-2903


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               When In Doubt?
Joanne Goldstein
Assistant Controller – Sponsored Programs Accounting
Email: joanne.goldstein@nyu.edu
Phone: 212-998-2704

Michael Miller
Senior Financial Analyst - SPA
Email: michael.miller@nyu.edu
Phone: 212-998-2832

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               When In Doubt?
Marti Dunne
Associate Vice Provost for Research Compliance and
Administration
Email: marti.dunne@nyu.edu
Phone: 212-998-2115

Pierre Hohenberg
Senior Vice Provost for Academic Policies
Email: pierre.hohenberg@nyu.edu
Phone: 212-998-7643

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Questions?




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