Effort Reporting What is it and how is Effort determined? Presented by Grants and Contracts Financial Services
What is Effort Reporting? • Required by OMB Circular A-21: Section J(2). • It is the process of confirming that an employee’s payroll distribution reflects the actual effort of that employee on all university activities. • Effort should be calculated based on a reasonable estimate of the percentage of effort expended over the course of the reporting period.
How is Effort determined? • Starts with the translation of Salary expenses into percentages. • Covers all Institutional activities. (Exceptions: Wage payroll, teaching external courses (including summer)). • Total Effort always equals 100% ; regardless of hours worked in the week.
Who is an appropriate certifier • Generally the employee being paid by the university. • Also may be the Principal Investigator or the Supervisor of the employee • Or anyone that has a “suitable means of verification that work was performed”.
How is it determined? (Example) • A 12-monthly JMU employee, is paid an annual salary of $50,000 (4167/month). • From May 16 – Aug 15, he/she works on a Federal Grant and receives $8300 • Summer effort should be 66% Grant; 34% JMU ($8300/12,501) to agree with this salary distribution.
What about Academic Year Faculty? • For Effort Reporting purposes, an academic year contract is defined as “9 month”. • While paid over a 12 month period, their “institutional base salary” (IBS) is based on 9 months of effort. • ERS recalculates earned payroll so the IBS is recognized in the Fall, Spring semesters only. • No Departmental (IBS) salary will be shown on the Effort Forms for these employees in the summer.
9-Month Faculty Example: • A 9-monthly (academic year) JMU employee, is paid an annual salary of $50,000 (4167/month). • From May 16 – Aug 15, he/she works on a Federal Grant and receives $8300 • Summer effort should be 100% Grant; since no effort for university activities were required over the summer.
How does the Effort Reporting System (ERS) work? • ERS is loaded with data for a semester (Spring, Summer, Fall) from the Payroll System. • This data may be manually adjusted by Grants Contracts Financial Services [GCFS] (ATV’s, Retro-pay, etc.) • ERS then converts this adjusted salary data to percentages based on Department ID’s used for salary (“initialization”).
How does ERS work? (cont’ed) • Once initialized by GCFS, the JMU employee (or PI) receives an email with link to ERS. • This person logs into ERS with their JMU eID/Password (same one for email). • Person will determine if the percentage listed reasonably represents actual effort (5% variance allowed). • Certifies the percentage; or enters a correction. • GCFS completes post review and makes required payroll adjustments or recognizes matching.
Confused? • Let’s see what the system will look like!
Is there anything else captured by ERS? MATCHING!
Committed Cost Share (Matching) • Cost Share is given to the sponsor as a contribution to the grant. • If this contribution is time (effort), the in-kind value should be captured by ERS. • While this effort will not be reflected as salary expense in the grant, it must be tracked for University’s F&A calculation.
Matching Example: • A 12-month JMU employee, is hired with an annual salary of 50,000 (4167/month). • From May 16 – Aug 15, employee pledged 2/3rds of her time on a grant. • Effort recorded for the employee should be 67% Grant; 33% JMU. • The in-kind value of that contribution to the grant would be $8,334.
What should you really take from this presentation? • The new process will start in September to certify this Summer’s Effort (May 16 – Aug 15) • Replaces paper “Activity Reports”. • You will receive an email when/if you have an effort form to review/certify.
What should you really take from this presentation? (cont’ed) 4) Someone with ‘suitable means of verification’ must certify. (Keep Records!) 5) Committed unpaid effort must also be reported in ERS (Matching). 6) Last but not least:
What should you really take from this presentation? (cont’ed) PAR’s and ATV’s for salary MUST BE PROCESSED TIMELY!