Compensation Tracking Staff Time in Multiple Programs using Personnel Activity Reports
Regulations Associated with Personnel Activity Reports • 2 CFR 225 Appendix A(C)(3) --Allocable costs. • 2 CFR 225 Appendix A(C)(3)(a) -- A cost is allocable to a particular cost objective if the goods or services involved are chargeable or assignable to such cost objective in accordance with relative benefits received.
Regulations Associated with Personnel Activity Reports • 2 CFR 225 Appendix B(8)(h)(5) -- Personnel activity reports or equivalent documentation must meet the following standards: • 2 CFR 225 Appendix B(8)(h)(5)(a) -- They must reflect an after-the-fact distribution of the actual activity of each employee, • 2 CFR 225 Appendix B(8)(h)(5)(b) -- They must account for the total activity for which each employee is compensated, • 2 CFR 225 Appendix B(8)(h)(5)(c) -- They must be prepared at least monthly and must coincide with one or more pay periods, and • 2 CFR 225 Appendix B(8)(h)(5)(d) -- They must be signed by the employee.
Draft Payroll Policy and Procedures • Policy: All Head Start; Early Head Start and Child Care Staff working on Multiple Cost Objectives shall complete a Personnel Activity Report reflecting after-the-fact activities worked in each benefiting program. The Personnel Activity Report shall be completed in accordance with the agency payroll and shall be used as the source records for the disbursement of the cots in each benefiting cost objective. The personnel activity report shall be signed by the employee and supervisor with first-hand-knowledge of the work performed in each cost objectives. The following procedures shall be used to complete the activity report.
Draft Payroll Policy and Procedures • Procedures: • 1. Upon arrival at the work-site, all employees shall sign/clock-in indicating the start of the work day. • 2. Employees who work on multiple costs objectives (program) shall complete activity logs identifying the actual work in each program. The employee shall complete the activity log at minimum daily, reflecting the actual hour worked on the cost objective (program).
Draft Payroll Policy and Procedures • 3. At the end of the pay period, employees shall take the following steps to complete the activity report: • Salaried Employee’s; total the hours (including sick and vacation, if applicable) on the activity log by program and convert the hours into percentage of time by program. Record the percentage of time on the Personnel Activity Report. • Non-Salaried Employee’s; total the hours (including sick, vacation and overtime, if applicable) on the activity log by program and record the hours by program on the Personnel Activity Report.
Draft Payroll Policy and Procedures • 4. The staff shall sign and date the activity report at the conclusion of the payroll period. • 5. The employee shall submit the signed Personnel Activity Report and Activity Log to the supervisor. • 6. The supervisor shall compare the activities recorded on the activity log to the activities recorded on the Personnel Activity Report.
Draft Payroll Policy and Procedures • 7. The supervisor shall sign and date the Personnel Activity Report verifying first-hand-knowledge of the activities performed by the employee in each benefiting program. Note: All discrepancies shall be corrected prior to the supervisor’s signature. • 8. After signing, the supervisor shall submit the Personnel Activity Report(s) to the Payroll (Finance) Department in order to process the payroll for payment. • 9. The payroll department shall process the payroll by determining the actual hours worked in each cost objective (program).
Draft Payroll Policy and Procedures • 10. The time worked in each cost objective (program) shall be recorded in the general ledger by program. Note: prior to recording the time in the general ledger, the designate staff shall approve the payroll. • 11. Prior to processing (cutting checks and/or preparing electronic transfer) the payroll the payroll staff shall generate a payroll report by program to verify the accuracy of the time recorded in each program.
Draft Payroll Policy and Procedures • 12. Prior to disbursement, the payroll records shall be compared to the hours recorded in the general ledger. • 13. The Finance Department shall disburse the payroll through one of the following mechanisms; a). Direct deposit; or b). The issuance of a Payroll Check. Note: Employees receiving direct deposit shall receive a paper stub identifying the direct deposit.