Transcript Proposal Budget Building and Related Issues

CALS Effort
Coordination
CALS Research Division
http://www.cals.wisc.edu/research/
CALS Business Services
http://www.cals.wisc.edu/bussvc/
May 16, 2007
What is effort reporting?
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The mechanism used to confirm that salaries
and wages charged to each sponsored
agreement are reasonable in relation to the
actual work performed
Certification of effort must reasonably reflect
all the effort for all the activities that are
covered by an individual’s UW compensation
What is effort?
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Effort is an individual’s work on a project
whether the sponsor pays their salary or not
Effort is not based on a 40-hour work week
for appointment based individuals (e.g.,
faculty/staff), only on hourly based
appointments
Effort can never exceed 100%
Effort is not the same as Payroll
Why must effort be certified?
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Federal regulations (e.g., OMB A-21) require
that institutions receiving federal awards
maintain systems and procedures
documenting the distribution of activity, and
associated payroll charges, to each individual
sponsored agreement
Certification provides assurance to sponsors
that an institution has met their commitments
Who must report effort?
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Any individual paid (or with a commitment)
on a sponsored award must certify that the
salary paid (or the commitment) is reasonable
in relation to the effort (activity) devoted to
the award
How must effort be reported?
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Prior to 2007, UW-Madison utilized the PAR
(Personnel Activity Report) System to capture
and certify effort
Effective 01/01/07, UW-Madison will use a
new web-based system eCERT to capture,
review, confirm, and certify effort
Appointment based reporting will be biannually
Hourly based reporting will be quarterly
Effort coordinators will be required to:
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understand the principles of effort reporting
and certification, responsible grants
management, fiscal management including
salary cost transfers, and payroll and human
resource concepts
be computer literate
have good communication skills
eCERT coordinators
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Must be individuals who have sufficient
knowledge to perform the review and
certification function
CALS has designated this as a
Department/Center Administrator
responsibility
Proposed responsibilities of
an effort coordinator
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Summer 2007
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Attend required RSP training
Ongoing
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Review effort statements
Determine whether distribution of salary charges
are consistent with expectations
Follow up with pertinent individuals to make
adjustments as necessary
Proposed responsibilities of
an effort coordinator
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Prior to certification
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Ensure that the right person can certify
During the certification window
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Help individuals interpret/understand what they
are seeing on the effort statement
Proposed responsibilities of
an effort coordinator
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After certification
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Process each certified statement
Assure that inappropriate statements and
questions do not appear
Deal with requests for payroll or effort statement
adjustments
Maintain documentation to support resolutions,
actions, potential audit questions
Proposed responsibilities of
an effort coordinator
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Follow-up
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Ensure that someone certifies for everyone
Eliminate overdue certification issues
When questions arise
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Help is always a call away – CALS Research
Division, CALS Business Services, RSP
Certifying effort
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Effort must be certified by someone with suitable
means of verifying that the work was performed
Certifying effort is not the same as certifying payroll
When an individual is included in a proposal or
award, they are committing their effort to the sponsor
If an individual work’s on a sponsored project, they
must certify their effort
Appointment components
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A minimum of 10% of a faculty member’s
appointment must be reserved for their
general faculty responsibilities
A department chair/center director must
reserve 50% of their appointment for their
chair/director responsibilities
The balance of these appointments then
comprise other commitments
Appointment components
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Appointments have instructional (activity 2),
research (activity 4), and extension (activity
5) components – it is the Department’s
responsibility to review effort and reserve
components of appointments to meet the
instructional and extension expectations
Appointment components
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Example: Full-time faculty (non-chair/dir)
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40% instruction (activity 2)
20% extension (activity 5)
40% research (activity 4)
Reserve a minimum of 10% for general resp.
What component would then be available for
sponsored projects?
It depends …
Appointment components
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Question: An individual has a 75%
appointment. Their appointment may be
75%, but what is their total effort?
Effort always equates to 100% regardless of the
appointment percentage.
Appointment components
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Question: An individual has a 100%
appointment and then receives an overload.
How does this impact effort?
Effort always equates to 100% regardless of the
appointment percentage.
What funds will be considered?
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We will capture effort on
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all federally sponsored projects (e.g., 143, 144)
formula funded projects (i.e., 142s)
all non-federally sponsored projects (e.g., grants,
contracts, agreements, etc. – 133s)
funds which are committed as a cost share which
may include funds such as 101s, 104s, 233s,
135s, 161s
What funds will not be considered?
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We will not capture effort on
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multiple donor funds (i.e., soon to be 233s)
unrestricted gift funds (i.e., soon to be 233s)
trust funds (i.e., 161s)
unless these sources of funding are utilized to
support the individual’s committed effort on a
project (i.e., cost share)
Tentative timelines
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eCERT will go live in the Summer of 2007
CALS effort coordinators will be trained on
the eCERT system by RSP in the Summer of
2007
Faculty/Staff will be trained on the eCERT
system by RSP in the Fall
PARs will no longer be routed
Certification requirements
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During the initial phase-in, the deadlines for
certification will probably allow 2-3 months
Certification periods will rapidly move to a 30
day certification period
CALS policy for individuals who have not
completed their certification by deadline –all
sponsored programs actions will not be
processed until individuals have met
compliance requirements
Certification requirements
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Current outstanding PARS issues must be
resolved immediately
CALS policy for individuals who have not
resolved outstanding PARS –all sponsored
programs actions will not be processed until
individuals have met compliance
requirements
How does a coordinator know that what
an individual is reporting is accurate?
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Effort – paid and unpaid – is detailed within
the application
Effort – paid and unpaid – is detailed in the
award
The new PeopleSoft Grants Management
System (as we understand it) will detail effort
at time of application and verify effort at time
of award
How does a coordinator know that
what an individual reports is accurate?
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Current and Pending Support – some
individuals/departments maintain records by
each individual as to their current support on
awards (effort) and their pending support
(effort) on applications
How does a coordinator know that
what an individual reports is accurate?
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Individuals need to seriously review their
effort and when certifying be certain the
information being certified is correct
Effort coordinators must put in place business
practices under which they will be able to
review certifications and assure accuracy to
the best of their ability prior to approval
What happens if certification does not
match commitment?
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This could cause major problems
Generally, a minimal reduction in an effort
commitment on a federal grant is allowable …
often an individual can reduce their
commitment by 25% without agency approval
… however, this is not the case with all
awards, nor with all agencies
Suggestion – work closely with CALS
Research Division when changes occur
What happens if certification does not
match commitment?
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When effort commitments are a component of
a required cost share, any adjustment could
be a MAJOR PROBLEM in an individual’s
ability to meet the cost share requirement
within the award
Suggestion – work closely with CALS
Research Division when changes occur
What happens if certification does not
match commitment?
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Paydata changes can occur after the
certification is made
Do not delay in submitting paydata changes
and related transfers
CALS will require that paydata changes and
related transfers be submitted within the same
month as the certification occurs
Recertifications
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Individuals should attack the new eCERT
system with the attitude that recertifications
are not an option – get it right from the start
Now what?
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Don’t panic!
Faculty/staff training will be required.
Is this a responsibility you feel qualified for?
What training is needed?
What systems/tools are in place?
What systems/tools are needed?
Questions/comments?
References
CALS website for Effort Reporting
http://www.cals.wisc.edu/research/AwardMgt/effort.html
RSP website for Effort Reporting
http://www.rsp.wisc.edu/effort/index.html
The Top 10 things you Should Know about Effort
Available on RSP’s site at http://www.rsp.wisc.edu/effort/index.html
Report: Council on Governmental Relations, Policies and
Practices: Compensation, Effort Commitments, and
Certification, March 1, 2007
http://www.cals.wisc.edu/research/AwardMgt/COGR%20Effort%20Guidance%202007-03-01.pdf