Time and Effort Reporting

Where is the Requirement?

Time and effort reporting is required under the Federal Office of Management and Budget’s Circular A-87, Cost Principles for State, Local, and Indian Tribal Governments (Codified as 2 CFR 225)1. Attachment A, General Requirements

must first be met, then look to2. Attachment B, Selected Items of Cost,

Item 11, Compensation for personnel services

Where is the Requirement?

OMB Circular A-87, Attachment A To be allowable a cost must

Be necessary and reasonable to proper and efficient performance and administration of the federal program

Be allocable to the program Be consistent with other federal and non-

federal charges Be authorized and conform to any

limitations of exclusions Be adequately documented

When is Time and Effort Required?

Time and effort reporting is required when any part of an individual’s salary is charged to a federal program

Charge may be “direct” or “indirect”

What type of reporting is needed?

Single cost objective →Semi annual certification

Multiple cost objectives →Monthly time reports or Personnel Activity Reports (PARs)

What is a cost objective?

Work activities allowable under the terms and conditions of a

funding source

What are some examples of a single cost objective?

100% charged to a single federal program activity

Exceptions Federal Special Education and State

Special Education Schoolwide programs Multiple activities in a single federal

program

What are some examples of multiple cost objectives?

Salary charged to more than one activity in a single federal program

Salary charged partially to federal program and partially to state and/or local sources

Salary charged partially to sources combined into a schoolwide program and partially to those not included

What is a semi annual certification?

Statement individual(s) worked solely on activities related to single cost objective

Completed at least every six months Signed by employee or supervisor

with first-hand knowledge of work performed

What is a monthly time report?(PAR)

Accounts for total activity Prepared at least monthly Signed by employee Reflects actual work performed (not

budget) Agrees to supporting documentation

When are adjustments to actual made?

If payroll is initially based on budgeted or estimated time/amounts, payroll and time and effort reports must be compared at least quarterly

If the difference is 10% or more and any needed adjustments made Payroll records must be adjusted to

actual Following quarter’s estimates must be

adjusted

What time and effort is reported?

Report time actually worked in a specific activity not time budgeted

Budgets are reconciled to actual at least quarterly

Who should sign the reports?

Monthly reports (PARs) should be signed by the employee

Semi annual certifications should be signed by employee or supervisor having first-hand knowledge of work performed

For internal control purposes, districts may require both the employee and supervisor to sign

What type of supporting documentation is needed?

Documentation is VERY important

Examples include, but are not limited to: Class schedules Number of students Number of minutes

Remember DOCUMENT! DOCUMENT! DOCUMENT!

Supplemental Contracts, Stipends, Extra Hours

Primary contract and additional contracts may be considered separately

Based upon whether or not charged to federal program Time and effort may be required for

primary contract but not supplemental (or vice versa)

Administrators

Superintendent, assistant superintendent, principal, assistant principal usually not allowable charge to federal program Requires good documentation to support Could be a supplant issue

What is a substitute system?

Other method for determining time and effort report based on sample of work performed

Must be approved by OSPI prior to use JoLynn Berge is responsible for approval

Must be statistically sound Should be periodically reviewed to

determine if still appropriate

Schoolwide Programs

Schoolwide plan must specify programs to be included (not all programs may be included)

A schoolwide program is a single cost objective If employee works 100% on programs

combined → Semi annual certification If employee works partially on programs

combined and partly on those not combined, → Monthly time report (PAR)

For Additional Information

OSPI Bulletin 048-08 (Time and Effort Reporting) Examples Sample forms

OSPI Bulletin 055-09 (Combining Funds in Schoolwide Programs)

OMB Circular A-87, Cost Principles for State, Local, and Tribal Governments