Time and Effort Reporting: The Basics

1. Time and Effort Reporting: The Basics Steven Spillan, Esq. sspillan@bruman.com Brustein & Manasevit, PLLC Fall Forum 2013

2. Brustein & Manasevit, PLLC T&E: What Are We Talking About? • Tracking personnel costs: • OMB Circular A-87: State, Local, and Indian Tribal Governments (p. 223) • Includes SEAs and LEAs • OMB Circular A-21: Educational Institutions (p. 169) • Institutions of Higher Education • OMB Circular A-122: Non-Profit Organizations (p.257) * all page numbers from blue EDGAR books

3. Brustein & Manasevit, PLLC Quick Clarification: • Time and attendance records • Payroll records: Worked 8:00 am - 4:00 pm • Time and effort records • Time distribution records: worked 50% on Title I administration and 50% on nonfederal

4. Brustein & Manasevit, PLLC Who must participate? • All employees paid with federal funds • Some employees paid with non-federal funds • When salaries are used for match purposes • NOT contractors

5. Brustein & Manasevit, PLLC Documentation Requirements • “Similar but Different” • Similar information must be included • Similar format • Different rules regarding frequency

6. Brustein & Manasevit, PLLC A-87: Single vs. Multiple Costs Objectives • Cost objective: • A function, organizational subdivision, contract, grant or other activity for which cost data are needed and for which costs are incurred (p. 227) • Type of records will depend on number of cost objectives

7. Brustein & Manasevit, PLLC Cost Objective Examples • A Minimum Set-Aside or Maximum Cap: • Title I - LEA Parent Involvement minimum (at least 1%); • Title III – Cap on administration (no more than 2%) • Program services • Title I program services

8. Brustein & Manasevit, PLLC A-87: OCFO Guidance (2012) • It is possible to work on a single cost objective even if an employee works on more than one federal award or on a federal award and a non-federal award. (p. 322) • Key - if the employee’s salary and wages can be supported in full from: • Each of the federal awards on which the employee is working, or • The federal award alone if the employee’s salary is also paid with non-Federal funds.

9. Brustein & Manasevit, PLLC A-87: Single Cost Objective • Semi-Annual Certification • Signed every six months by employee or supervisor with first hand knowledge • “This is to certify that Steven Spillan has worked 100% of his time for the period January 1, 2013 through June 30, 2013 on Perkins Administration.” Signature of employee: /s/ Date: July 1, 2013

10. Brustein & Manasevit, PLLC “Blanket” Semi-Annual Certification • Single cost objective (semi-annual cert) • Multiple employees • Signed by supervisor with first-hand knowledge (principal)

11. Brustein & Manasevit, PLLC A-87: Multiple Cost Objectives • Personnel Activity Reports (PAR) • Signed every month by employee • UNLESS, using “substitute system” (then 2 or 3 times per year) • “For the month of September 2013, I spent my time 50% on Title I Program Services and 50% on non-federal programs.” Signature of Employee: /s/ Date: October 1, 2013

12. Brustein & Manasevit, PLLC PAR Requirements: • After-the-fact record • Total activity for which employee compensated • At least monthly • Signed and dated by employee

13. Brustein & Manasevit, PLLC Schoolwide Programs • The programs included in the Schoolwide Plan constitute a single cost objective • Need for records depends on the extent of consolidation of federal, state, and local funding • Can be “conceptual” or “virtual” consolidation – not literal

14. Brustein & Manasevit, PLLC Schoolwide time records

15. Brustein & Manasevit, PLLC A-87: Substitute Systems •  Subject to approval by the cognizant agency • Grantees must receive prior written approval from ED • Possible Systems: • Random moment sampling • Case Counts • Other quantifiable measures of employee effort

16. Brustein & Manasevit, PLLC OCFO – Substitute Systems • Authorizes SEAs to permit LEAs to adopt a substitute system where a semiannual can be used for an employee working on multiple cost objectives if: • Signed by employee AND supervisor • Employee works on a schedule that includes multiple cost objectives; • Work is “predetermined” (e.g. a teacher’s lesson plan); • Employee is not permitted to work on multiple activities or different cost objectives at the exact same time on their schedule; and • Documentation of the employee’s schedule meets the five separate elements set forth in the guidance (p.319)

17. Brustein & Manasevit, PLLC A-21 Requirements (IHEs) • Cost Objective: • May be a major function of the IHE, a particular service or project, a sponsored agreement, or an F&A cost activity (p. 174)

18. Brustein & Manasevit, PLLC A-21 Requirements (IHEs) • 3 Methods of Payroll Distribution Tracking • Plan Confirmation • After-the-Fact Activity Reports • Multiple Confirmation Records

19. Brustein & Manasevit, PLLC A-21: Plan Confirmation • Distribution of salaries of professional and professorial staff is based on budgeted, planned or assigned work activity, updated to reflect any significant changes in work distribution • At least annually a statement will be signed by the employee, principal investigator, or responsible official(s) using suitable means of verification that the work was performed.

20. Brustein & Manasevit, PLLC A-21: After-the-Fact Activity Reports • Similar to PARs and Semiannual Certs • Must be signed • Must be after-the-fact record • Every six months for professional and professorial staff • Monthly for other employees

21. Brustein & Manasevit, PLLC A-21: Multiple Confirmation Records • Variety of records kept in combination. • Prepared at least semiannually. • Signed by employee or a person having direct knowledge of the work.

22. Brustein & Manasevit, PLLC A-122 Requirements • Similar to A-87 PARS, but NOT identical • PARs for all staff (professional and nonprofessional) • After-the-fact activity • Total activity • Prepared monthly • Signed by employee OR supervisor with first-hand knowledge of the activities performed • No semi-annual option • Records capturing hours worked in accordance with DOL standards

23. Brustein & Manasevit, PLLC Recap: What is required? • SEAs/LEAs – Employees paid with federal funds: • Semiannual certification for employee working on single cost objective • Monthly PAR for employee working on multiple cost objective • IHEs – Employees paid with federal funds: • 3 options: plan confirmation, after-the-fact activity reports, multiple confirmation records • Non-Profits – Employees paid with federal funds • Monthly PARs for all employees working on federal funds

24. Brustein & Manasevit, PLLC How do I know? • SEA/LEA • Is the employee paid with federal funds (or salary used for match)? • Does the employee work on a single cost objective? • IHE • What system does your institution use? • What type of employee (professorial/professional/other)? • Non-profit • Is the employee paid for with federal funds?

25. Brustein & Manasevit, PLLC Pending Changes • Supercircular • Introduced February 2013 • Comments accepted through June 2013 • Final supercircular expected…soon? • Changes to all circulars, including the use of a single time and effort section for all federal grantees

26. Brustein & Manasevit, PLLC Supercircular • The distribution of salaries and wages must be supported by certifications of the consistency of charges with the work executed • All required certifications may be provided electronically • Reports may use percentages to reflect categories or total activities

27. Brustein & Manasevit, PLLC Supercircular “Periodic Certifications” • Expected to work on a single federal award or cost objective • Must be supported by periodic certifications; • That the employee worked solely on that program; • Prepared at least semi-annually; AND • Must be signed by the employee or responsible supervisory official.

28. Brustein & Manasevit, PLLC Supercircular • Certified reports reflecting the distribution of charges within the payroll for each employee (professional and nonprofessional) whose compensation is charged, in whole or in part, directly to Federal awards must be maintained • In no case will certification periods exceed 12 months • Report can be integrated with, or separate from, payroll • If integrated, duplication of reports is not required

29. Brustein & Manasevit, PLLC Supercircular • Certified Report MUST be signed by the individual employee or an individual responsible for verification that the work was performed • Budget estimates do not qualify as certified reports • For systems that meet these standards, the recipient WILL NOT BE REQUIRED to provide additional support or documentation for the effort actually performed

30. Brustein & Manasevit, PLLC Supercircular • Substitute systems may be used in place of these reports if approved by the cognizant agency. • These systems are subject to approval if required by the cognizant or oversight agency. • May include random moment sampling, “rolling” time studies, case counts, or other quantifiable measures of employee effort.

31. Brustein & Manasevit, PLLC Disclaimer This presentation is intended solely to provide general information and does not constitute legal advice. Attendance at the presentation or later review of these printed materials does not create an attorney-client relationship with Brustein & Manasevit, PLLC. You should not take any action based upon any information in this presentation without first consulting legal counsel familiar with your particular circumstances.