CALS Effort Coordination

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? • 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? • 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? • 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? • 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? • 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 bi-annually • Hourly based reporting will be quarterly

Effort coordinators will be required to: • 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 • 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 • Summer 2007 • Attend required RSP training • Ongoing • 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 • Prior to certification • Ensure that the right person can certify • During the certification window • Help individuals interpret/understand what they are seeing on the effort statement

Proposed responsibilities of an effort coordinator • After certification • 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 • Follow-up • Ensure that someone certifies for everyone • Eliminate overdue certification issues • When questions arise • Help is always a call away – CALS Research Division, CALS Business Services, RSP

Certifying effort • 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 • 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 • 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 • Example: Full-time faculty (non-chair/dir) • 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 • 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 • 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? • We will capture effort on • 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? • We will not capture effort on • 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 • 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 • 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 • 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? • 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? • 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? • 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? • 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? • 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? • 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 • Individuals should attack the new eCERT system with the attitude that recertifications are not an option – get it right from the start

Now what? • 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

CALS Effort Coordination