Cost Accounting Services


Effort Management and  Reporting Compliance

Compliance - A basic framework for effort reporting is provided by Federal regulations, principally the Office of Management and Budget (OMB) Circular A-21 Cost Principles for Educational Institutions. Section J.10 Compensation for Personal services describes general principles and criteria for acceptable methods for charging salary and wages to federal sponsored agreements.

Financial penalties, expenditure disallowances, and harm to the University's reputation may result from an inadequate effort management and reporting methodology or from failure to comply with effort related policies and requirements. In addition, criminal charges may be brought against the individual certifying falsified effort.

Effort Management
- Principal Investigators and key personnel are required to meet their respective effort commitments on sponsored agreements. Significant reductions of effort in comparison to committed effort requires proactive action with the sponsor. Timely salary distribution updates are required to reflect significant effort changes on sponsored agreements. Prospective effort management is an essential business practice in ensuring that salaries/wages charged to sponsored agreements are reasonable in relation to work performed.

Effort Reporting - University personnel must certify their effort on an annual basis. Effort reports are available in Peoplesoft/HR. Per OMB A-21, each effort report includes all compensated effort of an employee and distinguishes between their respective sponsored and non-sponsored effort.

Effort Tutorial - The effort management and reporting tutorial is highly encouraged for any University employee whose salary or wage is directly charged to a sponsored agreement or is cost sharing their effort towards the objective of a sponsored agreement. Any responsible official who is certifying someone's effort on a sponsored agreement is also encouraged to understand the tutorial content.

Last modified March 18 2012 06:54 AM

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