Presentation to Grants Management User Network (GMUN) on Effort Certification October 13, 2006

Issues with conversion to ECRT V.2  ECs now have both a processed and non processed list  Have made navigation improvements  Can now view lists by empl IDs  SPES report is now available as a PDF  Processed report reflects correct status  Still to come for this period  Statement will display all HSAs that were entered after the statement was first created  Cost sharing screens redesigned to improve functionality 2

Processing Statistics  Have completed 10 periods of reporting in ECRT  Allowed 5 weeks to certify, now 4 weeks  Follow-up Compliance process starts 2 weeks after the end of the certification period FY PeriodPercent complete at 3 weeks Percent complete at 5 weeks FY04 P311%54% FY04 P434%82% FY05 P141%92% FY05 P249%93% FY05 P348%91% FY05 P445%90% FY06 P145%92% FY06 P247%93% FY06 P341%86% FY06 P447%83% 3

Changes Coming for FY 2008  Need to add committed effort to the statement  Some data in the EGMS system already  Will need to work with Departments to get this information – ( compliance issue)  Will require some modification to the look of the statement  Three rather than four effort certification periods  Consulted widely  Once a year is required by A-21 4

 Three Periods – fall semester, spring semester, summer  Line up better with the way faculty think about their workloads  Work better for graduate students on research projects  Will require minor system modification  Financial management of salary charges will have to be handled separately from the effort certification  Can’t wait until effort certification period to do the HSAs  Impact on financial reports to our sponsors …Changes coming for FY

The University’s Effort Certification System Plan Confirmation (OMB Circular A-21 definition):  Distribution of salaries & wages is based on budgeted, planned, & assigned work activity, updated to reflect any significant changes in work distribution  Effort system encompasses both sponsored & all other activities on an integrated basis  Activities are expressed as a percentage distribution  Effort system provides for modifications of salary distribution commensurate with significant change in the employee’s work activity 6

Effort System & Financial Reporting  Distribution of salaries & wages to sponsored projects must be documented with generally accepted practices of colleges & universities  There is no single best method for documentation of distributed charges for personal services, but they must follow the requirements of OMB Circular A-21  Financial reports must reflect documented charges for salaries and wages subsequently certified by effort statements  Financial reports must be filed in a timely manner 7

What does it mean for you?  Salary distributions should be entered in the financial system prospectively  Financial reports are generally due 90 days after budget period end  Changes to salary distributions should be made at least by the midpoint milestone and end of the effort period  Salary and wage charges must be entered in a timely manner to support financial reports to the sponsor 8

1 st Period July Sept OctDec 2 nd Period Jan Mar 3 rd Period Apr June FY Periods 4 th Period FY 2008-Semesters 1 st Period June Sept Sept 2 nd Period Jan June 3 rd Period Jan Salary distributions must be current 9

What are the consequences?  Failure to process timely salary charges will result in:  A revised financial report for salary charges removed from sponsored accounts after the financial report has been filed results in unnecessary additional costs  Addition of charges after financial report has been filed will not be accepted – these will be charged to departmental non-sponsored accounts – timely charges meeting milestones will mitigate this departmental risk 10

Summary  Change of business process to be consistent with A-21  Work on sponsored projects will be consistent with the demands of academic terms making it easier to estimate effort on projects  Less time will be spent coordinating effort statements  Cost of effort certification will be reduced. 11

Questions? 12