1. Time and Effort Reporting: Documenting Employees’ Personnel Costs Kristen Tosh Cowan, Esq. ktoshcowan@bruman.com Brustein & Manasevit, PLLC Fall Forum 2011

2. THE BASICS ON KEEPING TIME ACCOUNTING RECORDS

3. Terminology Time and attendance records Payroll records Worked 8:00-4:00 Time and effort records Time distribution records Worked 50% on Title I administration and 50% on nonfederal 3

4. Who must participate?  Any employee who is working on a federal program ◦ Not contractors ◦ All employees paid with federal funds ◦ Some employees paid with non-federal funds 4

5. A-87: If employee works 100% on single cost objective Semi-Annual Certification Signed every six months by supervisor or employee “This is to certify that Kristen Cowan has worked 100% of her time for the period January 1, 2010, through June 30, 2010, on Perkins Administration.” Signature of employee: Date: 5

6. A-87: If employee works on 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 2009, I spent my time 50% on Title I Program Services and 50% on non-federal programs.” Signature of Employee: Date: 6

7. PARs must: After-the-fact record Total activity for which employee compensated At least monthly (unless substitute system) Signed and dated by employee 7

8. OIG Time and Effort Findings: 2006 – Columbus - $2.3 million 2008 – Detroit - $49 million 2009 – Houston - $238 million 2010 – Philadelphia - $123 million 8

9. BRUSTEIN & MANASEVIT: GRANTS MANAGEMENT 101 Time and Effort Documentation QUIZ!

10. Question 1: A district administrator works approximately half time on NCLB Title I, Part A, and half on IDEA. She is required to keep: A. Monthly PARs B. Semi-annual certifications 10

11. Question 2: A district administrator works approximately half time on NCLB Title I, Part A, and half on Title I, Part C (Migrant). She is required to keep: A. Monthly PARs B. Semi-annual certifications 11

12. Question 3: A district administrator spends 100% of his time on NCLB Title I, Part A, although half of his salary is funded from non- federal sources. He is required to keep: A. Monthly PARs B. Semi-annual certifications 12

13. Question 4: A district administrator works approximately half time on NCLB Title I, Part A, and half on non-federal activities, although his salary is funded 100% from Title I, Part A. He is required to keep: A. Monthly PARs B. Semi-annual certifications C. Bail money on hand 13

14. Question 5: The district’s NCLB Director works on Title I, Part A, Title II, Part A, and 21 st Century. The district consolidates its NCLB administrative funds. The Director is required to keep: A. Monthly PARs B. Semi-annual certifications 14

15. Question 6: The district has a contract with an SES provider for afterschool tutoring for students. The contract is paid with Title I funds. Do the contractor’s employees need to keep time and effort records? A. Yes B. No 15

16. Question 7: Making journal voucher adjustments to accounts typically is unrelated to employees keeping time and effort records. A. False B. True 16

17. Question 8: A classroom teacher in a targeted assistance school provides Title I services and is paid with Title I, Part A funds. Just like any other federally-paid employee, she is required to keep time and effort records. A. True B. False 17

18. Question 9: A classroom teacher is paid with non- federal funds used for a match under a federal program. Because she is paid with nonfederal funding, she is not required to keep time and effort records. A. True B. False 18

19. Question 10: In a schoolwide program, a teacher is paid with Title I funds and works 100% on the schoolwide program plan. What kind of time and effort records is she required to keep? A. Semi-annual certifications B. Monthly PARs C. It depends 19

20. BIG QUESTION WHAT IS A SINGLE COST OBJECTIVE??? 20

21. What is a “Cost Objective”? A-87 Definition: A function, organizational subdivision, contract, grant or other cost activity for which cost data are needed and for which costs are incurred. 21

22. 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 22

23. USDE Guidance: Draft Examples of Single Cost Objectives An LEA supports a supplemental math teacher to serve low-achieving students with 50% Title I and 50% state compensatory education funds. 23

24. Draft Examples of Single Cost Objectives Each elementary school has a part-time librarian 3 days/ week paid with local funds. An LEA adds 2 days/ week for its Title I schoolwide schools paid with Title I Part A funds. 24

25. Draft Examples of Single Cost Objectives A preschool special education teacher is funded with 50% IDEA section 611 and 50% with IDEA section 619 funds. 25

26. Essential Legal Resources OMB Circulars A-87: Cost Principles for State and Local Governments HHS Implementation Guide for A-87: ASMB C-10 (1997) http://rates.psc.gov/fms/dca/asmb%20c- 10.pdf 26

27. Resources, cont. Cost Allocation Guide for State and Local Governments (or “Green Book”) (Sept 2009) http://www2.ed.gov/about/offices/list/ocfo/fipao/ guideigcwebsite.pdf http://www2.ed.gov/about/offices/list/ocfo/fipao/ guideigcwebsite.pdf Montana Compact www.bruman.com Program-specific guidance USDE officials 27

28. Ideas for Reducing Burden

29. Consolidated Administration Combine administration for all NCLB programs NOT non-administrative activities Single Cost Objective Semi-annual certification LEA needs approval of SEA 29

30. “Blanket” Semi-Annual Certification Single cost objective (semi-annual cert) Multiple employees Signed by supervisor with first-hand knowledge (principal) 30

31. 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 31

32. Schoolwide time records If LEA/ school consolidates.... Then must keep... All federal, state, and local fundsNo time and effort records Federal only (“Consolidated federal pot”) Semi-annual – if works ONLY on SWP Plan (single cost objective) Monthly PAR – if works on SWP Plan and other programs not in Plan (multiple cost objectives) Nothing (only Title I funds SWP)Semi-annual – if works ONLY on SWP Plan (single cost objective) Monthly PAR – if works on SWP Plan and other programs not in Plan (multiple cost objectives) 32

33. How to set up a time distribution system

34. How to set up time distribution system: 1) Plan initial funding allocations well May use “budget estimates” for initial allocations Supervisors need to be on board 34

35. CAUTION: Beware of Re-organizations!

36. 2) Develop written time distribution policies and procedures  “How to” instructions for employees  reporting vacation, travel, long-term leave  Manual for fiscal side  Frequency of comparing estimates to actual costs, handling of deviations, monitoring of system 36

37. 3) Train employees On mechanics of filling out form On which federal program cost objective they are working Refresher training New employee training 37

38. 4) Close supervision Supervisors should be aware of deviations of effort from initial budget estimates Be ready to redirect work of employee or adjust grant supporting salary 38

39. USDE is soliciting ideas for pilot programs: 1. mechanisms for consolidating funds in schoolwide programs 2. time and effort reporting under A-87 3. documenting compliance with other record keeping and reporting requirements USDE “Burden Reduction” Pilot Program 39

40. Blog Post: www.ed.gov/blog/www.ed.gov/blog/ Email: burden.pilots@ed.govburden.pilots@ed.gov Submit ideas to: 40

41. QUESTIONS??