1. Time and Effort Reporting

2. Where is the Requirement? Time and effort reporting is required under the Federal Office of Management and Budget’s Circular A-87, Cost Principles for State, Local, and Indian Tribal Governments (Codified as 2 CFR 225) 1. Attachment A, General Requirements must first be met, then look to 2. Attachment B, Selected Items of Cost, Item 11, Compensation for personnel services

3. Where is the Requirement? OMB Circular A-87, Attachment A OMB Circular A-87, Attachment A To be allowable a cost must To be allowable a cost must Be necessary and reasonable to proper and efficient performance and administration of the federal program Be necessary and reasonable to proper and efficient performance and administration of the federal program Be allocable to the program Be allocable to the program Be consistent with other federal and non-federal charges Be consistent with other federal and non-federal charges Be authorized and conform to any limitations of exclusions Be authorized and conform to any limitations of exclusions Be adequately documented Be adequately documented

4. When is Time and Effort Required? Time and effort reporting is required when any part of an individual’s salary is charged to a federal program Time and effort reporting is required when any part of an individual’s salary is charged to a federal program Charge may be “direct” or “indirect” Charge may be “direct” or “indirect”

5. What type of reporting is needed? Single cost objective → Semi annual certification Single cost objective → Semi annual certification Multiple cost objectives → Monthly time reports or Personnel Activity Reports (PARs) Multiple cost objectives → Monthly time reports or Personnel Activity Reports (PARs)

6. What is a cost objective? Work activities allowable under the terms and conditions of a funding source

7. What are some examples of a single cost objective? 100% charged to a single federal program activity 100% charged to a single federal program activity Exceptions Exceptions Federal Special Education and State Special Education Federal Special Education and State Special Education Schoolwide programs Schoolwide programs Multiple activities in a single federal program Multiple activities in a single federal program

8. What are some examples of multiple cost objectives? Salary charged to more than one activity in a single federal program Salary charged to more than one activity in a single federal program Salary charged partially to federal program and partially to state and/or local sources Salary charged partially to federal program and partially to state and/or local sources Salary charged partially to sources combined into a schoolwide program and partially to those not included Salary charged partially to sources combined into a schoolwide program and partially to those not included

9. What is a semi annual certification? Statement individual(s) worked solely on activities related to single cost objective Statement individual(s) worked solely on activities related to single cost objective Completed at least every six months Completed at least every six months Signed by employee or supervisor with first-hand knowledge of work performed Signed by employee or supervisor with first-hand knowledge of work performed

10. What is a monthly time report? (PAR) Accounts for total activity Accounts for total activity Prepared at least monthly Prepared at least monthly Signed by employee Signed by employee Reflects actual work performed (not budget) Reflects actual work performed (not budget) Agrees to supporting documentation Agrees to supporting documentation

11. When are adjustments to actual made? If payroll is initially based on budgeted or estimated time/amounts, payroll and time and effort reports must be compared at least quarterly If payroll is initially based on budgeted or estimated time/amounts, payroll and time and effort reports must be compared at least quarterly If the difference is 10% or more If the difference is 10% or more and any needed adjustments made and any needed adjustments made  Payroll records must be adjusted to actual  Following quarter’s estimates must be adjusted

12. What time and effort is reported? Report time actually worked in a specific activity not time budgeted Report time actually worked in a specific activity not time budgeted Budgets are reconciled to actual at least quarterly Budgets are reconciled to actual at least quarterly

13. Who should sign the reports? Monthly reports (PARs) should be signed by the employee Monthly reports (PARs) should be signed by the employee Semi annual certifications should be signed by employee or supervisor having first-hand knowledge of work performed Semi annual certifications should be signed by employee or supervisor having first-hand knowledge of work performed For internal control purposes, districts may require both the employee and supervisor to sign For internal control purposes, districts may require both the employee and supervisor to sign

14. What type of supporting documentation is needed? Documentation is VERY important Documentation is VERY important Examples include, but are not limited to: Examples include, but are not limited to: Class schedules Class schedules Number of students Number of students Number of minutes Number of minutes Remember Remember DOCUMENT! DOCUMENT! DOCUMENT! DOCUMENT! DOCUMENT! DOCUMENT!

15. Supplemental Contracts, Stipends, Extra Hours Primary contract and additional contracts may be considered separately Primary contract and additional contracts may be considered separately Based upon whether or not charged to federal program Based upon whether or not charged to federal program Time and effort may be required for primary contract but not supplemental (or vice versa) Time and effort may be required for primary contract but not supplemental (or vice versa)

16. Administrators Superintendent, assistant superintendent, principal, assistant principal usually not allowable charge to federal program Superintendent, assistant superintendent, principal, assistant principal usually not allowable charge to federal program Requires good documentation to support Requires good documentation to support Could be a supplant issue Could be a supplant issue

17. What is a substitute system? Other method for determining time and effort report based on sample of work performed Other method for determining time and effort report based on sample of work performed Must be approved by OSPI prior to use Must be approved by OSPI prior to use JoLynn Berge is responsible for approval JoLynn Berge is responsible for approval Must be statistically sound Must be statistically sound Should be periodically reviewed to determine if still appropriate Should be periodically reviewed to determine if still appropriate

18. Schoolwide Programs Schoolwide plan must specify programs to be included (not all programs may be included) Schoolwide plan must specify programs to be included (not all programs may be included) A schoolwide program is a single cost objective A schoolwide program is a single cost objective If employee works 100% on programs combined → Semi annual certification If employee works 100% on programs combined → Semi annual certification If employee works partially on programs combined and partly on those not combined, → Monthly time report (PAR) If employee works partially on programs combined and partly on those not combined, → Monthly time report (PAR)

19. For Additional Information OSPI Bulletin 048-08 (Time and Effort Reporting) OSPI Bulletin 048-08 (Time and Effort Reporting) Examples Examples Sample forms Sample forms OSPI Bulletin 055-09 (Combining Funds in Schoolwide Programs) OSPI Bulletin 055-09 (Combining Funds in Schoolwide Programs) OMB Circular A-87, Cost Principles for State, Local, and Tribal Governments OMB Circular A-87, Cost Principles for State, Local, and Tribal Governments