1 / 14

Effort Reporting and Institutional Base Salary

Effort Reporting and Institutional Base Salary. Business and Fiscal Officers Meeting – 9/21/10 Presented by: Glen Jones, Director Post-Award Research and Sponsored Programs. Background on Effort Reporting.

peers
Download Presentation

Effort Reporting and Institutional Base Salary

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Effort Reporting and Institutional Base Salary Business and Fiscal Officers Meeting – 9/21/10 Presented by: Glen Jones, Director Post-Award Research and Sponsored Programs

  2. Background on Effort Reporting • Effort Reporting is a complex regulatory requirement, and is routinely a focus area for sponsor audits. The following slides will help to understand: • What is Effort Reporting? • Why is Effort Reporting Necessary? • What Guidelines Govern Effort Reporting? • Why is Effort Reporting a Hot Topic?

  3. Background on Effort Reporting • What is Effort Reporting? • Effort Reporting is a method by which an institution attests to the federal government that salaries charged to sponsored agreements or cost share activities represent a reasonable reflection of effort devoted to those activities.

  4. Background on Effort Reporting • Why is Effort Reporting Necessary? • Effort Reporting provides assurance to the federal government that federal monies are being spent as intended with respect to payroll related costs.

  5. Background on Effort Reporting • What Guidelines Govern Effort Reporting? • Colleges and Universities: Office of Management and Budget (OMB) Circular A-21 –Cost Principles for Educational Institutions

  6. Background on Effort Reporting • Why is Effort Reporting a Hot Topic? • There is no precise way to measure time spent on each individual activity that comprises a faculty member’s salary • Increased emphasis on federal audits in this area by NSF and the National Institutes of Health (NIH) • Recent large settlements at prominent institutions “…It is recognized that, in an academic setting, teaching, research, service, and administration are often inextricably intermingled. A precise assessment of factors that contribute to costs is not always feasible, nor is it expected. Reliance, therefore, is placed on estimates in which a degree of tolerance is appropriate.” – OMB Circular A-21

  7. Effort Reporting Requirements • What are the Requirements of Effort Reporting? • Employees’ salary or wages must be accounted for using a method that will capture all activities during the period • Direct activities must be distinguished from other, indirect or non-sponsored, activities • Direct and other activities must be confirmed with an individual with first-hand knowledge or a “suitable means of verification” that the work was performed • Significant changes in direct and other work activities must be identified and entered into the payroll distribution system • The system will provide for independent evaluations to ensure effectiveness and compliance with the standards

  8. Effort Reporting Requirements • What are the Requirements of Effort Reporting? • Charges for work on sponsored agreements are to be based on the faculty member’s regular compensation that constitutes the Institutional Base Salary (IBS) • Charges to sponsored agreements may not exceed the proportionate share of the base salary for that period, based on the level of effort allocated • Proposal costs are to be treated as F&A costs

  9. Definition-Institutional Base Salary (IBS) • The annual compensation paid by an organization for an employee’s appointment, whether that individual’s time is spent on research, teaching, administrative, or other activities.

  10. Institutional Base Salary Includes • Full workload/IBS includes: • Instruction • Research • Administration, including appointments as dean, chair, and/or center director

  11. Challenges with IBS and Effort • Base salary and commitment/effort calculation in proposal • Base salary rate should be consistent between proposal and effort certification • Estimating base salary for multiple appointments with different contract periods? • Example: 9-month faculty appointment + 12-month chair appointment

  12. Challenges with IBS and Effort • Salary paid 9 over 12 months • 9-month appointment but salary is paid over 12 months • Charges to non-sponsored accounts on a 9 over 12 basis? • Charges to sponsored accounts at the “earned” rate (9 over 9)? • Salary should be restated to the 9-month appointment basis for effort reporting • Summer salary rate should be based on the restated 9-over-9 academic salary rate

  13. IBS Examples • Fiscal Faculty – FY10 • 12/12 Faculty Appointment - $90K • 12/12 Stipend for being Director of a Center - $10K • Overload for teaching - $5K (Excluded from IBS) • 25% Effort on a grant • Institutional Base Salary - $100K • Spring Effort Report • Instruction $16,250 or 65% • Administration 2,500 or 10% • Research (Grant) 6,250 or 25% • Total $25,000 or 100%

  14. IBS Examples • Academic Faculty – FY10 • 9/12 Faculty Appointment - $90K • 12/12 Stipend for being Director of a Center - $10K • Overload for teaching - $5K (Excluded from IBS) • 25% Effort on a grant • Institutional Base Salary - $100K • Spring Effort Report • Instruction $21,875 or 67.3% • Administration 2,500 or 7.7% • Research (Grant) 8,125 or 25% • Total $32,500 or 100%

More Related