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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
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Presentation to Grants Management User Network (GMUN)onEffort 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 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
…Changes coming for FY 2008 • 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 5
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
FY 2008-4 Periods July Sept Oct Dec 1st Period Jan Mar 2nd Period Apr June 3rd Period 4th Period FY 2008-Semesters Salary distributions must be current June Sept Jan 1st Period Sept Jan June 2nd Period 3rd Period 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