Policy 3-020: Effort Reporting

1. Purpose:
   1. Effort allocation and certification at the University is required by the federal government and other awarding agencies. It is the responsibility of the University, its departments and individual employees to ensure compliance with effort reporting requirements which includes the appropriate budgeting, charging and certification of effort.
2. Definitions:
   1. Annualized Base Amount (ABA) is the maximum amount the employee would receive for the designated position if he/she were to work full-time (1.0FTE) for the full year (12months). Each employee can have only one ABA on the database at a time.
   2. Certification is the act of attesting to the effort expended.
   3. Personal Activity Report (PAR) is a periodic after-the-fact report of effort certified for exempt employees.
   4. Principal Investigator is an individual designated by the grantee to direct the project or activity being supported by the grant or contract. He or she is responsible and accountable to the grantee and agency for the proper conduct of the project or activity.
   5. A “Responsible Official” may be a department chairperson, account executive, or supervisor, depending on the circumstances.
   6. Time and Attendance System is a periodic after-the-fact report of effort certified for hourly employees.
3. Policy:
   General
   The federal government requires an effort reporting system. The University of Utah has established Personal Activity Reporting (PAR) for exempt employees and a time and attendance system for hourly employees as a means of satisfying these requirements.
   1. Principal Investigator Responsibility:
      1. The Principal Investigator (PI) has responsibility for the fiscal management of a sponsored award including associated effort reporting. Fiscal responsibility may be delegated but accountability remains with the PI.
   2. Circular A-21 Rules and Procedures:
      1. Circular A-21 contains rules and Procedures for the substantiation and documentation of direct and indirect (F&A) payroll costs charged to federal grants and contracts. To comply with the requirements, the University has established a Personal Activity Report (PAR) system which consists of after-the-fact effort reports for all exempt employees who expend effort on sponsored projects for which reimbursement is claimed from the grantor and, in addition, exempt employees paid from state appropriations in a department associated with grants and contracts. The PAR must be completed to show:
         1. 100 percent of the effort expended in fulfilling the obligations of the employee’s University appointment and,
         2. The percentage distribution of payroll charges to each federal agreement.
      2. A report form listing the major direct cost categories will be prepared for each individual required to report. The report will also list the employee’s total payroll distribution in dollars and percentages. The employee will be asked to review the percentage payroll distribution to federal projects, make any necessary adjustments and then certify the report. The effort reporting system provides the principal means for certifying that the salaries and wages are consistent with the portion of effort committed to the grants and contracts. If the percentage of distribution is changed then appropriate earnings plus related benefits, taxes and indirect (F&A) costs will be adjusted
      3. Total reported effort, which is the time required to complete all ABA University duties, must be reported in terms of 100% regardless of the number of hours spent in any given period. Adjustments should be made on the PAR for any variances of actual effort expended compared to the percentages reported. Dollars will then follow the certified percentages.
   3. Cost Accounting Standards (CAS) for Educational Institutions requires:
      1. CAS 9905.501 – Consistency in estimating, accumulating and reporting costs by educational institutions.
      2. Effort should be budgeted (estimated) in proposals, charged, certified (accumulated) and reported consistently.
   4. Effort Report Signature:
      1. The effort report is to be signed by the employee or a responsible official with firsthand knowledge of the work performed by the employee. It is highly recommended that the employee sign his/her own PAR report
   5. Educating Faculty, Staff and Students Involved in Effort Reporting:
      1. Deans and department chairs will inform their faculty, administrative staff and students of the university’s policies and Procedures for effort reporting and monitor compliance. Guidelines are available on the University of Utah web site.
4. Rules, Procedures, Guidelines, Forms and other related resources
   1. Rules
   R3-020A, Personal Activity Report (PAR) System; Original
   R3-020B, Personal Activity Report (PAR) System, Rules for; October 2008
   2. Procedures
   P3-020A, Personal Activity Report (PAR) System; Original
   P3-020B, Personal Activity Report (PAR) System, Rules for; October 2008
   3. Guidelines [reserved]
   4. Forms [reserved]
   5. Other Related Resources [reserved]
5. References
   1. United States Office of Management and Budget CIRCULAR A-21, Revised 05/10/04, Cost Principles for Educational Institution:
      1. (J.) General provisions for selected items of cost (10.) Compensation for personal services
      2. Appendix A: Cost Accounting Standards (CAS) for Educational Institutions
6. Contacts
8. Acting as the Policy Owner, the Office of the Controller is responsible for answering questions regarding the application of this policy. Acting as the Policy Officer, the Office of the Vice President for Administrative Services has the authority to allow exceptions to this policy.
9. History
1. Approved by Board of Trustees; February, 12, 2007
2. Editorially changed to update Rules, Procedures, format, owner and officer; August 17, 2009.