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 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

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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

FY Period Percent complete at 3 weeks

Percent complete at 5 weeks

FY04 P3 11% 54%

FY04 P4 34% 82%

FY05 P1 41% 92%

FY05 P2 49% 93%

FY05 P3 48% 91%

FY05 P4 45% 90%

FY06 P1 45% 92%

FY06 P2 47% 93%

FY06 P3 41% 86%

FY06 P4 47% 83%

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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

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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

…Changes coming for FY 2008

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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

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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

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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

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1st Period

July Sept

Oct Dec

2nd Period Jan Mar

3rd PeriodApr June

FY 2008-4 Periods

4th Period

FY 2008-Semesters

1st Period

June Sept

Sept

2nd Period

Jan

June

3rd Period

Jan

Salary distributions must be current

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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

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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.

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Questions?

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