time and effort documentation best practices

Brustein & Manasevit, Brustein & Manasevit, PLLCPLLC

Tiffany R. Winters, Esq.

[email protected]

@Trwinters

Time and Effort Documentation Best Practices

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Mike F. Bender, [email protected]

@MBender1230Brustein & Manasevit, PLLC

Fall Forum 2013


Audit Findings and Amounts

2006 – Columbus – $2.3 million

2008 – Detroit – $49 million

2010 – Philadelphia – $123 million

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Time and Effort Documentation 101

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OMB Circulars Time and Effort Rule

If federal funds are used for salaries, then time distribution records are required.

How staff demonstrate allocability If employee paid with federal funds, then must show

that the employee worked on that specific federal program cost objective.

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Who must participate?

All employees paid with federal funds!!

Some employees paid with non-federal fundsWhen salaries are used for

match purposes

NOT contractors

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Does Celine Dion have to keep time and effort records?

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The Current OMB Rules

A-87: State and Local Educational Agencies

A-21: Institutions of Higher EducationA-122: Nonprofit Organizations48 C.F.R. Part 31: For Profit Agencies

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A-87: If employee works 100% on single cost objective

Semi-Annual CertificationCompleted at least every ___________After-the-fact record (dated)Signed by ___________Accounts for the total activity for which

employee compensatedMust coincide with one or more pay periods

The Administrator’s Handbook on EDGAR, page 233.8


9Brustein & Manasevit, Brustein & Manasevit, PLLCPLLC


A-87: If employee works on multiple cost objectives

Personnel Activity Reports (PARs) After-the-fact record Accounts for the total activity for which employee

compensated Completed at least ___________ Signed by ___________ Must coincide with one or more pay periods

The Administrator’s Handbook on EDGAR, page 233.

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OMB Circular A-21: Institutions of Higher Education

3 Options:

Plan Confirmation: • Budgeted allocations for professional/professorial

staff;• Updated to reflect any significant changes in

actual work

Multiple Confirmation Records: • Variety of records kept in combination at least

monthly1212


OMB Circular A-21: IHEs (cont.)

After-the-Fact Activity Reports: Professional/Professorial staff keep records every

_______ All other employees keep _______ recordsSigned by employee, principal investigator, or

responsible official using suitable means of verification

Must reflect activity applicable to each sponsored agreement and to each category needed to identify F&A costs

The Administrator’s Handbook on EDGAR, pages 192 - 194

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OMB Circular A-122: Nonprofit Institutions

Need PARs to support salaries and wages of ALL staff paid (in whole or in part) with federal funds

Similar to A-87 (but not identical) After-the-fact record and dated Accounts for the total activity for which

employee compensated Completed at least _________ Signed by _______________________

The Administrator’s Handbook on EDGAR, page 2701515


For-Profits?????? 48 C.F.R. Part 31

Silent on required documentation…

So what does that mean???

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Time and Effort Guidance by OCFO!!!

http://www2.ed.gov/policy/fund/guid/gposbul/time-and-effort-reporting.html

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OCFO Guidance (cont.)It is possible to work on a single cost objective even

if an employee works on more than one Federal award or on a Federal award and a non-Federal award.

The key to determining whether it is a single cost objective is whether the employee’s salary and wages can be supported in full from each of the Federal awards on which the employee is working or from the Federal award alone if the employee’s salary is also paid with non-Federal funds.



Substitute Systems

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Substitute Systems Generally

Substitute systems may be used in place of these reports if approved by the cognizant agency. These systems are subject to approval if

required by the cognizant or oversight agency.

May include random moment sampling, “rolling” time studies, case counts, or other quantifiable measures of employee effort.



Substitute SystemMay an employee working on multiple cost objectives at the same time document time and effort under a substitute system?

A. Yes B. NoC. It Depends.

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AUDIENCE Q & A

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Time and Effort – Advanced Topics

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Questionable Questioned CostsGoing above and beyond can backfire.

Example 1Recorded time in six minute intervalsUp to 1000 different program codes. Too many user errors.

Example 2“At least semi-annually”Using monthly PARs for employees that

worked on single cost objectives.

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Federal Stipends

If a State-funded employee is paid a stipend with federal funds for attending professional development, does time and effort documentation have to be kept?

A. YesB. No

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Federal Stipends

Federal funds can generally be used to pay for stipends for professional development or other extra-curricular activities.

Time and Effort documentation must be kept.

Maryland January 2013 ARRA Audit - Documentation not kept for employees

partially funded with federal funds.

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De Minimus Benefit

If a teacher works on a single cost objective but also has limited other responsibilities, such as cafeteria or bus duties. This teacher must keep:

A. Monthly PARsB. Semi-annual certifications

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De Minimus BenefitLimited work on another cost objective does not

need to be captured in time and effort records. Employees may work 5% or less on another

cost objective.The worked performed on these limited duties

cannot deprive a benefit from the intended beneficiaries.

The Montana Compact on Time Distribution, at p. 8, Q11.

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Substitute Teachers

Are substitute teachers paid with federal funds required to track their time?

A. YesB. No

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Part-Time Employees

Are part-time employees required to track their time?

A. YesB. No

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Blanket CertificationMultiple employees working on the same single cost objective can be identified on a single semi-annual certification.

A. True B. False

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Blanket CertificationProvides flexibility. Identifies multiple employees working on the

same single cost objective. Must be prepared at least semi-annually. Signed and dated by supervisor with

firsthand knowledge of the employees’ work.

The Montana Compact on Time Distribution, at p. 3.

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Contractors v. EmployeesThe district has a Title I, Part A funded contract with a vendor for afterschool tutoring of Title I students. Do the contractor’s employees need to keep time and effort records?

A. YesB. No

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Characteristics of a Contractor

Provides goods or services within normal business operations.

Provides similar goods or services to others.

Operates in a competitive environment. Provides goods or services that support the

Federal program.Subject to terms of a contract but not

compliance requirements of program. OMB Circular A-133(B) §__.210(c)

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Time and Effort Flexibility

An employee teaches a special education classroom during school hours and provides additional instruction at the school’s afterschool program. The regular school position is paid for with IDEA funds while Title I, Part A funds pay for the after-school position. The employee must keep a PAR. A.TrueB.False

The Administrator’s Handbook on EDGAR, page 323, Example 538


Time and Effort Flexibility

An employee works on IDEA, Part B and local-funded cost objectives during school hours and provides additional instruction at an after-school program. Title I, Part A funds pay for the after-school position. The employee may:A.Keep a PAR for all activitiesB.Keep a PAR and a semi-annual certificationC.Either A or BD.None of the above

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Bonus Question

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A school receives funding through the USDA National School Lunch Program and direct charges its janitorial staff. If the janitorial staff cleans the entire school, what type of documentation should it keep?

A. PARB. Semi-annual Certification


Examples - Right or Wrong?

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PAR Example

I certify that for the month of August 2013 I, Michelle Obama, spent my time working on the following programs:

Title I, Admin 20%State programs 30%____

Total 50%Signed: ___/s/____ September 10, 2013

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Semi-Annual Certification Example

I, Britney Spears, certify that I worked 100% of my time on IDEA, Part B from February 1, 2012 to July 31, 2013.

Signature of Employee ____/s/______________Date: August 1, 2013

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Semi-Annual Certification Example

I, Taylor Swift, certify that I worked 100% of my time on Title I, Part A Administration from January 1, 2012 to June 30, 2013.

Signature of Employee ____/s/______________Date: June 20, 2013

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PAR Example

I certify that for the month of October 2013 I, Justin Beiber, spent my time working on the following programs:

21st CCLC, Admin 20%State programs 30%Annual Leave 50%

Total 100%Signed: ___/s/____ November 10, 201345


Blanket Certification ExampleThis is to certify that the following individuals have worked 100% of their time on the following cost objectives for the months of March 1 to August 31.

Signed: ___/s/____

September 10, 201346

Position Name Cost Objective

Teacher David Copperfield Title I, Part A - Programmatic

Teacher Chris Angel IDEA, Part B – Programmatic

Guidance Counselor Penn Jillette Title III, Equitable Services

Tutor Ray Teller 21st CCLC - Programmatic


PAR Example

I certify that for the month of October 2013 I, Barack Obama, spent my time working on the following programs:

21st CCLC, Admin 85%State programs 15%____

Total 100%Signed: ___/s/____ November 15, 201347


Semi-Annual Certification

I certify that for the month of October 2013 I, Orlando Bloom, spent 60% of my time working on Title I, Admin.

I certify 100% that the above information is accurate.

Signed: ___/s/____ November 5, 2013

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Questions??

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Disclaimer

This presentation is intended solely to provide general information and does not constitute

legal advice. Attendance at the presentation or later review of these printed materials does not

create an attorney-client relationship with Brustein & Manasevit, PLLC. You should not take any action based upon any information in this presentation without first consulting legal

counsel familiar with your particular circumstances.

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