Grants & Contract Accounting & OSP All rights reserved GTRC Special Considerations – Cost Sharing...

Grants & Contract Accounting & OSPAll rights reserved GTRC

Special Considerations – Cost Sharing and Effort Reporting

October 23, 2012

Presenters:

Sandy Mason

Robert Ellington



Introduction …..

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Sponsor Portion $250,000

Georgia Tech Portion $250,000

Total Project

$500,000



Overview

I. Office of Sponsored Programs - PoliciesII. OMB Circular A-110 Cost Sharing or MatchingIII. Managing Cost Share Projects in the GM

SystemIV. Special Cost Share ProceduresV. Words from a Sponsor – NSFVI. Audits of Cost Share

ExpendituresVII. Discussion Summary

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I. Office of Sponsored Programs – Policies

Georgia Institute of Technology

Office of Sponsored Programs

Policies & Procedures Manual

POLICIES AND PROCEDURES

Project Management: 5.0

Subject: Cost Sharing

http://www.osp.gatech.edu/

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I. Office of Sponsored Programs – Policies1. Whenever cost sharing is proposed as

part of a sponsored project, the source of funds must be identified and approval obtained from the person with authority to commit those funds.

2. If the source is identified as "To Be Determined", the funds from the unit originating the proposal are obligated until an actual source is committed prior to the time of award.

3. Funds to be provided by entities outside of Georgia Tech, typically referred to as “third-party” cost sharing, must be supported at the proposal stage by written documentation from the outside entity indicating their commitment to provide cost sharing.

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I. Office of Sponsored Programs – Policies4. Cost sharing funds are actually made

available to the Project Director/Principal Investigator (PD/PI) when/if the proposal results in a sponsored award.

5. Cost sharing approvals are obtained by way of the Proposal Routing Form and a Cost Sharing Approval Form.

6. The Office of Sponsored Programs (OSP) furnishes a management report of all outstanding cost sharing commitments associated with pending sponsored proposals to the Office of the President on a monthly basis.

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I. Office of Sponsored Programs – Policies7. Upon receipt of a sponsored award,

OSP obtains a sponsored project number and a cost sharing project number from either Grants & Contracts Accounting or GTRI Accounting, as appropriate.

8. This process opens chargeable projects for the PD/PI and the responsible unit to use during the course of the project.

9. The sponsored and cost sharing project budgets, provided by OSP to the appropriate accounting office, will be valued at the funded amount of the sponsored award and at the associated amount of committed cost sharing respectively.

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I. Office of Sponsored Programs – Policies10. It is the responsibility of the PD/PI or the

unit business officer to work with appropriate personnel in the Dean’s Office or President’s Office to make available committed cost sharing funds from that authority's sources.

11. In the case of a President's Office obligation, the PD/PI must submit a written request for the necessary cost sharing funds which are generally provided by way of GTRC Matching Grants.

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I. Office of Sponsored Programs – Policies12. It is important that the PD/PI and

his/her unit business officer identify appropriate charges to be applied against cost sharing projects throughout the life of a sponsored award.

13. All required cost sharing obligations must be met and properly documented in the Institute accounting system before the projects can be financially closed out.

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II. OMB Circular A-110 Cost Sharing or Matching

Acceptable CostsC23a: All contributions, including cash and third party in-kind, shall be

accepted as part of the recipient’s cost sharing or matching when such contributions meet all of the following criteria:(1) Are verifiable from the recipient's records.(2) Are not included as contributions for any other federally-assisted project or program.(3) Are necessary and reasonable for proper and efficient accomplishment of project or program objectives.(4) Are allowable under the applicable cost principles.

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Acceptable Costs (Continued)(5) Are not paid by the Federal Government under another award, except where authorized by Federal statute to be used for cost sharing or matching.(6) Are provided for in the approved budget when required by the Federal awarding agency.(7) Conform to other provisions of this Circular, as applicable.

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Facilities & Administrative (Indirect) Costs

C23b: Unrecovered indirect costs may be included as part of

cost sharing or matching only with the prior approval of the

Federal awarding agency.

Allowable for Recorded Expenditures

Values for Recipient Contributions

C23c: Values for recipient contributions of services and

property shall be established in accordance with the applicable

cost principles.

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Services by Volunteer or Employee Services

C23h(5i). Volunteer services shall be documented and supported

by the same methods used by the recipient for its own employees

Documented after-the-fact (Hours, Date, Rate) and certified

Volunteer or Employee Services

C23d: Volunteer services furnished by professional and technical

personnel… and other skilled and unskilled labor may be counted as

cost sharing if the service is an integral and necessary part of an

approved project.

Rates for volunteer services shall be consistent with those paid for

similar work in the recipient’s organization.

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Volunteer or Employee Services (continued)

If the required skills are not found in the recipient organization,

rates shall be consistent with those paid for similar work in the labor

market in which the recipient competes for the kind of services

involved. In either case, paid fringe benefits that are reasonable,

allowable, and allocable may be included.

C23e: When an employer other than the recipient furnishes the

services of an employee, these services shall be valued at the

employee’s regular rate of pay (plus fringe benefits that are

reasonable, allowable, and allocable), provided these services are

in the same skill for which the employee is normally paid.

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Donated Supplies

C23f: Donated supplies may include such items as expendable

equipment, office supplies, laboratory supplies or workshop

and classroom supplies. Value assessed to donated supplies

included in the cost sharing share shall be reasonable and shall

not exceed the fair market value of the property at the time of

the donation.

Donated Equipment, Buildings, and Land

23h: The value of donated property shall be determined in

accordance with the usual accounting policies of the recipient…

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Determining the Value of Donated Property

Basis: “Fair Market Value”

Must be documented and certified

C23h(1). The value of donated land and buildings shall

not exceed its fair market value at the time of donation to the

recipient as established by an independent appraiser (e.g.,

certified real property appraiser or General Services

Administration representative) and certified by a responsible

official of the recipient.

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* Voluntary Cost Share in proposal becomes mandatory in award

“Don’t say it if you don’t really mean it!”

* Beware of expressions of support in budget narratives and work-scope that are not included in the budget figures

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III. Managing Cost Share Projects in the GM System

Cost Sharing ProjectsInstitute procedures for cost sharing provide for the identification of specific projects to account for cost sharing expenditures required for sponsored projects.

At project initiation, OSP identifies the amount of the cost sharing obligation for each agreement and a separate Project is established to account for the expenditures as they are made during the performance of the sponsored activities.

Occasionally other cost sharing projects are established to provide additional or alternate funding for cost sharing expenditures and these projects need to be identified to the G&C Project Accountants as they are established. This is necessary to assure proper accounting and reporting.

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Other (“un-linked”) Cost Sharing Expenditures• Occasionally expenditures made from other projects (projects not

specifically identified as cost sharing projects) are to be recognized to meet the required cost share obligations.

• Although this type of activity does not meet the Institute requirements for separately budgeted and accounted for expenditures, it can be recognized to meet cost sharing requirements if it is properly documented and supported. When this occurs, the following steps must be taken:

a) If possible, a separate project should be established that is identified as a cost sharing project for the sponsored agreement, and the costs should be moved to that project by cost transfer.

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Other (“un-linked”) Cost Sharing Expenditures (Continued)

b) If the costs were incurred in a prior year and/or time does not permit the creation of a separate sponsored project:o The costs to be recognized as cost sharing should be

documented on a separate schedule supported by project ledgers that identify the specific charges to be recognized.

o A written certification statement should be prepared and signed by the Project Director indicating that the expenditures identified on the cost sharing schedule (Sample provided in Section IV):

1. Were incurred on behalf of the sponsored agreement

2. Meet the Cost Sharing requirements stated in the sponsored agreement

3. Have not been claimed as direct charges or cost sharing on any other sponsored project.

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Facilities & Administrative (F&A) Charges – State Cost Sharing Projects

Unless there is a specific restriction contained in the sponsored agreement that precludes recognition of F&A charges on cost sharing expenditures, G&C Accounting will recognize F&A charges on cost sharing projects at the current approved rate for that activity.

These charges will be recorded in the G&C Accounting System records and will be reported on the WEB PEB.

Facilities & Administrative (F&A) Charges - GTF or GTRC Projects The GM System does not charge F&A costs to projects funded by GTF

or GTRC G&C Accounting will recognize F&A charges on cost sharing

expenditures made with these funds for reporting purposes, unless there is a specific restriction contained in the sponsored agreement that precludes recognition of F&A charges on cost sharing.

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OSP Identifies Cost Share Obligation at time of Award

Obligation may cover several yearsSpecific Projects are Established to Account

for and Report all Cost Share Expenditures Initial Cost Share Project Numbers are Assigned to Unit

Budgets are Established when Funding is Provided

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Additional Projects can be Assigned for Other Funding Sources

GTRC or Other Outside Fund SourcesAll Cost Share Projects Linked to Main Project

Cost Share Obligations are Presented in PEB

Demographic Section

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Initiating Cost Share Budgets Budgets to be Entered as Funding is Provided State Funded Budgets are to be established by

Unit Financial Manager and Budget Office GTRC Funded Cost Share Budgets are

Established by G&C /GTRI Accounting upon Receipt of Notification from the Office of the Provost Financial Administration

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Calculating The Amount of Funding Required (Examples)

Cost Share Requirement 50,000$ 50,000$ 50,000$

Expenses

Salaries 20,000$ -$ 10,000$

Fringe Benefits 4,800 - 2,500

M & S 8,313 - 12,000

Equipment - 50,000 13,005

Total Direct 33,113$ 50,000$ 37,505$

Recognized F&A (at 51.0%) 16,887$ -$ 12,495$ Total Cost Share Recognized 50,000$ 50,000$ 50,000$

State Funding Required 33,113$ 50,000$ 37,505$

(A) (B) (C)



III. Managing Cost Share Projects in the GM System – Summary

Reported on OSP Project Header

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PEB Report – Sponsored Summary Includes ALL related

sponsored projects and

sub-projects

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Project Summaries

Prime Project ID displayed as BOLD

Project ID (Rpt link)

Award Pj St Project Expire

Date Type Sponsor Name PI Name Project Title LTD Budget LTD Expend

LTD Encumber

LTD Balance

21013xx (Cmpl) (Sumry)

Rxxxx A 08/31/12 CSHR US DEPT OF

ENERGY ARRA: 96,122.31 96,122.31 0.00 0.00

2106XXX (Cmpl) (Sumry)

Rxxxx A 12/31/12 SPSD US DEPT OF

ENERGY ARRA: 458,707.00 427,057.11 29,797.26 1,852.63

2106XX1 (Cmpl) (Sumry)

Rxxxx A 08/31/12 CSHR GTRC

MATCHING

GTRC MATCHING PROJECT

25,000.00 25,000.00 0.00 0.00

2166XX2 (Cmpl) (Sumry)


ENERGY ARRA: 79,704.00 68,914.66 3,303.48 7,485.86

2506XXX (Cmpl) (Sumry)


ENERGY ARRA: 460,208.00 399,843.97 47,025.94 13,338.09

25013xx (Cmpl) (Sumry)

Rxxxx A 08/31/12 CSHR US DEPT OF

ENERGY ARRA: 18,433.69 18,433.69 0.00 0.00

(Rpt link): Cmpl = Complete, Sumry = Summary Pj St (Project Status): A = Active, I = Inactive

Type: SPSD = Sponsored Project, CSHR = Cost Share Project

Award Fund Summaries

Complete Report Award/Fund Summary Cost Share Summary Sponsored Summary

GEORGIA Institute of TECHnology

Project Expense and Budget Report Award Fund: RXXXX

Setid: GT FY 2013 / Period 4

Project Status: All Projects Sponsored/CostShare: All Projects

https://gtwebapps.gatech.edu/cfeis/grantsys/peb_projprintable.cfm?Proj=21013EC&FY=2013&Period=4

https://gtwebapps.gatech.edu/cfeis/grantsys/peb_projsummary.cfm?Proj=21013EC&FY=2013&Period=4

https://gtwebapps.gatech.edu/cfeis/grantsys/peb_projprintable.cfm?Proj=2106AGG&FY=2013&Period=4

https://gtwebapps.gatech.edu/cfeis/grantsys/peb_projsummary.cfm?Proj=2106AGG&FY=2013&Period=4

https://gtwebapps.gatech.edu/cfeis/grantsys/peb_projprintable.cfm?Proj=2106CFJ&FY=2013&Period=4

https://gtwebapps.gatech.edu/cfeis/grantsys/peb_projsummary.cfm?Proj=2106CFJ&FY=2013&Period=4

https://gtwebapps.gatech.edu/cfeis/grantsys/peb_projprintable.cfm?Proj=2166APG&FY=2013&Period=4

https://gtwebapps.gatech.edu/cfeis/grantsys/peb_projsummary.cfm?Proj=2166APG&FY=2013&Period=4

https://gtwebapps.gatech.edu/cfeis/grantsys/peb_projprintable.cfm?Proj=2506E29&FY=2013&Period=4

https://gtwebapps.gatech.edu/cfeis/grantsys/peb_projsummary.cfm?Proj=2506E29&FY=2013&Period=4

https://gtwebapps.gatech.edu/cfeis/grantsys/peb_projprintable.cfm?Proj=25013DD&FY=2013&Period=4

https://gtwebapps.gatech.edu/cfeis/grantsys/peb_projsummary.cfm?Proj=25013DD&FY=2013&Period=4

https://gtwebapps.gatech.edu/cfeis/grantsys/peb_fundprintable.cfm?Fund=S7100&FY=2013&Period=4&DetailSort=&SPDSort=&RequestTimeout=120

https://gtwebapps.gatech.edu/cfeis/grantsys/peb_fundsummary.cfm?Fund=S7100&FY=2013&Period=4

https://gtwebapps.gatech.edu/cfeis/grantsys/peb_cshrsummary.cfm?Fund=S7100&FY=2013&Period=4

https://gtwebapps.gatech.edu/cfeis/grantsys/peb_spsdsummary.cfm?Fund=S7100&FY=2013&Period=4




PEB Report- Cost Share Summary Includes ALL

related/linked cost share projects

Cost Share Obligation Reported in Demographic Section

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GM PEB




IV. Special Cost Share Procedures - Exceptions

In-Kind Cost Share CertificationRequired for Third Party Cost Share ExpenseRequired for Donated Services or FacilitiesRecorded in GIT GM System as “Other Memo”

In-Kind Cost Share Tuition RemissionRequires Specific Sponsor Approval Accounting For In-Kind Tuition RemissionRecorded in GIT GM System as “Other Memo”

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Sample Certification

Letter – Also used for: All “Un-linked” GIT

Cost Share Expenses Certifications Required

by Sponsors** Accounting system support

must be attached

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Accounting For In-Kind Tuition Remission

The Institute currently has no accounting system to document the

amount of tuition waivers on State funded cost sharing projects

In accordance with federal regulations, cost sharing expenditures

must meet the same requirement as direct cost.

Certain sponsors may recognize the cost of tuition waivers as In-

Kind cost sharing when the amount of the waivers is properly

documented and reported to the sponsor

This type of In-Kind cost sharing must be fully documented in the

project proposal and project budget.

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IV. Special Cost Share Procedures – Exceptions

Accounting For In-Kind Tuition Remission (Continued) In instances where a sponsor will recognize In-Kind Tuition Remission as cost

sharing, the following procedures should be followed to provide required documentation.

1. When the award is approved and the project is established in the accounting system, a separate cost sharing account should be established to record the In-Kind cost sharing expense as it is incurred.

2. At the completion of each registration period, the Project Director or designated financial manager will direct the preparation and subsequent approval of a “Using Non-Sponsored Tuition and Fee Waivers as In-Kind Cost Sharing” form.

3. A copy of the completed form will be forwarded to the Grants & Contracts Accounting Office where it will be used to record the amount of the waivers to the Cost Sharing Project as In-Kind cost sharing.

4. Project Expenditure and Budget (PEB) reports for the Cost Sharing project will be used to document and support the cost sharing requirement to the sponsor.

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Accounting For In-Kind Tuition Remission

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Adjusting for Unmet Cost Share Obligations

Adjust to Adjusted Example # 1 Budget Actual Percent (1) Actual

Sponsored 45,000$ 44,844$ (3,074)$ 41,770$ Cost Sharing 43,000 36,833 3,074 39,907 Total 88,000$ 81,677$ (0)$ 81,677$

Sponsored % 51.14% 54.90% 51.14%Cost Sharing % 48.86% 45.10% 48.86%

100.00% 100.00% 100.00%

Note: Unit lost $3,074 of sponsored support.

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Adjusting for Unmet Cost Share Obligations

Adjust to Adjusted Example # 2 Budget Actual Percent (1) Actual

Sponsored 102,000$ 101,414$ (60,037)$ 41,377$ Cost Sharing 148,000 - 60,037 60,037 Total 250,000$ 101,414$ -$ 101,414$

Sponsored % 40.80% 100.00% 40.80%Cost Sharing % 59.20% 0.00% 59.20%

100.00% 100.00% 100.00%

Note: Unit lost $60,037 of sponsored support.

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VI. Audits of Cost Share Expenditures

OMB Circular A-133 RequirementsAllowable Costs - Test of ExpendituresVerifiable from Institute Financial RecordsTests of In-Kind Cost Share Documentation

Audit Test ProceduresAllowable costsAllowable Funding Source

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VII. Summary

* Cost Share Obligation Identified by OSP at the time of the acceptance of new awards

* Separate Projects are established for each Cost Share Obligation and Fund Source

* Cost Share Project Budgets Represent Available Funds

• State Cost Share Budgets set by Budget Office

• GTRC Funded Cost Share Budgets set by G&C Accounting (as approved)

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VII. Summary

* Cost Share Obligations are Presented on PEB.

* Cost Share Obligation must be met to avoid adjustments to Direct Cost Expenditures.

* Cost Share Obligation must be Recorded in Institute Financial Records.

* Special Procedures may require extra work for the Unit Financial Managers.

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Q & A

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1. Authorization to expend funds from a Cost Share project occurs when?

2. The budget for a Cost Share Project funded from Departmental resources is established by _____ ?

3. The Budget for a Cost Share Project funded from GTRC resources is established by _____ ?

4. The best and easiest method to account for Cost Share expenses is _____ ?

5. What happens if a cost-share obligation is not met?



Other Questions?

Contact: [email protected]

or Sandy Mason, 404-894-5526

[email protected]

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mailto:[email protected]


Personal Services Reporting Using the Plan

Confirmation System (PCS)



Personal Services Reporting Using the Plan Conformation System

Why Personal Services Reporting (aka: Effort Reporting) OMB Circular A-21 Plan-Confirmation System: Professorial and Professional Employees,

Graduate Students After-the-Fact Activity Records–Non-Professional Employees (Hourly) Salary Planning and Distribution (SPD) System SPD Center Electronic Workload Assignment Form (EWAF) Departmental Responsibilities Related to the Plan Confirmation

System Process Annual Statement of Reasonableness (ASR) of Salary Charges and

Signatory Certification Requirements Employee Responsibilities SPD Redistributions NIH Salary Cap NSF 2/9ths Salary Limitation Level of Commitment

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Plan Confirmation System



Overview

As a major research university that manages over 3,500 sponsored agreements (>6,000 Non-GTRI “Projects”), Georgia Institute of Technology must have:

Financial systems and procedures in place to assure compliance with the terms and conditions of the agreements as well as with State and Federal regulations concerning sponsored programs.

The distribution of salary and fringe benefits charged to sponsored programs is the majority of project expenditures and therefore a very important process.

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Background

The Federal Government's Office of Management and Budget (OMB) Circular No. A-21, Revised

Establishes principles for determining costs applicable to grants, contracts, and other agreements between Federal agencies and educational institutions.

All Federal agencies that sponsor research and development, training, and other work at educational institutions must apply the provisions of this Circular in determining the costs incurred for such work.

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(OMB) Circular No. A-21

The Federal Government's Office of Management and Budget (OMB) Circular No. A-21, Revised The provisions of OMB Circular No. A-21 apply to all

units of Georgia Tech other than the Georgia Tech Research Institute.

Employees of Georgia Tech Research Institute utilize hourly time sheet procedures designed to comply with Federal Acquisition Regulations 31.2, which have different requirements for the documentation of personal services expenses.

The GTRI Policies & Procedures Manual includes specific instructions for GTRI time sheet preparation and time reporting.

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(OMB) Circular No. A-21

OMB Circular No. A-21 identifies three acceptable methods for handling payroll distributions: The After-the-Fact Activity Records system, The Plan-Confirmation system, and A system of multiple confirmation records. Georgia Tech uses: The Plan Confirmation System for Professorial and

Professional Employees, and Graduate Students. The After-the-Fact Activity Records System for Non-

Professional Employees (Timesheets).

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Plan-Confirmation System

Plan-Confirmation System Under this method, the distribution of salaries and

wages of professorial and professional staff applicable to sponsored agreements is based on budgeted, planned, or assigned work activity, updated to reflect any significant changes in work distribution.

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Plan Confirmation System & OMB Circular A-21

OMB Circular A-21

A plan-confirmation system used for salaries and wages charged

directly or indirectly to sponsored agreements will meet the

following standards:

J10c(1)(a) A system of budgeted, planned, or assigned

work activity will be incorporated into the official records of

the institution and encompass both sponsored and all

other activities on an integrated basis. The system may

include the use of subsidiary records.

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OMB Circular A-21

J10c(1)(b) The system will reasonably reflect only the

activity for which the employee is compensated by the

institution (compensation for incidental work need not be

included).

J10c(1)(c) The system will reflect activity applicable to

each sponsored agreement and to each category

needed to identify F&A costs and the functions to which

they are allocable.

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OMB Circular A-21 J10c(1)(d) The system will provide for modification of an individual's

salary or salary distribution commensurate with a significant

change in the employee's work activity.

Short-term (such as one or two months) fluctuation between workload

categories need not be considered as long as the distribution of salaries and

wages is reasonable over the longer term, such as an academic period.

Whenever it is apparent that a significant change in work activity which

is directly or indirectly charged to sponsored agreements will occur or

has occurred, the change will be documented over the signature of a

responsible official and entered into the system.

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OMB Circular A-21

J10c(1)(e) At least annually a statement

will be signed by the employee,

principal investigator, or responsible

official(s) using suitable means of

verification that the work was performed, stating that salaries and wages charged to

sponsored agreements as direct charges, and to residual, F&A cost or other categories are

reasonable in relation to work performed.

GA Tech uses the Electronic Annual Statement of Reasonableness (eASR) for

confirmation of effort reported.

To be electronically signed by employee and Unit Financial Manager before the deadline date.

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OMB Circular A-21

J10c(1)(f) The system will provide for independent internal

evaluation to ensure the system's integrity and compliance

with the above standards.

Annual Review by Internal Audit

J10c(1)(g) In the use of this method, an institution shall not

be required to provide additional support or documentation

for the effort actually performed.

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Employees Covered by the Plan-Confirmation System

Professorial and Professional Staff

The Georgia Tech Plan-Confirmation System covers all professorial and professional staff employees

who meet the following requirements at any time during the fiscal year:

1. All academic personnel paid monthly whose activities are distributed to either one or

more organized research projects, other sponsored agreements, or cost-sharing projects.

2. All other monthly paid personnel whose:

a) Activities are distributed directly either to one or more organized research projects,

other sponsored agreements, or cost-sharing projects.

b) Distribute their activities to one or more indirect (Facilities and Administrative) activity.

c) Split their effort between direct and indirect (Facilities and Administrative) activities.

d) Have any or all of their effort distributed to Departmental Administration–Instruction,

Departmental Administration-Research and/or Other Sponsored Agreements.

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Employees Covered by the Plan-Confirmation System

Monthly Paid Graduate Students

Graduate Student Employees- Covered

The Plan-Confirmation System is used as the basis for its distribution of salaries and

wages for all appointed graduate students who are paid on a monthly basis from

sponsored, cost-sharing, general research and departmental administration accounts.

Graduate Student Employees – Not Covered

Hourly Paid Graduate Students

Graduate students who are paid on an hourly basis shall report their time worked on bi-

weekly time documents. This procedure meets the requirements of OMB Circular A-21

After-the Fact Activity records.

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After-the-Fact Activity Records – Non-Professional Employees

Georgia Tech uses the After-the-Fact Activity Records system for non-professional employees. Where an institution uses time cards or other forms of after-the-fact payroll documents as original documentation for payroll and payroll charges, such documents, according to Circular No. A-21, shall qualify as After-the-Fact Activity Records provided the distribution of salaries and wages will be supported by appropriately approved documents.

The use of time documents, as prescribed under current Georgia Institute of Technology payroll procedures, meets the requirements of OMB Circular No. A-21 for non-professional employees, and no additional activity reporting is necessary for the non-professional employees.

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The Salary Planning and Distribution (SPD) System Features

Feature ListManages distribution of salary charges to projectsAccepts Payroll System TransactionsAccepts changes made by campus unitsManages distribution of fringe benefit and tuition

remission (GSTRP) chargesIdentifies employees covered by the Plan Confirmation

System Provides detailed salary distribution data for all

employees and generates required monthly allocation and annual effort reports (ie: eWAF and eASR).

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The Salary Planning and Distribution (SPD) Center in Grants and Contracts Accounting

Manages the SPD System and schedules processes. Manages the Personal Services Reporting (PSR)Tutorial – Plan

Confirmation System online WEB training. Alternative training - distributes copies of the Personal Services

Reporting using the Plan-Confirmation System booklet to Plan employees.

Maintains the records of employees who have completed the PSR Tutorial or Acknowledgement Form.

Manages the eASR system and manual certified Annual Statements of Reasonableness (Employee and UFO Signs) for each Fiscal Year.

Provides Plan Confirmation System and SPD System Training.

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Plan-Confirmation System Training

Personal Services Reporting Tutorial and Confirmation – OHR TRAINS website.

Video, assessment questionnaire, and confirmation statement. http://grants.gatech.edu/spdPSR_Training.php

Personal Services Reporting Using the Plan Confirmation System Booklet (alternative training)

Read and sign Acknowledgement Form

Other Training TechWorks / GT Effort Reporting pagelet / Training and Resources

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http://grants.gatech.edu/spdPSR_Training.php

http://grants.gatech.edu/spdPSR_Training.php



What is EWAF?

Electronic Workload Assignment FormBeginning in FY2005, the SPD Center sends monthly

email notifications to all Covered Employees.The email notification provides instructions about the

Workload Assignment Form and provides an encrypted web link to their EWAF report to print, review, and retain a copy of for the current fiscal year.

EWAF has an “Alert” when personal services allocations have been updated in the current month.

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Personal Services Reporting Using thePlan Confirmation System

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Reviewing EWAF Using TechWorks

EWAF is also available on TechWorks

Same System used for Employee Self Service

Select Electronic Workload Assignment Form

Use GaTech Staff ID and Password

Feature is available for all employees

Covered Employees receive EWAF

Other Employees receive monthly breakdown of salary

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What do Departments need to do to help?

Help Employees gain access to EWAF Valid email address in Campus Directory for email notification. Access EWAF on Techworks. Make sure employees know the projects they are working on each month. Remind employees to make Changes when required

If employees identify a problem or the need to change past or future salary distributions:

Click on a “Report a Change or Issue” button at bottom of Web report. It will produce an email with the subject line pre-worded to indicate: “SPD

Salary Distribution Change Needed per Workload Assignment Form Review.”

Enter the email address for the appropriate PI or unit business officer to be notified and your return address would be pre-populated.

In the body of the email, explain what needs to be changed on your past or future salary distribution.

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Report A Change or Issue

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Electronic Annual Statement of Reasonableness

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GA Tech’s annual effort

certification.

Email notification to

employee.

Electronically signed by

employee.

Electronically certified by

Unit Financial Manager.

Deadline date, usually 8/31.




Manual Annual Statement of Reasonableness

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ASR Signature Certification GA Tech’s annual effort

certification alternative.

Signed and dated by

Employee and UFO.

Exception basis certified

by person with first hand

knowledge.

Indicate any Dept Admin

activities.

Return by deadline date,

usually 8/31.




Key points for Covered Employees to remember

1. Complete the Personal Services Reporting OHR TRAINS tutorial and confirmation.

2. Alternate: read the Personal Services Reporting Using the Plan-Confirmation System Booklet and complete & return the Acknowledgement Form

3. Review and retain Electronic Workload Assignment Forms (EWAF)

4. Report any changes to Supervisor or Unit Financial Manager

5. Sign the Annual Statement of Reasonableness of Salary Distribution.

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SPD Redistributions

New for FY10 – all redistributions to externally funded sponsored projects require electronic justification in the SPD system.

Beware of transfers involving ARRA-funded sponsored projects (“S” funds).

Over 120 Day redistributions: Effective November 1, 2007 salary distributions to externally funded

sponsored projects are not be allowed over 120 days from date of payment.

Exclusions are to same fund transfers, GTF, or GTRC projects.

Special request for over 120 redistributions has to be approved by Director of G&C, Assoc VP of Finance, and Assoc Vice Provost for Research.

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NIH Salary Cap (G&C Notice 12-I)

All NIH/DHHS Grants, Contracts, and Cooperative Agreements (including flow-thru awards from other Institutions) are subject to the NIH Salary Cap. Congress limits the amount of compensation an individual can receive under an NIH Award. The limitation is equal to the Federal Executive Level II pay scale on awards issued after 12/22/2011, which is updated yearly.

Amounts over the cap should be accounted for in a companion cost-sharing project if possible ….

Amounts over the cap may not be counted as mandatory cost share and must be separately tracked and certified

Example: PI Monthly Salary is $18,000, NIH Cap is $14,975

• 75% Effort devoted to NIH Grant (75% * $18,000) = $13,500

• Maximum that can be direct charged (75% of cap) = $11,231

• Charge difference of $2,269 to a companion cost-sharing project linked in the Grants system to the specific NIH sponsored fund/project

Why? • So that the salary cap adjustment and the actual project effort are visible in the

accounting system.

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G&C Notice 12-I

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NSF 2/9ths Rule Salary Limitation(G&C Notice 09-III)

NSF 2/9ths Rule Salary Limitation(G&C Notice 09-III) The National Science Foundation limits the amount of

compensation on senior personnel that can be charged to NSF funded projects, including flow-thru awards from other Institutions during a fiscal year.

Total compensation cannot exceed two months (2/9ths) of an employees base, academic year salary.

The limit applies to total salaries charged to ALL NSF funded projects combined for that employee.

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NSF 2/9ths Rule Salary Limitation(G&C Notice 09-III)

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Level of Commitment.

Level of Commitment.Actual effort percentages (per ASR) for key personnel

should not be significantly less than the committed effort level (per proposals).

Significant reductions require agency notification and approval.

PI’s/ Unit Financial Officers need to monitor Level of Commitment for their sponsored projects.

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Questions?

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Personal Services Reporting Using thePlan Confirmation System - Q&A

Questions & Answers?

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1. Plan Confirmation SystemThe Plan Confirmation System is used to support the salary distribution for all employees on campus except for: a. Faculty members with only one sponsored project. b. GTRI employees performing research activities. c. Graduate Research Assistants performing sponsored research d. Office of Sponsored Program employee

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2. Electronic Workload Assignment FormIf an employee providing services on a sponsored research project does not receive an Electronic Workload Assignment Form email notification, they should: a. Wait until next month to see if one arrives. b. Contact the Unit Financial Officer to obtain a copy of the

Form. c. Go to TechWorks and log on thru Electronic Workload

Assignment Form link to produce report. d. Contact Unit Financial Officer or SPD Center that you are not

receiving the EWAF email notifications. e. Forget about it, since it is not important.

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3. Electronic Workload Assignment FormAn employee covered by the Plan Confirmation System is to: a. Review Electronic Workload Assignment Forms and discard if no

changes are required. b. Review Electronic Workload Assignment Forms upon receipt and

report any changes to the Unit Financial Officer. c. Review Electronic Workload Assignment Forms upon receipt and

report any changes to the Unit Financial Officer, and keep Forms on file for the year.

d. Review Electronic Workload Assignment Forms each semester for possible changes.

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4. Salary Planning and Distribution (SPD) System

The SPD system is designed to make changes to an employees' salary distribution: a. Once each month. b. As often as needed throughout the month. c. Only when a new sponsored project is received. d. At the beginning of each semester.

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5. Annual Statement of Reasonableness of Salary Charges

The Annual Statement of Reasonableness of Salary Charges (ASR) is to be signed by: a. The Department Head b. The Project Director c. The employee and the Unit Financial Officer d. The Unit Financial Officer

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THANK YOU FOR ATTENDING

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Contact: [email protected] or

Robert Ellington, 404-894-3488 [email protected]


mailto:[email protected]

Grants & Contract Accounting & OSP All rights reserved GTRC Special Considerations – Cost Sharing...

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