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J:/DACP/Research_Administration/Time & Effort 1.24.17
FUNDAMENTALS OF
SPONSORED
PROGRAMS
Time & Effort
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Agenda
What it is
How it is determined
How to manage
Now you do it
What is Time & Effort

Time & Effort Certification is the documentation of the effort
(not salary) that each employee expends on various activities
during a specified time period regardless of sponsor and pay.

Time & Effort certification is mandated by 2 CFR 200 Uniform
Guidance

Total amount of effort = 100% and is not based on a 40-hour
work week. It’s not based on hours at all.

All HPHCI employees must certify
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How is Time & Effort
Determined?

T&E is based on institutional commitments (research,
clinical work, teaching and administrative
responsibilities).

Established in the hire letter which indicates the
Institutional Base Salary (IBS).
Labor Management Tips





Know the active and pending projects
Is there a budget manager?
 Establish process to keep each other informed
 Confirm percentages on projects
Check labor every month
Pay attention to deadlines
Pay attention to the letters at the end of the
project number
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END DATES are important!


Labor schedules remain active until a
change is requested
The Oracle GMS LD module is designed
to encumber/commit funds.

PI must take into account the clinical,
administrative, teaching and other research
responsibilities when applying for grants.

ALL effort must be accounted for.
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Pit Falls and things
to look out for



PI promises small amount of “in kind” effort to
another investigator
PI wants to be a consultant for another
investigator
PI wants to “bank” clinical $$
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Case Study
Mary Smith’s hire letter
 Annual
salary will be $100,000.
 Expected to spend time
 75% research (includes 5% administration)
 20% clinical work
 5% director of teaching program
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Mary’s Current LD
Project #
FTE
Role
Source
Dates
PF000001
5%
PI
DPM Administrative
Account
PF000002
5%
Director
HPHCI Teaching
Program
PF000003
20%
Clinician
Hospital
PH000010
25%
PI
AHRQ
Jan 1, 17 – July 31, 17
PH000011
15%
PI
NIDDK
Sep 1, 16 – Aug 31, 17
PH000012
15%
Co I
Pfizer
Oct 1, 16 – Sept 30, 17
PH000013
15%
Co I
PCORI
June 1, 16 – May
31,17
Mary’s Pending Projects
Project Name
FTE
Role
Source
Dates
Testing Garden Soil
20%
PI
NCI
3/1/17-2/28/18
Growing Vegetables
15%
Co I
PCORI
7/1/17-2/28/18
Puttering in the
Garden
25%
PI
NIMH
5/1/17-4/30/18
Planting Flowers
Naturally
25%
PI
NCCM
6/1/17-5/31/18
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Take Home

Mary’s salary is $250,000

Same projects and effort
Formula for Determining Effort Charged to Grant when
Salary is Over the Cap








Cap on grant = $185,100
PI salary = $250,000
PI Effort on project =20%
Conversion factor = $185,100/$250,000=0.74
LD% charged to project = (20%)*(0.74) = 15%
LD% charged to cost share account = 20% - 15% = 5%
Total effort on sponsored project should be a whole number
Modify T&E report to show that T&E% listed on cost share account
reflects effort on sponsored project
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Top Ten Points You and PI Need to
Know

Certification must reasonably reflect all the effort for all the activities (research,
teaching, clinical and administrative) activities that are covered by institutional
compensation.

Effort is not based on a 40-hour work week. It’s not based on hours at all.

Effort is the work on a project, whether a sponsor pays salary or not
and that effort must be certified.

Effort included on a grant application is committed effort.

If effort is reduce, paid or unpaid, on a federal grant by 25%, must agency approval
must be obtained. If paid effort is reduced, cost-sharing could be documented so that
the total effort does not decrease.

Certifying effort is not the same as certifying payroll.

Effort must be certified by someone with suitable means of verifying that the
work was performed.

Many activities cannot be charged to a federally sponsored project. For
example, the time you spend on these activities cannot be charged:
 Writing a proposal
 Serving on an IRB, IACUC or other research committee
 Serving on a departmental or university service committee

In identifying audit findings, auditors look for indications that certification was
based on factors other than actual, justifiable effort.
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Where Can I Find the policy

https://www.harvardpilgrim.org/osp
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