Effort Reporting Policy

Abstract

This policy establishes institutional requirements for reporting effort on extramurally sponsored projects. Compensation for personnel services constitutes the largest component of the expenses charged to sponsored projects so it is important that the effort is charged correctly to the projects. Effort reporting is a process required by the federal government to verify that direct charges for salary to Federally sponsored agreements are reasonable and reflect actual work performed. The Office of Management and Budget (OMB) requires that distribution of salaries, whether treated as direct or facilities and administrative (F&A) costs, must be documented in the accounting system. OMB Circular A-21 requires that the allocation of salaries will be accomplished by a method which will be in accordance with the criteria in A-21, will produce an equitable distribution of charges for employee’s activities, and distinguishes employees’ direct activities from their F&A activities.