Effort Certification in the Effort Certification in the Kuali Financial SystemKuali Financial System
Office of Research AdministrationIndiana University509 E. 3rd Street
Bloomington, IN 47401-3654
January 2014
Effort Certification in KFSEffort Certification in KFS
The Highlights:
Why and How of Effort Certification Effort Management and Certification KFS Highlightso Project Director and Fiscal Officer Routingo Federal Effort ReportsoWhy and How of Effort Certification
Cost Share Subaccounts NIH Salary Cap Frequently Asked Questions
Why we Certify EffortWhy we Certify EffortOffice of Management and Budget (OMB) Circular A-21 (Section J.10)
Cost principles for educational institutions
Verification that the salaries charged are consistent with effort expended
OMB Circular A-21 has been codified into the Code of Federal Regulations - 2 CFR Part 220
IU Policy – Effort Certification Documents
Employees with regular pay
Effort certification documents are issued to certify effort
How do we certify effort?How do we certify effort?“After the Fact” effort certification
Payroll data is gathered from the Kuali Financial System
(KFS) labor ledger on a periodic basis to determine 100% of each employee’s regular compensation, (i.e. Institutional Base Salary)
The A21 Labor Ledger reflects the specific buckets to which labor was allocated. These entries will not reflect the General Ledger entries if salary has been reallocated.
The Labor Ledger Effort ViewThe Labor Ledger Effort View
The Labor Ledger General Ledger ViewThe Labor Ledger General Ledger View
Sometimes the GL and A21 Labor Ledger Sometimes the GL and A21 Labor Ledger Match…Match…
General Ledger
A21 Labor Ledger
Sometimes they don’t…Sometimes they don’t…
General Ledger
A21 Labor Ledger
Effort Report GenerationEffort Report GenerationLabor Ledger data is complied and distributed through
the Effort Certification Documents in the KFS
Effort reports are generated for only employees with effort on federal or federal pass through accounts
100% of Institutional Base Salary is reported
Salary transfer generation is stopped and all enroute salary transfers are auto-disapproved prior to effort report distribution
Upon final approval, an auto-generated salary transfer is completed.
The Effort PeriodsThe Effort PeriodsFALL Periods Report Issue Date Approval
DeadlineMonthly 12-Pay (M01 – 7/1 to 12/31)February 17th April 18th Academic 10-Pay (A01 – 8/1 to 12/31) February 17th April 18th
Biweekly (B01– 7/1 to 12/31) February 17th April 18th
SPRING PeriodsReport Issue Date Approval
DeadlineMonthly 12-Pay (M02 – 1/1 to 6/30) August 15th October 14th Academic 10-Pay (A02 – 1/1 to 5/31)August 15th October 14th
Biweekly (B02 – 1/1 to 6/30) August 15th October 14th
SUMMER PeriodReport Issue Date Approval
DeadlineAcademic Summer (A03 – 5/1 to 8/31) October 15th December 14th
Effort Management vs. Effort Effort Management vs. Effort CertificationCertification Effort Management should be conducted
throughout the effort periodo Monthly Account Reconciliation
IU Policy - FIN-ACC-I-1 - Role of Fiscal Officer, Account Manager and Account Supervisor
o Communication
Effort Certification Documents are intended to certify payroll on all Federal and Fed Pass-Through sponsored projects
o Document changes made when errors in effort allocations are discovered
Importance of Ongoing Effort Importance of Ongoing Effort ManagementManagement
Financial Reports All costs must be booked to accounts before final report is
sent Final Financial Reports will be sent even if effort reports
are not approved
Account Close Effort should not be reallocated after
account expiration
Justifying Changes on Effort Justifying Changes on Effort Certification DocumentsCertification Documents
What should your justifications include?
What do you know now that you didn’t know when the original effort was applied?
How was the incorrect effort distribution determined?
What is being done to prevent similar occurrences in the future?
Effort Certification Deadline Effort Certification Deadline
The Policy
All Reports Certified within 60 Days past issuance
The Consequence
All Effort Removed from Federal and Federal Pass Through Projects
Effort Certification PoliciesEffort Certification Policies
Effort RecertificationOffice of Research Administration Cost Exception Committee
Only on an Exception Basis Move effort to a cost reimbursable project Recertifications requested after account expiration
The KFS Effort The KFS Effort
Certification DocumentsCertification Documents
Effort Certification Documents and Effort Certification Documents and RoutingRouting
Employee 1 Employee 2 Employee 3
PI 1- Federal Project 30% 100% 0%
PI 2 - Non-Federal Project 30% 0% 50%
PI 3 - Non-Federal Project 40% 0% 50%
100% 100% 100%
Employee Effort Report Created? Yes Yes NoPI included in Routing? PI 1 PI 1 NoneFiscal Officer / Delegates? Yes Yes None
ACTION LIST EXAMPLEACTION LIST EXAMPLE
KFS Effort Document – Project Director KFS Effort Document – Project Director ViewView
KFS Effort Document – Fiscal Officer ViewKFS Effort Document – Fiscal Officer View
Document RoutingDocument Routing
Subaccounts on Effort ReportsSubaccounts on Effort Reports
Cost share sub-accounts are entered on a separate line to allow users to identify the departmental source accounts.
Expense subaccounts are aggregated to report at the main account.
Effort is managed at the account level for effort reporting.
Cost Share Subaccounts on Effort Cost Share Subaccounts on Effort ReportsReports
NIH Salary CapNIH Salary Cap
The NIH limits the amount of salary which may be reimbursed to universities for salaries charged to DHHS projects. In recent years, the salary limitation has been tied to the federal government’s Executive Level II salary rate.
Frequently Asked QuestionsFrequently Asked Questions How do I modify small dollar amounts without
changing the effort percentage?
Account PI vs. Award PI
What if a Fiscal Officer or PI leave the University?
Ad Hoc Routing
How do I modify small dollar How do I modify small dollar amounts without changing the effort amounts without changing the effort percentage?percentage?
When the Integer Percentage does not match the Derived Percentage, effort modifications may require an additional adjustment to salary dollars.
How do I modify small dollar How do I modify small dollar amounts without changing the effort amounts without changing the effort percentage?percentage?
1. Decrease Line 1 under Federal and Federal Pass Through Accounts to match the 2% reduction in effort. ($119.34)
2. Click “Save”3. Increase Line 1 under Other Sponsored and Non-Sponsored Accounts to
match the 2% increase in effort. ($95.91)4. Click “Save”
How do I modify small dollar How do I modify small dollar amounts without changing the effort amounts without changing the effort percentage?percentage?
The Account PI and Effort Document The Account PI and Effort Document RoutingRouting
The Account PI and Effort Document The Account PI and Effort Document RoutingRouting
Approvers No Longer at IUApprovers No Longer at IU
Update accounts for new responsibilities
Request an update of both Award and Account PI
If an effort report is in routing to a terminated employee, contact Tim Burris at [email protected]
Ad Hoc Routing: Rules and Ad Hoc Routing: Rules and ConstraintsConstraints Effort documents may be routed for:
o Approvalo Acknowledgemento FYI
No changes are allowed
With ad hoc routing, the document routing progression stops
Some Points to RememberSome Points to Remember A21 Effort Reports are only generated if effort is on federal
or federal pass through accounts
Documents may only be modified from the Action List
Manage effort activity regularly (at least monthly)
Effort Recertifications are Exception Only
Cost Share subaccounts are reported on a separate line on effort reports
Expense subaccounts roll up to the main account
Salary transfers are automatically generated when documents are final approved.
Final Questions?Final Questions?
Resource LinksResource Links IU Policy link: http://policies.iu.edu/policies/categories/research/Sponsored-Programs-
Administration/Effort_Certification_under_OMB_%20A21.shtml
Effort Certification on the ORA Web http://researchadmin.iu.edu/GrantContract/gc-gfo/gfo_effort.html
A21 Effort Guidance for Document Routing and Approval http://researchadmin.iu.edu/GrantContract/docs/KFS_Effort_Certification_Guidance_for_Document_Routing_and_Approval.pdf
Role of Fiscal Officer, Account Manager and Account Supervisor http://policies.iu.edu/policies/categories/financial/accounting-administration/FIN-ACC-I-1-role-of-fiscal-officer-account-manager-and-account-supervisor.shtml
Questions & Additional TrainingQuestions & Additional Training
Tim BurrisFinancial Compliance ManagerOffice of Research AdministrationIndiana University509 E. 3rd StreetBloomington, IN 47401-3654
Telephone (812) 855-0185E-mail [email protected]
Questions & Additional TrainingQuestions & Additional Training
Rayna AmerineFinancial Compliance AssociateOffice of Research Administration509 E. Third St.Bloomington, IN 47401
Phone: (812) 855-1516Email: [email protected]