brustein & manasevit, pllc effort takes time and documentation mike bender, esq....

Brustein & Manasevit, Brustein & Manasevit, PLLCPLLC

Effort Takes Time and Documentation

MIKE BENDER, [email protected]

BRUSTEIN & MANASEVIT, PLLC

SPRING FORUM 2015

Brustein & Manasevit, Brustein & Manasevit, PLLCPLLCBrustein & Manasevit, Brustein & Manasevit, PLLCPLLC

Time and Effort Standards

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The BASICS – NO CHANGE!

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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Participants – No Change!

All employees paid with federal funds!!Some employees paid with non-federal fundsPart-Time EmployeesNOT contractors

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A-87 Standards

Semi-Annual Certifications

If an employee works on a single cost objective: After the fact Account for the total activity Signed by employee or

supervisor Every six months (at least twice

a year)

Personnel Activity Report (PAR)

If an employee works on multiple cost objectives: After the fact Account for total activity Signed by employee Prepared at least monthly and

coincide with one or more pay periods

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A-21 Standards

Plan Confirmation

Budgeted allocations for professional/professorial staff

Updated to reflect any significant changes in actual work

After-the-Fact Activity Reports Professional/Professorial staff keep

records every six months All other employees keep monthly

records Signed 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

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Variety of records kept in combination at least monthly.

Multiple Confirmation Records


A-122 Standards

After the fact Account for total activity Signed by employee or supervisor with first hand

knowledge Prepared at least monthly and coincide with one or

more pay periods

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Personnel Activity Reports


Part 200 Standards

Charges for salaries must be based on records that accurately reflect the work performed (200.430(i)(1))1. Must be supported by a system of internal controls which

provides reasonable assurance charges are accurate, allowable and properly allocated

2. Be incorporated into official records3. Reasonable reflect total activity for which employee is

compensated Percentages may be used for distribution of total activities Not to exceed 100%

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Part 200 Standards

4. Encompass all activities (federal and non-federal)5. Comply with established accounting policies and practices6. Support distribution among specific activities or cost

objectives

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COFAR Comments on NEW Rule

By focusing more on internal controls, the rule “mitigates the risk that a non-Federal entity… will focus on prescribed procedures... which alone may be ineffective in assuring full accountability.”

• Uncovering weaknesses in internal controls or instances of fraud is goal. Not audit findings.

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Part 200 Cost Objectives

What is a cost objective? 200.28 Program, function, activity, award, organizational

subdivision, contract, or work unit for which cost data are desired and for which provision is made to accumulate and measure the cost of processes, products, jobs, capital projects, etc.

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Part 200 Cost Objectives

Multiple Cost Objectives 200.430(vii): More than one Federal award. A Federal award and a non-Federal award. An indirect cost activity and a direct cost activity. Two or more indirect activities that are allocated using

different allocation bases. An unallowable activity and a direct or indirect cost activity.

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Not Cost Objectives

Federal ProgramsTitle I, Part ADoing my jobESEAWorking on initiatives and programs that benefit

Title I studentsDirector of Federal Programs

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Title I, Part A LEA-level Cost Objectives

LEA-Level Administration (Public and Equitable Services) School Choice Transportation and Supplemental Education Services (SES) Equitable Services Professional Development

10% of LEA allocation (if LEA is identified for improvement) Professional Development

10% of each school’s Title I Part A allocation (if school is identified for improvement) Parental Involvement

At least 1% of LEA allocation Districtwide Initiatives Incentives and rewards to teachers to work in Title I schools in improvement,

corrective action, and restructuring No more than 5% of LEA allocation

Title I, Part A Programmatic Costs

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Need for Clarification

Always been confusion re: Cost objectives Do you track funding source or track what employee is

working on? For example, Project Director of 21st CCLC after school

program working 100% of her time on the 21st CCLC program but is paid 75% with 21st CCLC funds and 25% with State funds.

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Help!

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Time and Effort Guidance by OCFO!!!

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


OCFO Guidance

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.

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Use of Budget Estimates

Budget estimates alone do not qualify as support for charges to Federal awards 200.430(i)(1)(viii)

May be used for interim accounting purposes if: Produces reasonable approximations Significant changes to the corresponding work activity

are identified in a timely manner Internal controls in place to review after-the-fact interim

charges based on budget estimates

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Focus on IHEs

“It is recognized that teaching, research, service, and administration are often inextricably intermingled in an academic setting. When recording salaries and wages charged to Federal awards for IHEs, a precise assessment of factors that contribute to costs is therefore not always feasible, nor is it expected.” 200.430(i)(1)(x)

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Compliance

NEW: If records meet the standards, the non-federal entity will not be required to provide additional support or documentation for the work performed. 200.430(i)(2)

DOL regulations for Fair Labor Standards Act must still be met (i.e. charges must be supported by records indicating the total number of hours worked each day)

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Non-Compliance

BUT, if records of grantee do not meet new standards, awarding agency may require PARs, including prescribed certifications or equivalent documentation that support the records as required by Part 200. 200.430(i)(8) However, PARs are not defined!!!

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Reconciliation

NEW: All necessary adjustments must be made such that the final amount charged to the Federal award is accurate, allowable, and properly allocated. 200.430(i)(1)(viii)(C)

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Substitute Systems

States, local governments and Indian tribes encouraged to adopt “substitute systems” if approved by cognizant agency for indirect cost. 200.430(i)(5)

Still acceptable to allocate sampled employees’ supervisors, clerical and support staffs, based on the result of the sampled employees. 200.430(i)(5)(ii)

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Alternative Proposals

Cognizant agencies for indirect costs are encouraged to accept alternative proposals based on outcomes and milestones for program performance.

These plans are acceptable as alternatives to the UGG’s standards.

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Blended Funding

A non-Federal entity may submit performance plans that incorporate funds from multiple Federal awards and account for their combined use based on performance-based metrics, if approved.

Must submit a request for a waiver that includes certain information, including the method of charging costs. 200.430(i)(7)

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Disclaimer

This presentation is intended solely to provide general information and does not constitute legal advice or a legal service. This presentation does not create a client-lawyer relationship with Brustein & Manasevit, PLLC and, therefore, carries none of the protections under the D.C. Rules of Professional Conduct. Attendance at this presentation, a later review of any printed or electronic materials, or any follow-up questions or communications arising out of this presentation with any attorney at Brustein & Manasevit, PLLC 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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