SALARY

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SALARY EFFORT CERTIFICATION TRAININGNovember
1, 2006

• Presented by
• Sarah T. Axelrod
• Jill Mortali
• Matt Makarewicz

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AGENDA

• Introductions
• Definitions
• Faculty Certifications
• Non-Faculty Certifications
• QA

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Salary and Effort Certification

• Effort reporting is a federal requirement
• (A-21 Sec. J.10.c)
• Effort Reporting is a process mandated by the
  Federal government to verify that direct labor
  charges to Federally sponsored projects are
  reasonable and reflect actual work performed
• Faculty and staff salaries charged to sponsored
  research projects should be commensurate with the
  direct effort provided to the project
• As a requirement of receiving federal funding,
  institutions must maintain an accurate system for
  reporting the percentage of time (i.e., effort)
  that employees devote to federally sponsored
  projects

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Two Types of Certification
Faculty
Non-Faculty
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Faculty Certifications

• Certified annually
• Certifications are created for all Faculty
• Forms are created by OSP and distributed by FOA
• Certifications are collected and stored by FOA

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Faculty Form

• Includes ALL HARVARD salary for the Academic Year
  for any Tub-Org combination
• One certification for each faculty member
• Distributed to the primary Tub-Org

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Faculty Form (cont.)

• Shows salary detail by Sponsored and
  non-Sponsored activities
• of salary is calculated on the form
• of effort is corrected when it differs from
  salary by greater than 5
• Total effort 100

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Faculty Form (cont.)

• Sponsored Activities
• Federal Grants Contracts
• Non-Federal Awards
• Non-Federal Sponsored Grants
• Cost Sharing (as coded in the G/L)

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Faculty Form (cont.)

• Non-Sponsored Activities
• All other funding sources
• Instruction and departmental research
• Administrative time
• OIA (other institutional activities)

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Faculty Form - Signature

• Form should be signed by one of the following
• Individual whose salary is being certified
• Principal Investigator (for award)
• Authorized administrator with first-hand
  knowledge of work performed (not recommended)

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Other Key Issues

• The relationship between Other Support
  statements, committed effort and Effort reports
  can be complex
• What are the requirements for making adjustments
  in committed effort?
• What is total professional effort?
• Is it reasonable to charge 100 effort of faculty
  to sponsored awards?

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Non-Faculty

• Certified monthly
• Salary charges for
• Exempt
• Clerical and Technical Non-exempt
• Students in Professional Positions
• Research Fellows and Teaching Assistants
• ALL salaries charged to awards

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Non-Faculty (contd)

• Certifications are a standard CREW report
• Reports are created by the department after month
  end close
• Recommendation is for one individual to run the
  entire batch for the department
• Signed certifications are sent to FOA

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Non-Faculty Form

• Includes all Harvard non-faculty salary for the
  month charged to a Federal award
• One form for each Tub-Org-Fund-Activity-Subactivit
  y combination
• Lists all employees with salary charges to the
  account combination

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Non-Faculty Form (cont.)

• Shows payroll detail by non-faculty employee
• Shows any salary transfers for the period to or
  from the account
• effort for the month salary for the month
• Assumption is that salary is commensurate with
  effort

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Non-Faculty FormCorrections

• What if a salary/effort is incorrect?
• Correction debits a Federal award
• If within the cost transfer (CT) limits, complete
  a CT package
• If beyond the CT limits, journal the amount to a
  non-Sponsored account
• Note on the certification the correct information
  and that a journal will be posted

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Non-Faculty FormCorrections (contd)

• What if the salary/effort is incorrect?
• Correction credits a Federal award
• Post a journal entry to correct the salary
• Note on the certification the correct information
  and that a journal will be posted

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Non-Faculty Form - Signature

• Form should be certified by
• Principal Investigator named on the form
• Authorized administrator with first-hand
  knowledge of work performed
• This option requires written documentation of
  authorization to be maintained in FOA files

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Non-Faculty HMS Policy

• Revised policy in packet
• Also available on FOA/e-commons web sites
• Policy states
• These reviews and certifications must be made
  monthly within a months time
• Original certifications are due in FOA on a
  monthly basis

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AY06 Non-faculty Certifications

• Certifications for August and September are
  overdue
• October certifications are due at the end of this
  month

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Q A

• Questions now?
• Questions later
• FOA website - http//www.hms.harvard.edu/foa/cost_
  effort.htm
• http//ecommons.med.harvard.edu
• Sarah Axelrod ? [phone]
• Matt Makarewicz ? [phone]