What is effort reporting and why is it necessary?
Effort reporting is the mandated method of certifying to granting agencies that the effort charged or cost shared to each award has actually been completed. Effort reporting is required by OMB Circular A-21 which requires certification of effort spent by all employees whose salaries are charged directly to federal and federal flow-through funds, as well as for reporting committed cost sharing. Effort reporting is intended to ensure that individuals confirm after-the-fact for effort expended on federally funded activities. The confirmation certifies that they have received compensation from federal fund sources and that they have expended effort on the federally funded project, at a minimum, in the same percentage they are paid. Effort reporting must be completed and certified on a regular basis in accordance with the terms stated in OMB Circular A-21. Failure to meet these requirements puts the University at risk for audit disallowances resulting in significant financial penalties.
Related Questions
- If someone voluntarily works on a sponsored project and the individual was not included in the proposal, is it necessary to certify the effort?
- If someone voluntarily works on a sponsored project and was not included in the proposal, is it necessary to certify the effort?
- When is it necessary to make adjustments to effort or payroll distribution?
