Effort Reporting for Sponsored Programs at Washington Square

Policy Statement

NYU complies with federal effort reporting requirements and has implemented a system to accumulate and document personal service costs charged to sponsored programs.  The system is designed to ensure that the commitment indicated in a proposal and resulting award is met and in compliance with NYU and sponsor terms and conditions.  It is implemented through time and effort reports for each person whose salary is charged to a sponsored program and/or cost sharing account during the reporting period.  The PI must ensure that his or her own reported effort and the effort of all other personnel directly charged or otherwise committed to the project are accurate and reflect the work actually performed on the project during each reporting period.

If the percentage of effort expended in a given effort reporting period is less than the percentage of salary charged to the sponsored project during the period, the salary charges must be reduced to reflect actual effort.

Reporting Effort

Effort is confirmed, reported and certified based on an after-the-fact reporting system.  Effort reports are prepared for three time periods:  Fall semester, Spring semester and Summer term.

A report of actual effort is generated using the Effort Reporting System (ERS).  Each such effort report must be completed and certified in a timely manner after the department’s receipt of the period’s certification report.

Certifying Effort

The PI and any other faculty member whose salary is charged to a sponsored program is required to certify his or her individual effort reports. The PI must also certify that the effort reported by non-faculty personnel directly charged to projects is accurate and reflects the effort actually contributed during the reporting period.

Calculating Effort

The basis used to propose or commit effort should be the same as that used to calculate, report and certify effort.

It is recognized that a precise apportionment of effort across the activities performed on behalf of an institution of higher education is not always feasible.  Research, teaching, clinical services and administration are often inextricably intermingled.  Therefore, reliance is placed on estimates in which a degree of tolerance is expected.

For research scientists, administrative employees and faculty, there is no set number of hours that constitute total effort; rather total effort equals 100% of the University effort.  The activities performed and the total amount of time to accomplish them will likely be different for each individual and may vary during the year and from year to year.

For faculty, the components of total effort are determined by the original NYU appointment letter, the NYU Guidelines on Faculty Effort and any modification stated in any subsequent letters from the Chair or Dean, for example when a faculty member takes on administrative responsibilities. Teaching, research (including clinical trials), clinical services within the Dental College and administrative activities are all services that may be performed on behalf of NYU.

Research scientists and administrative employees are generally on 12 month appointments and are assigned their responsibilities for research and their expected committed effort by the PI.  For graduate students, a full-time appointment is comprised of a combination of research responsibilities and educational activities.  They may be appointed on a semester or 9-month basis and may earn additional compensation for each summer month during which they are employed.

Committed Effort

When an award is accepted, the Principal Investigator is committed to providing the level of effort specified in the proposal, subsequent budget modification, or resulting award notification, over the  award period, unless sponsor policies permit otherwise. For some sponsors, a specific level of effort is also specified for other key personnel.  It is expected that the proposed effort committed in a grant application will be provided to the project even when the amount approved in the NOGA is less than the amount requested, unless the sponsor has agreed to a reduction in effort. If such cases the unfunded committed effort must be treated as voluntary cost sharing and tracked in a separate account.

Temporary changes of less than 5 percent of assigned effort during a period are generally considered immaterial (except that the 1% minimum effort for PIs on federal grants must be met), and it is not necessary to report them on payroll documents.  However, changes from assigned effort of 5% or more that are expected to continue or occur regularly must be reflected in the corresponding time and effort report.

Minimum Effort

With certain exceptions (including, for example, equipment & instrumentation grants, doctoral dissertation grants, faculty mentors on institutional training grants), faculty are expected to apply some level of effort to projects on which they are listed as the PI or as key personnel (1% or more or the minimum required by the program).

Maximum Effort

For faculty participating in activities not directly related to work on active sponsored programs (i.e., teaching, administrative service, grant proposal preparation), the effort assigned to federally-sponsored projects should rarely total more than 95%.

The sum of the committed effort on active projects plus the anticipated committed effort on proposed projects and the effort devoted to non-research activities may exceed 100% for a given period.  However, to the extent that proposed projects are ultimately awarded, the effort on one or more activities must be reduced to ensure that combined effort does not exceed 100% for the period.  The sponsor of an affected project will normally require notification if the effort reduction is significant.

Summer Effort for Faculty with 9 Month Appointments

The IBS for 9 month faculty is based on the 9 month base, even for faculty whose administrative duties extend into the summer.  Faculty compensated for 9-month appointments are permitted to expend up to an additional 3 months of summer effort on a combination of service (paid by NYU) and one or more sponsored programs in the period beyond the academic year and earn up to 3 months of additional salary for that effort, subject to sponsor policies and the approval of the department chair and dean/provost.  Three summer months’ compensation is the maximum allowable from all sources  (including University funds).

A request for summer salary indicates a commitment to expend commensurate effort on the particular project during the Summer term (effort expended during the academic year does not satisfy a commitment related to the receipt of summer salary).  Faculty who receive summer salary from sponsored programs will be required to certify that the effort was expended on those projects during the summer effort period.

Effective 9/1/09, faculty may not charge 100% to federally-sponsored research during the summer or any given month during the academic year.  The minimum which must be reserved for other duties is 5% per month for faculty without extra administrative duties and correspondingly more for chairs, directors and deans. (see NYU Guidelines on Faculty Effort for details on supplementary compensation for administrative duties).

Cost Sharing

Any effort which is committed in the proposal and resulting award, but not charged to the sponsor, must be documented as voluntary committed cost sharing and reported on the T&E certification, unless the deviation is within award limits or has been approved in advance by the sponsor (see “Changes in Status and/or Effort” below).  The amounts identified for cost sharing are subject to review and approval by the responsible departmental and school leadership, and processed in accordance with NYU’s Institutional Cost Sharing Policy.

Per NYU’s Cost Sharing Policy, PIs may cost share 1% of their academic year time toward any single sponsored program.  When no summer salary may be requested (because the PI is already 100% committed or the agency has prohibitions), up to 5% academic year effort may be cost shared with the approval of the chair and the dean.  Any voluntary cost sharing above 5% on a single grant or 10% cumulatively (in the sum total of all awards) requires a justification and the written permission of the chair, dean and Senior Vice Provost for Research.

Extra Compensation for Faculty with Administrative Appointments

Faculty with administrative appointments, e.g., chairs, directors, deans, may receive a salary supplement in recognition of their increased responsibility.  This supplement applies to the full IBS, and should not be considered compensation for the administrative service alone.  Most administrative appointments also involve service during the summer which needs to be separately compensated and tracked, though the percent of effort need not be the same during the summer and during the academic year.

Salary Caps

Certain sponsors (e.g., NIH) impose a limit or “cap” on the annual rate of pay that may be charged.  Using the IBS for the academic year, the difference between the effort expended on the sponsored program and the sponsor salary cap is designated as cost sharing.  On summer salary charges for faculty with 9-month appointments, the difference between the IBS and the salary cap need not be charged.

Changes in Status and / or Effort

It is the PI’s responsibility to comply with federal and other sponsoring agency prior notification requirements related to changes in status and/or effort for all personnel on their projects.  Federal agencies require prior notification and approval of significant changes in personnel status and/or effort of PIs (and for some sponsors, key personnel) on the projects that they sponsor.

Federal agencies define changes in status as:

• withdrawal from a project;

• absence from the project for any continuous period of three (3) months or more; or

• twenty-five percent (25%) or greater reduction in the time devoted to the project (over the budget year) from the level approved at the time of award. 

Example:  A PI has committed 50% effort to a project.  A reduction of 25% of the committed effort would result in a 37.5% effort and would require agency approval.

During the life of the award, when required by sponsor policies, it is the PI’s responsibility to obtain University (Chair and Dean) and sponsor prior approval for such changes in status or effort.  Requests for sponsor approval are conveyed through the Office of Sponsored Programs.

Unless otherwise communicated to the sponsor, the effort committed during a no-cost extension period is assumed to be consistent with the effort commitment for the immediately preceding award period.  The sponsor must be notified at the time of a no-cost extension request if the effort to be expended is reduced by 25% or more than the level approved at the time of the award.

Retroactive Adjustments

To identify potential errors and make adjustments on a timely basis, PIs and their department administrators should regularly compare the effort commitments contained in new and ongoing sponsored program budgets with Fame/Brio expenditure reports.  In addition, in preparation for each effort reporting period, an additional, comprehensive review should take place for each project to identify potential adjustments.  Effective 9/1/09, once effort has been certified on a sponsored program, it may not be recertified without explicit permission from the Chair, Dean and a designated official in the Controller’s Division.  Changes in certification may not be implemented by a charge to the Federal government.  The term “recertification” does not include the correction of failures to implement the original certification, e.g., paperwork errors or payroll adjustments which were requested, but not enacted.  Requests for such corrections must be accompanied by documentation substantiating the claim. 

Risk accounts need to be established through Sponsored Programs Accounting in the case of pending awards. This will avoid the need to transfer funds from a non-government to a government account once the award has been received.

Roles & Responsibilities

Principal Investigator (PI)

• understands requirements for accurate effort reporting

• provides reasonable estimates of effort expended in relation to the aims of the project and other University obligations; verifies that PI’s and other non-faculty personnel time commitments on all activities, prior to and after certification, including instruction, research, and other department activities does not exceed 100%; alerts Chair and Dean of any overlap or discrepancy

• complies with sponsor requirements regarding reduction in effort and change in status of self and, when required by the sponsor, of key personnel

• certifies his or her effort and all other non-faculty personnel for the project

• notifies the S/DA of any required adjustments to the T & E report

• provides certification of effort to the departmental administrator in a timely manner upon receipt of e-mail notification of report availability

School/Department Administrator (S/DA) (aka Department Coordinator)

• coordinates the activities of department leadership, the Contract Office, PIs, OSP, and SPA

• assists PI in determining committed effort at proposal stage for self and other relevant personnel

• ensures that sponsor-imposed salary caps are calculated and recorded properly in a cost sharing account

• monitors committed effort and assists PIs with preparation of request to sponsors when necessary regarding reduction of effort

• ensures that effort reports are complete, that the dollars charged are consistent with the effort certified and that reports are submitted correctly and on-time

• makes any adjustments in labor distribution, as required, and submits payroll corrections consistent with the approved certification

The Contract Office, Which Includes The Central Administrator for ERS (CA)

ensures that effort reported during a no-cost-extension is consistent with the effort committed to the sponsor

• is responsible for the ERS

• transmits the certification data

• monitors the various aspects of compliance, including notification to Department Chair or Dean and OSP of any delinquency

• explains the effort reporting system and justifies NYU’s performance to auditors

Sponsored Programs Accounting (SPA)

• documents and confirms committed cost sharing based on the Notice of Grant Award during award set-up

• ensures that all cost sharing amounts are appropriately established and in compliance with the NYU and sponsors’ cost sharing policy 

• reviews and approves all requests for retroactive adjustments in accordance with the Cost Transfer Policy

Office of Sponsored Programs (OSP)

• ensures that submitted proposals are in accordance with NYU  and the sponsor’s policies

• at the time of award, reconfirms the budget and cost sharing commitments, including PI and other relevant personnel time commitments

• when the award is granted, alerts SPA in writing of effort commitments, both funded and cost shared; reviews and approves requests for reductions of effort as required by sponsor terms and conditions; and informs SPA of any resulting change in effort

Department Chair

• reviews proposed sponsored activity to assure that other activities required of PI will not conflict with proposed effort commitment

• ensures PIs compliance with reporting and certifying effort accurately and on a timely basis

• approves changes in effort commitments, including cost sharing

• notifies dean of non-compliance by a PI and recommends/requests action

Dean

• with Chairs, reviews proposed sponsored activity to assure that other activities required of PI will not conflict with proposed effort commitment

• approves changes in effort commitments,  including cost sharing

• reviews and approves all requests for retroactive adjustments in accordance with the Cost Transfer Policy, as requested

• on Chair’s recommendation, initiates actions against a PI in the event of non-compliance

Internal Audit

• reviews the time and effort reporting system annually as part of its regular audit of sponsored programs

Payroll

• responds in a timely way to requests for adjustments in payroll activity

Senior Vice Provost for Research (SVPR)

• Upon the recommendation of the Dean, enforces sanctions against PIs and other employees in the event of non-compliance, as appropriate

Compliance

Violations of this policy may subject faculty and other employees to disciplinary procedures, including, but not limited to:

1. Suspension of new submissions on behalf of a PI during the period that the faculty member’s effort report (or that of any research staff) is delinquent.
2. Discipline in accordance with the policies and procedures set forth in the Faculty Handbook as applicable to faculty of the Washington Square campus. A non-faculty employee who is determined to be non-compliant with this policy will be subject to discipline in accordance with the applicable employee disciplinary policies and procedures.
3. NYU will report to the sponsoring agency any finding of non-compliance, as required by applicable law, regulations and the term and conditions of the award. 

Internal Evaluation

Internal Audit conducts annual random audits of sponsored programs.  Evaluation of the time and effort reporting system is part of this audit process.

Procedures

Refer to the Policy on Effort Reporting for Sponsored Programs at Washington Square PDF for the effort reporting procedures.

Applicable Regulations

Office of Management and Budget, Circular A-21

http://www.whitehouse.gov/omb/circulars/a021/a21_2004.html

NIH Grant Policy Statement

http://grants.nih.gov/grants/policy/nihgps_2003/index.htm