Effort Certification Reporting at the University of Michigan

1
Effort Certification Reporting at the University
of Michigan

• Presented by Diane Winter
• Assoc. Dir. Cost
  Accounting
• Financial Operations
• July 2006

2
What is Effort Certification Reporting?

• A self-attestation of an employee's University
  activities for a stated time period.
• A proportional distribution of 100 of an
  employee's University effort
• Includes all activities
• Reasonably reflects
• Certification of reported effort is required by
  the federal government (OMB Circular A-21).
• It is NOT hours
• It IS a percentage of time

3
Why Report Effort?

• Federal Compliance OMB Circular A-21, J.10.c
  (1) (c)
• Planned Confirmation At least annually a
  statement will be signed using suitable means
  of verification that the work was performed,
  stating that salaries and wages charged as
  direct charges are reasonable in relation to work
  performed.
• Federal agencies have accountability to Congress
  and to the public for the use of public funds.
• Effort Certification Reports provide
  documentation that demonstrates accountability
  for the use of those funds.
• Labor charges typically represent about
  two-thirds to three-quarters of university costs.

4
Why Report Effort?

• National Hot Topic
• Severe fines/penalties imposed on peer
  institutions
• 5.5 M Northwestern University, February,
  2003
• 2.6 M Johns Hopkins, March 2004
• 3.3 M Harvard, June 2004
• 3.3 M Univ. of Alabama Birmingham, April
  2005
• 6.5 M Mayo Clinic, May 2005
• 11.5 M Florida International University, June
  2005
• 2.5 M University of Connecticut, January
  2006
• And the list continues to grow!

5
Who Certifies Effort?

• Selection Criteria
• Perform a sponsored activity, or
• Compensated by cost sharing related to a
  sponsored activity, or
• Perform more than one functional activity e.g.
• Instruction and Administration
• Department Research and Instruction
• Patient Care and Instruction
• Administration and Plant Operation Maintenance

6
Functional Activities

• Definition Activities performed at the
  University
• Instruction
• Department Research
• Public Service / Patient Care
• Organized Research
• Clinical Trial
• Other Sponsored Activity
• Research Training Grant

7
Functional Activities (cont.)

• Department Administration
• Sponsored Project Administration
• General Administration
• Student Administration Services
• Plant Operation Maintenance
• Library

8
The Process
9
The Process
2
10
Timing
11
What happens if report is late?

• 30 day grace period
• 1st contact email to HR Admin Contact
• 2nd contact HR administrator in Deans Office
• Escalate
• Expectation 100 Compliance

12
Who Can Sign an Effort Certification Report?

• The Employee
• Alternate
• ONLY in extenuating circumstances
• Prior approval required from Cost Reimbursement
• Email CRO_at_umich.edu
• Provide
• Certifiers name empl id
• Administrative Department ID
• Name of proposed alternate signer and
  relationship to certifier
• Reason alternate has direct knowledge of the work
  performed by certifier
• Reason certifier not available for signature
• Certification period
• If applicable date of Termination, RIF or LOA

13
Compliance

• 100 completion UMs policy on Effort
  Certification includes penalties for
  non-compliance
• Mandatory Education - certifiers need to
  understand
• What effort certification means
• Why its important to them
• The importance of the certifiers signature
• Sarbanes-Oxley SPG 500.1

14
What if Effort Certification Report is Incorrect?

• Work with Department Administrator
• Explain activities on report
• Determine reasonable effort percentages for
  activities
• If necessary, change Department Budget Earning
  (DBE) lines in HRMS
• Department Administrator will receive email when
  DBE change has been processed
• Department Administrator notifies certifier that
  a new report is ready for re-certification
• Review/Sign new electronic Effort Certification
  Report

15
(No Transcript)
16
(No Transcript)
17
(No Transcript)
18
(No Transcript)
19
(No Transcript)
20
(No Transcript)
21
(No Transcript)
22
(No Transcript)
23
(No Transcript)
24
(No Transcript)
25
(No Transcript)
26
(No Transcript)
27
(No Transcript)
28
(No Transcript)
29
Effort Certification ReportsExample 1
30
Effort Certification ReportsExample 2
31
Effort Certification ReportsExample 3
32
The As Needed Process

• When do I use this process?
• Approved Alternate Signer
• Employees that terminate from UM
• Employee w/o UM Unique Name / email
• Begin Leave of Absence
• Begin RIF
• What is the process?
• Wolverine Access / University Business
• To / From Dates
• Empl ID
• Sign remit to Cost Reimbursement Office

33
The As Needed Process
Select Wolverine Access
34
The As Needed Process
Select University Business
35
The As Needed Process
Select M-Pathways Student Administration
Human Resource Management System
36
The As Needed Process
Login with Unique Name and Kerberos Password
37
The As Needed Process
Select Define Business Rules HRMS
Reports HR A-L
38
The As Needed Process
Select As Needed Effort Certification
39
The As Needed Process
Type in your RUN CONTROL ID for this process
If you havent done this before, youll need to
ADD A NEW VALUE
40
The As Needed Process
4. Select Run to Window
1. Report can be run by individual, Funding
Department or Admin Department
2. Insert BEGIN and END dates
3. Select SAVE
41
The As Needed Process
Print report and/or Save as a .pdf and email to
certifier
42
Retroactive Salary Transfersand Effort
Certification Reporting

• Follow the Policy Procedures on Retroactive
  Salary Transfers (SPG 501.9)
• Time period has been certified
• 6/30/06 or earlier, paper Effort Report Dept.
  Administrator completes re-Certification memo
  other paperwork and submits to Sponsored
  Programs.
• 7/01/06 and after, electronic Effort Report
  Dept. Administrator receives email that a new
  Effort Certification Report is ready for employee
  to certify electronically.
• Time period has NOT been certified No action
  needed. Changes are reflected in Effort
  Certification Report the next time employee
  certifies.

43
Expectations of the Unit Administrator

• Share knowledge
• Facilitate Department Budget Earnings (DBE)
  changes
• Be a resource
• Monitor Compliance
• Work collaboratively
• Joint appointments
• System errors

44
Next Steps

• University
• Automate certification of terminated employees
• Test accuracy
• Unit
• Timely update of appointments
• Monthly reconciliation of payroll registers
• Educate employees about effort certification
• Run As Needed Effort Certification Report for
  terminated employees and obtain signature

45
Related Policies

• OMB Circular A-21 http//www.whitehouse.gov/omb/ci
  rculars/a021/a21_2004.html
• Effort Reporting Policy Procedures
  https//private.www.umich.edu/finops/CRO/Effort/
• Retroactive Salary Transfer Policy Procedures
  http//www.finops.umich.edu/CRO/index.htm
• Standard Practice Guide http//spg.umich.edu/s
  ection/501/

46
Help Resources

• Cost Reimbursement Office
  CRO_at_umich.edu
• Human Resource Records and Information Services
  (HRRIS) hrris.info_at_umich.edu
• MAIS Help Desk [phone]
  mpathwayshelpdesk_at_umich.edu
• MAIS Linc https//maislinc.umich.edu/mais/pdf/HR_U
  AW_effortcertificationreport_QR.pdf
• Employee Business http//wolverineaccess.umich.edu
  /university_biz_secondary.jsp
• Wolverine Access
  http//wolverineaccess.umich.edu/