1. Effort Certification in the Kuali Financial System Office of Research Administration Indiana University 509 E. 3rd Street Bloomington, IN 47401-3654 January 2015

2.  Why and How of Effort Certification  Effort Management and Certification  KFS Highlights  Project Director and Fiscal Officer Routing  Federal Effort Reports  Why and How of Effort Certification  Cost Share Subaccounts  NIH Salary Cap  Frequently Asked Questions

3. Why we Certify Effort Uniform Guidance  Effective December 26, 2014  No changes to the current effort certification process at Indiana University for Fiscal Year 2015. IU Policy – Effort Certification Documents  Employees with regular pay  Effort certification documents are issued to certify effort

4. How we Certify Effort “After the Fact” effort certification Payroll data is gathered from the Kuali Financial System (KFS) labor ledger on a periodic basis to determine 100% of each employee’s regular compensation, (i.e. Institutional Base Salary) The KFS Labor Ledger reflects the specific buckets to which labor was allocated. These entries will not reflect the General Ledger entries if salary has been reallocated.

5. The Labor Ledger Effort A21 View ( Example:M01 – Monthly Fall )

6. The Labor Ledger General Ledger View ( Example:M01 – Monthly Fall )

7. Sometimes the GL and Effort Labor Ledger Match… Effort Labor Ledger General Ledger

8. Sometimes they don’t… Effort Labor Ledger General Ledger

9. Labor Ledger data is compiled and distributed through the Effort Certification Documents in the KFS Only employees with pay on federal or federal pass through accounts 100% of Institutional Base Salary is reported Salary transfer generation is stopped and all en route salary transfers are auto-disapproved prior to effort report distribution If changes have been made to an effort document, upon final approval an auto-generated salary transfer is completed Effort Report Generation

10. 30 Days Prior to salary transfer deadline Effort Certification Deadline – Documents disapproved and all federal effort administratively removed End of Effort Period Notification: 30-day notice of Salary Transfer Deadline and Effort Report Generation 15-day reminder of Salary Transfer Deadline and Effort Report Generation Spring Period A02 – (Jan-May) B02 – (Jan-Jun) M02 (Jan-Jun) Period cut-off June 30 th Salary Transfer Cutoff July 31 st Effort Communication Timeline 15 Days Prior to salary transfer deadline Salary Transfer Deadline (reminder of Pay Obj Codes) Effort Report Generation: Notification sent regarding generation and certification deadline 30 Days Prior to Certification Deadline – Notification of deadline sent Weekly follow up within last 30 days of effort certification deadline 30 Days after effort report generation 60 Days after effort report generation Summer Period A03 – (May - Aug) Period cut-off August 31 st Salary Transfer Cutoff September 30 th Fall Period A01 – (Aug - Dec) B01 – (Jul-Dec) M01 - (Jul-Dec) Period cut-off Dec 31 st Salary Transfer Cutoff Jan 31 st Report Prep Process

11. Effort Reporting Periods

14. Effort Management Effort Management should be conducted throughout the effort period  Monthly Account Reconciliation IU Policy - FIN-ACC-I-1 - Role of Fiscal Officer, Account Manager andAccount Supervisor  Communication Effort Certification Documents are intended to certify payroll on all Federal and Fed Pass-Through sponsored projects  Effort documents should only be modified when errors in effort allocations are discovered

15. Financial Reports  All costs should be booked to accounts before account expiration  All costs MUST be booked to accounts before the final report is sent  Final Financial Reports will be sent even if effort reports are not approved Account Close  Effort should not be reallocated after account expiration Importance of Effort Management

16. The Policy All Reports Certified within 60 Days past issuance The Consequence All effort will be removed from federal and federal pass through projects Effort Certification Deadline

17. Effort Recertification Office of Research Administration Cost Exception Committee  Only on an Exception Basis  Move effort to Federal Cost Reimbursable project  Recertifications requested after account expiration  We look for an “audit proof” justification

18. What should your justifications include?  What do you know now that you didn’t know when the original effort was applied?  How was the incorrect effort distribution determined?  What is being done to prevent similar occurrences in the future?  How did the effort being allocated benefit the project? Focus on monthly account reconciliation to avoid the need for effort changes. Justifying Changes on Effort Certification Documents

19. The KFS Effort Certification Documents

21. ACTION LIST EXAMPLE

22. KFS Effort Document Fiscal Officer View

23. KFS Effort Document Project Director View

24. Document Routing

25.  Cost share sub-accounts are entered on a separate line to allow users to identify the departmental source accounts.  Expense subaccounts are aggregated to report at the main account.  Effort is managed at the account level for effort reporting. Subaccounts on Effort Reports

26. Example of Expense Sub account KFS Labor Ledger View

27. Cost Share Subaccounts on Effort Reports

28. The NIH limits the amount of salary which may be reimbursed to universities for salaries charged to DHHS projects. In recent years, the salary limitation has been tied to the federal government’s Executive Level II salary rate. NIH Salary Cap

29. Frequently Asked Questions  How do I modify small dollar amounts without changing the effort percentage?  Account PI vs. Award PI  What if a Fiscal Officer or PI leave the University?  Ad Hoc Routing

30. How do I modify small dollar amounts without changing the effort percentage? When the Integer Percentage does not match the Derived Percentage, effort modifications may require an additional adjustment to salary dollars.

31. How do I modify small dollar amounts without changing the effort percentage? 1.Decrease Line 1 under Federal and Federal Pass Through Accounts to match the 2% reduction in effort. ($119.34) 2.Click “Save” 3.Increase Line 1 under Other Sponsored and Non-Sponsored Accounts to match the 2% increase in effort. ($95.91) 4.Click “Save”

32. How do I modify small dollar amounts without changing the effort percentage?

33. The Account PI and Effort Document Routing

35. Routing Issue Being Addressed If a Project Director makes an edit on an effort document following the Fiscal Officer approval, the document currently will not route back to the Fiscal Officer. When the document is finalized, the auto generated salary transfer will route an FYI to notify the Fiscal Officer of the adjustment.

36. Approvers No Longer at IU  Update accounts for new responsibilities  Request an update of both Award and Account PI  If an effort report is in routing to a terminated employee, contact Tim Burris at thburris@iu.edu or Rayna Amerine at ramerine@iu.eduthburris@iu.eduramerine@iu.edu

37. Ad Hoc Routing: Rules and Constraints  Effort documents may be routed for:  Approval  Acknowledgement  FYI  No changes are allowed  With ad hoc routing, the document routing progression stops

38.  Effort Reports are only generated if effort is on federal or federal pass through accounts  Manage effort activity regularly (at least monthly)  Effort Recertifications are Exception Only (Audit Proof Justification)  Salary transfers are generated when effort documents are changed. The ST will lump sum post to the last fiscal period of the Effort period. Effort Certification Points to Remember

39.  Documents may only be modified from the Action List  Cost Share subaccounts are reported on a separate line on effort reports  Effort Recertifications are Exception Only  Expense subaccounts roll up to the main account Effort Certification Points to Remember

40. IU Policy link: policies.iu.edu/policies/categories/research/Sponsored-Programs- Administration/Effort_Certification_under_OMB_%20A21.shtml policies.iu.edu/policies/categories/research/Sponsored-Programs- Administration/Effort_Certification_under_OMB_%20A21.shtml Role of Fiscal Officer, Account Manager and Account Supervisor: FIN-ACC-I-1- role-of-fiscal-officer-account-manager-and-account-supervisor.shtml FIN-ACC-I-1- role-of-fiscal-officer-account-manager-and-account-supervisor.shtml Effort Certification on the ORA Web: researchadmin.iu.edu/GrantContract/gc- gfo/gfo_effort.html researchadmin.iu.edu/GrantContract/gc- gfo/gfo_effort.html KFS Effort Certification Training and Guidance for  KFS A21 Effort Presentation  KFS A21 Effort Certification – Guidance for Document Routing and Approval  Search for A21 Effort Documents in KFS http://www.researchadmin.iu.edu/GrantContract/gc-gfo/gfo_effort.html

41. Questions & Additional Assistance Tim Burris Financial Compliance Manager Office of Research Administration Indiana University 509 E. 3rd St. Bloomington, IN 47401-3654 Phone: (812) 855-0185 Email: thburris@indiana.eduthburris@indiana.edu Rayna Amerine Financial Compliance Associate Office of Research Administration Indiana University 509 E. 3rd St. Bloomington, IN 47401-3654 Phone: (812) 855-1516 Email: ramerine@iu.eduramerine@iu.edu