1. Examples of Effort Certification Office of Research and Sponsored Programs

2. Slide 2 Index of Examples 1.Salary match 2.Salary cap w/ 80% effort 3.Voluntary cost sharing 4.K award 5.Salary support > 40 hr work week 6.Effort commited w/ no salary support 7.Effort on awards & clinical trials 8.Service contract 9.External professional activities for pay 10.External professional activities for pay 11.Adjusting effort due to new award 12.100% funded faculty 13.Scientific meetings 14.Graduate Students 15.Effort without salary 16.Effort on non-sponsored projects 17.More expended effort than is funded by an award 18.New award moves committed effort over 100% 19.Consistency between effort reports and other documents 20.Vacation and sick leave 21.NIH career award (K award) 22.9-month appointment with summer salary 23.Graduate student mentoring award 24.Inconsistent documentation 25.Cost transfer from 144 to 101 26.Cost transfer from 101 to 144 NOTE: The examples in this presentation use hours worked for purposes of illustration only. Effort is based on 100% of an individual’s UW professional duties. IT IS NOT BASED ON A 40-HOUR WORK WEEK. There is no standard for the number of hours that constitutes total UW professional effort.

3. Slide 3 Example 1: Salary Match Kauffman Foundation requires the University to match 50% of Dr. Balsam’s salary Dr. Balsam commits 80% effort (not 100%!) on the project Dr. Balsam’s Institutional Base Salary = $100,000 Therefore: $40,000 charged to the sponsor’s account $40,000 charged to a departmental account (i.e. trust fund, 101, gift account, etc.) and cost-shared to the project

4. Slide 4 Example 2: Salary Cap with 80% Effort NIH salary cap is $186,600 Dr. Oak’s Institutional Base Salary (IBS) = $200,000 When IBS is greater than the salary cap, a percentage of the salary must be cost-shared regardless of the level of effort –That percentage is: (IBS – Cap) IBS Therefore: –($200,000 – $186,600) = 6.7% Salary Cost Share $200,000 –With 80% effort on the project: 80% of $200,000 = $160,000 6.7% of $160,000 = $10,720 charged to a departmental account 93.3% of $160,000 = $149,280 charged to the NIH –The other 20% of Dr. Oak’s salary comes from somewhere else

5. Slide 5 Example 3: Voluntary Cost Sharing In the proposal narrative: “Dr. Fir has committed 5% of her effort at no charge to the project to advise PI Jane Spruce.” Therefore: 5% of Dr. Fir’s salary, paid by a non-sponsored account, must be cost-shared to the project

6. Slide 6 Example 4: K-Award K07 requires a minimum 75% effort by the PI and has a salary limit of $75,000 PI: 75% Effort & IBS = $115,385 Payroll Effort Distribution K07 Award $ 75,000 65.0% Cost share to K07 $ 11,539 10.0% Other sources $ 28,846 25.0% Total $115,385 100.0%

7. Slide 7 Example 5: Salary Support > 40 hr work week Dr. Hickory is slated to devote 75% to an NIH project and is paid from the grant at that rate She puts in 30 hours a week on the project, but also spends 20 hours a week on her teaching and vice-chair responsibilities Since 30 hours is 75% of a 40 hour week, she thinks she is compliant. WRONG!!!!! Her effort is 60% (30/50)!

8. Slide 8 Example 6: Effort Committed with No Salary Support Dr. Ash is receiving salary support as follows: 1.NIH Award 1 = 25% 2.NIH Award 2 = 30% 3.General Salaries (101 funds) = 45% Dr. Ash is awarded a Robert Wood Johnson Foundation grant, to which he committed 5% effort in proposal narrative at no cost to the sponsor 1.NIH Award 1 = 25% 2.NIH Award 2 = 30% 3.101 funds / non-sponsored activities = 40% 4.General Salaries cost shared to RWJ award = 5% Question: What should be set up in payroll? What is the effort distribution?

9. Slide 9 Example 7: Effort on Awards & Clinical Trials Example 7: Effort on Awards & Clinical Trials Dr. Aspen has three NIH grants from which he derives 90% of his salary In addition, he is the PI/Co-I on eight other awards at no cost to the projects, and he serves as a division director NO! This scenario would raise a red flag to indicate that NIH may be charged for other research and departmental/institutional activities Question: If you were an auditor, would you view charging 90% of Dr. Aspen’s salary to federal grants as reasonable?

10. Slide 10 Example 8: Service Contract Dr. Linden serves as a journal editor under a contract with the University and spends an average of 8 hours per week working on the journal Her administrative assistant is also compensated for working on the journal Question: How should Dr. Linden and her administrative assistant consider their time spent working on the journal? Dr. Linden’s and her administrative assistant’s effort must be reported as UW Effort on their Certification Statements

11. Slide 11 Example 9: External Professional Activities for Pay Dr. Maple reviews grant applications for the American Heart Association an average of 8 hours per week during the winter quarter and has no other external consulting activities Dr. Maple has 50% funded effort on an NIH grant and typically devotes 20 hours per week to the grant and 20 hours per week to other University activities 50% NIH grant and 50% other University activities, because AHA reviews are external activities Question: How should Dr. Maple’s effort be reported?

12. Slide 12 Example 10: External Professional Activities for Pay Over the course of a week, Dr. Arborvitae usually works on UW activities 34 hours during the day (M-F) and 10 hours on nights and weekends He spends about 6 hours each Monday consulting and receives pay directly from an outside entity for this service Dr. Arborvitae has committed and averages 11 hours per week on grant activities Questions: 1.What number of hours constitutes 100% of Dr. Arborvitae’s effort? Answer: 100% of Dr. Arborvitae’s UW effort is 44 hours (34 + 10) 2.How much effort should be charged to grant activities? Answer: 25% of Dr. Arborvitae’s effort should be charged to his grant activities (11/44)

13. Slide 13 Example 11: Adjusting Effort Due to New Award Dr. Beech works 60 hours per week –NIH Grant 15 hours 25% effort –Other UW activities 45 hours 75% effort He receives another NIH award with a 20% committed effort. –NIH Grant 112 hours20% effort –NIH Grant 2 12 hours20% effort –Other UW activities36 hours 60% effort No, since the reduction is < 25% of the original commitment to the award (5/25 = 20%). Is it a good idea to inform the sponsor anyway? Probably. Question: Since this results in a reduction to the effort on his first NIH grant, does Dr. Beech need prior approval from the NIH for the reduction?

14. Slide 14 Example 12: 100% Funded Faculty Example 12: 100% Funded Faculty Dr. Buckeye’s payroll is set up as follows: –NIH Award 20 hours per week 40% –Robert Wood Johnson Grant 30 hours per week 60% Each week, Dr. Buckeye also works an average of 4 hours on various committees and other university commitments for a total of 54 hours a week What’s wrong with this picture? Dr. Buckeye needs to correct his payroll distribution to reflect the portion of his effort that is expended on non-sponsored activities before he certifies his effort. Corrected entry: –University commitments 4 hours per week 7% –NIH Award 20 hours per week 37% –Robert Wood Johnson Grant 30 hours per week 56%

15. Slide 15 Example 13: Scientific Meetings In October Dr. Juniper attends three different scientific meetings and is away for half the month Question: Can he still report that 80% of his effort is related to his grants while away? YES - attendance at scientific meetings or conferences about content that is related to the technical scope of his grants is allowable effort

16. Slide 16 Example 14: Graduate Students Ms. Magnolia is a graduate student and is being paid as a graduate assistant on Dr. Hawthorn’s grant She is enrolled for 6 semester hours for the Fall semester and expends 100% of her work effort in the lab on one of Dr. Hawthorn’s NIH awards Question: How should Ms. Magnolia’s effort be reported? Ms. Magnolia is compliant if she reports 100% effort on Dr. Hawthorn’s award

17. Slide 17 Example 15: Effort without Salary Dr. Cypress has an NIH-sponsored project to which she pledged 3% effort but did not request corresponding salary support (voluntary committed cost-sharing); Therefore, Dr. Cypress’ initial Effort Statement will reflect 100% non-sponsored salary. Question: What must she do? Answer: Work with her Effort Coordinator to have the NIH account added to her Statement, at which time she will certify that 3% of her time (but not her salary) was spent on the project

18. Slide 18 Example 16: Effort on Non-sponsored Projects Dr. Spruce receives salary support from the following sources: –Research Award 1 = 40% –Research Award 2 = 40% –Teaching a graduate course = 20% She plans to teach another course 4 nights a week which she estimates will take an additional 10% of her time Question: Does her effort report need to be changed? YES - because Dr. Spruce expanded her time on non-sponsored project activities, proportionately reducing her effort distribution on sponsored research projects Original Change Award 1 40% 36% Award 2 40% 36% Teaching 20% 18% Night Class --- 10% Total Effort 100% 100%

19. Slide 19 Example 17: More Expended Effort than is Funded by an Award Dr. Elm requested 50% salary support on his NIH grant but actually spends 80% of his effort on the project Question: Does he have to increase his salary support on the grant to 80%, even if it means not having grant funds to support an assistant? NO. The commitment to the sponsor is 50% of Dr. Elm’s effort. The additional 30% is not expected by the sponsor. It’s voluntary uncommitted cost sharing. This is not auditable, and we do not track it. Remember: The purpose of effort certification is to provide assurance to the sponsor that you have fulfilled your commitment.

20. Slide 20 Example 18: New Award Moves Committed Effort Over 100% In October of 2006, Dr. Hydrangea received a new Notice of Award (#3) that included a 25% effort commitment However, Dr. Hydrangea was already working on Award #1 with 50% committed effort, Award #2 with 30% committed effort, and various departmental-funded activities that account for the remaining 20% of Dr. Hydrangea’s salary Increasing the number of hours worked will not correct this situation because Dr. Hydrangea has over-committed effort. Dr. Hydrangea must address this situation and talk to her department administrator and effort coordinator to determine if they will: 1.Attempt to revise the level of effort on grant activities by communication with the sponsor(s) 2.Reduce effort on other activities by getting approval from the department 3.Refuse the award

21. Slide 21 Example 19: Consistency Between Effort Reports and Other Documents For three years Dr. Redwood has certified 80% effort on his NIH awards and 5% on clinical activities He is being considered for tenure and states in his tenure materials that he has spent 40% of his time at the UW on his teaching and 10% on departmental service If Dr. Redwood’s tenure packet is accurate, these materials may serve as evidence that he misrepresented his NIH effort Dr. Redwood and the University could be subject to liability because of the inconsistencies between certified effort statements and other university documents

22. Slide 22 Example 20: Vacation and Sick Leave Dr. Sycamore has a 12-month appointment and is absent for one month during the summer for vacation and because of illness. His salary is funded 80% from NIH grants. During the other two months of that summer he continues to expend 80% effort on his grant activities. Question: How should his effort be reported for certification? He should certify 80% effort for the entire reporting period because University policy is to pay vacation and sick leave from the salary source distribution in effect when the leave is taken Regulations require universities to communicate their policies to the Federal Government and to administer them on a consistent basis Note: NIH may need to be notified if absences are prolonged

23. Slide 23 Example 21: NIH Career Award (K-Award) Dr. Walnut, a clinical faculty member, would like to pursue a new career in research As a first step toward to his goal he applies for and is awarded an NIH Patient-Oriented Research Career Development Award (K23) which requires that he devote a minimum of 75% of his effort to research activities He must maintain an average of three hours per day, Monday – Friday, to keep his clinical commitments, but has identified a faculty colleague who has research grants in an area of Dr. Walnut’s interest His colleague is pleased to have Dr. Walnut learn research techniques by assisting with his projects, and the NIH sponsor sanctions this activity to qualify for research on Dr. Walnut’s K award Question: How many hours a week does Dr. Walnut have to spend on research activities to meet the 75% K Award effort requirement? 45 hours per week, because: 15 are spent on clinical activities, and that’s 25% of Dr. Walnut’s total effort. (60 total hours per week; 75% of 60 = 45)

24. Slide 24 Example 22: 9-Month Appointment with Summer Salary Dr. Sequoia has a nine month appointment and also receives summer salary He has special expertise outside of his regular faculty appointment that qualifies him to consult on another UW PI’s summer project, for which he receives a lump sum payment equal to one month salary (1/9) In addition, Dr. Sequoia receives two months salary (2/9) from an NSF grant which he works on during the summer Question: When certifying to the summer effort reporting cycle, does Dr. Sequoia need to adjust his effort to account for his consulting arrangement? No - lump sum payments are not part of institutional base salary, per UW policy Therefore the consulting engagement is essentially external professional activities and is not part of Dr. Sequoia’s UW effort

25. Slide 25 Example 23: Graduate Student Mentoring Award Dr. Dogwood spends 3 hours a week teaching a didactic course for graduate school credit to graduate students She also spends an average of 4 hours a week mentoring each of her three graduate students and 2 hours a week in a lab meeting discussing research issues relevant to her NIH-funded project Question: How should the lab meeting and mentoring time be reported as effort? Both can be considered as part of her effort devoted to the grant (since the grant is a mentoring award), but the course should be considered instruction and attributed to non- sponsored sources

26. Slide 26 Example 24: Inconsistent Documentation Dr. Crapemyrtle fails to list 6 industry-sponsored clinical trials (aggregate of 5% effort) on his NIH Biographical Sketch and his Just-in-Time Other Support page submitted to NIH NIH could argue that this information was critical to the scientific and/or administrative review process, and the grant was inappropriately awarded NIH could then order the UW to return funds already expended and those remaining from the award

27. Slide 27 Example 25: Cost Transfer from 144 to 101 If Dr. Butternut’s Effort Statement has been certified, but her salary costs are later moved from a 144 to a 101 account, will her Effort Statement have to be re-certified? No, since the effort did not change, only where the effort was charged

28. Slide 28 Example 26: Cost Transfer from 101 to 144 If Dr. Lilac’s Effort Statement has been certified, but some of his salary costs are later moved from a 101 to a 144 account, will his Effort Statement have to be re-certified? YES! If the effort was expended on the 144 project, then the re-certification will be needed. If the effort was NOT expended on the project, the charge is not allowable.