1. Project Payroll Certification Pilot COGR, October 22, 2015 Dave Reed, Vice President for Research Michigan Technological University

2. Pilot Timeline Pilot approved-October 2011 Survey on Effort Certification-October 2011 Survey on Project Payroll Certification-November 2012 Office of Inspector General (OIG) Audit began-Jan 2013 Michigan Tech’s Internal Audit Report issued-Oct 2013 OIG site visit-April 2014 OIG Audit Report Issued-September 2015

3. Certification Effort Reporting: the labor distribution supporting the award charges “do reasonably reflect the individual’s effort during the effort period” and “that the percentage of effort is reasonable” Payroll Certification: for “all individuals who worked on this project,” the salary and wage charges were “accurate and reasonable in relation to the work performed, and the federal costing requirements as shown in the instructions were met”

4. Metrics STATISTICEFFORT REPORTINGPROJECT PAYROLL CERTIFICATION Certifications distributed per year6700620 % NOT returned on time55%0% # NOT returned on time per year 36851 Average not returned on time per month 3070

5. 2012 Project Certification Survey 220 surveyed and 119 respondents 93 Faculty responded 73 prefer project certifications 40 more find the new procedure easy to understand compared to effort reporting

6. OIG Audit Report Findings Overall Michigan Tech’s system generally provided accountability over federal funds, however did not always comply with its documentation policies for payroll transactions under effort reporting as well as payroll certifications. Weaknesses in controls over the Banner system which Michigan Tech uses for payroll allocation, under both the effort reporting & payroll certification pilot.

7. Other notables in the OIG Audit Report There were no late Project Payroll Certification Documents (PPCDs) sampled. The audit report concluded that the problems found were not the result of inadequate controls over the pilot. The audit report noted specific concerns over the shift away from certifying 100% of an individual employee’s effort. Michigan Tech noted that PPCDs shows a % of an individuals compensation.

8. QUESTIONS