Time and Effort Reporting Q&A Document

Q1:  What is Time and Effort Reporting? 

It is the process by which an individual (faculty, staff, or student) who is paid any portion of their salary/wages from a federal sponsored project (or using Valpo funds to meet required cost matches) is asked to confirm that the percentage of their worked hours charged to the project reasonably reflects the actual effort they expended on the project during the reporting period.

Q2:  Is it required?

Yes.  It is required under federal guidelines.  Valparaiso University (VU) is subject to annual/periodic audits by the university's external financial auditing firm as well as by some project sponsors. Please see page 2 of this document for the specific requirements.   

Q3:  How often does VU require Time and Effort Reporting?

Time and Effort reporting is completed and submitted to the Finance Office three times per year after the end of each semester:  Fall (due January 15), Spring (due May 31), and Summer (due September 15). As an example, if you have five individuals working on grant obligations then you would submit five individual Time and Effort documents by January 15th for their August – December work.

Q4: Do I have to report my cost share or matching on the grant?

Yes. All cost share/matches that are required within the grant agreement/contract must be confirmed. The time and effort form validates the effort expended and verifies that VU has fulfilled its obligation.

Q5: Who is required to sign the form?

Both the individual who is reporting their own effort and the PI of the grant are required to sign the form. If a PI is reporting their time then the Dept Chair or Dean signs the Confirmation Signature line.

 Q6: Where & how to return the form?

All completed forms can be forwarded to Steve Timm in Kretzmann Hall. Please return all documents using campus mail or email. The forms will be stored in the Finance office for annual audits.

Q7: What is best practice for the completion of the Time and Effort form?

The PI should discuss the reporting requirements and the Managing Your Grant website with the employee before the grant work begins. The PI shares their grant number with the employee so they have it when completing their forms. The PI should ask the employee to add a reoccurring reminder to their work calendar to complete the form one week before each semester ends. The PI reminds their employees to complete the form one week before the semester ends. The PI gathers the forms, reviews for accuracy, and signs the Confirmation Signature line confirming the employee’s efforts. The PI sends the completed forms to Steve Timm in Finance to file on or before the due dates.

The new Time and Effort Reporting Form was developed to meet federal guidelines for grants. The Office of Management and Budget 2 CFR Subpart E, Part 200.430 defines the standards for documentation of personnel expenses. The template specifically satisfies the following reporting requirements:

200.430(i)(1) - Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must:

200.430(i)(1)(ii) - Be incorporated into the official records of the non-Federal entity

200.430(i)(1)(iii) - Reasonably reflect the total activity for which the employee is compensated by the non-Federal entity, not exceeding 100% of compensated activities

200.430(i)(1)(vii) - Support the distribution of the employee’s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non- Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity

200.430(i)(viii)(4) - Salaries and wages of employees used in meeting cost sharing or matching requirements on Federal awards must be supported in the same manner as salaries and wages claimed for reimbursement from Federal awards.

Failure to comply with time and effort reporting requirements could result in financial penalty (paying back the funds) or other sanction from our sponsors, as well as harm the University's reputation thereby putting future awards at risk.