Examples of Effort CertificationExamples of Effort Certification

Office of Research and Sponsored ProgramsOffice of Research and Sponsored Programs

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Index of ExamplesIndex 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 on100% of an individual’s UW professional duties. IT IS NOT BASED ON A 40-HOUR WORK WEEK. There is nostandard for the number of hours that constitutes total UW professional effort.

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Example 1: Salary MatchExample 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

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Example 2: Salary Cap with 80% EffortExample 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 fromsomewhere else

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Example 3: Voluntary Cost SharingExample 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

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Example 4: K-AwardExample 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%

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Example 5: Salary Support > 40 hr work weekExample 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)!

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Example 6: Effort Committed with No Salary SupportExample 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?

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Example 7: Effort on Awards & Clinical TrialsExample 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?

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Example 8: Service ContractExample 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

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Example 9: External Professional Activities for PayExample 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?

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Example 10: External Professional Activities for PayExample 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)

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Example 11: Adjusting Effort Due to New Award 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 1 12 hours 20% effort

– NIH Grant 2 12 hours 20% effort

– Other UW activities 36 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 onhis first NIH grant, does Dr. Beech need prior approval

from the NIH for the reduction?

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Example 12: 100% Funded FacultyExample 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%

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Example 13: Scientific MeetingsExample 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

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Example 14: Graduate StudentsExample 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

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Example 15: Effort without SalaryExample 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

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Example 16: Effort on Non-sponsored ProjectsExample 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 ChangeAward 1 40% 36%Award 2 40% 36%Teaching 20% 18%Night Class --- 10%Total Effort 100% 100%

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Example 17: More Expended Effort than is Funded by an Example 17: More Expended Effort than is Funded by an AwardAward

• 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 toprovide assurance to the sponsor that you have fulfilledyour commitment.

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Example 18: New Award Moves Committed Effort Over Example 18: New Award Moves Committed Effort Over 100%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

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Example 19: Consistency Between Effort Reports and Example 19: Consistency Between Effort Reports and Other DocumentsOther 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

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Example 20: Vacation and Sick LeaveExample 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

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Example 21: NIH Career Award (K-Award)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. Walnuthave 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)

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Example 22: 9-Month Appointment with Summer SalaryExample 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 essentiallyexternal professional activities and is not part of Dr.Sequoia’s UW effort

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Example 23: Graduate Student Mentoring AwardExample 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

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Example 24: Inconsistent DocumentationExample 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

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Example 25: Cost Transfer from 144 to 101Example 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

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Example 26: Cost Transfer from 101 to 144Example 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.