Senior Vice President for Research
October 19, 2016
T. Dwayne McCay
Federal regulations applicable to sponsored research at colleges and universities (2 CFR 200.430, “Compensation – Personal Services”) require each institution maintain internal controls to ensure emuneration paid under sponsored programs are reasonable, conform to established written policies consistently applied to Federal and non-Federal activities and maintain standards for documentation of these expenses.
Florida Institute of Technology (Florida Tech) uses an effort reporting system to provide a reasonable basis for distributing salary charges among institutional activities. Since Effort Reports are the source documents to support salary charges to sponsored projects, it is essential the data be based on reasonable estimates of actual effort expended on each sponsored project and non-sponsored or Florida Tech-funded accounts.
Effort Reporting Policy
Florida Tech is fully committed to accurate and timely effort reporting.
In preparing applications for sponsored programs, principal investigators (PIs) are expected to provide reasonable estimates of the effort necessary for themselves and all key personnel to carry out the project.
While salary charges to sponsored projects are made initially based on the planned or estimated workload of faculty and others, the actual effort of each individual working on sponsored projects must be monitored, with charges modified as necessary based on variances between the estimated and actual effort.
The Effort Report must be completed either by the individual whose effort is being reported, the PI, or a responsible person who has reasonable knowledge of the reportee’s activities during the period.
The Effort Report must account for all effort covered under an individual’s institutional base salary. Institutional base salary (IBS) is the annual compensation paid by Florida Tech for an employee’s appointment, whether that individual’s time is spent on research, teaching or other activities. By definition, an individual’s total university effort must always equal 100 percent (never more or less), regardless of the number of hours worked or the appointment percent. For the purposes of determining the institutional base salary for compliance with 2 CFR 200, not all activities undertaken in an individual’s professional capacity are included in activities compensated by IBS. Florida Tech Consulting activities, for example, would not be included.
For detailed information about the process of proposing, distributing, expending and certifying effort, refer to Florida Tech’s Effort Reporting Directives and Procedures document.