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2 CFR Part 230 (A-122) Attachment B 8.m1) The distribution of salaries and wages to
awards must be supported by personnel activity reports
2) Reports reflecting the distribution of activity of each employee must be maintained for all staff members (professionals and nonprofessionals) whose compensation is charged, in whole or in part, directly to awards.
Reports must meet the following standards:(a) The reports must reflect an after-the-fact determination of the
actual activity of each employee. Budget estimates (i.e., estimates determined before the services are performed) do not qualify as support for charges to awards.
(b) Each report must account for the total activity for which employees are compensated and which is required in fulfillment of their obligations to the organization.
(c) The reports must be signed by the individual employee, or by a responsible supervisory official having first hand knowledge of the activities performed by the employee, that the distribution of activity represents a reasonable estimate of the actual work performed by the employee during the periods covered by the reports.
(d) The reports must be prepared at least monthly and must coincide with one or more pay periods.
Identical to A-122 except:• Where employees are expected to work solely on a
single Federal award or cost objective, charges for their salaries and wages will be supported by periodic certifications that the employees worked solely on that program for the period covered by the certification.
• These certifications will be prepared at least semi-annually and will be signed by the employee or supervisory official having first hand knowledge of the work performed by the employee. – 2 CFR Part 225 (A-87), Attachment B.8.h (3)
1. Employees who are charged 100% to the indirect cost pool are not required to maintain personnel activity reports
2. Employees who charge part of their time to an indirect cost pool and part of their time to directly to grants must maintain personnel activity reports
Example: Head Start teacher teaches a classroom with some children funded by Head Start and others funded by a State grant. Her salary is allocated based on the number of children funded by each grant.
• The teacher will charge time to each grant based on a ratio of children’s funding.– PAR requirements are met with a short statement on
the timesheet• Taught children at 123 Maple St. Center
• She could also charge her time to a HS salary code and her salary will be distributed with a journal entry
Example: Bus driver who drives for Head Start in the morning and a senior program in the afternoon. The driver will charge actual time worked to each program on her timesheet.
• PAR requirements are met with a short statement on the timesheet– Drove 15-passenger bus
• If you use measures of activity to allocate costs, the purpose of the PAR is to support that the activities performed are allowable, reasonable and allocable.
• Time is charged to a departmental salary code (e.g. Fiscal Salaries) and a short statement on the timesheet meets PAR requirements.
* Please note that these materials are incomplete without the accompanying oral comments by Janet S. Johnson, CPA, CMA of Wipfli LLP. These materials are informational and educational in nature and
represent the speaker’s own views.
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• Sample PAR Finance Director
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• Sample PAR Acct Clerk• Sample PAR HS Teacher 1• Sample PAR HS Teacher 2• Sample PAR Bus Driver• Sample PAR HR Clerk