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University of Arkansas at Little Rock
Policy Name: Documentation of Personnel Expenses
Policy Number: LR 603.13
Original Effective Date: June 15, 2016
Most Recent Revised Date: June 29, 2026

Policy

As a recipient of federal funding, the University of Arkansas at Little Rock is required to comply with the 2 CFR Part 200 from the U.S. Office of Management and Budget, along with other federal requirements, to document personnel expenses and certify effort applied to sponsored awards.  UA Little Rock requires all individuals who receive sponsored funding to comply with University policies and procedures, and sponsoring agency regulations regarding the proposing, charging, and reporting of effort to awards.

In Workday, documenting personnel expenses/effort certification reflects an after-the-fact confirmation of the percentage distribution of an employee’s workload for a specific reporting period. All academic, professional, and classified employees must verify the accuracy reflected in Workday. This policy ensures that salary and wage charges to sponsored programs are properly documented, reflect actual work performed, and are consistent with sponsor requirements and university standards.

Scope

This policy applies to all UA Little Rock faculty, staff, students, and other personnel whose salary, wages, or fringe benefits are charged in whole or in part to sponsored program (restricted) funds.

Definitions

Committed Effort: The amount or percentage of time an individual has communicated to the sponsor that they will work on a specific sponsored project over a specified period of time. Commitments are made in the award proposal and may be documented by the sponsor in award documents.

Compensation for Personal Services: All remuneration, including salary and wages, paid currently or accrued, for services rendered during the period of performance under a sponsored agreement.

Cost Sharing: program costs that are not covered by the sponsor. Cost sharing of effort is the provision of faculty and/or staff time and related fringe benefits that were committed and provided in support of a sponsored program but are paid for by other sources of funding (for example, by a University department, college, or central administration). Cost-shared effort in excess of the commitment made in the proposal does not have to be identified or certified.

Effort: The time spent on any activity by an individual and is expressed as a percentage of the individual’s Institutional Base Salary (IBS).  One hundred percent (100%) effort is the total time spent on University work within the scope of an individual’s academic appointment period (9 or 12 months), regardless of how many or how few hours the individual has worked in the reporting period. The total effort reported for an individual will always equal 100%, even if the individual is not a full-time employee. Total academic period effort includes an individual’s sponsored programs and non-sponsored activities that are funded by the University including work performed outside of normal work hours and work performed off-campus.

Effort Certification Report: A Workday-generated document routed to the PI that confirms that the salary and wages charged to a sponsored project are reasonable in relation to the actual work performed.

Effort Certification Manager: ORSP employee who initiates and monitors the Effort Certification process.

Effort Certification Reviewer: the individual who reviews the Effort Certification Reports for sponsored programs assigned to their Cost Centers. Effort Reviewers are assigned by the relevant Cost Center administrator’s lead and have a working knowledge of costing allocations, payroll accounting adjustments, cost principles and the effort certification process.

Effort Certifier:  the individual who certifies the Effort Certification.

Payroll Distribution: The assignment of salary expenses to the appropriate grant or funding source in UA Little Rock’s enterprise system (Workday).

After-the-Fact Review: A documented process to confirm that payroll charges to sponsored agreements reasonably reflect the work performed.

Significant Change in Workload: A material change in duties, funding source, or time commitment that requires updating salary distributions and documentation.

Institutional Base Salary (IBS): Annual compensation paid by the university for an employee’s appointment (9 or 12 months), whether that individual’s time is spent on research, teaching, or other activities. IBS does not include temporary funding. IBS also does not include payments from other organizations or income that individuals are permitted to earn outside of their university responsibilities, such as consulting.

Policy Statement

  • Salary and wage charges to sponsored projects must be consistent with federal, state, and university policies, as well as sponsor terms and conditions. Compensation must be based on the employee’s institutional base salary (IBS).
  • Personnel expenses must directly benefit the project being charged and reflect actual effort devoted to the project.
  • Compensation for personal services must be comparable to that paid for similar work within UA Little Rock and allowable under the Uniform Guidance.
  • All personnel expenses charged to sponsored programs must be supported by payroll distributions, an after-the-fact review, and documentation of significant changes in workload or salary distribution.
  • Effort Certification is completed four times a year in alignment with the state fiscal year and academic calendar. PIs are responsible for certifying the accuracy of charges to their sponsored projects.
  • Cost transfers or salary adjustments must be timely (within 90 days of the original transaction, unless otherwise approved). Justifications must explain the reason for the adjustment, the benefit to the project, and compliance with sponsor requirements.
  • ORSP and Financial Services will monitor salary distributions, Effort Certification, and compliance with federal and sponsor requirements. Non-compliance may result in removal of charges from the grant, reassignment to Cost Center funds, or disciplinary action.

Procedures

  1. At project start, payroll costing allocations are entered into Workday to assign salary expenses to the grant. Allocations must reflect the planned effort committed in the award.
  2. After-the-fact effort reports (effort certification reports) are generated four times a year. Employees certify that the salary charged reasonably reflects actual effort.
  3. Salary reallocations must be processed promptly when effort changes. Adjustments must include justification and be reviewed by ORSP.
  4. All payroll documentation, effort certifications, and adjustment justifications must be retained for the sponsor’s required period (minimum three years after final expenditure report).

References

  • 2 CFR §200.430 – Compensation – Personal Services
  • 2 CFR §200.431 – Fringe Benefits
  • 2 CFR §200.403–405 – Allowability, Allocability, Reasonableness of Costs
  • UA Systemwide Policies on Compensation
  • UA Little Rock Financial Services / ORSP Procedures

Revised Dates: 06/2016; 06/2026
Source: Office of Research and Sponsored Programs
Status: Active
Originator: Office of Research and Sponsored Programs
Custodian: Office of Research and Sponsored Programs