Time and Effort. Dr. Green also expended some of her effort on writing new proposals and general sponsored research administration.
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1 Common Time and Effort Scenarios Time and Effort Scenario 1: Typical Effort Situation Dr. Green works on several different research projects in the Department of Pediatrics. She sees patients and performs research activities. Her base salary (without clinical bonus) is $96,000 per year. During the last effort reporting period, Dr. Green estimated that she contributed an average of 20% of her effort on Grant A, 30% on Grant B, and 10% on managing a clinical trial. Dr. Green also spends one day a week (or approximately 20% of her effort) in a clinic. Because of Dr. Green s particular expertise in Pediatric Cardiology, she is also listed as a collaborator on Dr. Jefferson s Children s Hospital grant (Grant C). She estimates that she contributed an average of 5% of her effort to this project. Dr. Green also expended some of her effort on writing new proposals and general sponsored research administration. Effort Breakdown: Sponsored Activities Grant A - 20% Grant B - 30% Collaborator (Grant C) - 5% Clinical Trials - 10% (not including clinical services for which a charge is generated) Total Sponsored Activities - 65% Institutional Activities Patient Care - 20% Administration - 15% Total Institutional Activities - 35% 1
2 Scenario 2: Working Less Than Budgeted Dr. Gabriel was awarded Grant A that included a 50% effort commitment. He was also paid 50% of his salary from this award. At the time of certification, he realized that he only contributed 40% of his effort to this award during the certification period, with another 50% to clinical activities and 10% to administrative duties. Dr. Gabriel should enter 40% of actual effort for Grant A, 50% next to Clinical Activities and 10% to Administration. Dr. Gabriel s Research Business Manager will perform a salary cost transfer reducing salary expenses charged to 40% of total salary for the month. Take Note: When a faculty member certifies a lower percentage of effort than was committed, the faculty member and the Research Business Manager need to determine whether the effort for the total funding period is likely to be 25% or more below the level of committed effort. (In this example, a 25% reduction from the 50% committed effort would reduce his effort to 37.5%.) For NIH awards, if there is a 25% reduction from committed effort, the faculty member and the Research Business Manager should talk to the Sponsored Projects Officer to determine how to proceed. Most likely, the SPO will need to notify the sponsor to revise the level of committed effort. The threshold for other agencies may differ from this standard. 2
3 Scenario 3: Effort Committed With No Salary Support Dr. Stemke received salary support from Grants A (25%), B (25%) and C (35%), but not for Grant D. At the end of the period, he estimates the effort he spent on each as follows: Grant A - 20% Grant B - 30%, Grant C - 30%, Grant D - 15%, Institutional Activities 5% Even though there was no salary support from Grant D, he committed effort at the time of the proposal. It is important for Dr. Stemke to certify the effort he spent on this award. Since Dr. Stemke received Grant D with no salary support, a cost sharing account should have been set up to track this salary as committed cost sharing. If this cost sharing is not shown, Dr. Stemke should work with the Research Business Manager to correct the situation. 3
4 Scenario 4: Salary Cap Dr. McCarthy is employed full time at Children s Hospital and earns $204,204 a year. For the month, he has committed to: 50% effort on an NIH grant 10% effort toward administrative duties 40% effort for clinical responsibilities The NIH award has salary cap provisions and the applicable salary cap for Dr. McCarthy (effective 12/23/11) is $179,700. At the start of the award, the Research Business Manager entered the following calculations into the Lawson Grant Management System for Dr. McCarthy: Amount paid per month = $204,204/12 = $17,017 per month Annual salary cap per month = $179,700/12 = $14,975 per month NIH grant = 50% (planned effort) X $14,975 = $7, allowable per month $7, charged to grant / $17,017 salary = 44% of salary The NIH grant covers 44% of Dr. McCarthy s monthly salary after his percent effort and salary cap provisions are taken into account. The remainder of his salary is distributed among other sources as follows: Division 0% planned effort (salary cap cost share) = 6% salary expense cost share Admin 10% planned effort = 10% salary expense Clinical 40% planned effort = 40% salary expense Total: 56% salary (other sources) + 44% (NIH) = 100% salary coverage 4
5 Scenario 5: Award Received that Moves Committed Effort Over 100 Percent Dr. Baldwin was paid 50% of his salary from Grant A. At the time of certification, he realizes that he expended 60% of his effort on this award during the certification period. Dr. Baldwin should work with his Research Business Manager to understand the percentage of effort that was committed to this award and whether there was any mandatory committed cost sharing. It may also be appropriate to retroactively increase the proportion of salary charged to the award to reflect the additional effort. If the award included committed cost sharing, the effort would be certified as follows: Grant A - 50% planned effort; 50% salary expense; 60% actual effort Division (Mandatory Cost Share) - 0% planned effort; 10% salary expense; 0% actual effort Division (Clinical) - 50% planned effort; 40% salary expense; 40% actual effort 5
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