1) Time and Effort :The Federal Government (U.S. Office of Management and Budget (OMB) Circular A-87, Cost Principles for State, Local, and Indian Tribal Governments ) requires all employees, including teachers, paraprofessionals, and other staff that are paid with federal funds to document the time and effort they spend within the program. The portion of the federally paid salary should be reflective of the actual activity, not budgeted, the individual has put forth for that federal program. Time and effort reporting is required when any part of an individual's salary is charged to a federal program or used as match for a federal program. (See Circular No. A-87.8. Compensation for personal services )

If your entity does not have an existing Time and Effort Log, please use the suggested Time and Effort templates ADE developed below.

1. Semi-Annual Certification :Circular No. A-87. 8.(h).(3) 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 are required to be prepared at least semi annually.
   
   * Individual Semi-Annual Certification Template (Example)
   
   * Group Semi-Annual Certification Template (Example)
   
   
2. Monthly Time and Effort Log : Circular No. A-87. 8.(h).(4) Where employees work on multiple activities or cost objectives, a distribution of their salaries or wages will be supported by personnel activity reports or equivalent documentation which meets the standards in subsection (5). Circular No. A-87.8.(h).(7) Salaries and wages of employees used in meeting cost sharing or matching requirements of Federal awards must be supported in the same manner as those claimed as allowable costs under Federal awards.
   
   * Monthly Time and Effort Log Template in Excel (Example Log)
   
   
3. Time and Effort Check List : Time and Effort Information and examples
   
4. Specific Requirements for Time and Effort Reporting : Quick glance of Time and Effort Requirements
   

*Non-profit Organizations/Community Based Organizations that are governed by OMB Circular A-122 (See Section 8. M. (1) & (2) Support of salaries and wages) and required to maintain monthly certification for all employees funded with federal funds regardless whether the employee is funded 100% or split effort.

*Institutions of Higher Education (Universities and Community Colleges) that are governed by OMB Circular A-21 (See Section J. 8. C. (1), (2) & (3) Compensation for personal services) are required to maintain certification for employees based on approved method for Payroll Distribution.

1. Plan Confirmation (See Section J. 8. C. (1)(e)) certification must be maintained on an annual basis.
2. After the Fact Method (See Section J. 8. C. (2)(e)):
1. a. For Professorial and Professional Staff certification must be maintained on a six month basis.
2. b. Non-Professional and Other Staff certification must be maintained on a monthly basis and coincide with one or more pay periods.
3. Multiple Confirmation Records (See Section J.8.C. (3)(f)) certification must be maintained on a six month basis.

2) Fixed Assets: Fixed asset refers to tangible, non-expendable, personal property having a useful life of more than one year and an acquisition as defined by your District/Charter's fixed asset policy.

• The LEA should prepare a detailed listing of general fixed assets that includes all equipment with unit costs of $1,000 or more and useful lives of one year or more; and all land and buildings, and related improvements with costs of $5,000 or more. If the LEA wishes, it may record assets on the general fixed assets listing at a lower threshold amount.
  
• Fixed asset report should include property identification tag, asset description, serial #, funding source, purchase date, cost, and location. See USFR or USFRCS VI-E-2. (Example Fixed Asset Report)
  
• Stewardship Listing: To physically control and help prevent theft of equipment costing less than $1,000, the LEA may wish to maintain a stewardship listing. The governing board should specify the types of items to be placed on the stewardship listing and establish the minimum amount for those items. The stewardship listing should include Location, Identification number, and description.

3) ESS Fiscal Monitoring: Receiving federal grant monies entails both programmatic and financial duties, which include proper programming and expenditure of monies, goals achievement, and related reporting. Information related to the five key areas addressed during the Fiscal Monitoring are Time and Effort reporting, Expenditure Compliance, Fixed Asset Compliance, General Grant Compliance, and Grants Management Compliance. Please see the "ESS Fiscal Monitoring Compliance Questionnaire".

Please see the "Surviving ADE ESS Fiscal Monitoring" Power point presentation for additional information regarding the Fiscal Monitoring Components and Potential Consequences of Non-Compliance.

4) Resources

• Title 34, Chapter II - Office of Elementary and Secondary Education, Department of Education (Parts 1 to 299)
• Title 34, Chapter II Part 299--General Provisions
• Title 34, Part 80 Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments
• ADE's NCLB Document Library
• For 21st Century Community Learning Center Grants: See Fiscal Accountability Tools
• For Career & Technical Education: See Grants and Accountability

If you have questions regarding the Federal Grant Requirements, please contact Gary Holland from the ADE Audit Unit at (602) 364-3518 or Gary.Holland@azed.gov or contact the specific grant contact.