Time and Effort Reporting

Definition

Time and Effort (T&E) reporting is a federal and sponsor-mandated, after-the-fact certification process used to document and verify how faculty and staff time is allocated across sponsored and non-sponsored activities. It ensures that salaries and wages charged to externally funded grants, contracts, and agreements accurately and reasonably reflect the actual work performed during the reporting period, in accordance with federal regulations (2 CFR §200.430) and sponsor requirements. The report lists the employee being certified, the projects worked on, associated restricted index numbers (beginning with “R”), and the Principal Investigators (PIs), and certification of this information is a key compliance requirement for federally sponsored awards. Certify the report to confirm the accuracy of labor charges, support transparency, protect the university’s funding, and fulfill federal reporting obligations.

Effort reporting is an after-the-fact certification and is a key compliance requirement for federally sponsored awards.

What Is Effort?

Effort is the proportion of an individual’s total compensated institutional activities that is devoted to a particular project or activity, expressed as a percentage of 100% of institutional time, regardless of the number of hours worked.

Effort includes, but is not limited to:

• Sponsored research
• Teaching
• Service and administrative duties
• Proposal development
• Cost-shared activities

All compensated activities must be accounted for when certifying effort.

Who Must Complete Effort Reports?

Effort reporting applies to individuals whose salary or wages are charged, in whole or in part, to sponsored awards, including:

• Principal Investigators (PIs)
• Faculty
• Research staff
• Administrative and technical staff supported by sponsored funds

Effort reporting is required for federally sponsored awards and for non-federal awards.

What Is Not Considered Effort on Sponsored Projects?

The following do not qualify as sponsored project effort:

• Activities unrelated to the project scope of work
• Volunteer time that is not committed or required by the sponsor
• Effort associated with incentives paid to research participants
• Work performed outside of institutional responsibilities

Effort that is voluntary and uncommitted does not need to be certified.

Certification and Reporting Periods

Effort must be certified by an individual with first-hand knowledge of the work performed, typically the PI or an approved designee. Certification confirms that payroll charges are reasonable in relation to actual effort expended.

Effort reports are completed on either:

• Semi-annual basis (December and June), or
• Semester basis (Fall, Spring and Summer)

Effort certifications must be completed within the designated certification period. Late or uncertified effort may result in salary costs being deemed unallowable and removed from the award.

Changes to Effort

Effort certifications cannot be changed once completed; therefore, all necessary updates must be made prior to certification. Significant changes to committed effort may require payroll adjustments, effort recertification, and/or sponsor notification or prior approval. Effort commitments must be monitored throughout the life of the award, and any anticipated changes should be communicated promptly to the department and the Grants and Contracts Accountant.

Why Time and Effort Reporting Matters

Accurate effort reporting:

• Ensures compliance with federal regulations
• Supports appropriate use of sponsored funds
• Protects the institution and investigators during audits
• Confirms that salary charges align with actual work performed

Failure to comply may result in financial penalties, audit findings, or loss of funding.

Sample Time and Effort Report

Time and Effort Certification – FAQs

1. What is Time and Effort Certification? 

Time and Effort Certification is the process of confirming that salaries and wages charged to a sponsored grant or contract accurately reflect the actual time worked on that project. This process is required to ensure compliance with federal regulations, specifically Uniform Guidance (2 CFR §200.430). 

Effort certification is an after-the-fact confirmation that labor charges are reasonable, accurate, and allocable to the sponsored project. 

2. What is the difference between restricted, local, and appropriated indexes in effort reporting? 

Effort reporting includes both sponsored and non-sponsored activities and must account for 100% of an individual’s total institutional effort. 

• Restricted indexes 
  Represent sponsored projects such as grants and contracts. These indexes reflect the portion of effort dedicated to externally funded research or programs. 
• Local and appropriated indexes 
  Represent non-sponsored institutional responsibilities, including: 
  • Teaching 
  • Departmental research (not externally funded) 
  • Service activities 
  • Administrative duties 
  • Other university responsibilities 

Together, restricted, local, and appropriated indexes must total 100% effort, regardless of funding source. 

3. Who is required to certify effort? 

Employees whose salary is charged, in whole or in part, to a sponsored project must certify effort. This includes: 

• Faculty 
• Staff 
• Graduate students 
• Postdoctoral researchers (when applicable) 

At ISU, effort may be certified by the individual or by a responsible official with first-hand knowledge of the work performed. 

4. How often must effort be certified? 

Effort must be certified no less than semi-annually and no more frequently than by the semester, in accordance with institutional policy. 

ISU certifies effort: 

• Semi-annually, or 
• By semester (Fall, Spring, Summer) 

5. What does 100% effort mean? 

100% effort represents the total institutional activities performed by an employee, regardless of the number of hours worked or how salary is funded. 

This includes: 

• Teaching 
• Research (sponsored and non-sponsored) 
• Service 
• Administrative duties 
• Other institutional responsibilities 

Sponsored project effort is a portion of the total 100%. 

6. What should I do if my effort changes during the project? 

If your effort on a sponsored project changes significantly (generally 25% or more), you should promptly notify: 

• Your department administrator, or 
• Your Grants and Contracts Accountant 

Payroll distributions may need to be updated to ensure accurate effort reporting and compliance with sponsor requirements. 

7. Can someone else certify my effort? 

Yes, but only under specific conditions. 

Effort may be certified by: 

• The individual performing the work, or 
• A supervisor, PI, or responsible official with direct knowledge of the work performed 

Proxy certification without first-hand knowledge is not acceptable. 

8. Why is accurate effort reporting important? 

Accurate effort reporting is required to: 

• Ensure salary costs are allocable and reasonable 
• Maintain compliance with Uniform Guidance 
• Avoid audit findings or repayment of funds 
• Protect institutional integrity 
• Preserve eligibility for future sponsored funding

9. What happens if effort is not certified? 

Failure to certify effort may result in: 

• Disallowed salary costs 
• Withholding of future funding 
• Audit findings 
• Delays in project closeout 
• Internal disciplinary actions, depending on institutional policy 

10. Can effort be certified for someone who is on leave or no longer employed? 

No. Effort should not be certified by or for individuals who are: 

• On extended leave or sabbatical 
• Separated from the institution 
• Otherwise unavailable 

However, a supervisor or PI with direct knowledge of the work performed may certify effort if appropriate documentation exists. Certification without knowledge of the work is not acceptable. 

11. What are common mistakes in effort certification? 

Common errors include: 

• Certifying more effort than was actually performed 
• Failing to account for all institutional activities in the 100% total 
• Certifying effort during periods of absence 
• Late or missed certifications 
• Certifying without direct knowledge of the work performed 

12. My salary doesn’t match what I expect—why is that? 

This is often due to differences in appointment types and payroll distribution. 

For example: 

• 9-month faculty typically earn salary over the academic year but are paid over 26 biweekly pay periods 
• When salary is charged to a restricted (grant) index, effort-related amounts may be accrued and charged earlier 
• Accrued salary is often distributed over 19 pay periods, affecting timing but not total pay 

These timing differences can create temporary discrepancies between paychecks and grant charges. 

For questions about specific calculations, contact your grant accountant or payroll office. 

13. The wrong appropriated or local index was used—what does that mean? 

Effort reports include both restricted and unrestricted indexes to reflect 100% effort. 

• The restricted index reflects effort on sponsored projects and is the most critical component 
• Appropriated or local indexes represent remaining institutional responsibilities 

If the wrong appropriated or local index is listed: 

• Grant effort percentages are not affected 
• Internal reporting may be impacted and should be corrected 

Please contact your department administrator to request corrections. 

14. The payroll dates don’t match when the employee actually worked—why? 

Effort reports reflect payroll charges during a standard reporting period (e.g., January–June or July–December), regardless of actual start or end dates. 

Important notes: 

• Payroll appearing in the period does not imply the employee worked the entire time 
• Dates do not reflect exact employment start or end 
• Effort should be certified based on actual work performed, not inferred from date ranges 

If an employee worked only part of the period, this should be reflected in the effort percentage, not the reporting dates. 

15. I am no longer the Principal Investigator (PI). Do I still need to certify effort? 

Yes. 

• If you were the PI during the reporting period, you are responsible for certifying effort for that time frame 
• Current PIs may certify effort for individuals who are no longer available only if they have direct knowledge or sufficient documentation of the work performed 

Certification must always be based on verified effort during the stated period. 

Additional Questions? 

For additional information or assistance with Time and Effort Reporting, certification requirements, or effort adjustments, please contact your Grant and Contracts Accountant.