UCR Policies and Procedures

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Note:  “Effective with the April 2011 reporting period, Annual Payroll Certifications will be used to certify salaries charged to federally sponsored projects. See Policy & Procedure 200-40.”

Policy Number:    200-48

Policy Title:           Federal Contract & Grant Administration-Substantiating Salary Expenses & PAR Forms

Policy Owner:       Accounting Office

Effective Date:      02/18/1992

 I.     Requirements   

This bulletin outlines the records and reports which must be prepared and maintained to substantiate the salary and wage costs of University employees charged to U.S. Government contracts and grants. Basic substantiation of direct salary and wage expenditures charged to U.S. Government contracts and grants rests upon the University payroll system and the normal documentation developed by its procedures.
Attendance records must be maintained for all employees with any portion of salary or wage costs charged directly to a federal or federal flow through contract or grant. Data accumulated on these records should be used as the basis for payroll distribution of monthly salaries of individuals concerned. The UCR ABSENCE/OVERTIME NOTICE-EMPLOYEE INFORMATION SYSTEM form is provided for this purpose. These forms are processed by Information Systems and updated forms are distributed monthly. For instructions in completing the form, consult UCR P&P 200-01, Attendance, Time Reporting & Leave Accrual Records.
Department Chairs or equivalent academic officials are responsible for making a monthly "after the fact" review of salary and wage charges to insure that the time an academic employee charges to an individual contract or grant is consistent with the actual distribution of workload within the department. The two primary purposes for conducting the review are to substantiate the salary charges for academic and staff employees, including graduate students, and to evaluate the effectiveness of departmental procedures established to affect proper charges to federal/federal flow through contracts and grants.
To accomplish this monthly "after the fact" review of employee time charged to federal/federal flow through contracts or grants, departments will be provided with a Personnel Activity Report (PAR) form, portraying monthly or quarterly payroll expense distribution data on the basis of individual U.S. Government contracts and grants. Upon receipt of these PAR forms, department chairs or equivalent academic officials must review the accuracy of the data to insure that the time of academic and/or non-academic employees charged to each agreement is consistent with the actual distribution of workload within the department during the months concerned. Errors should be annotated as to the nature of the discrepancy and reported promptly for correction. Errors and their subsequent corrections will be cross-referenced.
II.    Selection Criteria for & Completion of PAR Forms
Effective July 1990, PAR forms are generated only for those individuals paid directly from federal or federal flow through contracts and grants.
Review Payroll Percentages. Upon receipt of the PAR, the employee or responsible official certifying the form will review each payroll percentage printed on the report to check for accuracy. If any of the percentages are incorrect, the corrected percentage should be noted directly on the PAR form under "Notes". Payroll adjustments must be made to correct errors.
Report Effort. The Estimated Distribution of Effort for Report Period section on the PAR form must be completed by the employee or responsible official. The total effort distribution between Sponsored Projects (effort devoted to sponsored projects that are separately budgeted and accounted for by project) and All Other Activities (effort not reportable under Sponsored Projects, including all effort that is recharged) must equal 100 percent of University effort even if the employee has less than a full time appointment.
Certification of Effort. The PAR form must be certified using suitable means of verification that the work was performed and the distribution of effort is reasonable. Faculty and other academic appointees should normally sign their own PAR. A responsible official signing for an academic employee must also be an academic employee, such as a department chair, director, or dean. For staff employees, the PAR should be signed by the supervisor or other responsible official (chair, principal investigator), rather than the employee. In those cases where the staff employee's supervisor does not have firsthand knowledge of the employee's total effort (e.g., an employee who works for more than one supervisor or in more than one department) the employee should sign the PAR form.
After completing the PAR form, submit the original copy to the Accounting Office and retain the second copy for departmental files. Additional instructions for completion of the PAR form may be found at http://accounting.ucr.edu/funds/par.html.
For comments or questions regarding the technical content of this document visit the PAR System Overview or call the Accounting Office at x3302. For all other questions or concerns regarding the document, contact the Finance and Business Operations Business Policy Coordinator via email at UCRpolicy@ucr.edu.