Payroll Certification Overview
Return to Financial Applications
The Payroll Certification system automates the effort reporting process, providing detailed information on effort spent on federally sponsored projects. Since salary expenses are the largest direct cost of these projects, this system helps reduce compliance and audit risks of federal contract and grant compliance activities. It ensures UC Riverside adheres to federal requirements by certifying that payroll expenses accurately reflect the work done. Principal Investigators (PIs) are responsible for annually certifying that payroll expenditures are reasonable based on the work performed on their sponsored projects.
Effort Reporting
The federal government requires institutions to have a process in place to certify that salary expenses on federally funded sponsored projects represent an equitable distribution of charges based on an employee's work activities. Effort reporting is the process of certifying to granting agencies that the work required under an award has been completed. Federal regulations mandate that anyone committing effort on a federal or federal flow-through grant must certify that the salary charged or cost shared by the institution is reasonable in relation to the work performed. Uniform Guidance (2 CFR 200) outlines the criteria for charging salaries and wages to federally sponsored projects and requires institutions to properly document the distribution of effort for all project personnel. Faculty investigators are responsible for certifying their efforts and those of their staff on sponsored projects.
Effort refers to the time spent on specific activities, including work on sponsored projects (whether directly funded or cost-shared). It includes all university duties such as research, teaching, proposal preparation, service, clinical, and administrative work within a given period.
Preparing for Annual Payroll Certifications
A PI's fiduciary responsibilities include reviewing monthly costs charged to sponsored projects to ensure appropriate expenses and errors are promptly identified for timely adjustments. PIs should work closely with their department administrative staff, utilizing tools like Looker Payroll for thorough monthly cost reviews. This collaboration ensures financial oversight, timely adjustments (such as salary cost transfers), and compliance with grant requirements ahead of the annual certification process.
Payroll Certification Process
Before the annual Payroll Certification notification is sent to PIs, the Department Coordinator will receive an email when certifications are due for projects, including federal and federal flow-through funds.
These notifications are sent annually, based on the project period of the sponsored award, to ensure timely certification of the required projects. The Payroll Certification system generates one report per 'Project,' including all salary charges by employee for the relevant period. For example, an award with a project period from 5/1/2022 to 4/30/2025 would require three annual certifications:
- 5/1/2022 to 4/30/2023
- 5/1/2023 to 4/30/2024
- 5/1/2024 to 4/30/2025
If required, the Departmental Coordinator may enter:
- Direct Salary Adjustments. These adjustments should be infrequent and related to pending cost transfers. A comment is required when a direct salary adjustment is entered.
- Direct Salary Adjustment Reversals. If an award is not ending and requires a Direct Salary Adjustment in the current certification period, there is a high probability the adjustment will require a reversal in the next certification period.
- Salary Adjustment Reversal Date. For Salary Adjustment Reversals, the reversal date for the Payroll Cost Transfer must be entered, matching the month and year that the corresponding entry will be entered in PPS for processing.
- Cost Shared Salary. Coordinators will be required to input the Full Accounting Unit (FAU) and total salary charged to the cost shared FAU for the reporting period.
UCR Principal Investigators (PIs) and department administrative staff can access the Payroll Certification system via the R'Space portal under the "Authorized Applications" section or by clicking the link in the email notification. Cost sharing and any adjustments entered by the department coordinator are also reflected in the report. After reviewing the list of employees, salary, cost sharing, and adjustment information, PI's should certify the salary expenses.
PIs are responsible for reviewing and certifying that the payroll expenses are reasonable, directly benefit the project, and comply with the agency’s terms and conditions.