Time and Effort reporting is a process mandated by the federal government to verify that direct labor charges (salaries and wages) to federally sponsored projects are reasonable and reflect actual work performed. As a recipient of federal funds, the Texas A&M University System is subject to financial accounting and reporting obligations designed to ensure that the charges to its federally sponsored projects are allowable and properly allocable to those projects.
The purpose of a Time and Effort reporting system is to provide a reasonable basis for verifying the distribution of payroll (salary & wage) charges among direct activities (e.g., sponsored research, instruction, other sponsored activities, and cost sharing) and indirect activities (e.g., general administration, departmental administration, sponsored projects administration, academic dean’s office, operations & maintenance, and library operations). Effort directly related to sponsored projects and all other activities must be identified in the System member’s effort distribution and reporting process.
Time and effort compliance by employees is governed by Texas A&M System Policy and also by rules implemented by each A&M System member. While the Time and Effort System does implement controls and enforce policy, it does not relieve administrators and employees from their duty to be familiar with and enforce System Policy.