What is a Quarterly Effort Verification Statement (LVS)?
The LVS is a certification which is used to document the amount of effort actually spent on a project.
Why do we have LVSs?
Effort reports are required by federal regulations found in OMB Circular A-21. Auditors from the agencies that give UC money use LVSs to verify that the percent of salaries charged to the project, or cost-shared, are justified. The LVS serves as the certification for salary expenses. If, for example, an auditor could not find an LVS, or the percentage of salary charged to the project is more than the percentage of effort reported in the LVS, the auditor will request a refund of the difference.
How often are LVSs required?
Once each academic quarter (4 per year)
Who has to complete an LVS?
Only those with salary charged, or committed as cost sharing, to sponsored projects. Usually these projects are within the account series G10000 – G49999.
How do I complete the LVS?
Verify the percentage of effort actually performed during the quarter. Then sign, date and return the LVS to GCC. The total effort reported for all projects MUST TOTAL 100%.
What of a restricted project doesn't have an account yet or the account doesn't appear on the LVS and you are working on it?
Who can sign an LVS?
What if the appriopriate signatory is unavailable?
How should the information on the LVS be verified?
The information on the LVS should be verified by comparing it to the appropriate grant budgets (committed effort) and to the labor history found in SAP Business Warehouse (BW) report LH100E – Labor History by Employee. The LVS should not be signed until someone has reviewed and verified the amounts.
What types of pay are included on the LVS?
Basic pay (including sick leave and vacation pay), Administrative Stipends, and Summer teaching (for AY faculty) are included on the LVS. Awards, Bonuses, Additional Pay (ADL), Work Study pay, and Intercession Pay (EXC) are not included.
What if the amount reported on the LVS do not refelect actual work performed?
DO NOT SIGN THE LVS if you do not believe it to be correct.
If the actual work performed differs from the effort listed on the LVS, the department should initiate a change to the labor history by submitting a Personnel Change Request (PCR), as well as a salary Cost Transfer Request (CTR) if necessary. Once these have been approved and the changes posted to payroll, a new LVS will be issued and can be signed.
How are changes made to Labor History?
The appropriate administrator (generally either the BA or someone assigned by the BA) issues a Personnel Change Request (PCR) to cover the time period to be changed. If funds are being moved on to or off of a grant account, a Cost Transfer Request (CTR) must also be completed and approved by Sponsored Program Accounting (SPA).
What if the amounts reported on the LVS do not match the Labor history?
DO NOT SIGN THE LVS if you do not believe it to be correct.
Should I use a 40 hour work week as a base for computing the effort percent to be reported on the LVS?
You should calculate the effort percent based on the time it took to perform the duties for which you were paid. If, for example, an individual can fulfill his/her obligation to the University in a 50 hour work week the LVS needs to be completed, adding up to 100%, based on the distribution of those 50 hours. If an individual needs a 60 hour work week to fulfill his/her obligation, the LVS needs to be completed, adding up to 100%, based on the distribution of those 60 hours.
If I have a half time appointment, should the LVS total 100%?
All LVSs should total 100% regardless of percent employment or percent of the quarter worked. If a person only worked two weeks of a quarter, the LVS should still total 100% (based on the distribution of those two weeks).
What is the "all other" secion on the LVS?
The “all other” section of the LVS includes all work for an employee on non-sponsored activities.
Who can sign the "all other" section?
The “all other” section can be signed by any of the following individuals, provided that they are sufficiently knowledgeable:
Why is a signature needed in the "all other" section?
I can't verify what the employee worked on his non-sponsored projects, so why should I sign the "all other" portion?
The “all other” section is not asking the signatory to verify what the employee did during his non-sponsored time, only that they verify that the percentage listed is a reasonable representation of their non-sponsored effort in relation to their work on sponsored projects.
When I sign the LVS, what am I agreeing to?
You are certifying that you spent at-least as much effort as the effort reported in the LVS for the report period. Auditors sampling the accuracy of the LVS will begin their review with the person that signed the LVS.
If pay is moved to the long-term sick pool or faculty sick pool, is it included on the LVS?
No. The long-term sick pools are considered fringe benefits, not salary, and the LVS is intended to track salary/wage payments only. Therefore, charges to the long-term sick pools are excluded from the LVS. If transfers to the long-term sick pools affect the stated effort percentages on a project, it is recommended that a copy of the labor history, showing the transfer to the benefit pool, is included with the statement. If effort was previously certified, a new LVS will be issued for signature.
How should Institutional Base Salary be calculated?
How is IBS used?
Why does IBS include basic pay and stipends, but not other pay types?
IBS is designed to represent the amount paid to an employee for execution of their regular duties. This includes their basic pay (0FAC, 0SAL, 0ADJ), plus any standardized, recurring payments for ongoing and significant tasks, such as stipends (0ADM). These payments represent the total effort of the employee, per Federal guidelines. Bonuses (0BNS), awards (0AWD), royalties (0ROY), additional compensation (0ADL), intersession compensation (0EXC), moving expenses (0MOV, 0MVT), housing expenses (0HOU), retirement pay (0RET), and cell phone stipends (0CEL) are not included because they are not paid for execution of normal duties, they cannot be accurately projected, and they are designed to be incidental in nature.
How do I calculate hourly rates for Extra Compensation (EXC) pay?
What is a Salary Cost Transfer?
Departments can access these forms from the SRS Web Site.
The department should complete the Salary CTR.
A Salary CTR should be made as soon as a PCR has been submitted for the transaction. All Salary CTRs should be made promptly but no later than 90 days after the close of the month in which the transaction occurred.
YES! All Salary Cost Transfers must include adequate justification for the transaction. An explanation should include what caused the modification to be necessary and what steps are being taken to prevent such errors in the future.
The subject line in the Salary CTR email that is sent to the Principal Investigator/Primary Investigator for approval must be completed as follows:
The Principal Investigator/Primary Investigator on each grant affected by the reassignment of expense must approve the request. The Salary CTR must also be approved by the SRSAD GA for each grant and, if the request is over 90 days, it must also be approved by the Director of Sponsored Program Accounting, Vice President and/or Associate Vice President for Research.
Upon approval, the Principal Investigator/Primary Investigator must FORWARD the e-mail, leaving the subject line intact, with the Salary CTR and all supporting documentation attached, and must include a statement of approval within the body of the e-mail to CTR@uc.edu for review and processing.