Grants Gazette

HRSA Office of Federal Assistance Management Grants Gazette

Time and effort reporting tips for HRSA award recipients

These internal control tips will help you more effectively manage time and effort on your HRSA awards.

Internal controls are fundamental to time and effort reporting:

  • Salaries and wages must be based on records that accurately reflect the work performed.
  • They must be supported by a system of internal controls that allow you to record accurate, allowable, and allocable costs into the official records.
  • Strong internal controls reduce the risk of time and effort records that do not accurately represent the work performed on a project or program.

Examples of strong internal controls include:

  • Written policies and procedures for time and effort reporting;
  • Training staff to follow policies and procedures, and stressing the importance of accurate time and effort reporting;
  • Consistently applying policies and procedures;
  • Review and supervisory approval of time and effort records;
  • Periodic internal review of records;
  • Certification showing that salaries and wages charged to the grant are reasonable and accurate; and
  • Reconciliations of budgets to actual costs and making necessary adjustments;
  • Maintaining adequate documentation.

Budget estimates alone do not qualify as support for time and effort charges to federal awards. You can use budget estimates for interim accounting purposes if:

  • the approximations are reasonable;
  • significant changes to the work activity are identified promptly;
  • they are supported by a system of internal controls to review after-the-fact interim charges; and
  • adjustments are made so that the final amount charged to the award is accurate, allowable, and properly allocated.

Who should report time and effort?

  • Any recipient or subrecipient employee who is paid in whole or in part with federal funds, or whose salary is used for a match, must maintain time and effort records.
  • Contractors are not required to maintain time and effort records.

For time and effort reporting, charges for personnel must be:

  • based on actual time;
  • incorporated into an official record;
  • documented; and
  • supported by internal controls.
Date Last Reviewed:  July 2021