PAR System Overview
1.0 Purpose of PAR System
According to the Office of Management and Budget Circular A-21,
procedures must be followed for the substantiation of direct
payroll costs charged to federally funded projects. To comply
with these requirements, the University established a Personnel
Activity Report (PAR) System for all affected employees consisting
of after-the-fact reports to document work effort on sponsored projects.
2.0 Base and Other Effort
Base effort is defined as the effort expended by an employee which is
required to fulfill the employee's obligation to the University. The
effort report relates to activity for which the employee receives
University compensation and must total 100 percent even if the
appointment is less than full time. Compensation for faculty
incidental work is not included in base effort. Incidental effort
is that effort which is in addition to normal University assignments
and for which faculty may receive extra compensation. The following
are examples of such cases:
-Intra-university consulting which is in complete compliance
with A-21, Paragraph J.6.e.
-Honorarium and lump sum payments.
-Work unrelated to base effort (e.g. teaching University
Extension courses).
3.0 Selection Criteria for PAR Forms
PAR forms must be completed for all personnel paid directly from federal
or federal flow contracts and grants.
4.0 Effort Categories
On the PAR form there are two effort categories: Sponsored Projects and
All Other Activities.
Sponsored Projects
The percent of effort devoted to sponsor projects, i.e., sponsored
research, training or public service projects, that are separately
budgeted and accounted for by project should be reported here. Academic
Senate Research Grants, capitation, workstudy and institutional support
grants are excluded. The effort may also be supported by University
funded projects that are separately budgeted and accounted for. All
effort attributable to sponsored projects (including cost sharing) for
those selected must be reported regardless of the amount of salary
charged to the project.
Examples of sponsored projects activity include performing experiments;
library research; writing research papers and reports directly related
to specific projects; preparing continuation or renewal proposals;
performing administration directly related to specific projects;
disseminating sponsored projects information via written or oral
presentations (on or off campus); and thesis advising for students
whose topics are a portion of the employees's own formal sponsored
project. Effort devoted to sponsored projects while on sabbatical
leave will also be reported in this category. Other examples include
effort spent on HHS training grants, health service projects, AID
agreements and community service programs.
All Other Activities
This category includes the percent of effort not reportable under
Sponsored Projects, including all effort which is recharged.
5.0 Payroll Categories
The two pay categories are Sponsored Projects and Other Activities.
Sponsored Projects includes activity in instruction, research and
public service accounts in the following fund groups: 18200-18999,
20600-20999, 21000-33999, and 39600-59999 (except Workstudy funds).
All other pay distributions will print under All Other Functions.
6.0 Instructions for Completing the PAR Form
Review of Payroll Percentages
The employee or responsible official certifying the form will review
each payroll percentage printed on the report to determine if it is
correct. If any of the percentages are incorrect, the correct
percentage should be noted directly on the PAR form in the space
provided under "Notes". Payroll adjustments must be made to correct
errors, utilizing the personnel action form (PAF) and/or the transfer
of payroll expense form as appropriate. Corrections must be fully
explained and dollar amounts, including appropriate account and fund
numbers, specified. Attach a copy of the correction to the original
PAR form.
It is the employee's (or responsible official's) responsibility to
review the payroll distribution and to annotate the PAR as necessary.
If the amount of effort reported in sponsored projects is less than
the total salary percentage printed for that function, a payroll
adjustment must be processed with an explanation for the discrepancy
and a copy attached to the original PAR form.
Reporting Effort
The effort categories as printed on the PAR form are not to be modified
nor are additional categories to be added. The total effort distribution
between the two categories must equal 100 percent of University effort
even if the employee has less than a full time appointment or is on a
split appointment as, for example, between two campuses. Employees must
report effort under the appropriate effort category based upon the
substance of the work performed.
Nine-month faculty being compensated by sponsored projects during the
summer should report 100 percent effort under the Sponsored Projects
Effort category. Summer effort in support of instructional programs
and/or non-sponsored research is reported on the Fall PAR only.
Certification of Effort
The PAR form will be certified by the employee or by a responsible
official (e.g. Dean, Department Chairperson, Principal Investigator,
Director, Business Manager, Supervisor) using suitable means of
verification that the work was performed and the distribution of
effort among the two categories is reasonable. For non-professional
employees, however, the form should be certified by the employee's
supervisor if feasible. The employee must sign the form only in
those cases where the employee's supervisor does not have sufficient
knowledge of the employee's activities (e.g. if the employee has a
split appointment). Faculty and other academic appointees should
normally sign their own PAR form. However, another academic appointee
having knowledge of the activities (e.g. Dean, Department Chair,
Organized Research Unit (ORU) Director, or Principal Investigator)
may sign as responsible official.
7.0 Overview of Procedures
The following is a summary of the PAR system data flow:
Office of the President (IS&S) originally developed computer programs
to produce the PAR forms for all covered employees. Effective in
January 1986, campuses became responsible for all maintenance and
operation of the PAR System; and therefore, all programs have been
transferred to the campuses.
Institutional Computing prints the PAR forms for all employees paid
from federal and federal flow through funds 45 days after the end of
each quarter.
Accounting Office receives the printed PAR forms from Institutional
Computing and distributes them to academic departments and ORUs. In
addition to the PAR forms, each department will receive a control list
which contains the names of all employees who must complete a PAR for
that reporting period.
Academic Departments and ORUs receive the PARs and a control list from
the Accounting Office. The PAR forms are then distributed to the
employee or responsible official for completion of effort categories,
review, and approval. The academic department or ORU will perform the
following functions upon receiving the complete PARs:
-Check the PARs against the control list to determine and follow up on
the PARs which have not been completed and returned.
-Initiate payroll adjustments if necessary.
-Forward to Accounting the original (yellow) copies of the PARs, while
retaining white copy for departmental records and audit.
-Retain for a period of three years starting from the submission date
the final expenditure report or annual financial status report on
renewed awards. However, if there are litigations, claims, or audit
findings involving these records before the end of the three years,
the PARs must be retained until the matter has been resolved
(OMB A-110 Retention of Records section).
Accounting Office reviews the effort and certification. When all PAR
forms are received in Accounting, the PARs are batched and retained for
audit purposes.