For staff that work on multiple cost objectives, personnel costs must be allocated proportionally between all the different programs administered by the VR agency, and other programs staff work on within the designated State agency (DSA) even if outside the designated Staff unit (DSU) or included in the indirect cost rate or cost plan.

In the past, guidance referenced that personnel cost activities required certified personnel reports for individuals working 100% on one activity. Sometimes, agencies referred to these as PARS (personal activity reports). While PARS are not specifically required, you are required to ensure that your time and effort record-keeping meets the standards cited in regulation. However, 2 CFR 200.430 (i)(8) states that the Federal Government may require PARS if you do not meet the standards described in this section. This citation is referenced below.

It is important to have a policy/procedure that outlines the agency’s practices for reporting time and effort. This policy/procedure should include internal controls to ensure the process is evaluated, and it should outline how and when training will be conducted with all employees to ensure the proper allocation of staff time.