Per OMB Circular A-87- “Cost objective" means a function, organizational subdivision, contract, grant, or other activity for which cost data are needed and for which costs are incurred.
– If federal funds are used for salaries, then “time distribution records” are required.
– If employee is paid with federal funds, then documentation must demonstrate that the employee worked on that specific federal program/cost objective.
Cost Objective (specific grant award or other category of costs that requires grantee to track specific cost information) examples:
– Federal Program:
o Title I Part A
o Reading First
o Perkins; IDEA
– Federal Program Cost Objectives:
o Title I Program Services
o Title I Administration
o Title I Parent Involvement
o Reading First Administration
o Perkins State Leadership
o IDEA Administration
If employee works on multiple cost objectives, a Personnel Activity Report (PAR) is due each month, signed by supervisor and employee. (See Sample 1)
– PARs must be:
o after the fact records (actual effort, NOT estimated effort)
o total activity for which the employee is compensated (consult supporting documentation when executing monthly reports)
o at least monthly (calendar, work product, time log)
o signed and dated by employee
If employee works 100% on single cost objectives, a semi-annual certification is required every six months signed by supervisor/principal and employee. (See Sample 2)
Schoolwide is a single objective. Semi-annual certifications are required for anyone charged to federal funds who works 100% on the schoolwide plan. If an employee’s time is split between activities in a schoolwide plan and activities not in the schoolwide plan, then monthly PARs would be required.