UC Santa Barbara Policy 1655
Policies
Issuing Unit: Contracts & Grants Date: July 1, 1973
UNDER REVIEW
CONTACT OFFICE OF RESEARCH
SUBSTANTIATION
OF SALARY AND WAGE CHARGED TO U.S.
GOVERNMENT CONTRACTS AND GRANTS
I. PURPOSE AND SCOPE:
Job time records must be maintained for all staff employees whose
salaries are charged to Federal contracts and grants. Monthly
"after-the-fact" reviews of employee time charged to Federal
agreements must be conducted by department chairman for all academic
employees whose salaries are charged to Federal contracts and
grants. This procedure describes the records and reports which must
be prepared and maintained to substantiate the salary and wage costs
of University employees which are charged directly to U.S.
Government contracts and grants.
II. REFERENCES:
A. U.S. Office of Management and Budget (OMB) Circular No. A-21.
B. University of California Business and Finance Bulletins:
1.G-6, Substantiation of Salary and Wage Charges to U.S.
Government Contracts and Grants.
2.G-5, General Assistance Time Reporting.
3.G-23, Records Retention Program for Financial Documents
Pertaining to Government Contracts and Grants.
4.IA-101, Internal Control Standards Departmental Payrolls.
C.University of California Policy and Procedure Manual for Contract
and Grant Administration, Appendix B.
D.UCSB Research Circular, No. 6-73, Policy on the Substantiation of
Salary and Wage Charges rages to U.S. Government Contract and
Grants.
III. PROCEDURE:
A. Staff Personnel:
1.Basic substantiation of salary and wage costs charged
directly to U.S. Government contracts and grants include:
a. Employment Certification, University Form U1600.
b. Change of Employment Status, University Form U1601.
c. Payroll Time Sheet University Form U421.
2.The forms noted above must be supported by either a Daily
Attendance Record Form, PR 1730), for all staff, or a
Payroll Report Form, Acct. 2R for all hourly rated
employees.
3.Data accumulated on these forms are to be used as a basis for
the payroll distribution of monthly salary costs of the
individuals concerned. It is recommended that a separate
Daily Attendance Record Form or a Payroll Report Form be
maintained for each-account to be charged.
B. Academic Personnel:
1.Basic substantiation of salary and wage costs charged
directly to U.S. Government contracts include:
a.Employment Certification, University Form U16W.
b.Change of Employment Status, University Form U1601.
2. These forms must be supported by a monthly
"after-the-fact" review of salary and wage charges
reported on the monthly Distribution of Payroll Expense,
PR070A to assure that the time of academic
employees, including graduate students (Title Codes
1000-3999), charged to individual Federal agreements is
consistent with the actual distribution and performance of
workload within the department.
C. Responsibilities:
1. Directors, Department Heads or equivalent academic
officials are responsible for making the monthly
"after-the-fact" review of salary and wage charged for
academic employees, and certifying their accuracy with
their signature. Discrepancies noted as a result of the
review must be reported promptly to the Accounting Officer
by forwarding appropriate adjustment documents (DPC 9
entitled Request for Transfer of Payroll Expense and/or
Change of Employment Status Form U1601), to accomplish
proper adjustment of the accounting and employee earnings
records.
2. Directors, Department Heads or Principal Investigators are
responsible for certifying to the accuracy of staff
personnel Daily Attendance Records and/or Payroll Report
Forms.
3. Any delegations by Directors, Department Heads of
Principal Investigators to other academicians must be in
writing, with a copy to the Accounting Office.
4. Accounting Officer is responsible for:
a. Keeping Department Heads and Principal Investigators
advised of the supporting documents required to
substantiate salary and wage payments charged
directly to U.S. Government contracts and grants.
b. Transmitting the monthly Distribution of Payroll
Expense, PR070A, and the adjustment of accounting
records as prescribed in paragraph I I I .C.1. above.
c. Conducting periodic reviews of departmental records.
D. Records Retention:
1. The Department or Organized Research Unit is to retain
detailed time records supporting the Payroll Time Sheet
(e.g., daily attendance and job time records) for audit
review for five years.
2. Accounting Officers are to retain the original copy of the
Payroll Time Sheet (Form U421 ) for audit review for five
years or as determined by the specific contract/grant.
Please direct questions about these policies to Meta.Clow@vcadmin.ucsb.edu. For questions or comments regarding the format of the above information, please contact webcontact@ucsbuxa.ucsb.edu.
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Last Modified By: EBH, 7/09/98