Accounting Rules for In-House Employee Services

Accounting Rules for In-House Employee Services

Grantees must follow these accounting practices for services performed by its employees to be eligible for reimbursement:

 

• Maintain time and attendance records as charges are incurred, identifying the employee through a name or other tracking system, and that employee’s actual time spent on the project.

 

• Time estimates, including percentages, for work performed on the project are not acceptable.

 

• Time sheets that do not identify the specific employee’s time spent on the project are not acceptable.

 

• Costs of the salaries and wages must be calculated according to the grantee’s wage and salary scales, and may include benefit costs such as vacation, health insurance, pension contributions and workers’ compensation.

 

• Overtime costs may be allowed under the grantee’s established policy, provided that the regular work time was devoted to the same project.

 

• May not include overhead or cost allocation.  These are the costs generally associated with supporting an employee, such as rent, personnel support, IT, utilities, etc.

 

• If planning to claim in-house employee services costs, provide a sample timesheet for OGALS review to confirm these accounting practices are being followed.