#### What is the Percent Effort Paid?

The "Percent Effort Paid" column contains the percent of compensated effort for an individual on the project during the specified Certification Period.

The percent of effort is calculated using the following equation:

 Amount paid from this project during Certification Period Total amount paid from all sources during Certification Period

The value in the "Percent of Effort Paid" column may or may not correspond exactly to the percentage of a person's appointment on the project. To understand this, you must first know the following:

1. "Effort" is the proportion of time spent on any activity, expressed as a percentage of total time.*
2. Total effort for an employee must equal 100%.
3. The appointment serves as the basis for distributing the costs associated with an individual's total effort to various sources.

For instance, an employee with a 50% appointment at the University (20 hours per week) who is paid from only one project would show 100% effort on that project. That is to say, 100% of her effort at the University was paid from that one source, even though that 100% represents a half-time appointment. (See example 2 below.)

#### Example 1:

Joe Smith, a full-time employee, was appointed at a rate of \$20,000 annually. 35% of his appointment was charged to budget group 26-1234-56, and the remainder came from budget group 14-9876-54. During the six-month certification period, he was paid a total of \$10,000. \$3,500 of that amount originated from budget group 26-1234-56. The Percent of Effort Paid for budget group 26-1234-56 is calculated as follows:

\$3,500 / \$10,000 = .35 or 35%

#### Example 2:

Mary Jones, a half-time employee, was appointed for 50% time at an annual rate of \$60,000 to budget group 26-0011-22. At 50% time, her actual annual pay was \$30,000. She was paid a total of \$15,000 during the six-month certification period. All \$15,000 of that amount originated from budget group 26-0011-22. The Percent of Effort Paid for budget group 26-0011-22 is calculated as follows:

\$15,000 / \$15,000 = 1.00 or 100%

* Thank you to the University of Minnesota's on-line Policy and Procedures Document for providing this definition of Effort.