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shall be allowable if amortized over a period of years in accordance with GAAP, or, if no such <br />GAAP period exists, over a period negotiated with the cognizant agency. <br />(5) To be allowable in the current year, the PRHB costs must be paid either to: <br />(a) An insurer or other benefit provider as current year costs or premiums, or <br />(b) An insurer or trustee to maintain a trust fund or reserve for the sole purpose of providing <br />post-retirement benefits to retirees and other beneficiaries. <br />(6) The Federal Government shall receive an equitable share of any amounts of previously <br />allowed post-retirement benefit costs (including earnings thereon) which revert or inure to the <br />governmental unit in the form of a refund, withdrawal, or other credit. <br />g. Severance pay. <br />(1) Payments in addition to regular salaries and wages made to workers whose employment is <br />being terminated are allowable to the extent that, in each case, they are required by (a) law, (b) <br />employer-employee agreement, or (c) established written policy. <br />(2) Severance payments (but not accruals) associated with normal turnover are allowable. Such <br />payments shall be allocated to all activities of the governmental unit as an indirect cost. <br />(3) Abnormal or mass severance pay will be considered on a case-by-case basis and is allowable <br />only if approved by the cognizant Federal agency. <br />h. Support of salaries and wages. These standards regarding time distribution are in addition to <br />the standards for payroll documentation. <br />(1) Charges to Federal awards for salaries and wages, whether treated as direct or indirect costs, <br />will be based on payrolls documented in accordance with generally accepted practice of the <br />governmental unit and approved by a responsible official(s) of the governmental unit. <br />(2) No further documentation is required for the salaries and wages of employees who work in a <br />single indirect cost activity. <br />(3) Where employees are expected to work solely on a single Federal award or cost objective, <br />charges for their salaries and wages will be supported by periodic certifications that the <br />employees worked solely on that program for the period covered by the certification. These <br />certifications will be prepared at least semi-annually and will be signed by the employee or <br />supervisory official having first hand knowledge of the work performed by the employee. <br />(4) Where employees work on multiple activities or cost objectives, a distribution of their <br />salaries or wages will be supported by personnel activity reports or equivalent documentation <br />which meets the standards in subsection (5) unless a statistical sampling system (see subsection <br />(6)) or other substitute system has been approved by the cognizant Federal agency. Such <br />documentary support will be required where employees work on: <br />20 <br /> <br />