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(a) More than one Federal award, <br />(b) A Federal award and a non-Federal award, <br />(c) An indirect cost activity and a direct cost activity, <br />(d) Two or more indirect activities which are allocated using different allocation bases, or <br />(e) An unallowable activity and a direct or indirect cost activity. <br />(5) Personnel activity reports or equivalent documentation must meet the following standards: <br />(a) They must reflect an after-the-fact distribution of the actual activity of each employee, <br />(b) They must account for the total activity for which each employee is compensated, <br />(c) They must be prepared at least monthly and must coincide with one or more pay periods, and <br />(d) They must be signed by the employee. <br />(e) Budget estimates or other distribution percentages determined before the services are <br />performed do not qualify as support for charges to Federal awards but may be used for interim <br />accounting purposes, provided that: <br />(i) The governmental unit's system for establishing the estimates produces reasonable <br />approximations of the activity actually performed; <br />(ii) At least quarterly, comparisons of actual costs to budgeted distributions based on the <br />monthly activity reports are made. Costs charged to Federal awards to reflect adjustments made <br />as a result of the activity actually performed may be recorded annually if the quarterly <br />comparisons show the differences between budgeted and actual costs are less than ten percent; <br />and <br />(iii) The budget estimates or other distribution percentages are revised at least quarterly, if <br />necessary, to reflect changed circumstances. <br />(6) Substitute systems for allocating salaries and wages to Federal awards may be used in place <br />of activity reports. These systems are subject to approval if required by the cognizant agency. <br />Such systems may include, but are not limited to, random moment sampling, case counts, or <br />other quantifiable measures of employee effort. <br />(a) Substitute systems which use sampling methods (primarily for Temporary Assistance to <br />Needy Families (TANF), Medicaid, and other public assistance programs) must meet acceptable <br />statistical sampling standards including: <br />(i) The sampling universe must include all of the employees whose salaries and wages are to be <br />allocated based on sample results except as provided in subsection (c); <br />21 <br /> <br />