Multifamily Housing Program Financial Management Toolkit

10e. Direct Charge of Personnel Costs

An accurate timekeeping and activity tracking system is essential for ensuring that personnel costs will be prorated accurately and reflect an accurate proportion of staff time spent on HUD-funded activities. The system must be able to track staff time among different HUD and non-HUD grants and contracts, as well as among the various activities performed under each agreement. In this way, the grantee or sub-recipient will be able to identify the funding sources that can be used to cover the cost of each individual’s work assignments.

Just as for staff providing resident services, workers performing other types of eligible activities need to show a direct benefit to the HUD-funded program resulting from the time they are charging to the grant. Time reported must also be linked to its appropriate eligible activity.