Time  and  effort  reporting  (also  called  Personnel  Activity  Reporting  by federal  agencies)  is  a  federal  requirement  directed  by  the  US  Office  of Management  and  Budgeting  ( The  purpose  of  the  requirement  was  to establish  principles  and  standards  for  determining  costs  for  Federal  awards carried  outthrough  grants,  cost  reimbursement  contracts,  and  other agreements  with  State  and  local  governments.   In  other  words,  school districts  are  required  under  federal  law  to  record  any  hours  worked that relate  to  federal  funding  or  to  funding  that  is  matched  through  a  grant. If  hours  are  not  recorded  and  reported  properly,  the  district  could  lose  its funding  which  would  result  in  significant  revenue  losses  and  ultimately  deep budgetary  cuts  to  prorams  and  staff.