MS Project tasks progress approval for Project Manager does not work

Hi all!

I am setting up Project Onilne in my organization, unfortunatelly we don't have experienced professional in Project Server settings, and it looks quite tricky for me to understand all of them.
I also tried searcing the Internet, but didnt sucseed, it looks like functionality I'm asking below have to work by default, but it's not.

Here is the problem itself: user set to be project manager doesn't see time reports, which are sent by project team members for approval.

What I got in place:
- project exists on server
- project team can see it and work with it: team can enter hours at the area "my tasks" accessed from leftside quick launch menu, team members also successfully send hours for approval
- User, who should approve progress has the following settings (just checked right now):
** he is included in "Timesheet managers" (I have read somewhere that this appointment applies from the next schedule created and i created schedule after appointment done)
** he is included in "Project Managers" group, "Project Managers" group has included categories "My Tasks" and "My Projects"
** These categories "My Tasks" and "My Projects" have permissions set with default template sets of permissions for "Team member" and "Project Manager" correspondingly.
** global permissions for group "Project Managers" are set with "Project manager" template

"Timsheet settings and defaults" section option "Task Status Manager Approval" is set to "Enabled" and "Require line approval before timesheet approval" turned on.

Me, having admin rights can see all tasks & their hours submitted for approval.

Could you please advise if I missed somthing in settings of server or permissions for groups to give Project Manager ability to approve task hours submitted by team?