1 2 These are our learning objectives for the session. - this is - - PDF document

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These are our learning objectives for the session.

• this is an Information Sharing session and not a HOW TO

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To meet the learning objectives, here are the topics we will cover in the session today: Overview of Research Projects will include discussion of the pre- and post- award phases, the types of projects that can exist and how to interpret project identifiers. The Policies and Guidelines section will increase your familiarity with the “policy spectrum”, the research and finance policies that are applicable, and how the various stakeholders share the responsibility for managing the research funds. General Research Project information will touch on how a project is set up and funded, how to interpret the budget and project dates and years, and a brief discussion of renewals, extensions and sub-grants. We’ll really get into the meat of the session when we talk about financial transactions and how all the activity related to a research project is recorded in Western Financials (also known as our PeopleSoft application). The financial reporting and General Ledger (GL) inquiry section will show the tools available in Western Financials and will describe some of the external reporting requirements that you might not be aware of. Finally, we’ll highlight a few Tri-Agency topics for you. 4

We will NOT be discussing how to procure goods and or services, or how to complete/submit Travel and Expense Claims (while these are part of project management there are other sessions as well as training materials to help you with

• these. We will refer to them at the end.)

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In this first section I’ll provide a very brief overview of the administrative phases of a research project. The pre-award phase is managed by Research Development & Services and the post-award phase is managed by Research Finance. These 2 offices work very closely with each other because our work is very integrated. Research projects can be differentiated by the nature of the work being performed. At Western we categorize the projects as either a grant, contract, technical service or donation. It’s important that we be able to isolate all project related expenses and revenues, and therefore each project has unique identifiers. This enables us to fulfill our reporting

• bligations to our funding agencies.

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Principle Investigators (PI) search out and identify funding opportunities to apply to. Sometimes this is done independently and other times it is with the assistance of a Faculty research officer, a colleague/collaborator or Research Consultants in Research Development & Services (RD&S). PIs set up a project record in the ROLA system (Research On-Line Administration ) during the application phase. This captures department, Faculty and institutional approvals. Once the funds are awarded and conditions

• f funding are satisfied, RD&S notifies Research Finance through workflow in

the ROLA system. 6

In the Post-Award phase Research Finance handles the financial management of the award. The research project and speedcode are activated in Western Financials. The PI and his/her department administrator receive a system generated email that provides them with the project information, including the speedcode. All stakeholders monitor expenditures to ensure that the spending aligns with the terms of the funding program and that the award complies with the respective policies and guidelines of the funding agency and the university. Research Finance monitors and reviews the revenues of all research projects to ensure the funding aligns with the project budget and the project progress, and we confirm the funds are received within in the prescribed timelines of the

• awards. Cash flow management includes invoicing, deposit of installments

(cheques and Electronic Funds Transfers) and review to ensure funds are released following submission of financial and progress reports, or completion

• f milestones/deliverables.

At times funding agencies require financial or variance analyses, comparing incurred expenses to an approved budget. Some financial reporting also 7

includes a forecast of expenditures for the coming year (or quarter) for which PI’s input is required. Financial reporting is completed by Research Finance based on the terms of an agreement/contract or based on the requirements of a funding agency. This can be monthly, quarterly or annually. Research Finance coordinates a variety of financial reviews including formal audits (both internal and external), monitoring visits and general sampling of account transactions. 7

It’s very important for us to differentiate the various project types because our government reporting (at the corporate level) requires aggregate data on each. That’s why we can not co-mingle funding from different sources. Grants – The majority of our research awards are grants. The distinguishing criteria for grants is the flow of funds which are usually in advance of spending and follow a prescribed schedule, publication rights and Intellectual Property. 8

Contract - Milestones/deliverables and related timelines are defined. Progress reports are completed by the PI and are usually required annually. Some funding agencies may

• nly require this at the end of project. There is very specific language regarding

Intellectual Property. Contact the Contract Research Team group, in Research Development and Services for more information. 9

Technical Services – Usually is specific to data generation with many provisions and minimal intellectual output. Final payment is not released until receipt and approval of the final report. Contact Contract Research Team, in Research Development and Services for more information. 10

Donation – Tied to a donor agreement and is usually directed to a specific area/discipline of research. External Development or your Faculty Development Officer can provide additional information if needed. 11

When a Project is set up it is given a Project Number, this is used to isolate financial transactions related to the project activity. Each Principal Investigator has a unique identifier in Western Financials that remains with him/her throughout their career here at Western. It consists of a 5 digit alpha- numeric combination, beginning with ‘R’. Department chairs and Faculty Deans can also hold projects tied to their administrative roles. These projects begin with an ‘X’. Project #s are generated as each project is awarded. A project # begins with the researcher’s profile number and ends with a 3 digit alpha-numeric combination which increases incrementally with each new project assigned to the PI (e.g R####A01, R####A02, …). 12

When you are charging expenses to a Project you use a Speedcode: It’s a 4 digit code (alpha-numeric) that condenses a 15 digit chartfield - made up of a Fund (research is always Fund 2), department (6 numbers) and Project number. Speedcodes allow for efficiency and accuracy with data entry and expense processing for payroll, Mustang Market, Travel/Expense claims and internal store operations. The 4 digit speedcode is much easier to remember then the 15 digit chartfield combination. 13

As we wrap up this first section here are the key items we’ve talked about.

• Research Development and Services handles the pre-award functions
• Research Finance is responsible for the post-award functions, i.e. the financial

management of research funds

• The 4 types of research projects are grants, contracts, technical services and

donations.

• Projects are identified by either their Western Financials project # or by their

speedcode. 14

This section, Policies and Guidelines, touches on the “compliance zone” of how research projects must be managed. You can think of this as the umbrella under which the research project functions. We’re going to briefly discuss some applicable policies, the roles & responsibilities of the stakeholders, and then specifically address a couple

• f Principle Investigator obligations.

You’ve heard that post-award administration begins the moment the award is received/accepted. The award documentation should be reviewed to determine the terms and conditions with respect to financial and non-financial requirements. The award documentation provided by the funding agency will include key information such as the amount and term of the award, spending restrictions and reporting

• requirements. Research Finance can provide assistance if you have questions.

In order to manage post-award activities, Principal Investigators should be aware of institutional and funding agency policies and be able to access them when needed. 15

This diagram of “the policy spectrum” shows the five policy sources, all of which can impact the management of a research project. These policy sources do not exist in isolation – they all inter-play with one another. Most large granting agencies have extensive information on managing their research funds on their websites and Research Finance can provide assistance in locating this information if needed. Many agency links are available through our own Research Finance website. There are many rules and regulations that govern the use of research funding, and there’s no single rule to determine what “trumps” what. For example, Western’s policy may allow for something that is not permitted by the funding agency – in that case, the funding agency has the final say. 16

A key responsibility of all Principal Investigators is to ensure that spending on their project is managed within the awarded budget level and that their research projects remain is good standing. Western’s policies, procedures and guidelines must be adhered to in conjunction with agency policies. In the absence of agency specific policies or guidelines, Western’s internal policies must be observed. Western’s governance policies include a section for Financial (2.1 through 2.30) and a section specifically for Research (7.0 through 7.14). It is important to have a general appreciation for the wide range of topics addressed in these policies. A particularly important Research policy is 7.11 – Over-Expenditure of Research Accounts. This policy defines what an over-expenditure is, who is accountable or responsible for the over-expenditure, and who has the authority to freeze a research project that has become over-expended. 17

Research funds can be awarded to individual researchers or to Western University as an

• institution. There is a stewardship responsibility to ensure the funds are utilized for the

designated purposes for which they are awarded and to comply with Western and funding agency policies and guidelines. This shared responsibility, is distributed to several stakeholders including the PIs, departments and faculties, and Research Finance. Faculty Deans and Department Chairs are responsible for ensuring that the infrastructure and resources exist for the PIs to conduct their research. Deans and Chairs are expected to support and promote adherence to the overall policy spectrum impacting all research projects. Department and faculty administrators play a key role in helping researchers ensure that “their i’s are dotted and their t’s are crossed”. They are a resource for them and their front line support. Some specific areas for they guide their PIs on include:

• ensuring eligible expenditures are processed against projects that have the

appropriate level of funding

• reviewing travel claims for completeness and accuracy
• promptly reviewing and distributing monthly research financial statements to

Principal Investigators, or reminding them they are available for review

• investigating and resolving any discrepancies and following up where necessary;

AND

• advising the Department Chair or Faculty Dean of any issues not being addressed by

the PI (i.e. over-expenditure, missing report submissions) 18

Research Finance staff are always available to help with any issues that may come up, and specifically we will:

• liaise with funding agency representatives on issues of eligibility and compliance
• monitor receipt of funds and invoice funding agencies where required
• release funding to co-investigators/collaborators at partner institutions
• do all reporting that is required by the funding agencies; AND
• facilitate audits

It is fair to say though, at the end of the day, that the Principal Investigator has the ultimate responsibility for his/her research project. 18

Every year in May, the “Research Accountability Report” is sent to all account holders

• n campus who have one or more active research projects. This report is intended to

provide assurance that the responsibilities of account holders, as they relate to the management of research funds, are being fulfilled. Responses are reviewed and used to evaluate Western’s current practices and to identify where additional support and/or education may be needed. While you can find this form on the Research Finance website, it is now distributed and the answers are compiled electronically. 19

A primary responsibility of a research account holders is to authorize all expenditures

• n their project(s), including those made through Mustang Market and the internal

stores at Western (i.e. the Bookstore). When necessary, account holders can delegate expense authority to a staff member or research team member. We are differentiating between account holders and Principal Investigators here because the account holder is not always the Principal Investigator. For example, the account holder on a research project may be the Dean of the Faculty. He/she may not be the person who is primarily doing the research, and therefore would likely delegate the expense authority to the appropriate person. These should not be delegated for administrative convenience. Individuals granted signing authority must have knowledge of the project in order to authorize purchases related to it. It is important to remember that the account holder remains responsible for all expenses authorized by delegates. The Delegation of Signing Authority information is captured within Western Financials and will remain in effect until the indicated end date. If an individual with delegated signing authority is no longer involved with a research project, the account holder must notify Research Finance immediately so that an appropriate substitute can be identified. Delegation of Signing Authority forms for all account holders are kept on file in Research Finance for audit and other verification purposes. 20

In this section we talked about:

• 1. The policy spectrum, both internal and external, that impact the management of all

research projects.

• 2. The web resources available to you when you need to look up various policies. The

best place to start is the Research Finance website.

• 3. Who the main four stakeholders in a research project are. AND
• 4. The delegation of signing authority, or “DoSA” – what it does and when it is

necessary. 21

Let’s look at a pertinent situation that most of you experience every year. You have a new professor in your department who is transferring from another university and is bringing research funding with her. You want her to understand Western’s expectations and her responsibilities. What key topics would you cover in an orientation meeting with this new person? Answers Many polices and guidelines govern the management of research funds, including Western’s financial and research policies. Stakeholders that have responsibilities:

• 1. Principal Investigator – this person is ultimately responsible for the project
• 2. Faculty Deans and Dept. Chairs
• 3. Faculty/Dept. Administrators
• 4. Research Finance

Also consider: Delegation of signing authority Annual accountability report 22

Section 3: General Project Information. In this section we will discuss project set up, the project period vs the budget period, Western’s fiscal year, and what we mean by renewals vs extensions. 23

• 1. As previously discussed in the Overview section, all Research Projects begin in

Research Development and Services with a proposal application in ROLA.

• 2. When the application is awarded, and all pre-award conditions met, Research

Development & Services moves the proposal to the awarded status in ROLA and then Research Finance is prompted to set up the project in Western Financials.

• 3. After the project’s budget information has been confirmed by a Financial Officer, a

system generated email notification from Western Financial Grants Management is sent to : The Account Holder (PI R series, or a Dean/Chair X series) and his/her administrator.

• 4. The email communicates various pieces of information about the project. The next

slide will show you what that e-mail looks like. 24

This is the sample of the email notification that will be received.

• 1. The first thing to note is that typically the PI will be the Account Holder; unless the

project is set up in the Dean or Chair name (an X series).

• 2. The second section provides quick access to PI responsibility documents for
• reference. There are links to the Responsibilities document & also the DoSA form.
• 3. Below the Project number and speedcode, the you will see the funding source and

sponsor. We want to point out that the term Sponsor (is an American term) = Funding Agency . The Sponsor/Funding Agency is the agency that is providing the funds; in this example NSERC. The Funding Source will only be different from the Sponsor if the project is a sub-grant from another institution; for example, your PI is working on a project with a colleague from McMaster University. In that case, the funding source will be McMaster, and the sponsor will be NSERC. The Sponsor (Funding Agency) is always the originating source

• f the funding.
• 4. Towards the bottom, the Budget Period (s) are displayed with the budget amount for

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each period---- followed by the Total Budget amount for the entire project.. 25

All Research Projects have defined dates for both the project period and the budget period(s) that are defined in the award notices for the project. Project Start Date – The effective date when eligible expenses can be charged against the research project. NOTE: Funding Agency approval must be obtained for any expenses prior to this date. Project End Date – The last day eligible expenses can be incurred on the research project. Project Period – The entire period between the start and end dates during which eligible expenses may be incurred. Dates are important. During an audit, if the Agency finds expenses incurred outside of the project’s start and end dates they would be disallowed. The Budget Period, on the other hand, is the interval of time into which a project is divided for budgetary, funding and reporting purposes. Budget periods are generally 12 months but may vary as determined by the funding agency. 26

• 1. First example:

In the first example you will notice that this is the 4th and final year of a 4 year project. The project started on April 1, 2011 with annual budgets until March 31, 2015 Note: For this type of Budget Period there is an annual close of expenses to revenues resulting in a balance forward at the budget end date each year. This is the case for most if not all Tri – Agency grants.

• 2. Second example:

In the second example you will notice that this is a 5 year project starting on June 1, 2011, with a single budget period that spans the life of the project, to December 31, 2016. Note: The budget start and end dates are the same as the project start and end dates because there is only ONE Budget period. For this type of Budget Period there is NO annual close of expenses to revenues and thus NO balance forward each year – all activity of the project is captured cumulatively. Eg: Contracts, ORF – RE projects, IOF(Infrastructure Operating Fund from CFI) 27

Western’s fiscal year works has a different year end from most of our funding agencies. A Fiscal Year is the annual period of time specified for processing financial transactions, maintaining records and doing financial reporting. For research projects, the Budget Period usually aligns with the funding agency’s Fiscal Year – e.g. government granting agencies have a fiscal year of April 1 to March 31. However, Western University’s fiscal year runs May 1 to April 30 and this impacts how data is retrieved from Western Financials. In Western Financials, at each May 1st – the fiscal year advances to the next year. (e.g. May 1, 2015 -> Fiscal 2016) So remember, when retrieving information from Western Financials, it is important to make requests based on Western’s fiscal period. For example, if you would like to view your monthly information for Sept. 2015 in the General Ledger Inquiry panel, request detail for the Accounting Period “05” and fiscal year 2016. 28

The project end date is the last day on which eligible expenses can be incurred on a research project, regardless of remaining funds. If the research project will not be completed by the project end date, it is important to contact Research Finance EARLY to discuss available options. Extension requests: Funding agencies may allow researchers to apply for a ‘no-cost extension’ beyond the

• riginal project end date. This provides the researcher with additional time to spend

remaining funds – but new funds are NOT provided. Research Finance must be notified

• f extensions to ensure that the budget period and project end date in Western

Financials is up to date. An amendment to a research agreement may be necessary, in which case, Research Development & Services will need to be contacted. Renewals: Funding agencies may allow researchers to apply for grant renewals at the end of their project end date. A renewal application must be completed in order to continue an existing research project and request additional funding. Renewed projects will continue under the same project number and speed code in Western Financials. 29

In Section 3, we learned the following: a) How research projects are set up - process begins in Research Development & Services and once awarded and conditions met – is established as a research project in Western Financials b) A Project Period is the time period that the research project has been awarded for (could be 1 year – could be 5 years or more) during which eligible expenses can be

• incurred. The Budget Period is the interval of time that the project is sub-divided

for budgetary, funding, and reporting purposes. c) Western’s Fiscal year operates from May 1 – April 30th each year with Period 1 being May. This affects how data is retrieved from the Western Financials. d) If a project is approaching its End date, and the Principal Investigator anticipates having unspent funds, he/she needs to discuss with Research Finance the possibility

• f an extension or renewal.

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As a large group let’s discuss the following scenario. It is April 11th, 2015 and a PI brings you an invoice for equipment valued at $10,000. He asks you to process it immediately and charge it to his NSERC project that has a project end date of March 31st, two weeks ago!

• 1. What are the implications?
• Is the expense eligible on the grant?
• Did he receive the equipment prior to the end date?

Considerations:

• Are there available funds?
• Was the equipment necessary to complete the project or is this being charged here

to utilize funds that might otherwise be lost?

• Could he request an extension?
• 2. What action would you take?

Seek clarification from Research Finance – allowable? Notify Research Finance – an adjusted financial statement will be required if the expense is deemed eligible. 31

This section covers the various aspects of financial management of research projects. We will review the types of financial transactions that are typically charged to research projects and other important financial information. You will learn how the funds/revenues flow from granting agencies to research projects, will understand how encumbrances are calculated and how different transactions are generated by various units at Western. Understanding the topics covered in this section will allow you to assist researchers with their questions and requests or direct them to the right person or unit on campus. 32

You have already learned about project dates and how they are different from budget

• periods. Now we will talk about project budget and various ways of receiving revenues

from external and internal sources. Definition: Budget is a list of anticipated project costs that represent the Principal Investigator's best estimate of the funds needed to support the work described in a grant or contract proposal. The funding agency award notice provides financial details based on the application

• budget. This budget information sets spending limits as awarded by the funding agency.

Many funding agencies allow for minor budget changes, such as reallocation of expenses from one category to another. Should the awarded project require changes in the specific goals and objectives, the Principal Investigator may be required to seek approval from the funding agency to change the project budget or timeline. Changes in scope require justification – e.g. how the change will alter the original objectives and any project deliverables. Research Finance can be consulted to review specific funding agency requirements and to assist where necessary. The budget, as listed in Western Financials, gives the PI permission to spend to that level, for the prescribed budget period. The budget includes the awarded amount +/- the previous year’s ending balance, where applicable. 33

Revenue is the funds received during a budget period. There are several ways revenues are received.

• 1. Most agencies transfer revenues by direct deposit or cheque. Funds are normally

forwarded directly to Research Finance; if you receive funds directly, send the payment to Research Finance along with the associated project number. This process allows for proper monitoring of cash flows and project budgets. Please DO NOT deposit funds through the Central Cashier because funds received for a project cannot be co-mingled with other funding sources due to the spending and reporting requirements of our funding agencies and University guidelines.

• 2. Some research projects at Western are internally funded and the revenue will be

transferred from that internal source by Research Finance.

• 3. Most research contracts require invoicing to receive funds. Research Finance

prepares all invoices as required in the terms of the contract. If research deliverables are required prior to invoicing, the principle investigator must communicate the status of the deliverables to Research Finance in a timely manner. 34

At the Project End Date, the total budget amount should equal both the total revenue received and the total expenditures. 34

There are often situations when a researcher will want to transfer funds to/from other institutions, or to/from other researchers at Western. These scenarios are referred to as “sub-grants”. On the research finance website under Financial Management of Research Projects, there is a heading called “Receiving and Sending Funds”. This has a lot of useful information related to sub-grants. If you encounter one of these situations, please contact your Financial Officer in Research Finance. 35

Encumbrance accounting refers to the process where a specified amount of funds are set aside in order to pay for financial commitments for goods and services that will be an expense in the future. The main benefit of this type of accounting is to avoid

• verspending by earmarking funds so that they are no longer available for use on other

transactions. There are three common instances where encumbrance accounting may be used on research projects:

• 1. Purchase Order (PO) encumbrances are used when items have been ordered from a

vendor and the PO has been issued. (Mustang Market). After the vendor invoice has been paid the encumbrance is cleared and the expense is posted to ‘Actuals’.

• 2. Salary and benefit expenses for monthly paid employees are encumbered until the

end of the research project’s current budget period, or until the termination date of the employee’, whichever is first. Salary and benefits for weekly/hourly paid employees are not encumbered.

• 3. Overhead encumbrances – also known as “Indirect costs”, are calculated as a

percentage of direct costs based on the budget, and are reduced monthly as

• verhead charges are applied.

For more details, please refer to the Research Western website regarding Indirect costs (overhead) on research activity. 36

Research personnel can be a big portion of research grant spending. University recruitment practices must be followed when hiring staff and students. In addition, funding agency restrictions may apply (e.g. salary limits, duration of contract). It is the researcher’s responsibility to ensure staffing processes meet both funding agency and University requirements. Unit Administrators are responsible for preparing the necessary paperwork when salary and benefit expenses are to be applied to research projects. Attention is required to ensure salaries & benefits are paid from the appropriate accounts in research projects. A list of valid salary and benefit accounts can be found

• n the Research Finance website and also posted for your reference on OWL web site.

Severance payments are a requirement of the Ontario Employment Standards Act but usually not an eligible expense on externally funded research projects. In the case of a termination, please contact your Department Chair/Director , Unit Administrator and your Human Resources consultant for assistance in working through the process. It is imperative that researchers understand their responsibilities and plan in advance. 37

Many of you are involved in procuring activities. Procurement Services facilitates the best-value procurement of goods and services in support of the research community and the campus at large. The main and most common way of procuring goods and services is through Mustang Market, which is Western’s web-based sourcing and requisitioning tool for purchasing items from contracted, preferred and new vendors. Refer to the Mustang Market section on Procurement’s website for more information related to products, access and the benefits. The Western Visa Purchasing Card (P-Card) is a credit card that may be used for low dollar purchases. There is no cost associated with this program and it is a preferred alternative to petty cash or personal credit cards. You can find more information about P-cards on Procurement Services web site. Internal store operations such as Bookstore, ChemBio stores, will accept speedcodes and related charges will be applied directly to the related research project. Petty Cash can be used for reimbursement of nominally priced goods and services. In

• rder to receive reimbursement, the Petty Cash Reimbursement form must be

completed and submitted in person, with original receipts, to the Cashier’s Office in Financial Services. The form, along with each original receipt must be signed by the 38

Account Holder/Principal Investigator (or delegate) as department approver. This form can be found on the Financial Services website. 38

The next step in Procurement process is payment. When goods and services are received by Western the vendor generates an invoice which is subsequently processed by Accounts Payable. These transactions are posted to the related research projects with the source code “AP.” The appropriate taxes are applied net of rebates. This is why the expense to a research project will not match the invoice amount, due to the tax rebates. Travel and expense claims are submitted to Financial Services for reimbursement via the following methods:

• Western’s Online Travel & Expense System - Western employees and grad students

(The source code for on-line travel and expense claims is EX)

• Manual claims for non-employees (e.g. undergrad students, visiting professors, etc.).

the source code for manual claims is AP. Knowing which unit generated a GL transaction can be very helpful in case you have some questions to address. The full list of source codes is posted on OWL website for your reference. To access policies, procedures and forms related to Travel and Expense Claims, please visit the Travel & Expense Reimbursement section on the Financial Services website. 39

Sometimes expenses need to be moved from one project to another. In order for expenses to be moved, the expense being moved must be eligible and directly related to the project it is being moved to. The specific expenses must be identified to ensure eligibility and the Account Holder should make such a request in writing (or email) to his/her/their department

• administrator. This provides supporting documentation for audit and review purposes.

The person processing the journal entry must:

• have the written approval (and it is to be retained) of the Account

Holder accepting the charges (email is sufficient) OR

• be an authorized delegate for the project(s) being charged

The expenses being moved must be expenses that have actually been incurred, and they must be identified. We cannot move charges planned for the future. The expenses must have been incurred within the start and end dates of the research project that they are being moved to. Salary and Benefit charges should be allocated to the research project through the HR system by completing the appropriate appointment notices. If changes are required, a revised Salary Appointment Notice (SAN) or Faculty Appointment Notice (FAN) must be submitted to HR with the effective date of the change. Research Finance will complete 40

any required retroactive journals when changes relate to prior periods. 40

There are some specific requirements for Salary and benefit journals, they must include:

• the Employee or student ID in the ‘reference’ field.
• The employee or student ID reference is the only method available to look

up all related salary/benefit information from the financial system for individuals and assists with financial reporting and audit requirements. This is why it’s extremely important to have Employee and Student ID in the reference field.

• The date range of the salary/benefits being moved should be included in the ‘Journal

Line Description’.

• Each individual requires a separate line on the journal. We cannot move lump

sum amounts of salaries and benefits. Detailed instructions on Salary & Benefits journals are on Research Finance website section. 41

Some of the key things we’ve discussed in this section on Financial Transactions and Information include:

• it is the project’s current budget amount not the revenue that limits the

expenditures that can be put against the project

• revenues from both external and internal sources are typically received in annual

installments

• we must always consider outstanding expenses and overhead encumbrances when

calculating “available funds”; and

• it is very important to have good supporting documents in place when a journal is

going to move expenses from one project to another. 42

A researcher in your department comes and asks you to move someone’s salary from

• ne project to another – going back two months.
• 1. What information do you need from the PI and why?
• Checking to see if the “destination” project has available funds.
• Making sure the time period falls within the budget period for the “destination”

project.

• Making sure the individual involved was legitimately working on the “destination”

project.

• That these salary charges are eligible on the “destination” project.
• Ascertaining whether the person’s salary/benefits will continue to be charged to the

“destination” project.

• 2. What action do you need to take to complete this request?
• Completing the appropriate forms to send to HR changing the coding on the persons

file – assuming #4 above is true.

• Ensuring you maintain documents to support the journal moving the expenses.

Any retro active journals will be completed by Research Finance. 43

GL Inquiry and Monthly research financial reports are available to the end user to assist in the management of research funds. External Research Projects also have reporting requirements as defined by the funding agency : these range from external financial reporting; progress/technical reports and audits 44

General Ledger (GL) inquiry --- is a menu item within Western Financials, and it provides a ‘snap shot’ of a project’s financial status (Budget, expenses, encumbrances, revenue received, as well as the budget & project dates) – as of the prior day’s close. Your access to GL Inquiry is defined by your Western Financial access, you are not automatically provided with access. To receive access go to the Financial Services, Systems web page and complete the form called “Request Access to Corporate Information Form” - printed it and when supervisor signs off send the form to Financial Systems group in Financial Services. 45

This is what will appear on the first screen of GL inquiry for a project. We will review this Research Summary screen today BUT if you want to learn more of the How To aspects there is another session titled “Navigating Western Financials”

• The Research Summary GL inquiry is a high level financial status “snap shot” from

prior day close. This menu is not updated in real-time, always shows project's status as of yesterday Let’s look at the screen: we have covered lots of information about various aspects of Research Projects and you can see all these details in GL Inquiry. In the top section you will find the:

• 1. Project ID – and the Speed Code – which all PI’s use!
• 2. PI name and Account Holder
• 3. Funding Source and Sponsor (Funding Agency) - ---remember – these will be the

same unless a sub grant

• 4. Major Program within the Funding Agency – good to know if looking up agency

guidelines

• 5. Reference: - This will be the Funding Agency reference #
• 6. Financial Officer: your contact within Research Finance
• 7. Close out Period shows the end of the budget period when the expenses &

revenues are closed to a balance forward and it is a Calendar Month, in our 46

example 03 it’s March.

• 8. Budget Status – will either be Open, Hold, Closed.
• 7. Fiscal Year and Period indicate what month this relates to and it’s always an

accounting period of Western’s fiscal year– in this example it is July 2015 The bottom section is the Financial Information about the project + the Budget and Project Dates

• 1. Budget Amount
• 2. Total Spent for this Budget Period
• 3. Encumbrances to the Budget End Date as of prior day close
• 4. Revenue received within this Budget Period (Research Finance manages)
• 5. Funds Available
• 6. Project & Budget dates.
• 7. If you select “View Details” – it provides a list of total expenses per general ledger

accounts - actual & encumbered.

• You can then view further details, or print details by each GL account –

Actuals & Encumbered 46

As an institution we are obligated to provide our PIs with up to date information pertaining to the financial status of each individual project.

• 1. Western’s monthly accounting cycle generates financial reports for each research
• project. Department administrators can run reports for their entire department or

for individual researchers (by PI profile #).

• The summary is a list of projects for a particular PI.
• The detail is a financial report for each project for a particular PI
• 2. When to Print: After each month end close, a notification is sent by Research

Finance to Research Administrators to advise that the monthly financial statements are available.

• This is typically the 4th working day of any month with exception of April 30th,

University year end.

• If you are not on this email list and want to be contact Deanne Babcock, Director,

Research Finance.

• Just a little hint for you: if you see at the top of the report screen “in progress” it

means the months hasn’t been closed yet. It should show ‘final’ at the top and that means all expenses and revenues for the month were completed and posted to the GL, so the month is now closed and financial reports can be printed.

• 3. How to Print: Detailed instructions to print can be found on Research Finance web

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page, under the Training and Reference Section. 47

We are in the process of developing an on-line module “Understanding your Monthly Research Financial Report” that will provide you with an understanding of the Monthly Research Financial Report. For today’s purposes, we will outline how a detailed monthly research report is structured and the types of content within. A Detailed Financial Report is basically divided into 4 sections:

• 1. General Project Information – Same information as in GL inquiry regarding PI,

funding agency, Project Dates, Budget Dates etc.

• 2. The Summary Section has 3 sub-sections of columns that display:
• A. Account codes with description utilized in this budget period to date.
• B. Revenue total received for current month and cumulatively for this budget

period

• C. The Budget for this budget period + Actuals total expenses incurred for the

current month, cumulatively and encumbrance remaining for this budget

• period. The last column – most important indicates the Funds Available

(Overspent) 48

• 1. The Actual Activity Current Month Section – This section details by GL account all

the financial activity that occurred during the current month. This is where you will see who was paid, what purchase orders were paid, journal entry activity, in-house charges from campus operations - all with pertinent reference descriptors. And this is where you can find handy to have the full list of source codes posted on OWL web site, in case you have questions and have to fund which unit generated questionable transactions.

• 2. The Encumbrance Section: shows the activity that incurred in the project relating to

encumbrances – Employee or Purchase Order for the current month + displays the balance remaining of a particular encumbrance to the Budget Period End date. If you have specific questions relating to a monthly research financial report – please contact a Financial Officer in Research Finance. 48

Many funding agencies require financial reporting in their format (annually, quarterly or monthly)

• The report provides the Funding Agency with a financial summary of the incurred

revenues and expenses for a defined period.

• These reports are completed by Research Finance because the Funding Agencies

require the submitted financial report to be validated and signed by a Financial Officer of the University.

• Financial Officer signature is attesting to accuracy of financial information reported.
• The PI is often also required to review and sign the financial report
• Some Funding Agencies may also ask for a financial estimate (forecast) as to amount

to be spent in the next period. In these cases, the Principal Investigator is involved in the financial forecasting. 49

Some Agencies require progress and technical reports:

• Progress and Technical reports are the PI’s responsibility.
• Due dates will be documented in the Research Agreement/ Award.
• Funding agencies require progress /technical reports to measure progress against

milestones as provided in the application for funding.

• If financial information is required as part of a progress report, obtain that

information from Research Finance.

• Future installments often dependent upon progress report being received and

satisfactory by the funding agency and thus it is important for the PI, and the Administrator to assist, in adhering to the progress and technical report deadlines so future funding will not be delayed. 50

The purpose of an audit review is to verify that expenses are eligible and in accordance with the applicable policies and guideline. They are also reviewing our institutional internal controls. Note: that all funding agencies reserve the right to audit at any point in time in a project. Western coordinates various types of financial reviews from formal audits, both internal and external, monitoring activities and general sampling of accounts. Agency monitoring visits are specific to the Tri-agencies and CFI. (can occur every 3 – 6 years) 51

Upon completion of any audit, review or sampling, any items that are disallowed or ineligible must be removed from that research project and becomes the responsibility

• f the Account Holder/Researcher, Department and/or Faculty.

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Let’s summarize what was covered in Section 5

• Reports from Western Financials are available to provide financial and general data

to assist in the management of research funds - GL Inquiry and monthly research financial reports are available for you at any time.

• Financial reports to external agencies provide the financial information of how their

funding was spent

• Technical/Progress Reports highlight research achievements
• Audits are 3rd party validation of expenditures and institutional controls

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The Tri-Agencies are comprised of NSERC (Natural Sciences and Engineering Research Council of Canada), SSHRC (Social Sciences and Humanities Research Council of Canada) and CIHR (Canadian Institute of Health Research). Also under their umbrella are the Canada Research Chairs (CRC) and the Network Centres of Excellence (NCE). We’ve included this section because the Tri-Agencies provide significant research dollars to Western ($67M in 2015). Most, if not all departments and Faculties on campus have Tri-Agency awards. Also, almost every researcher, if he/she has an active research portfolio, will hold more than 1 Tri-Agency award over their career. 54

The Tri-Agencies have very prescribed guidelines for managing their funds and as recipients of these funds we must ensure that they are adhered to – specifically eligibility of expenses and compliance requirements. They have consolidated their Financial Administration Guide and the Use of Grant Funds information for all three agencies, this can be found on NSERC’s website in the section for Professors. There is also a link to these on the Research Finance website in the Tri-Agency Information section. We also have additional reference material on our website. For example, Western’s Guide on the Use of Grant Funds - Quick Reference is a helpful chart of what is and is not eligible for different expense types. 55

The Tri-Agencies conduct monitoring visits approximately every 6 years. Many stakeholders are involved, including Research Finance, Research Development & Services, Ethics, Animal Care and Veterinary Services, Biosafety, Human Resources and Procurement. The purpose of the visits is to:

• Review the effectiveness of Western’s policies, controls and systems
• Ensure that we are compliant with their policies and guidelines
• Review for eligibility of expenses
• Assess if researchers are well supported by Research Western & Financial Services

Doing well on these evaluations is extremely important as it could impact future funding and the reputation of the university. 56

When the Tri-Agencies conduct a visit they look very closely at our travel and hospitality claims. They have additional requirements for both travel and hospitality which are beyond our corporate travel policy. We have been sited in the past visits for not obtaining all the required information so please take note.

• If the claimant is not the PI, then the claimant’s relationship to the PI must be

indicated

• The purpose of trip or event, including destination and dates
• A conference or workshop prospectus or program – to validate the accommodation

and meals expenses are eligible

• Details of vehicle use if applicable
• Itemized receipts (credit card statements or debit card slips are not sufficient)
• The number and name of participants (for hospitality)

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Today we provided information about:

• 1. Overview of Research Projects
• 2. Policies and Guidelines
• 3. General Project Information
• 4. Financial Transactions and information
• 5. Financial Reporting and GL inquiry
• 6. Tri-Agency considerations

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Other helpful information going forward… We are very excited about our new comprehensive user guide that provides detailed information on many, many topics related to the financial management of research

• projects. We’ve just posted this so please have a look. We hope this will be a good

resource for the seasoned administrator, new employees and our PIs. (Financial Services>Training and Reference>Research section) As mentioned, there is an abundance of information and links specific the Tri-Agency awards (Financial Services>Research Finance) We also have several How-To documents, for example; Completing journal entries and printing the monthly research reports, and links to several agency guidelines (Financial Services>Training and Reference>Research section) Finally, these slides with the speaker notes will be available on the OWL site as well as a few handouts on topics we did not cover in depth (i.e. source codes, tax calculations, indirect cost calculations, valid salary accounts for research). 59

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