Presentation on theme: "Canadian Foundation for Innovation Grants A Presentation by Research Accounting on CFI Grant Management Presented by: Melissa Squires, Manager, Research."— Presentation transcript:
Canadian Foundation for Innovation Grants A Presentation by Research Accounting on CFI Grant Management Presented by: Melissa Squires, Manager, Research Accounting Angela Crant, Staff Accountant, Research Accounting Ros Whitten, Project Accountant, Research Accounting
Presentation Objectives Topics to be discussed: The roles and responsibilities of our department and yours The use of grant funds including a listing of eligible and non-eligible expenses and required supporting documentation How to handle deviations from your original budget In-kind contributions Circumstances that would change a CFI’s contribution CFI’s installment schedule policies Construction/renovations of a larger undertaking Financial reporting and documentation retention Delays and extensions To provide contact information and to gather feedback
Programs College Industry Innovation Fund Leaders Opportunity Fund Major Leading Edge/New Initiatives Fund Major Science Initiatives Fund
Roles and Responsibilities Memorial University To monitor usage of grant and award funds Provide administrative and financial support to grant holders Liaison with granting agencies Monitor the eligibility status of grant holders Annual reporting to the granting agency
Roles and Responsibilities: Grant Holders and Departmental Administrators Management of grant funds Compliance with the agencies policies and guidelines Justify expense(s) as being related to research Timely notification of changes in eligibility status Timely notification of delays and/or changes in the project Annual reporting to granting agencies
Infrastructure Projects – Related Expenses Eligible Research Equipment including: shipping, Transportation and installation of research infrastructure, including brokerage fees, excise taxes and duties Direct construction or renovation costs including adjacent space Warranty and or service contract Software Licences Laboratory furniture Communications infrastructure “essential” for the research activities described in the proposal. Travel to a manufacturer, dealer or supplier to select research infrastructure Initial Training for the main operator Professional, technical and managerial personnel Construction or renovation of space Acquisition of a database
Infrastructure Projects – Related Expenses Purchase or lease of real property Renovation or construction of non-research space including meeting/conference rooms, landscaping, and art collections Relocation of existing tenants Infrastructure primarily used for teaching or clinical care Office Furniture, supplies and consumables Internal Fees for the use of infrastructure owned by the institution Operating costs related to the general maintenance and overhead of the research infrastructure Trainee stipends and researcher salaries Research related costs and administrative costs Conference Travel Ineligible
Infrastructure Operating Fund - IOF Infrastructure Operating Fund is a program that funds the costs of operating and maintaining the CFI-Funded infrastructure project. There is no partner funding required.
Infrastructure Operating Fund Conditions The infrastructure item to which it relates must have been funded by the original CFI The CFI funded infrastructure project to which it relates must have passed the stage of award finalization The operating and maintenance activities are needed to ensure the infrastructure can be used to carry out the proposed research The infrastructure must still be used for research purposes.
Eligible Vs. Ineligible Expenses - IOF Eligible Salaries of highly qualified personnel Training for the main operator Extended warranties & service contracts not included in the infrastructure award Extensions to warranty coverage and software licences Maintenance and repairs Replacement of a CFI funded infrastructure only if replacement is cheaper than repairs. Services (Electricity, security etc). Supplies/Consumables needed to operate the research infrastructure
Eligible Vs. Ineligible Expenses - IOF Ineligible Purchase or lease of real property Cost of equipment, installation and construction or renovation Upgrades related to the infrastructure Extended warranties and service contracts that were included in the infrastructure project Telephone, internet, cable or satellite television Insurance Costs not directly related to the CFI funded infrastructure Trainee Stipends Administrative, secretarial or clerical personnel Dissemination of information Expenses reimbursed by another source
Financial Supporting Documentation For both capital and operating grants Have separate project accounts for each CFI project (CFI, matched funds and IOF) Maintain an audit trail for all transactions reported to CFI Financial records must identify the various funding sources Financial records must identify the full cost of all eligible items Cash expenses and contributions that are related to the eligible items should be tracked separately Eligible in-kind contributions can be tracked on an excel spreadsheet Financial records (Banner) must reconcile to the financial report submitted to CFI
Financial Expenditures Supporting Documentation Purchase requisitions Request for bids and all bids received following a competitive bid process Documentation justifying an exception if a competitive bid process was not undertaken Must be permitted under MUN policy and procedure Summary form documenting bids received and the evaluation with rationale for selection of the supplier Purchase Order Receiving documentation For travel costs, boarding passes or other evidence supporting that travel has taken place Invoice
Personnel Supporting Documentation A CFI personnel form must be completed and returned to Research Accounting prior to submitting the financial report The template can be found on the CFI website or can be requested from Ros Whitten Time records signed by the individual and approved by the supervisor or a single time record covering the entire period since the last filing CFI will accept confirmation from the project leader if that person is knowledgeable of the time spent and the activities performed
Deviations from Original Budget: Changes to an infrastructure or purchase of a new item not included in the proposal are eligible if all of the criteria's are met: The institution will still be able to complete the remainder of the project Infrastructure is directly related and essential to the project Proposed Change has a positive impact on the project New or replacement item is an eligible cost Institution will be able to operate and maintain the infrastructure over its useful life and assume all costs.
Deviations from Original Budget: For both Capital and Operating Grants Prior approval that must be obtained from CFI if: Any change having a negative impact on a project and its research objectives, regardless of cost implications Any new item for which the cost exceeds $50,000
Eligible In-Kind Contributions: Defined as non-monetary resources that external partners offer as a contribution towards a CFI funded project Include the value, in whole or part, of eligible capital items or non-capital items In-kind contributions to the operating costs of research are ineligible Recognizes eligible items involving in-kind contributions as fair market value Contributions made by the institution or participating institutions are considered cash contributions
Valuation of In-Kind Contributions: CFI recognizes eligible items involving in-kind contributions at their fair market value at the time of transfer of ownership In some cases the value is known Although some cases it is unknown and it must be assessed using commonly accepted methods (eg depreciated value) Institution should contact CFI if it is unable to establish the fair market value of an item All quotes must state the in-kind is “CFI” related In-kind will need to be monitored due to cash payments being directly related to the CFI and matched funds percentages.
Valuation of In-Kind Contributions: Obtain from a supplier a confirmation of the price that would have normally been charged to the institution for the item Compare other bids that have been received as part of a competitive bid process and that provide market comparisons The cash consideration paid in a previous purchase of the same item Institutions experience with a suppliers discount structure Appropriate documentation should be kept on file to support the fair market value
Valuation of In-Kind Contributions in excess of $500,000: Must tender the item for fair market evaluation Valuation methods are similar to other in-kind methods with the exception: Tendering clerk (Frank Pippy) must assess the fair market value of the competitive bids If this is not possible, a third party appraisal will be requested to CFI Keep all supporting documentation for this assessment (eg. bids, invoices for similar purchases) on file for audit purposes
Construction or renovations that is part of a larger undertaking Documentation If the construction/renovation of the space you will be occupying is a part of a larger construction/renovation (Eg. One room of a full floor renovation) please notify Ros Whitten in Research Accounting The actual reporting of these expenses will need to be calculated as a prorated expenditure There are two methods that are acceptable: Cost Allocation Method or the Simplified Method A framework for the evaluation of cost allocation and simplified can be found at
Changes to CFI Contributions: CFI will not normally increase its contribution to a project and will only consider adjusting it under exceptional circumstances CFI made an administrative error Project is unique and complex Confronted with an exceptional situation that was unpredictable Funding shortfall that jeopardizes its success, timeliness and relevance Unexpected cost increases
Installment Schedule 10% holdback of funds which is released upon final review >1 million dollars, CFI makes installments over one or more years Installments are usually quarterly CFI will withhold all payments when an institution does not comply with reporting requirements for all projects
Financial Reports Research Accounting prepares and submits an annual financial report by June 15 for the period ending March 31 fiscal year Projects under 1 million require a financial report every two years Financial reports are signed by the Director of Financial Services and the Vice President of Research Researcher and Departmental Administrative staff need to review the expenses, properly categorize these expenses to the financial statement and advise of any changes
Retention of Documentation Institution must keep all financial records and supporting documentation for each transaction to comply with Canada Revenue Agency Requirements Documentation is to be kept for at least six years plus current and provide it upon request CFI may request that the documentation be kept for a longer period if this is required for audit purposes.
Delays in the Project Monitor quarterly for higher risk projects and monitor annually for lower risk projects Any delays that are expected to have a negative impact on a project CFI will require justification regarding the nature of the delay and its impact on the project
Project Extension Must complete the project within the anticipated end date as indicated in the Award Agreement Automatic 6 month extension from the award end date. It is important to ensure the end date for any matched funds are inline with the 6 month extension Approval is required from CFI if the project extends beyond the 6 months
CFI Link CFI Policy and Program Guide: les/essential_documents/Policy_and_pr ogram_guide_en.pdfhttp://www.innovation.ca/sites/default/fi les/essential_documents/Policy_and_pr ogram_guide_en.pdf
Memorial University Policies Ensure familiarity with University policies Hosting Policy: Travel Policy: General Research Pool Policy: Purchasing Policy:
Contact Information Address: Financial and Administrative Services Research Accounting Arts and Administration Bldg.; Room A1027 Staff: Melissa Squires– Angela Crant – Staff Ros Whitten – Project Julia Byrne– Project Ext. Allison Rose – Accounting Ext. Connie Dinn – Accounting