1. Research Financial Management April 21 st, 2005

2. Overview  Introduction  Understanding Your Account: Structure of Banner  Eligible/Non-eligible expenses  Travel Claims  Purchase Orders  Insurance  Taxes  General Payroll  Student Salaries  Transfer of Funds to other Institutions  Financial Monitoring: Audits  Reporting

3. Introduction  The Banner Finance system is a comprehensive, integrated financial management system, which serves as a central repository for UOIT’s administrative financial data.  The financial details of all research awards are maintained by Banner Finance which tracks both the funds received and the expenses incurred.  Once an award has been granted, a budget of projected eligible expenses must be submitted to Research Accounting to create an account. Note: In some instances, a budget may be submitted which allocated all expenses in one account. Please contact your budget officer or Research Accounting for details.  The PI is responsible for any expenses attributable to the grant or contract and for ensuring that these expenses meet the grant or contract budget guidelines.

4. Understanding Your Account  Each research award is recorded by the following three components in the Banner Finance system: Fund Code: This 2 digit code identifies the source of funding (ie. 31 – Start-up funds, 32 – NSERC/SSHRC/CIHR, 33 – PREA, 36 - CFI). Organization Code: This 4 digit code identifies the award associated with each individual researcher. Account Code: This 5 digit code is used to classify transactions as to revenue or expense. For a complete version of the Chart of Accounts, visit http://www.uoit.ca/EN/main/11259/11270/12167/reference.html

5. Example Dr. Jones has recently been awarded an NSERC Discovery Grant in the amount of $25,000 for 2005-06. In Banner, the award would be set-up with the following attributes: Fund: 32 (NSERC Funds) Organization: 8006 (specific for Dr. Jones) Accounts:  40210 (NSERC Grant Funding) $25,000  Various research expense accounts (ie. travel – 55460) NOTE: You must use the coding above for your specific award when coding your expense claims and submitting them to Accounts Payable.

6. Banner Access NOTE:  Access is required for any activity performed in Banner, including purchase order requisitions.  Contact Carol Nichols for a Banner Account Number.  Contact John Henry for permissions to your specific fund and organization.

7. Expenses Expenses (NSERC example)  Eligible expenses include research equipment and supplies, costs related to a vehicle necessary for field work, computing equipment, books or periodicals, disseminations costs, among others.  Non-eligible expenses include insurance costs for equipment and research vehicles, costs of the construction /renovation of supporting facilities. For further details on eligible and non-eligible expenses, please visit http://www.nserc.ca/professors_e.asp?nav=profnav&lbi=f3http://www.nserc.ca/professors_e.asp?nav=profnav&lbi=f3

8. Travel Claims Travel Claims (a example using NSERC guidelines)  Travel costs include reasonable expenses for field work, research conferences, collaborative trips, and colleagues/students working with the Grantee.  Eligible expenses include transportation, accommodations, per diem, child care, and safety- related expenses.  Non-eligible expenses include passport and immigration fees, commuting costs between the residence and place of employment, and costs associated with thesis examinations.

9. Travel Claims – cont’d  A separate claim must be prepared for each trip and must conform to UOIT’s policy: http://www.uoit.ca/EN/main/11259/11270/12167/finance_policies.html  The travel claim must include the following information: Purpose of trip Dates and destinations Details of daily claims for expenditures (ie. per diem, transportation costs, accommodations) Official supporting documentation (original receipts including boarding passes)  Travel Advance Forms – currently using the expense report form

10. Purchase Order Requisitions  Purchasing requisitions are required for any capital purchase over $1,000 (before taxes) and also for any non-capital purchase over $5,000 (before taxes) with the following items being exempt from this procedure: Any employee reimbursements claimed on expense reports, Payments to the institutions purchasing card bank holders, Monthly telecommunications billings, Bookstore resale purchases, Payroll remittances, Bursaries, scholarships or awards to students

11. Purchase Order Requisitions – cont’d  Minimum Number of Offers Required Note: If the lowest bidder is not selected as the supplier, a memo stating the reason for the selection must be attached to the original purchase requisition for retention by the Purchasing Department.  Note new clause for insurance  Questions: contact Deb Drury ext. 2536

12. Insurance and Risk Management Insurance  Manage the external and self-insurance programs; develop innovative and cost-effective means of protection to suit the growing needs of the University and College community. Risk Management  Identify and assess the activities within the community in order to mitigate unanticipated and accidental losses to the University and College.

13. Insurance and Risk Management What is our role? What do we do for you? 1) We liaise with Research Accounting on all contracts. 2) With you, we identify and evaluate the risks inherent with the grant. 3)We make sure that the insurance contractual obligations with the grant agencies are met and provide the necessary documents. 4) We work with you to ensure that the approved activities (both on and off campus) related to the grant fall within our insurance program.

14. Insurance and Risk Management Where does the process begin? 1) With the assistance of the Research office, an application is filed for the grant under the terms of the grant agencies policies and procedures. 2)When the grant/contract is awarded, but prior to the agreement being signed, it should be reviewed for specific insurance requirements of UOIT and/or vendors. It is important to remember that all agreements that bind the corporation must be signed by an authorized signing officer (G.Polonsky, S.Levy, C.Loverock).

15. Where does the process begin? – cont’d 3) Vendor must be able to provide proof of insurance limits equal to or greater than the requirements of the granting agency. 4) There are eligible and ineligible insurance expenses within the contracts. On occasion, required specific coverages may be paid for by the grant that are not available under our insurance program.

16. Insurance and Risk Management Trips and Field Work  It is a requirement of our insurance to have all activities/events taking place, on or off campus, be approved in advance of the activity/event  If the nature of the grant includes research off campus, it is necessary that an Off Campus Event form be completed in advance and approved by the Dean. The forms are available on the UOIT website.  By having the trip/field work approved, we eliminate exposure to the school and the individuals organizing the activity/event.  Failure to have an activity/event approved, may result in personal liability.

17. Tax  If the equipment being purchased is for research only, the purchase is PST exempt.  GST must be included in the purchase order requisition; however, when processed a 67% rebate (credit) will be posted to the research account.  When budgeting please remember to factor in the tax!

18. General Payroll  When charging benefits for stipend payments please use the corresponding salary benefit account instead of using the old account 55303 (i.e. use 55310, 55320, etc.)  Please notify payroll of any changes made to the original employment contract. Payroll will be sending out payroll data via email prior to posting monthly. Please make corrections to this data if required so that the payroll accounts are as accurate as possible.

19. Student Employment  Contact the Administrative Assistant for your Faculty for an Employment letter template that can be used as a guideline when hiring students. Please ensure the proper Fund, Org and salary account is on the contract.  If the student is employed by the University, mandatory government payroll taxes (WSIB, EHT, EI) of 11% and 4% vacation pay must be included when budgeting for salaries; however, if the student is on a research award, the 11% fringe or 4% vacation pay is not applicable.  Contact HR for minimum salary rates.  Questions: contact Susan MacMillan ext. 2442

20. Transfer of Funds  The following process is required if you are co- supervising a student at another Institution and wish to sub-grant an amount of your research award for payment of that student: an agreement must be in place between UOIT and the other institution (contact Research Accounting for template if required) a Cheque Requisition Form must be completed with details of the Supervising Professor, student’s name, amount, and the period of the contract and submitted to Research Accounting for processing http://www.uoit.ca/EN/main/11259/11270/12167/finance_forms.html

21. Financial Monitoring  Representatives of the Granting Agencies will visit institutions periodically to: Assess whether Grantees have the necessary financial/administrative tools to properly and effectively manage their research funds Review expenditures from grant accounts to ensure that these were made in accordance with established policies, regulations and guidelines

22. Internal Reporting  Effective May 1 st, 2005, monthly financial reports will be prepared by Research Accounting for each researcher on the status of their account (note: reports on internal research funds will be provided upon request).  Faculty members interested in learning the Banner system are encouraged to take the Banner Finance Training workshop (contact the Innovation Centre for the next session).

23. External Reporting  Tricouncil (NSERC, SSHRC, CIHR) Annual Statement of Account due each June 30 for individual awards for the period ending March 31 of each year Reports prepared by Research Accounting two weeks prior to due date Reports reviewed and approved by individual researcher prior to submission  Miscellaneous grants and other granting agencies may also have reporting requirements. Research Accounting will contact each researcher prior to the financial statement due date to discuss balances and details of the account. NOTE: If you plan to take vacation near the time that your report is due, please contact Research Accounting at least two weeks prior to the due date to make alternate arrangements for completion of the report.

24. Finance web site  Contains the following useful information:  Policies & procedures  Forms  Insurance  Reference information  Links to external funding agencies  Contact names & phone numbers http://www.uoit.ca/EN/main/11259/11270/faculty_staff_finance.html

25. For further information or assistance, please contact: Research Accounting: Barbara MacCheyne ext. 2718 barbara.maccheyne@dc-uoit.ca L’naya Hindman ext. 2663 lnaya.hindman@dc-uoit.ca Insurance: Elaine Wannamaker ext. 2259 elaine.wannamaker@dc-uoit.ca