Canada Foundation for Innovation “New Tools for the New Economy” Financial Reports Information Session

Financial Reports Information Session Agenda Award finalization General information on financial reports Accessing and editing the report Completing the report Final reports - Additional requirements Printing and submitting the report Other topics (records keeping, contribution audits) Examples of financial reports for on-going and final projects Question period Financial Reports Information Session Financial Reports Information Session

Documents to be provided to CFI : Award Finalization Documents to be provided to CFI : Itemized list Summary of Secured Contributions Confirmation of Award Conditions Award Agreement Confirms maximum CFI amount, total eligible costs per Itemized list and agreed CFI share of eligible costs Planned instalments Signed by President or Designated representative AND Account Administrator Financial Reports Information Session Financial Reports Information Session

Submission requirements: General Information Submission requirements: June 15th of every year for the previous April 1 to March 31 period (cumulative results) Need to submit if funding has been received at March 31 Need to submit every year until project is completed Final report and request for last payment is due within 6 months of end of project Financial Reports Information Session Financial Reports Information Session

Information to include in the report: General Information Information to include in the report: Actual expenditures and cash flow projections (for ongoing projects) Forecasted eligible costs and contributions per the award agreement Revised eligible costs and contributions at the reporting date Explanation for significant variances between original plan for the project and the actual or forecast plan Funding sources (actual and forecasted) Financial Reports Information Session Financial Reports Information Session

Use of financial reports by CFI: General Information Use of financial reports by CFI: Assess if project is on track Assess appropriateness of cash flow projections for future instalments for multi-year projects Verify that CFI’s contribution will not exceed agreed CFI share of eligible costs Determine the portion of the holdback to be released every year Ensure sufficient resources available (when requested in agreement) For final projects, certification that project has been completed and that matching funds have been received and spent For final projects, determine the final payment to be made by CFI. Financial Reports Information Session Financial Reports Information Session

Accessing and Editing the Report How to access the report: Template is on CFI’s web site at www.innovation.ca Located in the Forms and Download section of the web site Password required to access the report Enter the project number to access the Project Financial Reports screen Can select an existing report or create a new one by entering a new year Year entered should be the first portion of a fiscal year (ex. Enter 2000 for reporting period of April 1, 2000 to March 31, 2001). Year entered is important because triggers column headings. Screen example - Appendix 1 Financial Reports Information Session Financial Reports Information Session

Accessing and Editing the Report How to edit the report: Click on the “Edit/Enter” icon Sequential screens to facilitate original data entry (Screen example - Appendix 2) Always press the “Save and exit this section” button after information has been entered to save the information Totals in each section appear only after you have saved the information Always enter amounts rounded to the dollar only (no pennies) Financial Reports Information Session Financial Reports Information Session

Overview of project funding (Basic Info): Completing the Report Overview of project funding (Basic Info): Screen example - Appendix 3 Project title, project leader and CFI amount should appear completed Only two types of information to enter: Indicate if the report is a final report or not Start date and end date Financial Reports Information Session Financial Reports Information Session

Total eligible contributions from partners (Lines 5 to 12): Completing the Report Total eligible contributions from partners (Lines 5 to 12): Screen example - Appendix 4 Provides details on eligible contributions from partners Need to distinguish by type of funding partners Need to distinguish between cash and in-kind contributions Line 12 is the sum of lines 5 to 11 and is automatically copied to line 1 of the report (Screen example - Appendix 8) Financial Reports Information Session Financial Reports Information Session

Total eligible contributions from partners (Lines 5 to 12): Completing the Report Total eligible contributions from partners (Lines 5 to 12): Column 1: Should be taken from the Summary of Secured Contributions provided to finalize the award agreement Purpose is to provide a comparison with the revised forecast Numbers should not change from year to year Ensure you are using the final Summary of Secured Contributions Financial Reports Information Session Financial Reports Information Session

Total eligible contributions from partners (Lines 5 to 12): Completing the Report Total eligible contributions from partners (Lines 5 to 12): Column 2: Represents a best estimate at the report date Sum of two elements : Actual contributions received as of the date of the report and anticipated contributions to be received in the future Column is the sum of columns 3, 4 and 5 of the same table plus any amount anticipated to be received after the two year forecast Purpose is to enable CFI to determine if funding still remains adequate Financial Reports Information Session Financial Reports Information Session

Total eligible contributions from partners (Lines 5 to 12): Completing the Report Total eligible contributions from partners (Lines 5 to 12): Column 3: Represents contributions received at the report date (cumulative numbers) Cut-off is the report date and not the date of preparation Include only the contributions physically received up to the cut-off date (i.e. promise to receive should not be entered) Exception : For amounts received from provincial government that include a holdback, include the gross amount (including holdback even if will be received at a future date) Exception does not apply to CFI holdback - Need to be shown separately at line 2 Financial Reports Information Session Financial Reports Information Session

Total eligible contributions from partners (Lines 5 to 12): Completing the Report Total eligible contributions from partners (Lines 5 to 12): Columns 4 and 5: Represent contributions expected to be received in the future Expected timing of the receipts is important for CFI since used to compare to cash flow schedules Columns should be left blank only when final report is submitted Financial Reports Information Session Financial Reports Information Session

Total eligible costs - Actual and forecast (Lines 13 to 23): Completing the Report Total eligible costs - Actual and forecast (Lines 13 to 23): Screen example - Appendix 5 Provides details on the eligible expenditures for the project Need to classify by types of expenditures Need to distinguish between cash and in-kind costs Line 23 is the sum of lines 13 to 22 Line 23 must equal line 3 at all times for columns 1 and 2 Line 23 must equal line 3 at all times for column 3 for final reports Financial Reports Information Session Financial Reports Information Session

Total eligible costs - Actual and forecast (Lines 13 to 23): Completing the Report Total eligible costs - Actual and forecast (Lines 13 to 23): Column 1: Should be taken from the Itemized list provided to finalize the award agreement Purpose is to provide a comparison with the revised forecast Numbers should not change from year to year Ensure you are using the final Itemized list Financial Reports Information Session Financial Reports Information Session

Total eligible costs - Actual and forecast (Lines 13 to 23): Completing the Report Total eligible costs - Actual and forecast (Lines 13 to 23): Column 2: Represents a best estimate at the report date Sum of two elements : Costs incurred as of the date of the report and anticipated costs to be incurred in the future Column is the sum of columns 3, 4 and 5 of the same table plus any costs anticipated to be incurred after the two year forecast Purpose is to enable CFI to determine if funding still remains adequate Financial Reports Information Session Financial Reports Information Session

Total eligible costs - Actual and forecast (Lines 13 to 23): Completing the Report Total eligible costs - Actual and forecast (Lines 13 to 23): Column 3: Represents costs incurred as of the date of the report (cumulative numbers) Cut-off is the report date and not the date of preparation Include only the costs for items physically received as of the cut-off date (i.e. purchase orders should not be considered if goods are not received) Financial Reports Information Session Financial Reports Information Session

Total eligible costs - Actual and forecast (Lines 13 to 23): Completing the Report Total eligible costs - Actual and forecast (Lines 13 to 23): Columns 4 and 5: Represent costs expected to be incurred in the future Expected timing of these costs is important for CFI since it is used to compare to cash flow schedules Total eligible costs is more important than exact breakdown between expenditure types Columns should be left blank only when final report is submitted Financial Reports Information Session Financial Reports Information Session

Total eligible costs (Attachment): Completing the Report Total eligible costs (Attachment): Need to complete for FINAL reports only Provides a detailed list for each expenditure type presented at lines 13 to 22 List needs to be created separately using either Word, WordPerfect, Excel, Lotus 1-2-3 or a PDF file format and attached to the report (Screen example - Appendix 6) Format of the List should be the same as the Itemized list provided to finalize the award agreement and should make reference to the specific line number of the financial report (Example - Appendix 7) Important for CFI given need to be able to compare and conclude if funds have been spent in accordance with the agreement Financial Reports Information Session Financial Reports Information Session

Actual or forecast contribution (Lines 1 to 4): Completing the Report Actual or forecast contribution (Lines 1 to 4): Screen example - Appendix 8 Provides summary information and calculates the CFI funding % Used by CFI to determine if holdback amounts should be released and to ensure CFI’s agreed funding % is not exceeded Only information to be entered is on line 2 - Template automatically copies line 12 to line 1 and calculates lines 3 and 4 Need to save the information for the template to update lines 3 and 4 Financial Reports Information Session Financial Reports Information Session

Actual or forecast contribution (Lines 1 to 4): Completing the Report Actual or forecast contribution (Lines 1 to 4): For line 2: The total amount of CFI contribution as per the award agreement needs to be entered in columns 1 and 2 The actual amount of CFI contributions received (i.e. actual cash received) needs to be entered in the first part of column 3 If report is not final - enter the amount of the current holdback in the second part of column 3 If the report is a final report - enter the balance due from CFI in the second part of column 3 (obtained from “Final Report - Request for final payment” section of the report Financial Reports Information Session Financial Reports Information Session

List of in-kind contributions: Completing the Report List of in-kind contributions: Screen example - Appendix 9 Purpose is to provide details on in-kind contributions received and to be received in the future and an explanation of differences with the Itemized List Need to provide sufficiently detailed listing to enable CFI to make the comparison with the Itemized List Important to provide reason for significant differences (greater of 10% of CFI’s contribution or $50,000) between Itemized List / Summary of Secured Contributions and actual contributions Financial Reports Information Session Financial Reports Information Session

Details of eligible funding from eligible partners: Completing the Report Details of eligible funding from eligible partners: Only required for FINAL reports Provides further details for amounts listed at lines 5 to 11 Information provided will allow CFI to compare actual funding received to the Summary of Secured Contributions and to report on the partners and the sources of matching funds for CFI projects Screen example - Appendix 10 Need to provide partner’s name and assign a code for the organization type Financial Reports Information Session Financial Reports Information Session

Details of eligible funding from eligible partners: Completing the Report Details of eligible funding from eligible partners: “Total forecast per award agreement” columns should be exactly the same as presented in the Summary of Secured Contributions “Actual to end of project” columns represent actual contributions received Ensure total of amounts listed for each type of organization matches the amounts listed at lines 5 to 11 If a partner is listed in the itemized list but no amount was received, should still be listed with an actual contribution of nil Financial Reports Information Session Financial Reports Information Session

Financial resources for operations: Completing the Report Financial resources for operations: Only needs to be completed if requested in the award agreement Screen example - Appendix 11 Column 1 should be the amounts provided to CFI originally Column 2 represent best estimate at date of the report Column 3 to 5 represent actual support and forecasted support for the next two years NOTE : This section will be modified (after the June 15 deadline) to reflect the most recent application form Financial Reports Information Session Financial Reports Information Session

Differences between original and actual or forecast plan: Completing the Report Differences between original and actual or forecast plan: Required to provide explanation of significant variances (greater of 10% of CFI’s contribution or $50,000) in : forecast contributions VS actual/forecast contributions forecast expenditures and actual/forecast expenditures time required for development/acquisition/installation of infrastructure actual or planned use of infrastructure used for research and other purposes actual and forecast operating costs and funding available for operating costs Financial Reports Information Session Financial Reports Information Session

Differences between original and actual or forecast plan: Completing the Report Differences between original and actual or forecast plan: Must also explain how identified problems have been or will be corrected Info used by CFI to : assess adequacy of timing of cash disbursements appropriateness of CFI % of funding assess adequacy of corrective actions Level of details provided must be sufficient to allow CFI to make above assessment Financial Reports Information Session Financial Reports Information Session

Request for final payment: Completing the Report Request for final payment: Screen example - Appendix 12 Needs to be completed for FINAL reports only Boxes filed in automatically Need to verify accuracy of the information The “Balance Due” should be entered in the second part of line 2 (column 3) Refund to CFI required if the balance due is negative Financial Reports Information Session Financial Reports Information Session

Final Reports - Additional Requirements Complete the “Details of eligible funding from eligible partners”, “Total eligible costs (Attachment)” and “Final report - Request for final payment” section of the financial report Submit a hard copy of the financial report with original signatures (in addition to submission on the web) Signatures of the Account Administrator and from the CEO or an authorized representative required Note : Final holdback only released after reception of the signed hard copy Financial Reports Information Session Financial Reports Information Session

Printing and Submitting the report A hard copy of the report can be printed by clicking on the Print icon in the “Project Financial Report” screen (Screen example - Appendix 1) Recommend that print the report and verify accuracy before submitting A verification outline is included in the instructions manual to assist in the verification of accuracy Report should be submitted electronically by the account administrator Financial Reports Information Session Financial Reports Information Session

Printing and Submitting the report Two security levels: Data entry Submission (Account administrator) Passwords required Finance contact at the institution - Communicate to CFI if this person is other than the Account Administrator Financial Reports Information Session Financial Reports Information Session

Planned Improvements and CFI Contacts List of projects with report due by June 15 Access to planned instalments By Project By Date Feedback on CFI review of reports submitted Your suggestions are always welcome Questions and comments should be addressed to: Christine Charbonneau Manon Harvey Manager, Finance Vice-President, Corporate Services Tel: (613) 943-1289 Tel: (613) 947-6497 christine.charbonneau@innovation.ca manon.harvey@innovation.ca Financial Reports Information Session Financial Reports Information Session

No need to submit documentation to CFI unless requested Records Keeping Institutions must maintain financial records and project accounts with revenues for each CFI award Records must identify various eligible funding sources and eligible costs Need to maintain a verifiable audit trail for all eligible cost (including in-kind contributions) Need to keep all supporting documentation for at least 5 years following completion of a project No need to submit documentation to CFI unless requested Financial Reports Information Session Financial Reports Information Session

CFI reserves the right to review and audit any project Contribution Audits CFI performs an audit of all projects with total eligible costs of more than $10 million CFI reserves the right to review and audit any project A representative sample of reports will be reviewed every year Institutions will be notified when one of its projects is selected for an audit See appendix 13 for procedures to be done by the auditors and information to be prepared by the institution Financial Reports Information Session Financial Reports Information Session

Financial Report example Example of a financial report for an on-going project Example of a final financial report Class review of Appendix 3 and 4 included in the Instructions Manual Financial Reports Information Session Financial Reports Information Session

Question Period Financial Reports Information Session