1. “Are We Ready? ” Research Administration Day 2016 Research Services Office Together we make it happen Research Administration Day June 1, 2016 “Are we ready? – Tri-Council Monitoring Visit” Tri-Agency and University Expenses: Eligibility and Compliance Lan Chan-Marples, Research Facilitator, Research Services Office Faculties of Education, Extension, Law, Native Studies and Physical Education and Recreation Dawne Pewar, Research Facilitation Support Administrator, Research Services Office Faculties of Education, Extension, Law, Native Studies, Physical Education and Recreation, Nursing, Rehabilitation Medicine, Pharmacy and Pharmaceutical Sciences and School of Public Health 1 RAD 102

2. “Are We Ready? ” Research Administration Day 2016 Research Services Office Together we make it happen Research Administration Day June 1, 2016 Understanding the difference between eligible vs ineligible expenses and compliant vs non-compliant expenses. Most common eligible expenses to be charged to research grants at the University of Alberta as well as the most common ineligible expenses. Understanding what is appropriate supporting documentation. What is involved with expenditure testing, why it is performed and what results are received to be ready for the Tri-Agency Monitoring visit this fall. Links to Tri-Agency and UofA resources to assist in research administration. Presentation Overview 2

3. “Are We Ready? ” Research Administration Day 2016 Research Services Office Together we make it happen Research Administration Day June 1, 2016 The Tri-Agency and the University are bound by the Agreement on the Administration of Agency Grants and Awards by Research Institutions. The agreement can be found at http://science.gc.ca/default.asp?lang=En&n=56B87BE5-1 http://science.gc.ca/default.asp?lang=En&n=56B87BE5-1 This Agreement is effective between January 1, 2013 and March 31, 2018. Institutional Agreement 3

4. “Are We Ready? ” Research Administration Day 2016 Research Services Office Together we make it happen Research Administration Day June 1, 2016 2015 Tri-Agency (CIHR, NSERC & SSHRC) Financial Administration Guide http://www.nserc-crsng.gc.ca/Professors-Professeurs/ FinancialAdminGuide-GuideAdminFinancier/index_eng.asp University of Alberta Policies and Procedures Online (UAPPOL) https://policiesonline.ualberta.ca/PoliciesProcedures/Pages/def ault.aspx (All Policies) https://policiesonline.ualberta.ca/PoliciesProcedures/Pages/def ault.aspx https://policiesonline.ualberta.ca/PoliciesProcedures/Pages/Res earch.aspx (Research Policies) https://policiesonline.ualberta.ca/PoliciesProcedures/Pages/Res earch.aspx Research Services Office (RSO) http://www.rso.ualberta.ca Where to find information 4

5. “Are We Ready? ” Research Administration Day 2016 Research Services Office Together we make it happen Research Administration Day June 1, 2016 CIHR: Canadian Institutes of Health Research ePAF: Electronic Pay Action Form NSERC: Natural Sciences and Engineering Research Council of Canada RSO: Research Services Office SSHRC: Social Sciences and Humanities Research Council of Canada UAPPOL: University of Alberta Policies and Procedures Online U of A: University of Alberta Acronyms 5

6. “Are We Ready? ” Research Administration Day 2016 Research Services Office Together we make it happen Research Administration Day June 1, 2016 Every sponsor has their own definition. The best source of information for eligible and ineligible expenditures is documentation from the sponsor (e.g., the contract/agreement, the application guidelines, sponsor websites, etc.). This applies equally to internal (department, faculty or university) and external (donor or sponsoring Agency) funding. Definition of “Eligible” and “Ineligible” 6

7. “Are We Ready? ” Research Administration Day 2016 Research Services Office Together we make it happen Research Administration Day June 1, 2016 Eligible expenses are those expenses that are: associated with the project or program for which the award is made. eligible in accordance with the terms and conditions of the research agreement or contract. necessary to the research endeavour being undertaken. reasonable and conform with the financial guidelines of the sponsor and the U of A. incurred within the eligible dates of the agreement. Eligible Expenses 7

8. “Are We Ready? ” Research Administration Day 2016 Research Services Office Together we make it happen Research Administration Day June 1, 2016 On the other hand, ineligible expenses are those expenses that are: not associated with the project or program for which the award is made. not incurred within the eligible dates of the agreement. not directly related to the research endeavour being undertaken. not eligible in accordance with the terms and conditions of the research agreement or contract. unreasonable and do not comply with either sponsor or the UofA financial guidelines. Ineligible Expenses 8

9. “Are We Ready? ” Research Administration Day 2016 Research Services Office Together we make it happen Research Administration Day June 1, 2016 Eligible expenses with proper supporting documentation are deemed to be compliant with Tri-Agency (or other agency) guidelines. The Tri-Agency Financial Administration Guide states the following: “For each grant, the institution and/or the grantee must keep complete and accurate records on the use of Agency funding, including verifiable audit trails with complete supporting documentation for each transaction, for a minimum of seven years. The grantee is responsible for authorizing expenditures from his/her grant account in accordance with the Agency's requirements and conditions of grants and with the institution's policies. No other party may initiate or authorize expenditures from an Agency's grant account without the grantee's written delegated authority. All claims must have the grantee or delegate's signature.” http://www.nserc-crsng.gc.ca/Professors-Professeurs/FinancialAdminGuide- GuideAdminFinancier/Reporting-Rapports_eng.asp Grantees must be able to provide supporting documentation for all expenditures charged to their research projects. Compliant Transactions 9

10. “Are We Ready? ” Research Administration Day 2016 Research Services Office Together we make it happen Research Administration Day June 1, 2016 The travel claim must include the following information: if claimant isn’t the principal investigator, add claimant’s affiliation to the project. provide details on the purpose and relevance to funded research. dates and destinations (person or location visited). official supporting documentation (e.g., prospectus or program, indicating the dates of conferences attended). provide details on receipts relating to those visits. details of vehicles used for research purposes (e.g. rental or personal). always provide original detailed receipts (credit cards receipts are not valid receipts because they lack details). original air travel ticket receipts and boarding passes (paper or electronic) or any other evidence that supports travel expenses claimed (e.g., a written attestation from the grant holder) for all claims related to research. Travel Claims on Tri-Agency Grants 10

11. “Are We Ready? ” Research Administration Day 2016 Research Services Office Together we make it happen Research Administration Day June 1, 2016 Eligible expenses lacking proper supporting documentation and details would be considered non-compliant. Examples of deficiencies in supporting documents are: - invoices that are paid without an authorized approver’s signature (if approval is delegated include delegation form). http://www.rso.ualberta.ca/FormsCabinet.aspx http://www.rso.ualberta.ca/FormsCabinet.aspx - claims for receipted meals lacking detailed receipts. - claims for hosting/working sessions lacking a list of attendees. - orders placed (financial commitments made) without prior written authorization from grant holder. Depending on the grant these expenses could be eligible, but if the proper supporting documentation is unavailable the expense would be considered non-compliant. Non-compliant Transactions 11

12. “Are We Ready? ” Research Administration Day 2016 Research Services Office Together we make it happen Research Administration Day June 1, 2016 The U of A began regular expenditure testing after the Tri- Council monitoring visit in 2010. Testing is a requirement of U of A Internal Audit to monitor compliance to both university and sponsor policies. Expenditure testing at the U of A involves: Random sampling of research accounts chosen from a pool of funded research grants. Individual expenses are identified and the grant holder or administrator/department is asked to provide back up documentation. Ineligible expenses identified must be removed from the grant. Eligible expenses lacking proper supporting documentation are deemed to be non-compliant. RSO uses this opportunity for training to holder/administrator/ department. Expenditure Testing 12

13. “Are We Ready? ” Research Administration Day 2016 Research Services Office Together we make it happen Research Administration Day June 1, 2016 Some examples of supporting documentation include: For salaries or stipends paid to research personnel: signed records regarding personnel paid from grant funds, including names, categories, salary levels, affiliation to the grant. length of time supported in each case. details of employee benefits charged and relevant calculations. Employment Offer letter, ePAF. For internal expense allocations or shared expenditures: documentation indicating the exact charge made. the method of calculation or attribution. the grantee’s authorization for those assigned to the Agency account. What is considered “complete supporting documentation”? 13

14. “Are We Ready? ” Research Administration Day 2016 Research Services Office Together we make it happen Research Administration Day June 1, 2016 If the sponsor guidelines are silent on a particular expense, then the U of A guidelines are followed. For example, if the sponsor guidelines do not address the eligibility of hospitality expenses, then the U of A guidelines found on UAPPOL will determine whether or not hospitality expenses can be charged to the grant. https://policiesonline.ualberta.ca/pages/results.aspx?k=hospitality Sponsor Guidelines 14

15. “Are We Ready? ” Research Administration Day 2016 Research Services Office Together we make it happen Research Administration Day June 1, 2016 Per Tri-Agency Financial Administration Guide Costs associated with thesis examination or defense, including external examiner fees. Cell phones, tablets, and other electronic devices are ineligible expenses if not required for research, lack adequate justification and normally provided by the institution. Standard monthly connection or rental costs of telephones. Infrastructure costs, administrative (or management) fees. Passport and immigration fees. Reimbursement for airfare purchased with personal frequent flyer points program. Office and stationery supplies (certain exceptions apply). http://www.nserc-crsng.gc.ca/Professors-Professeurs/ FinancialAdminGuide-GuideAdminFinancier/index_eng.asp Examples of Ineligible Expenses 15

16. “Are We Ready? ” Research Administration Day 2016 Research Services Office Together we make it happen Research Administration Day June 1, 2016 Costs of entertainment, hospitality and gifts. Costs associated with regulatory compliance, including ethical review, biohazard or radiation safety, environmental assessments, or provincial or municipal regulations and by-laws. Costs of moving a lab. Costs related to professional training or development, such as computer and language training. Any part of the salary, or consulting fee, to the grantee or to other persons whose status would make them eligible to apply for grants. Costs related to staff awards and recognition. Examples of Ineligible Expenses cont’d 16

17. “Are We Ready? ” Research Administration Day 2016 Research Services Office Together we make it happen Research Administration Day June 1, 2016 The grantee must apply in writing to the sponsoring Agency and request written authorization. If the Agency agrees that the cell phone is necessary for data collection and has been supplied with adequate justification by the grantee, the request may be approved. Written authorization from the sponsor must be kept on file by the grantee in the event of an audit. http://www.rso.ualberta.ca/Managing/SponsorAudits.aspx What if I really need a cell phone? 17

18. “Are We Ready? ” Research Administration Day 2016 Research Services Office Together we make it happen Research Administration Day June 1, 2016 In some cases the ineligible expense will come to the attention of RSO during the preparation of the financial statement for the sponsoring Agency. In other cases the expense will appear on the expenditure testing report. Other instances may come to light when a report is run to capture the use of ineligible expenditure codes. If this occurs, the grantee will be informed that he/she must transfer the expense to another grant or use some other source of funds to cover the expense. The exact procedure to be followed will depend upon the department in which the grantee holds his/her grant. What happens if an ineligible expense is charged to a grant? 18

19. “Are We Ready? ” Research Administration Day 2016 Research Services Office Together we make it happen Research Administration Day June 1, 2016 In other cases, the ineligible expense will be noticed during the monthly reconciliation performed by the grantee or his/her support staff. At this time the grantee must transfer the expense. Finally, the expense may be flagged during an Agency or an internal audit. The result is the same … the expense must be removed. What happens if an ineligible expense is charged to a grant? cont’d 19

20. “Are We Ready? ” Research Administration Day 2016 Research Services Office Together we make it happen Research Administration Day June 1, 2016 In most cases, the grantee must request written authorization from the sponsor to have the expense posted to the grant after the end date. This may be permitted as long as the expense was incurred during the life of the grant and the item was received and used during the life of the grant. If uncertain sponsor authorization is required, contact your Research Facilitator. What if an invoice is submitted for payment after the end date of the grant? 20

21. “Are We Ready? ” Research Administration Day 2016 Research Services Office Together we make it happen Research Administration Day June 1, 2016 Each Tri-Agency and other sponsors have their own guidelines on unspent funds. Unspent funds in a given year will often roll over to the next year for multi-year awards but must be used up by the end of award period. Unspent funds for one-year awards will have the following conditions: returned to sponsor, lapsed to university, or retained by award recipient. http://www.rso.ualberta.ca/Managing/TOR/GRF.aspx http://www.rso.ualberta.ca/Managing/TOR/GRF.aspx Unless an extension is authorized by the sponsor recipient cannot use unspent funds beyond the award period end date. If uncertain a written permission for an extension is required, contact your Research Facilitator. You can refer to the Authorization For Funding (AFF) for specific conditions related to the award. What if I don’t use all the money I was awarded for a given year or award period? 21

22. “Are We Ready? ” Research Administration Day 2016 Research Services Office Together we make it happen Research Administration Day June 1, 2016 For example, Tri-Agency sponsors: NSERC and SSHRC permit an automatic one-year extension for many programs during which a grantee may continue to use up their grant. CIHR provides a minimum of one additional fiscal year, beyond the expiry date to finish use of unspent funds. CIHR may approve one additional extension (one year) beyond the automatic extension period. Written permission is required. NSERC and SSHRC have programs with no automatic one-year grace period. They require written permission for an extension. http://www.nserc-crsng.gc.ca/Professors-Professeurs/FinancialAdminGuide- GuideAdminFinancier/AnnualFunding-FinancementAnnuel_eng.asp What if I don’t use all the money I was awarded for a given year or award period? cont’d 22

23. “Are We Ready? ” Research Administration Day 2016 Research Services Office Together we make it happen Research Administration Day June 1, 2016 CIHR/NSERC/SSHRC http://www.nserc-crsng.gc.ca/professors-professeurs/financialadminguide- guideadminfinancier/index_eng.asp (Financial Administration Guide) http://www.nserc-crsng.gc.ca/professors-professeurs/financialadminguide- guideadminfinancier/index_eng.asp http://www.nserc-crsng.gc.ca/Professors- Professeurs/FinancialAdminGuide-GuideAdminFinancier/FundsUse- UtilisationSubventions_eng.asp (Use of Grant Funds) http://www.nserc-crsng.gc.ca/Professors- Professeurs/FinancialAdminGuide-GuideAdminFinancier/FundsUse- UtilisationSubventions_eng.asp http://www.nserc-crsng.gc.ca/Professors- Professeurs/FinancialAdminGuide-GuideAdminFinancier/TFAGChange- GAFTRevision_eng.asp (Summary of Changes - last posted 2015-11-10) http://www.nserc-crsng.gc.ca/Professors- Professeurs/FinancialAdminGuide-GuideAdminFinancier/TFAGChange- GAFTRevision_eng.asp Where can I find information about sponsor guidelines? 23

24. “Are We Ready? ” Research Administration Day 2016 Research Services Office Together we make it happen Research Administration Day June 1, 2016 RSO website http://www.rso.ualberta.ca/Managing/UsingFunds/Overexpenditures.aspx http://www.rso.ualberta.ca/Managing/UsingFunds.aspx RSO contacts for each Faculty If you are unable to find information on the Agency website regarding the specific expense you are questioning, please contact the Research Facilitator assigned to your Faculty: http://www.rso.ualberta.ca/ContactRSO/RFSI.aspx Where can I find information about sponsor guidelines? cont’d 24

25. “Are We Ready? ” Research Administration Day 2016 Research Services Office Together we make it happen Research Administration Day June 1, 2016 Questions? Comments? Concerns? 25

26. “Are We Ready? ” Research Administration Day 2016 Research Services Office Together we make it happen Research Administration Day June 1, 2016 We appreciate your help in evaluating this presentation! The RAD evaluation form is accessible online. Click here or click on the blue checkmark below (right-click the hyperlink(s) and click Open Hyperlink to activate).Click here Online Evaluation Form 26