Research Finance Post-award Finance team

What do we do in the post-award team? Following confirmation of new awards we liaise with colleagues in RSO to set up Research projects on Finance system. Provide notification of new project codes to Academic PI’s to commence activity/expenditure on projects. Liaise with HR and recruiting managers for staff appointments and contract extensions funded by projects. Produce monthly budget reports to PI’s and respond to any finance-related queries. Produce claims for income from external funders. Arrange/manage project audits as required eg. EC grants. Project closure – final expenditure statements/reporting.

Who is in the team and primary contact points for each School Research Finance Manager – Matt Cooper or tel ext ABS – Jabar Sadiq or tel ext EAS – Lisa Brown or tel ext LHS – Adrian Deverell or tel ext LSS – Mahmuda Khanom or tel ext We are located in the central Finance office on the 7 th floor of the main building (situated next to HR and Estates), please come and visit us!

What happens when an award is made to the University? Once an application decision has been reached by the funder organisation the University should seek to formalise arrangements as follows:- Grants from Research Councils, charities and other UK funders – should receive a grant ‘offer’ letter with associated terms and conditions for the University to review/accept. Awards from EC or UK Industry funders – should be covered by appropriate contracts covering project deliverables, intellectual property rights and payment arrangements etc…

Setting up new project accounts Once a grant has been formally accepted or a contract signed by all parties an award file is passed from RSO to Research Finance team. Research Finance team then set up a new project account, often referred to as a ‘job code’. This code is then confirmed by to the Academic PI for the project.

Starting work on projects Each funder has different rules to adhere to, so it is important to understand these rules before commencing any activity on a project. For example Research Councils UK allow up to 3 months to start a project from it’s planned start date, KTP projects 6 months from the date of offer letter, and EC varies dependant on funding scheme. Also, Research Councils UK and many charities allow costs relating to recruitment to be incurred prior to the ‘actual project start date’, providing they do not pre-date any grant offer letter. EC funding however will generally not support the costs of recruitment of new staff, with some exceptions for certain funding schemes.

Aston University procedure on starting work on projects Once the University has received written notification of a successful project award, you may begin the staff recruitment process subject to the particular funder rules. However no offer of employment can be made to an individual until the formal grant acceptance or fully signed contract is in place. Note: the time lapse between notification and contracts being signed will vary according to the funder, and specific advice can be sought from RSO on likely timescales.

Recruitment process Following notification of a successful project award, the PI or recruiting manager should complete a ‘recruitment authorisation form’ Recruitment authorisation forms are available from either your School RSO contact or HR advisor. Form designed to capture the necessary information to place a job advert such as appointment dates, full or part-time post, grade/salary level, source of funding as well as School and Finance approvals. Note: Please allow sufficient time for adverts, interviewing, notice periods, and potential delays due to obtaining visas to avoid issues with starting projects on time.

Recruitment continued (2)… Research Finance team can open a new project job code in advance of formal grant acceptance or fully signed contracts, providing a written award notification has been received and there is a need to recruit staff. The project job code should be provided on the recruitment authorisation form. This ensures the subsequent staff costs are charged to the project account correctly. Once the form has been completed and approved within the School it should be passed to a member of the Research Finance team to check and approve details against the particular funding arrangements.

Recruitment continued (3)… Once the recruitment authorisation form has been approved by Finance it will be passed to HR to place advertisement as appropriate. The post advert will include further particulars such as closing date for applications and an indication that offer of employment to successful candidate can only be made once funding agreement is in place. Interview shortlists are confirmed after closing date and review of all submitted applications.

Recruitment continued (4)… Interviews arranged and panel agree on appointable candidate(s) with informal offer of appointment then made. Formal offer of contract then sent out by HR team to successful candidate to confirm appointment subject to satisfactory references. Further specific advice on the staff recruitment process can be obtained from your School HR advisor.

Starting spend on projects Once you have received notification of a project job code from the Research Finance team you can commence spending. For projects where staff are to be employed the first expenditure will be recruitment costs, subject to the funder rules, followed by the salary and employment costs of appointed staff. Staff salary, employers National Insurance and Pension costs are automatically charged to project codes via the HR/Payroll systems.

Purchasing Consider list of University approved suppliers (available via staff intranet) or contacting purchasing team for specific guidance if you can’t use any existing approved supplier. Each School have administrators who can assist with raising purchase orders to suppliers. All purchases made must adhere to the University procurement guidelines (available via staff intranet), and the following guidance should be noted...

Purchasing (2)… You should always seek to obtain best value for money. For goods and services < £10,000 in value, at least one written supplier quotation must be obtained before any purchase order placed. For order values between £10,001 and £25,000, at least three written supplier quotations must be obtained as well as a ‘Purchase justification form’ being completed. For order values > £25,000 specific assistance must be sought from the central procurement team as contracts will need to be drawn up with supplier(s). ERDF funded projects have to comply with strict procurement rules, and all original documentation has to be retained.

Purchasing (3)… For order values > £50,000 advice should be sought from the procurement team. Large value purchases above the EU threshold, currently approx. £173k, must adhere to EU procurement guidelines and follow a formal competitive tendering process. Sufficient planning time should be allowed to avoid delays which may impact on the project delivery. Suppliers should address invoice(s) to Aston University, following delivery of goods/services, and quote our official p/order number on their invoice. Further information is available via the staff intranet or specific guidance can be sought from the purchasing team

Reclaiming project expenses All staff expense claims must be made in accordance with University expenses guidance available at:- expenses/ expenses/ A staff expense claim form must be completed by the claimant and authorised within the School, then presented to the Payroll office within the central HR team (7 th floor main building). All expense claims must be supported by appropriate receipts, and submitted in a timely manner, otherwise payment may be delayed or claims rejected. The expense claim should state the project job code such that payments are then charged to the relevant project account.

Understanding Full Economic costs Many UK funders accept that Universities prepare costs for Research projects using the Full Economic costing (fEC) methodology. fEC represents the ‘true’ costs of carrying out a Research project and includes the following; Directly Incurred – costs which are additional as a result of delivering a project eg. Research staff appointments, equipment purchases, Travel & Subsistence expenses and Consumable items.

Full Economic costs (2)… Directly Allocated – costs already borne by the University and apportioned back to projects such as Academic Investigator time devoted to Research projects, School Technical staff and Estates (space/lab) charges. Indirect costs – University infrastructure costs (or Overheads) such as provision of central support services (RSO/Finance/HR/Legal/ISA) and utility charges. Your School Research Development Manager within RSO (pre-award team) will assist you in calculating Full Economic costs for project proposals. All contributions from projects towards Directly Allocated and Indirect costs are credited to the relevant School with a share being made available to the Academic PI...

Personal Academic Support Accounts (PASA) Aston offers a funding scheme to support Academic Investigators on the basis of Research grants providing contributions towards University Overheads. A PASA can be opened for all Academic staff employed on permanent contracts, and who have been awarded external Research funding providing such Overhead contributions. The account will be credited with a 10% share of any project contributions towards University Overheads (Estates and Indirect costs) up to a maximum of £10,000 in any one financial year. Note: any income held within a PASA remains the property of the University and spend against such accounts must be authorised by the School. Further information about this scheme can be found on the staff intranet at:

How can monies in a PASA be spent? The account can be used to support personal Research expenses, where external funding cannot be used, on expenses such as; Attendance at conferences/networking events. Travel, subsistence and hospitality which cannot be directly covered from the project budget. Purchases of equipment for Research eg. laptops, printers etc. Subscriptions and membership fees. Any other support towards Research activities as agreed with the Executive Dean of School.

What Research funders will pay for Whilst many UK funders accept fEC for the calculation of our project costs, very few will pay 100% of fEC. For example Research Councils and UK government typically pay for 80% of fEC, with the University expected to cover the remaining 20% of costs. Charities each vary in their funding rules, with most only covering the Directly Incurred costs of any project. UK Industry funding levels vary and ‘pricing’ decisions should be considered by the applicant and the School, supported by RSO or BPU colleagues. Funders each have different rules about what may be treated as ‘eligible’ costs.

EC funding EC funding varies dependant on the award scheme and the type of project activity. Under Framework Programme FP7 the EC allowed Universities to claim for all eligible Directly Incurred and Allocated costs plus a contribution of 60% towards Indirect costs. Research & Technological Development activities were funded at 75% of eligible costs, Demonstration activities funded at 50% of eligible costs and Management/Other activities funded at 100% of eligible costs – it was a complex mix!

EC funding (2)… Marie-S-Curie grants are funded on the basis of flat rates defined by the EC, subject to individual Researcher experience and personal circumstances eg. marital status. Horizon 2020 is the next EC funding stream following FP7 and we can typically expect to receive 100% of all eligible Directly Incurred and Allocated costs plus a contribution of 25% towards Indirect costs.

How does the University receive Research Income? The Research Finance team are responsible for making all claims for income from our Research funders. Research Councils UK will pay the University on a quarterly basis following the actual start date of a project being confirmed. Some funders will require us to claim for ‘actual’ costs incurred, whereas others (typically UK Industry) may accept an invoice for a fixed amount subject to satisfactory progress on a project. Where a funder requires a claim for payment (Invoice) to be sent against a grant/contract, the Research Finance team will produce this in accordance with the specific funding terms and in liaison with the PI as relevant. Most funders will expect to receive a final expenditure statement at the end of a project, and the final payment may be withheld subject to all project deliverables having been met.

Project audit requirements Certain Research funding, mainly EC projects, may require an independent external audit to be carried out at certain reporting periods during the project life. These audits are arranged and managed by the Research Finance team who will liaise with the Academic PI as necessary. The auditor will seek to inspect all supporting evidence in relation to claims made for funding, such as…

Project audit requirements (2)… Staff costs – the auditor will inspect contracts of employment, payroll evidence and timesheet records as appropriate. Other Direct costs – evidence such as supplier invoices, expense claims and supporting receipts will need to be made available. Following the audit visit a report will be provided to the funder outlining any observations and exceptions to the funding guidelines as noted by the auditor.

Project audits – Staff timesheets Almost all EC funded projects require staff employed on projects to maintain/record timesheets. Timesheet templates are available from the Research Finance team upon request. Staff time should be recorded to show actual hours spent on various projects and activities up to a normal working day (7 hours 20 mins for most staff). Timesheets must also evidence absences due to annual leave, sickness or public holidays, as EC funding only supports ‘productive hours’ on projects.

Monthly project reports The Finance Awards Management system (Agresso) will each month automatically send a budget report to Academic PI’s for every live project account in their name. The report will show basic information such as who the funder is, project title, as well as start and end dates as they have been recorded in the system. These reports have recently been re-designed (Sept 2014) and are intended to provide the PI with the following information...

Monthly project reports (2)… Summary budget position – showing actual expenditure incurred to date, plus any purchase commitments outstanding and the balance remaining to be spent over the remainder of the award. Details of expenditure transactions incurred during the previous month. It is important Academic PI’s carefully check that expenses have been appropriately recorded against their project accounts. A list of all currently outstanding purchase commitments ie. orders awaiting goods delivery or payment of supplier invoices. Any queries or comments about these reports should be discussed with your School Research Finance contact person.

Changes in grant circumstances During the life of a project it may be necessary to contact the funder informing them of changes to the project delivery such as difficulties with recruitment, breaks in staff appointment or transfer of Investigators to another institution. Please contact Research Finance who can liaise with RSO colleagues and advise you on the appropriate course of action. Requests for project extensions are generally only accepted by funders where there have been unavoidable delays in recruitment, breaks in appointment or circumstances beyond usual control eg. Long-term staff absence. Any extension request should be made before the current end date of the project.

Projects approaching their end date Using the monthly project reports, PI’s should monitor their spending against budgets and always seek to maximise the use of external funding available. It is recommended that PI’s contact the Research Finance team between 3-6 months ahead of the project end date to discuss current budget position and final reporting requirements. Note 1: nearly all funders will expect the final costs on a project to be actually incurred before the official project end date. It may therefore be necessary to consider the timing of any dissemination activities eg. final conference, to avoid issues with reclaiming related expenses. Note 2: specifically Research Councils UK do not allow the purchase of any equipment items in the last 6 months of a project unless you have their prior approval granted.

Account closure process Within 1 month of project end date the Research Finance team will contact the Academic PI to discuss any final expenses/commitments and reporting requirements with a view to closing down the project account. Within 2-3 months of project end date all final cost reporting will be submitted to the funder, and the Research Finance team will then review the account with a view to closing it down. No Research account will be closed by the Research Finance team without first having had dialogue with the PI for the project.

Important information to consider Getting the project costing correct at the outset is crucial as this will set the budget for any subsequent award. Understand the funder terms and conditions, in particular with regards to eligible costs and reporting requirements. Check monthly reports carefully. Liaise with Research Finance team with any project-related queries, and… If you’re unsure please seek advice.

Any Questions? Matt Cooper, Research Finance Manager.