Navigating requirements for research spending: dispelling myths and listening for a better way forward 

Your Research Finance Team (for now) Jennifer Otterwell – Manager, Restricted Funds and Accounting Lisa Huebner – Restricted Funds Accountant [Researchers A-G] Kerri Cassalman – Restricted Funds Accountant [Researchers H-O] Nicola Pineiro – Restricted Funds Accountant [Researchers P-Z] Tania Dearling – Restricted Funds Clerk researchfinance@trentu.ca – general email account all research finance can access

Funding Agency Monitoring Methods Tri-Agency monitoring review CFI monitoring review CFI project audit Other funding agency audits

Tri-Agency Review Timing One month turnaround on completing CIGT Received October 23rd, 2015 One week turnaround to provide GL detail Request received November 6th 2 ½ week turnaround on transaction backup Request received November 20th One week turnaround to provide any additional backup for transactions Received April 19th Teleconference to discuss findings June 27th One month turnaround on review assessment report/scorecard to submit remediation plan Received July 29th Received final letter September 30th, 2016

Review Summary 70/100 Questions to answer on the Collaborative Information Gathering Tool (CIGT) Pass/Partial Pass/Fail 66 Transactions selected for review [60 financial transactions, 4 ethics, 2 SOA] 11 Compensation 30 Equipment 4 Equipment – Computers 4 Hospitality 1 Incentive 10 Travel Only 14 transactions deemed compliant & eligible on the review of the original backup submitted Additional 10 transactions deemed compliant & eligible upon the submission of further information

Tri-Agency Review Controls reviewed General institutional Financial management Process specific Compliance

Control deficiencies General institutional Financial management Previous monitoring history items not completely addressed Financial management Review of compliance and eligibility of expenses Process specific Partially passed all items Compliance Internal expense allocation and shared expenditures Hospitality Travel

Transaction deficiencies Two recurring items CRC transactions signed off by Chair Holder (no delegation) Justifications/explanations missing on transactions

General institutional Finding Trent is currently not offering suitable training for those involved with the management of Grants and Awards. Remediation Action A training program will be developed and implemented to ensure that the Restricted Funds Accountants are kept current on reviewing grant-funded transactions and maintaining appropriate back up to support the transactions. These will be implemented into three meetings annually in ½ day sessions.

Financial management Finding: Remediation Action: The institution has in place a system to ensure that delegations are valid and documented. However, there is no evidence that authorities were delegated for institutional grants as the Canada Research Chairs, the General Research Fund and the General Graduate Studies Fund. Remediation Action: The grant holders for institutional grants is the president of the University, and all expenses must be approved by him or a formal delegate. As such, “Delegation of Signing Authority Forms” are being drafted in order to allow other individuals to assume signing authority on Institutional Grants

Financial management Finding: Remediation Action: Due to the number of non-compliant and ineligible transactions, Trent must reinforce its process in order to fulfill its responsibility to withhold or withdraw approval of expenditures that contravene the agencies guidelines. Some of the issues related to travel, courier, postage and hospitality expenditures are recurring. Remediation Action: The previously mentioned Training program will help assist the Restricted Funds Accountants in determining which transactions are eligible, and which require further documentation/justification. Courier forms updated to include sign-off and justification area Postage will be reviewed and approved annually

Compliance Finding: Remediation Action: The grant holder has the discretion to offer extended health, semi-private hospital and dental benefits, therefore, these benefits are discretionary and not eligible to be charged to the grant Remediation Action: The Tri-agency financial administration guide only permits non-discretionary benefits to be charged to grant accounts; therefore, these benefits are not eligible. If an individual opts to have benefits many times they will pay for the benefits themselves with a reduction in salary to cover the cost of the benefits provided. Hiring process will be amended to determine if the benefits are paid by Trent in addition to the offered salary (an ineligible expenses) – or if the benefits are paid by employees as a reduction in salary

Compliance Finding: Remediation Action: In cases when the grant holder receives hospitality or travels, the dean or the department head is not always approving the transaction Remediation Action: The Vice President Research and Innovation will sign all travel and hospitality claims after they are reviewed by the research project officers for appropriateness to project

Remediation Plan – Summary Courier charges – updating request form to include signature and justification/description for research accounts *completed* Annual approval of courier and postage charges by Grant Holders Travel – ensuring expenses are not duplicated – reviewing option of software [F2019 earliest implementation] Travel – VP Research signing off on all travel and hospitality expense claims *implemented* Delegation of Signing Authority – complete delegation forms for institutional grants to VP Research, GGSF to Dean of Graduate Studies *completed* Justifications/explanations – ½ day staff training sessions to be held 3 times a year *implemented*

Roles and Responsibilities Agencies: Provide public resources to promote and assist research, while being accountable to the Canadian people for the use and outcome of these funds, and ensure that the activities supported are conducted in accordance with the highest legal, ethical and financial standards. Institution: Provide appropriate physical and organizational infrastructure to conduct the research, implement appropriate and effective policies, administrative systems and controls to ensure that the research is conducted in compliance with all agencies’ requirements including withholding or withdrawing approval of expenses that contravene the Agency’s or Institutional Policies. Grantee: By drawing on the funds the grantee confirms that he/she will comply with all the terms and conditions of the award.

Tri-Agency Use of Funds General Principles Funds must contribute towards only the direct cost of research, must be used effectively and economically and be essential for the research – with proper supporting documentation and/ or detailed justification The institution has the right and responsibility to withhold and withdraw approval of expenses that contravene the Agency’s policies

Transaction documentation “Grantees must be able to provide supporting documentation for all expenditures charged to their grant accounts. Where the link to the research is not evident from the supporting documentation, additional information or explanation should be documented which demonstrates that the expenditure is a direct cost of the funded research.”

Justifications – know your audience Administrative staff (internal and external) generally do not have an extensive research background Anyone should be able to review the transaction documentation and reasonably conclude the item was required for the project

Adequate Justifications An adequate justification demonstrates that the purchase is: Directly related to and necessary for the advancement of funded research, not just the professor’s general research field Items where normal use is in a non-research setting Not normally provided by the institution An economical use of funds A need that is not met by equipment currently available or in the grant holder’s possession Books available in the library TUFA computer renewal program Software available through IT

Adequate Justifications Hospitality Justification Information for hospitality must contain the following A list of attendees including their titles, institutions and their relation to the funded research A brief explanation as to why the meal took place. The explanation must also demonstrate that the hospitality was required for formal courtesy between the grantee and guest researchers or for research-related activities in the context of assemblies that facilitate and contribute to the achievement of the research objectives Note: Hosting of internal employees or students is not eligible

Sample Justifications Sample provided by researcher The printer I purchased was necessary for printing copies of my research results on the effect of chemical spills for dissemination at the conference in Berlin (explains printing not the printer) Ideal justification The printer purchased is required for the research because it is permanently connected to the equipment and prints results at a set time The printer purchased is required for the research because it is more economical to print our surveys then to have them printed at the Print Shop

Sample Justifications Sample provided by researcher The conference in Victoria BC on molecular biology Ideal purpose Attended conference in Victoria which discussed molecular biology which is related to my grant because I am hoping to apply the theory presented to my lab experiments Other examples of purpose Fieldwork in Maine; collected water samples to be used in my (describe the research) where I am analyzing the impact of local mining projects on sediment quantity Archival work at the Institute of Archaeology; reviewed bone specimens for evidence of decay directly related to my research grant Collaboration at the University of Wisconsin with Prof. Brown on comparison of research finds to date related to xxxx theory which is directly related to my research grant

Dispelling Myths Thesis – a four letter word? Using thesis completion as a justification for an expense is not sufficient on it’s own Expense must be directly related and necessary for the advancement of the funded research – therefore, the justification must reference the research project whether or not thesis completion is included in the justification Budgeted Items – automatically eligible on Tri-Agency projects? When an application is successful in the competition, expenditures in the budget are not thoroughly reviewed one-by-one. Budget appropriateness and justification is merely one item within the Merit of Proposal criteria. Committees rank proposal on many criteria. A non-eligible expense in the budget will not drastically skew the proposal’s ranking. It is incorrect to think all budget items are eligible, even when the application is fully funded. Grantees must follow the Guide when using the funds and may generally deviate from the proposed research activities and/or schedules so long as all conditions specified in the formal grant notification and relevant program requirements are respected, and so long as they use their grant funds for the broad purpose for which it was originally awarded.

Dispelling Myths GRF is automatically transferred If less than 50% of a grant opening balance is spent in the last year the ending balance will be returned to the Tri-Agency If less than 50% of the GRF opening balance is spent in a given year, this will affect the GRF transfer

We are working for you Requesting additional information Ensuring transactions will pass an agency review CARA is working on lobbying Tri-Agency for materiality Currently no transaction too small to review Procedure choices are made with administrative impact consideration Constructive criticism is welcomed

Future of Trent Research Finance More babies! Electronic upload of FDSR data Personnel data pulled directly from updated general ledger object codes New object codes for RFAs on January statements Courier and postage expense annual approval – why? Approval of shipment and direct link to research project provided on updated UPS form Actual charge not known until after shipment Updated website

Questions / Comments? Thank you!