RESEARCH CONTRACTS SEMINAR
AUDIT REQUIREMENTS - GENERAL INTERNAL AUDIT – variable – University Procedures and Regulations ERNST & YOUNG – annual – accounting practice and record keeping etc AUDIT COMMITTEE – on request TAX AUTHORITIES – periodic – on request
AUDIT REQUIREMENTS - SPECIFIC Each grant or contract awarded will have specific financial conditions Audits undertaken by ……. Important to understand the contract and financial conditions EC; Government departments; Research Councils; Regional bodies
MATTERS EUROPEAN Can be complicated due to variance in rules and regulations Framework Programme – now on Framework 7 Non Framework Programme contracts ie Asia-Link; Tempus; ERDF; Leonardo etc Totally different payment mechanisms Currency variation
FRAMEWORK PROGRAMMES Some differences introduced in Framework 7 EC will pay 75% of accepted costs At the moment overheads at 60% PI costs now accepted if supported by timesheets VAT
VAT ON RESEARCH Normal VAT situation General Research situation – non recoverable Some exceptions However this is a changing situation
INVOICING AND REPORTING MATTERS Invoicing A legal document – statutory information required Must be recorded in University ledgers – audit requirement University record – issued by Finance Office
INVOICING AND REPORTING MATTERS Reporting Many sponsors have their own individual claim forms that require to be completed Contracts can have different reporting schedules or requirements Regularly we have to adapt our records into a format required by sponsor Cash flow can be affected
SCHOLARSHIPS/STUDENTSHIPS These can only be paid to registered, full time students – tax reasons Have to be renewed each year Withdraws must be notified Can pay up to £15K each year tax free without having to notify the Tax Office Up to a 9 month writing up period allowed
OTHER SERVICE RENDERED Everything apart from Research Non RAE attributal Different accounting processes and procedures Surpluses are taxable Variable VAT treatment