Transcript Slide 1

Finance & Business Services and
Research Services Division
MANAGING GRANTS
28 November 2013
Today’s Program
•
•
•
•
•
•
Welcome
ANU official file
ARC – VFA process
ARIES Data completion
Statement review
Break
Luke Beckett
Lee Mavanna
Lee Mavanna
Belle Ma
Jacqueline Koch
Today’s Program
•
•
•
•
•
•
Grant terms & conditions
Audits
Payroll reconciliations
Appropriate use of accts
Grants ending
A-133 Audit
Luke Beckett
Lee Mavanna
Roy Siew
Jacqueline Koch
Roy Siew
Lorraine Piper
Overview of Research Accounting
• Located in Chancelry 10C
Finance and Business Services
Luke Beckett
Lee Mavanna
Belle Ma
Jacqui Canty
Lorraine Piper
Jacqui Koch
Roy Siew
ANU Official Files
• Lee Mavanna
What are your recordkeeping responsibilities?
• Upload all original relevant documents to ARIES before
sending to RA
• Background information regarding the establishment of
the grant must be kept, this can be done by scanning
to a .pdf, saving in ARIES and/or sending to RA to be
put on the official ANU file
• Keeping records of verbal and written communication
gives a clear picture of any changes made throughout
the life of the grant
• A list of required items is included in the Handout
“Shadow files”
• Areas strongly encouraged not to keep “shadow files”
• Anything on a shadow file needs to go on ARIES
• “Shadow files” should not be sent to RA or University
Records (who send them to us for a decision on whether
documents should be kept or not)
Access to the Official File
• Ongoing project files will be with Research Accounting
• The files contents can be viewed and copied at RA or it
can be borrowed for a short period
• Files for projects that have ended can be requested
through CRS
Australian Research Council (ARC)
Variation of Funding Agreement (VFA)
Process
Relinquishments and transfers to other
HEPs
• Lee Mavanna
ARC – Variation to Funding Agreement
COLLEGE RESEARCH OFFICE
• Collect required documents
• Complete the ARC’s Variation of Funding
Agreement: Request for Transfer of Project but
leave the transfer calculations (the dollar
amounts) blank (the first VFA)
• Attach a copy of any outstanding progress
reports
• Send to RSD
ARC – Variation to Funding Agreement
• This VFA is sent to the ARC to approve the
transfer before the date of transfer
• Once approval has been given, RSD will notify
College Research Office
• CRO request financial statement from College
Finance Office
VFA – Relinquishments and transfers out
COLLEGE FINANCE OFFICE
• Finance Office prepares financial statement
• Ensure ALL expenditure to date of transfer/
relinquishment is included in statement
• Funds Provider Statement to date of relinquishment
is sent to RA with signed yes/no statement and VFA
• Salary Shortfall calculations will be prepared by RA
• RA adds financial data to VFA then forwards to RSD
• RSD will send this VFA to ARC (the second VFA)
• ARC will recover any remaining balance from ANU
ARC Salary shortfalls
PURPOSE
• Identify the amount of funding that should be carried
forward to the following year due to the awardee
commencing at a date later than the first day of the
funding year (either 1 January or 1 July depending on
when the grant is awarded)
• Identify the difference between the external funding
provided for the position and the salary and on costs
charged to the project for the position
• Ensure that balance of fund is equal to or greater than
the amount of salary required to be carried forward
ARC Salary shortfalls
METHOD
• Determine carry forward period based on project
start date, employee start date and suspensions
including maternity leave and part-time appointment
• Determine carry forward amount as the difference
between ARC Allocated salary, amount required to
be carried forward and amount actually paid to
employee
• Also check project cost not overspent
ARC Salary shortfalls
Maternity Leave Recovery
• All correspondence regarding maternity leave, leave and
part-time hours needs to be uploaded to ARIES
• ARC reimburses 14 weeks maternity leave
• ANU Central pool reimburses 20 weeks maternity leave
• Colleges cannot “double dip”
• 14 weeks of the 20 weeks paid by the ANU Central pool
needs to be returned to the LSL Pool. It cannot be
transferred to College R-ledger
ARIES Data Completion
• Belle Ma
ARIES – Main Details Tab
– ARIES Build 528 released on Monday has new fields:
– Administering organisation: replaces the text
“(externally led by XXX)” in the title of the grant
– Focus: for recording whether a grant is transferred to
or transferred from the ANU
– Date transferred: date grant transferred
– Dates and Status: RSD requires this information for
statistical reporting - please complete all date fields.
– The ‘End Date of the Grant’ must be the end date of the
project and NOT the date that the final report is due.
ARIES – Milestones tab
– the date for financial milestones should be the date the
statement must be prepared AS AT, and not the due
date, eg
– What is the Milestone Due Date:
• Report as at 31 December due 60 days after period
end?
• Provide report on 30 September for financial report for
year ending on 30 June?
• Report quarterly due 3 weeks after period end?
ARIES – Funding Amounts
– Add a new GLC and enter the Fund and Department
followed by ZZ ie Q44210ZZ – this enables RA to allocate
consecutive numbers for a given Dept.
– Please upload annual funding amounts requested and enter
amounts awarded, managed, net and transferred to other
institution(s) by year
– Where a Multi-Institutional Agreement is in place, the
amount to be transferred out MUST be recorded on the
Funding Amounts Tab (statistics are used by RSD and
Statistical Services & Planning Division)
– Funding amounts should be entered as GST exclusive
ARIES – Contracts tab
Indirect Costs
• The University requires that indirect costs be recovered in
Contracted Research and Consultancies as allowed by the
agreement
• Central overheads are charged to projects at 8% of Direct
costs
• College overheads are at the discretion of the College
• Indirect cost policy and procedure is presently being
reviewed
Statement Review
• Jacqueline Koch
Which statements need to be prepared?
• College Finance Staff prepare and review Q and S
financial reports
• Research Accounting will prepare the following S & Q
statements for College finance staff to review:
– Foreign currency
– Annual ARC & NHMRC Statements (31 December)
– Colleges can run ARC & NHMRC statements at other
times in the year
Financial Statements
• Run the Funds Provider Statement by GLC
• Review the contents of the report
• Make Adjustments as required
• Re-run the Funds Provider Statement
• Review corrections
• Arrange the cover sheet (Yes/No) to be signed by the
business officer and chief investigator
• Forward final excel funds provider statements, scanned
coversheet and donor format to RA for certification
How to; Financial Statements
• For more details on this process please refer to How to
run a Funds Provider Statement (page 38)
• Is reporting against budget lines required? Refer to
Reporting against budget lines on (page 49)
• Refer to the Statement Review Checklist (page 50)
Adjustment Journals
• Adjustment journals are processed to reflect actual
entries that occur after the report end date to ensure the
Funds Provider Statement reflects the financial status of
the project at the report date
• Adjustments are required to the statement due to unpaid
invoices, incorrect ledger coding, internal transfers etc.
Adjustments that are followed by actual ledger actions
(e.g. payment of an invoice, journal correcting
transactions) require an adjustment journal
• Adjustment journals automatically reverse
• Examples of adjustment journals are in the hand out
Statement Finalisation
• If the statement is not to be sent to the Funds Provider
(eg. certified statement needs to be returned to CI for
inclusion in the project report or the statement needs to
be lodged online) this needs to be clearly indicated when
the statement is submitted to RA
• RA will check the completed documents
• Once the statement is finalised, the statement will be
forwarded to the Funds Provider and the Financial
Milestone will be updated in ARIES. An email will be
sent to the College finance team notifying them that the
statement has been finalised and uploaded to ARIES
Break
• Please take a break
• We will reconvene in 15 minutes
Grant Terms and Conditions
• Luke Beckett
27
Grant Terms and Conditions
• Consider the impact of what is being negotiated
– How will it be managed and by who?
– What other areas of the ANU will be involved?
– What does it mean to the budget?
– Will those not involved in the negotiation understand
what we have agreed to?
– Can we realistically meet the requirements?
• See handout on pages 66-72
28
Grant Terms and Conditions
• Audit
– Time taken to compete Internal/External audit will
vary with the size of the fund
– Internal can take up to 2 weeks
– External can take 4 - 6 weeks
– Consider audit time when agreeing due dates
– Canberra’s January “slow down” will add time to
external audits in the first quarter
– ANU has no control over external audit resources
29
Grant Terms and Conditions
Budget Areas for Consideration
• Audit Costs
• Cost of a basic external audit starts at $5,000.
Larger grants will be more expensive
• Where an external audit is required the contract
should allow for the cost to be deducted from project
funds
• Consider the cost of an external audit on project
outcomes
• External should only be at the end of the project
30
Grant Terms and Conditions
• Overheads
– Consider the cost of indirect costs such as college
and central overheads
– If possible allowance should be made in the budget
• Project Management
– Large projects should consider allowing for the cost of
a project manager to manage all project aspects not
just financial
• In-Kind Contributions
– Explain how in-kind contributions are to be calculated
31
Statement Audit
• Lee Mavanna
Audit requirements
• Statements need to be reviewed and adjusted before
sending to RA
• Payroll reconciliations to be included in all statements to
be audited
• CGRO developed a Pre-audit Checklist to be used prior
to submitting statements
Audit – or not
• Examples of different Audit clauses are in the hand out
• ARC and NHMRC grants are not audited
• ARC Discovery Project 2013 Funding rules:
Clause 13.4 – Audit and monitoring
The ARC may at any time conduct….
Clause 30 – Access to Premises and records
The ANU must, at all reasonable times, give
unhindered access
Statement Audit –
Payroll Reconciliations
• Roy Siew
Audit – Payroll Reconciliations
• A reconciliation of salaries expenditure between ES
Financials (Fund Provider Statement) and HRMS (PCA
report) as per audit requirement
• Generate PCA Report
• Completing Payroll Reconciliation template
• Supporting documentation
• Refer to Reconciliation Example on page 58.
Appropriate Use of Accounts
• Jacqueline Koch
Appropriate Use of Accounts
• Transferring balances to close Q funds use accounts
7000/7001
• Contribution to external parties where the ANU is a lead
institution use 5664 account only (not 5828)
• Only use “sales (income 89xx)” and “purchase
(expenditure 85xx)” when no external parties
• Transfer actual expenditure and income from one fund to
another fund needs to be like to like account (including
distribution to subprojects)
Account Closures and Grants Ending
• Roy Siew
Account closures and grants ending
• S/Q Fund Closure checklist
• Items to review
– Salary shortfall
– Zero Fund balance
– Zero Encumbrance balance
– Zero Account balance (0000-4999)
– Financial reporting requirements met
• Research reporting
• HR records
• Upload completed checklist to ARIES
Audit – A-133 Concepts
• Lorraine Piper
Audit – A-133 Concepts
• Two components: Compliance & Financial
– Compliance: University has policies and procedures
to enable compliance with requirements of US
government grant conditions
– Financial: ensuring costs charged to projects held by
the University are in accordance with grant conditions
• RSD has prepared guidance on US Government grants
that are subject to A-133 Audits
Audit – A-133 Concepts
• Timing
– US Fiscal year & project reporting is nonstandard eg year 31 August
– A-133 audit is aligned to ANU reporting year
i.e. 31 December
– Full accrual accounting to be applied to ALL
US Government grants as at 31 December –
including income due or income in advance –
different treatment to all other S & Q projects
Audit – A-133 Concepts
• Review of expenditure charged to US
Government grants essential both pre-and postyear end to ensure ALL expenditure is reflected
in the ledger (purchase card clearances, internal
University purchases)
• Travel must be on a US carrier (refer to
guideline)
Audit – A-133 Concepts
• Initial handover meetings post-award should be
held between responsible College staff, CI & RA
staff member to ensure CI is fully aware of
eligible/ineligible costs and compliance
requirements