Finance & Business Services and MANAGING GRANTS

1. Finance & Business Services and MANAGING GRANTS 17 June 2014

2. Today’s Program • Welcome • ANU official file • ARC – VFA process • ARIES Data completion • Statement review • Break

3. Today’s Program • Grant terms & conditions • Audits • Payroll reconciliations • Appropriate use of accts • Grants ending • A-133 Audit

4. Changes to Research Accounting Lorraine Piper Located with the Birch Team until June 2014 Lee Mavanna Temporary appointment to RSAA working at MSO until Feb 2015 Roy Siew Assisting Investment Accounting until later in 2014

5. Research Accounting Luke Beckett Belle Ma Jacqueline Koch Jacqui Canty Jen Park when she is not working on the FBT return

6. ANU Official Files

7. 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

8. “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

9. Australian Research Council (ARC) Variation of Funding Agreement (VFA)ProcessRelinquishments and transfers to other HEPs

10. 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

11. 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

12. 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

13. 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 (either1 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

14. 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

15. 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

16. ARIES Data Completion

17. ARIES – Main Details Tab • ARIES Build 528 released in 2013 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.

18. 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?

19. 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 transferredout 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

20. 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 (or 6.4% of total income) • College overheads are at the discretion of the College • Indirect cost policy and procedure is presently being reviewed

21. ARIES – Training Manual • ARIES Grants Training Manual and Standard Operating Procedures (Word, 1.41MB)

22. Statement Review

23. 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

24. 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

25. How to; Financial Statements • For more details on this process please refer to How to run a Funds Provider Statement (page 21) • Is reporting against budget lines required? Refer to Reporting against budget lines on (page 32) • Refer to the Statement Review Checklist (page 33)

26. 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

27. 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

28. Grant Terms and Conditions

29. 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 49-53

30. 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

31. 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

32. 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

33. Statement Audit

34. 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

35. 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

36. Statement Audit –Payroll Reconciliations

37. 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 ReconciliationExample on page 41.

38. Appropriate Use of Accounts

39. 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)

40. Account Closures and Grants Ending

41. 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

42. Audit – A-133 Concepts

43. 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

44. Audit – A-133 Concepts • Timing • US Fiscal year & project reporting is non-standard 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

45. Audit – A-133 Concepts • Review of expenditure charged to US Government grants essential both pre-and post-year 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)

46. 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

47. The End… • Thank you for your time • Can you please complete and return the evaluation form (last page)? • Don’t forget our workshops: • Statement Review 24 June • ARIES Related Training 2 July • Returning Funds to Donors 5 August You Must Register on HORUS (FBS065)