Project Management End Date and Amendments

1. RAD 201 Project Management End Date and Amendments Julie Stephens, Assistant Director, Natural & Social Sciences

2. Outline • Welcome • Key learning outcomes • An introduction to end date management • Some key considerations for managing end dates • Project close out • Amendments/Extensions • Process • Some examples • Wrap up – “Top Ten”

3. Learning outcomes • At the end of the session participants should have: • a better understanding of end dates and how to manage these; • participants will have an understanding of the steps involved in closing out a project; and • participants will have a better idea of when it's necessary and what needs to be done to amend the end date of an existing project.

4. An introduction to end date management What do we mean by “end date management”? • The end date of a project is the day that access to the research funds terminates and all eligible expenditures have been incurred and posted to the project and deliverables for a project (for example submission of a scientific report) have been met. There are a number of things that need to be taken into consideration when managing the end date of a project.

5. End dates – how are they determined? • Every project has a start and end date. • Set by sponsor vs. negotiated by individuals • External vs. Internal Sponsor • Formal Application vs. Informal Proposal • General rule of thumb is 5 years maximum • Year 2022 exception

6. End dates – some general points • In cases where the sponsor determines end date, the scope of the project/proposal along with the commitments tied to deliverables should be developed with this in mind. • Above point also applies when we are in a position to negotiate/choose the end date – should be chosen wisely. • Amendments take time and effort – amending an end date can be a lot of work for all involved.

7. General points cont’d • Some key things to keep in mind when choosing/managing an end date are: • Deliverables (scientific and otherwise). • Financial Reporting – added considerations at year-end • Important to plan so that spending is done in time to do reporting. All expenses should have cleared the project by the end date. • As an institution we can’t report until expenses have posted to the project. • We also can’t report when project is over expended. • Hold backs/Final payments. • In some cases there is no carry over from 1 year to next.

8. General points cont’d • In our PeopleSoft system, projects are set up with an end date as the last day of the month the sponsor has mandated the project to end. This is done to facilitate coding and processing of financial transactions that may only run monthly (for example payroll). • Important to note that expenses still have to be incurred within the legal dates of the award/agreement. • Any commitments being made to a project should take the end date into consideration.

9. Project close-out • Automated close of projects runs on the 10th of each month. • All expenditures should have cleared project by the end date. • Commitments (e.g., payroll, monthly telephone charges, departmental charges (e.g., photocopying)) should be removed and redirected to another project where applicable. • Determine funds remaining (eTRAC) • If negative balance, department to clear OE (ideally before original end date.

10. Project close-out cont’d • Administrative no cost end date extensions • Re-opening a project for administrative purposes involves a number of steps . • It can affect reporting and can cause issues with the sponsor (for example with deliverable/reporting due dates). • Manual reporting. • Sponsor approval may be required. • Sponsor can reject expenses posted after end date. • Accounts Receivable – confirm funds received • Holdbacks/Final reporting (scientific/other deliverables and financial).

11. Project close-out cont’d • Analysis of outstanding commitments • Purchase Requisitions • Unspent Funds Treatment • Return to sponsor (external or internal)/lapse to University GRF (SSHRC) • Lapse to Researcher’s General Research Project • Additional steps involved if >20% of original budget or $20,000.00 left • Final close out steps in PeopleSoft • A fair number of steps involved

12. Amendments/Extensions • It is not always possible to anticipate the future development of the relationship governed by an agreement or award and as a result amendments to existing agreements may be required. • Important point for consideration: not all project end dates can be amended. • When to amend/when not to amend? • A key question to ask, but there isn’t always an easy answer. • Need to look at what the purpose of the amendment is.

13. Amendments/Extensions cont’d • Not all situations require a formal amendment • May still require sponsor approval • Administrative no cost end date extensions • Lapse of unspent funds to PI’s General Research Project • In most cases, changes to an agreement/award, including end date extensions require Sponsor approval. • Approval needs to come from an authorized representative of the Sponsor.

14. Amendments/Extensions cont’d • Principal investigators are encouraged to contact sponsors as soon as possible when an amendment is required. • Generally speaking amendments are initiated by PI, driven by sponsor. • Important to understand restrictions. • Some sponsors will not approve extensions or they have specific guidelines around when and how an extension will be granted. • Need to factor in time involved to process an extension/ amendment. • Can take up to 3 to 6 months. No preferential treatment given to the processing of amendments.

15. Amendment process – steps involved • Need to extend has been identified. • Request made to sponsor by PI. • Sponsor approves in writing. • Approval needs to come from an authorized representative of the sponsor. • Paperwork with signatures obtained, ethics extended where applicable, and amendment reviewed/finalized and approved by grants/agreement administrator. • PeopleSoft updated to reflect amendment and revised advise notice sent to PI and Department. • Positive balance required to extend the end date of a project in PeopleSoft. • Award itself can be extended without any funds being left • Done to capture revised reporting dates, final payment dates, etc.

16. Amendment process cont’d • Change to existing research project form vs. formal amendment • We default to terms of original agreement/award notice to determine what is needed to process an amendment. • See next few slides for some specific examples.

17. Grant funding terms and conditions Tri-Agencies (NSERC, SSHRC, and CIHR): Extension Period for Use of Funds Beyond a Grant Period (taken from NSERC Website). • For some programs, an extension is automatically given to allow the grantees to use funds remaining in their account for a set period following the funding expiry date of their grant. This period allows grantees to bring research activities to a close. Grantees may make and pay new commitments during the extension period but not beyond. No Action required by PI or Department. • Other programs may allow extensions by request. For these programs, a written request must be submitted to the Agency's program staff before the funding expiry date of their NSERC or SSHRC grant, or 30 days before the end of the automatic extension period of their CIHR grant. The request must explain the need for an extension and provide a date when the research activities will be completed. Change to Existing Project Form will have to be completed and submitted to RSO for these situations.

18. Terms and conditions cont’d Tri-Agencies (NSERC, SSHRC, and CIHR): Extension Period for Use of Funds Beyond a Grant Period (taken from NSERC Website) cont’d. • If the extension is not approved, the grantee has three months to pay all commitments made prior to the end of the grant period. RSO/RFO should be contacted if there are outstanding commitments that still need to be posted to project. • No requests for extensions will be considered after the account has been closed and any remaining balance has been returned to the Agency (CIHR only) or transferred to the institution’s General Research Fund (NSERC and SSHRC only). An important point to keep in mind.

19. Sample agreement amendment clauses • Entire Agreement - This Agreement constitutes the entire understanding between the parties relating to the Services. There are no agreements, representations or warranties except as set forth in this Agreement. No modification or amendment to this Agreement shall be binding unless executed in writing by the parties. An amending agreement is required. An RSO agreements administrator needs to be involved. • No amendment of this Agreement or waiver of any of its terms and provisions shall be valid unless effected by a written amendment signed by the Parties. An amending agreement is required. An RSO agreements administrator needs to be involved.

20. Sample clauses cont’d • Amendment - Except in respect of an extension to the Project Term, as noted in this Section 15, no amendment or variation of this Contract will operate to change or vary the terms, obligations, or conditions hereof except upon mutual agreement by both parties signed by authorized representatives of each party. The parties may agree to extend only the Project Term by mutual agreement evidenced in writing by both parties, such mutual agreement not requiring signature by authorized representatives of each party. Change to Existing Project Form will have to be completed and submitted to RSO for these situations. Applies to end date extension only. All other amendments would require an amending agreement and an RSO agreements administrator would have to be involved. • This Agreement shall be effective from the date of execution to ... unless otherwise extended, renewed or amended by mutual written consent of the Parties (the “Project Term”). A change to Existing Project Form or an amending agreement could be used in this situation. RSO should be consulted for guidance.

21. Change to Existing Research Project Form • Form is available on the RSO website in the forms cabinet http://www.rso.ualberta.ca/en/FormsCabinet.aspx • When can this form be used? • Internally funded/managed projects • With award notices/formal email sent by an authorized representative from the sponsor. • The authorized representative is generally the individual who signed the original award notice and/or is named as the authorized representative in the original agreement.

22. Change to Existing Research Project Form

23. Early terminations • Can happen for a number of reasons: • default by either party; or • departures of PIs from University (e.g., transfer or retirement). • Terms surrounding terminations are sponsor-specific. • Sponsors usually take these very seriously. • Spending should stop immediately, unless otherwise negotiated. We don’t always have time to plan accordingly. • Quite often come after the fact: • termination date quite often determined by departure date. • Departments should seek advice immediately upon finding out about a departure/termination.

24. Top 10 List • All projects have an end date. • It’s important to understand obligations/deliverables. • End dates should be managed proactively. • Plan accordingly – it’s a lot of work to amend an end date. • Not all project end dates can be amended. • Obligations don’t go away, but funds can disappear. • When to amend/when not to amend? That is the question and hopefully now you have a better idea of how to answer this. • Sponsor approval is generally required to amend an end date. • An email is generally not sufficient to extend an end date. • Amendments take time – requests should be initiated at least 3 months in advance.

25. Contact Information My Contact Information: Julie Stephens, Assistant Director, Natural & Social Sciences Team Phone: 780-492-9189 Email: julie.stephens@ualberta.ca Who do I contact if I have general and/or specific questions about a projects end date? • Existing project – Your faculty’s Research Facilitation Office or your faculty’s dedicated RSO Financial Analyst. • Project in development – Your faculty’s Research Facilitation Office or an RSO Agreements Administrator.

26. Websites • Guide to Financial Management, Chapter 15, Fund Management, Restricted Funds, Research Funds, Financial Administration of Research Funds, End Date Management: http://www.financial.ualberta.ca/GuideToFinancialManagement.aspx#&&9RTC4zep4RgMKqT8OZj3cKCBgBuJi50WAw/CmADJ4OEbJFOaSJWgi++qUY1dnLdpOYmtUpAjsNi6nVQ5tDcSXFTfxPRDZ4+MiVEECp3TgMK3egzEGehofIdiD2ukd86DDiMRp91huj3ci8oWs9zZ7q18DJULbjIbhGlJy0a4ooQiyJixt/49OPSlsoTAwkNw31EtMks+q0r1xMp/+pa2b2oAQdt4XMHOSj6OGHCZQ1wREmTzmXtLjB/caUOn8+tfmksQPM7zb2B0pUOxi+8QWbq4Pp3OGIKqwMEBaoyspQrOD62eJltM2cak3f2JwzRjgCrXUMIDJGrI8uObXOkivV9LMp8r5jGs9AIV22B9kVP61EJpXLlro/+CNTQgD0sUqv6zRA== • RSO Website, Managing Research Funding, Using Your Funds:http://www.rso.ualberta.ca/Managing/UsingFunds.aspx • NSERC, Annual Funding of Grants, Extension Period for Use of Funds Beyond the Grant Period:http://www.nserc-crsng.gc.ca/Professors-Professeurs/FinancialAdminGuide-GuideAdminFinancier/AnnualFunding-FinancementAnnuel_eng.asp

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