“Addressing Local Challenges in the Management of External Grants: Case of Cameroon Finance Law.”

1. CARIMA Annual Conference and Training Workshop on: Enhancing Capacity for Grant Writing and Project/Research Management “Addressing Local Challenges in the Management of External Grants: Case of Cameroon Finance Law.” MOSINGE Emmanuel EKOVI University of Buea

2. Outline - Introduction - Types of Grants - Characteristics of External Funding - The Cameroon Finance Law - Grants Management - Key Local Challenges - Conclusion Central African Research and Innovation Management Association

3. Introduction • Most research depends directly or indirectly on substantial public financial support. Three primary groups of stakeholders are involved in the management of external grants. 1. Research performers (Universities and other research performing organization) 2. Research Funders (national agencies or funding systems) 3. Governments (national or regional level) • -These three should engage in a process toward adopting the principles relating to the funding and management of research activities. • -The mismanagement of grants can have both immediate and long-term negative consequences for a grantee: loss of funding from both current and would-be future grantors, damage to one’s reputation, and in some cases, criminal prosecution. Central African Research and Innovation Management Association

4. Types of Grants Central African Research and Innovation Management Association • A grant is a financial donation given to a person, organization, project or program for use as intended by the donor. • 6 types of grants require management: • -Capital grants (for endowment, building, equipment or construction) • -General operating grants (for the everyday operations of an organization) • -Program/project grants (for a specific activity or plan within an organization, usually time limited) • -Start-up grants (cover the cost of starting a new project or organization) • -Technical assistance grants (for supporting the development of an organization or infrastructure needs) • -Planning grants (for supporting the planning stages of a future project).

5. 3. Characteristics of External Grants It is a broad term which includes funding from national public and private sources as well as other international bodies that support a range of research and dissemination activities. External funding is a component of the global budget of an institution. Therefore, financial management principles of the State need to be considered when making use of funds from external donors. While a grantee tries to follow all the terms and conditions associated with a grant, there is also the challenge of respecting the financial management principles of the State during the management phase of the project. Central African Research and Innovation Management Association

6. 4. The Cameroon Finance Law -It is a law issued annually that ensures fair competition, protects the financial interests of companies and individual investors, lays prescriptions on the various financial policies of the State, and paves the way for the implementation of Cameroon’s fiscal policy. -It outlines revenue sources and allocations on expenditure and modalities on the execution of the State budget -In Cameroon, this is a document which is deliberated and adopted by the National Assembly and promulgated by the President of the Republic. Central African Research and Innovation Management Association

7. 5. Grants Management Central African Research and Innovation Management Association -It is critical for a grantee to exercise effective grants management strategies for a number of reasons: *A grantee can lose funding during the implementation process of a project if grant is not effectively managed. * A grantee who accepts grant award enters into a legal contract with a grantor. In exchange for financial support (the grant award), a grantee promises to honour the intent of the project and implement it to the best of his or her ability as outlined in the proposal that was submitted. In addition, he or she has to spend the award funds as delineated in the line items listed in the budget.

8. * If a grantee chooses not to work toward the outline objectives and spending the money appropriately, it can be considered a breach of contract. A grantor in this case, can request that funds be retuned or funding can be stopped at any point during the implementation of the project. * The grantee enters in a relationship with a grantor when they sign the award agreement.

9. 6. Key Local Challenges 1. Access to funds: respect procedure for committing expenditure. Two procedures exist: either by a Decision or by the regular procedure of service/delivery before payment (Commitment Order). -Expenditure below 5m =Commitment Order -Expenditure of amount between 5m and less than 50m =Jobbing Order -Expenditure of amount equal to or above 50m =Contract Central African Research and Innovation Management Association

10. Purchases done by a Decision is an exceptional procedure at the discretion of the Vote holder. A Decision and Statement of payment can be used to pay salaries of staff, honoraria, per-diem, and night allowances. 2. Respect of the tax regulation: application of the different tax regimes A government institution deducts taxes at source as a tax agent to the government and the deduction remitted to the State Treasury.

11. Since 2012, 3 tax regimes are in application in Cameroon (tax assessment system):

12. Payments such as allowances not related to salaries attract a 16.5% deduction. Expenses on personnel have to be subject to all tax deductions as stipulated by law. 3. Use of recognized suppliers/contractors who are duly registered with the State: Have all the relevant references of identification required by regulation which are: a business name and address, a current business licence (patente), a tax payer’s card, an attestation of bank account, a registration number, and a statistical number. 4. Appropriate use of a control card; It serves as a regulatory document to monitor consumption of funds received. It needs to be properly kept and updated as needed. Central African Research and Innovation Management Association

13. 5. A unique bank account for external grants: Individual projects do not have separate bank accounts. PIs are expected to liaise with the Accounting Department to get the bank transfer details for the amount expected. 6. Respect of Stores management principles: materials supplied or service rendered or fixed assets acquired have to be received by the Stores Department against a bill and delivery note. Bill should bear a fiscal stamp if above 25,000F

14. 7. Time line to access funds: There is really no definite time line for payments. A PI initiates a request for disbursement of funds. This request is processed following a defined route until it gets to the Accounts Department for cash to be issued. 8. Supporting documents to back –up requests: bills, statement of payments, pay-slips, supplier’s fiscal documents etc.

15. 9. Preparation of Financial documents (CO, PO, MO) by the Finance Department 10. Verification and visa by the Finance Control and Accounting Department before release of funds. 11. Submission of Accounts to Management; Usually, reports and accounts are submitted directly to the donors. 12. Recovering and managing indirect cost: Together with direct costs, indirect costs are an integral part of a research budget. Some questions need to be answered: Do PIs remit the indirect cost to the organization? To whom do indirect costs belong in an organization?

16. 7. Conclusion Sound management practices are required for excellence in research.