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Research: The Growing Impact on the Financial Operations of Universities

Research: The Growing Impact on the Financial Operations of Universities. CAUBO 2006 Conference June 25, 2007. Agenda. Challenges, issues and impacts York’s solutions Questions. Challenges. Grant/Contract Complexity Reporting Requirements Matching Funding Challenges

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Research: The Growing Impact on the Financial Operations of Universities

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  1. Research: The Growing Impact on the Financial Operations of Universities CAUBO 2006 Conference June 25, 2007

  2. Agenda • Challenges, issues and impacts • York’s solutions • Questions Trudy Pound-Curtis, Assistant Vice-President Finance & CFO CAUBO 2007 Conference, June 25, 2007 / 1

  3. Challenges • Grant/Contract Complexity • Reporting Requirements • Matching Funding Challenges • Financial Management Challenges • External Audits • Funding Pressures • Cultural Issues Trudy Pound-Curtis, Assistant Vice-President Finance & CFO CAUBO 2007 Conference, June 25, 2007 / 2

  4. Grant/Contract Complexity • Issues • Increased reporting requirements • Expansion of types of programs – federal/provincial/private sector • Different rules • Different reporting timelines • External audit • In-kind contributions/deep discounts • Collaborative projects  multi university • Foreign grants/contracts Trudy Pound-Curtis, Assistant Vice-President Finance & CFO CAUBO 2007 Conference, June 25, 2007 / 3

  5. Grant/Contract Complexity (cont’d) • Impact • Higher level of professional skill sets required • Role of Research Accounting is moving to that of professional financial advisor for budget preparation, financial forecast, procurement advice, etc. • Education and training • Research accounting staff • Administrative staff at local level • Researchers Trudy Pound-Curtis, Assistant Vice-President Finance & CFO CAUBO 2007 Conference, June 25, 2007 / 4

  6. Grant/Contract Complexity (cont’d) • Impact (cont’d) • Financial pressure on budgets to support Research • Coordinating with multi-party institutions • Increasing difficulty to ensure compliance with variety of requirements • Review and revise internal controls and procedures to ensure compliance. Trudy Pound-Curtis, Assistant Vice-President Finance & CFO CAUBO 2007 Conference, June 25, 2007 / 5

  7. Reporting Requirements • Issues • Form 300 vs. specific reporting requirements • Cash flow projections • Recognition/Reporting • In-kind donations • Deep discounts • Partial funding arrangements • Multi partner arrangements • Timing of reporting Trudy Pound-Curtis, Assistant Vice-President Finance & CFO CAUBO 2007 Conference, June 25, 2007 / 6

  8. Reporting Requirements (cont’d) • Impacts • Valuation issues • Implications for automation of reporting • Cash flow impacts • Managing multi parties in agreements Trudy Pound-Curtis, Assistant Vice-President Finance & CFO CAUBO 2007 Conference, June 25, 2007 / 7

  9. Matching Fund Challenges • Issues • Pressure to find funding partners • Risk of funding partner default • Federal/provincial programs • Political risk – provincial matching programs • Competitive pressure to accept projects Trudy Pound-Curtis, Assistant Vice-President Finance & CFO CAUBO 2007 Conference, June 25, 2007 / 8

  10. Matching Fund Challenges (cont’d) • Impacts • Financial pressures on University budgets • “Conflict of interest”/Source of funds Trudy Pound-Curtis, Assistant Vice-President Finance & CFO CAUBO 2007 Conference, June 25, 2007 / 9

  11. Financial Management Challenges • Issues • Use of technology • Procurement cards • EFT payments • Electronic travel claim submissions • Document imaging – A/P vouchers (compliance audits) • Decentralization vs. centralization – Accounting • Timing of application vs. date of award Trudy Pound-Curtis, Assistant Vice-President Finance & CFO CAUBO 2007 Conference, June 25, 2007 / 10

  12. Financial Management Challenges (cont’d) • Issues (cont’d) • Foreign grants • Public accountability • Ineligible direct costs (i.e., severance costs/benefit cost) • Retention of records for CFI major capital projects  up to 10 years Trudy Pound-Curtis, Assistant Vice-President Finance & CFO CAUBO 2007 Conference, June 25, 2007 / 11

  13. Financial Management Challenges (cont’d) • Impacts • Compliance monitoring standards • Review of internal controls and procedures • Audit requirements • Photocopy of vouchers • Cancelled cheques • Procurement cards • Electronic travel claim reimbursement • Document retention • Communication directly with researcher – no RA involvement (passwords to PIs) Trudy Pound-Curtis, Assistant Vice-President Finance & CFO CAUBO 2007 Conference, June 25, 2007 / 12

  14. Financial Management Challenges (cont’d) • Impacts • Managing foreign currency risk • Competitive bidding on purchases from research grants • Increased reliance on administrative support • Cost have risen/technology outdated/funding partner has changed his mind • Budget pressures for severance and benefit costs on research grants Trudy Pound-Curtis, Assistant Vice-President Finance & CFO CAUBO 2007 Conference, June 25, 2007 / 13

  15. External Audits/Monitoring Visits • Issues • Provincial grants (ORDCF) • CIDA • Canarie • Department of Foreign Affairs Canada • International Trade Canada • CFI > $4 million • Monitoring visits • Impacts • Significant time consumed • Significant cost for separate audits • Heightened sensitivity in Ottawa • No dispute resolution mechanism • Timing of results of Monitoring Visits/Audits Trudy Pound-Curtis, Assistant Vice-President Finance & CFO CAUBO 2007 Conference, June 25, 2007 / 14

  16. Funding Pressures • Issues • University funding levels (constant budget cuts) • Increasing cost to support research (professional staff, etc.) • CRC appointments • Impacts • Indirect Cost of Research grant relief • Shortfall in CFI grants – end of day • Pressure on Overhead Calculations on Contracts • Pressure from Researchers to forgo overheads to subsidize their grant activities • Salary/PTR increments/Start-up costs – CRC Chairs Trudy Pound-Curtis, Assistant Vice-President Finance & CFO CAUBO 2007 Conference, June 25, 2007 / 15

  17. Cultural Issues • Challenges • Researchers’ attitude Trudy Pound-Curtis, Assistant Vice-President Finance & CFO CAUBO 2007 Conference, June 25, 2007 / 16

  18. York Solutions To Date • Restructured Research Accounting; replacing staff vacancies with increased skill levels; • Introduced new Research Administrator positions at Faculty level for post-award support; • Vice-President Research and Innovation established Research Officer positions at Faculty level for pre-award assistance; • Introduced new Accountability Agreements for all researchers; • Introduced pre-requisites to open research accounts • Signed accountability agreement • Mandatory training on eReports Trudy Pound-Curtis, Assistant Vice-President Finance & CFO CAUBO 2007 Conference, June 25, 2007 / 17

  19. York Solutions To Date (cont’d) • Introduced monthly email warnings and advices re: • Available balances by grant number • 90-day notice of expiry of grant • Overdrafts • Expiry of payroll contracts • Considering others • Increased training to researchers: • Small groups • Faculty-specific Trudy Pound-Curtis, Assistant Vice-President Finance & CFO CAUBO 2007 Conference, June 25, 2007 / 18

  20. York Solutions To Date (cont’d) • Workshops and reference manuals for CFI awardees; • Established dedicated Procurement Professional to support CFI awardees; • Implemented monthly checklists on all CFI grants; • In process of obtaining funding for a “Central Fund of last resort”; • Increased communication/cooperation with Office of Research Services/Associate Vice-President of Research • Joint training and information sessions Trudy Pound-Curtis, Assistant Vice-President Finance & CFO CAUBO 2007 Conference, June 25, 2007 / 19

  21. York Solutions To Date (cont’d) • Developed guidelines for Managing Foreign Currency Contracts; • Ontario Universities have requested CAUBO to assist in dealing with the Federal Agencies regarding their requirement for extensive copying. • Created a compliance officer position to monitor high risk research areas (overspends, receivables, etc.) Trudy Pound-Curtis, Assistant Vice-President Finance & CFO CAUBO 2007 Conference, June 25, 2007 / 20

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