financial management training research finance

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Financial Management TrainingResearch Finance

Research Finance

What will we cover?

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3. Post-award finance administration

2. Pre-award finance administration

1. Introduction to the Research Finance Office

Introduction to The Research Finance Office

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Research at Queen’sCorporate Plan 2011-2016 Objectives

• To offer an exceptional student experience and high quality education, leading to improved progression, attainment and excellent career opportunities for our graduates

Strategic Priority 1

• To enhance internationally recognised, globally competitive and sustainable research areas


• To grow an efficient, effective and sustainable enterpriseStrategic Priority 3

• To develop global citizens and address international challenges


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Research & Enterprise/Research Support OfficeThe Support Provided

Research and

Enterprise

Research Finance Office

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Research & Enterprise/Research Finance OfficeThe Support Provided

Need to identify potential sources of funding

Need assistance with writing a funding application,

legal/contractual issues etc.

In relation to applying for research funding…if you….

R&E

Confirm that meet eligibility criteria for funding

Build cost for research application

RFO• Pre and post-award financial advice

• Applying governance process

• Claims and financial reporting process

• Research Development

• Business Alliance

• Research Governance

• Research Policy

• Commercial Development

• Consultancy

• Contracting • KTP and Networking

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Focus on Research GrantsLifecycle pre-award

Application and costing

Write research proposal

Approval Submission NotificationContract / Letter of

Offer

Pre-award finance administration

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Pre-award administrationWho is involved?

Pre-award administration

Research Finance Office

Research and Development

Business Alliance

Commercial Development

RSO

Research & Enterprise

Contracts and IP

Governance and Ethics

KTP business & networks

Research Policy

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Focus on Research GrantsLifecycle post-award

Post-award finance administration

Project set-up

Agree budget

Prepare claimsAudit and

vouching, credit control

Final claim and project closure

Financial Management

Research and Output

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Post-award administrationParties involved

Project

RFO/Finance

HR

Partner

R&E

School

Estates

Funders

Auditors

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Post-award administrationLink to wider Finance Directorate

RFO

Income

Payments

Salaries

Financial Systems

Accounting Services

Purchasing

Capital and Costing

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Application and

costing



Offer

Approved RGAS form

(research grant application summary)

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Resources required

Application and

costing


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Cost versus Award ValueWhat’s the difference?

Directly Incurred Costs

Directly Allocated Costs

Indirect Costs

FECFull economic

cost Directly Incurred Costs

?

?

Award Value

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Different Types of CostsWhat falls into each category?

• Directly linked to the project. If you did not undertake the research the University would not incur these costs.

Directly incurred costs

• Not directly linked to one specific project but are related to research. These costs are calculated based on making certain assumptions about the nature of the costs.

Directly allocated costs

• Cannot be directly linked to a research project but are necessary to run the University.

Indirect costs

salary of an additional researcher, laboratory consumables, travel

costs

share of PI/CI time

contribution to all other central overheads e.g.

support functions, estates

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Approach to costing

Once you have FEC….Funder Income Template Summary Information

Use pFACT to calculate FECInput direct costs Input staff time pFACT calculates

indirect/estates costs

Costing principleFEC, applying TRAC principles

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pFACTHow does it work in practice?

• University’s web based research costing systemWhat is it?

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FEC vs Award ValueExample

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Cost versus Award ValueThe importance of Full Economic Costing

FEC Award Value

Should we continue with application?

RGAS form

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Offer

Approved RGAS form

Accept - RAF

Decline

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Reporting of Research Application ActivitySystems used

Finance Dashboard

Academic CV

Research Grants

Database

PURE

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Finance DashboardResearch Applications

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Finance DashboardResearch Applications

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Finance DashboardResearch Awards

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Finance DashboardResearch Awards

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Offer

Approved RGAS form

Accept – RAF

Decline

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Research Award Form

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Putting it all togetherFEC/Award Value/Budget

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* With the exception of equipment funded at 50% of FEC

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shortfall in funding of direct costs

£75,000


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transfer£75,000

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RAF

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Focus on Research GrantsLifecycle post-award


Project set-up

Agree budget

Prepare claimsAudit and

vouching, credit control

Final claim and project closure

Financial Management

Research and Output

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Project set-upR code

All information relating to finance and administration sent to RFO

RFO will liaise with PI to ensure appropriate administrative

arrangements are put in place

Trigger for QFIS project set up – R code

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Agreeing the budgetWhere the money goes

pay

non-pay

o/heads

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Managing your research budgetsWho does what?

• Ongoing monitoring of costs compared with budget• Monitoring cash position in parallel (income received from funder)• Finance dashboard summary report for each R project updated on monthly basis• RSO’s provide written commentary on R projects in School on quarterly basis

RFO

• Review budgets for their area on regular basis, following up on areas of concern

Head of School/School manager

• Review budget on a regular basis • Ongoing access to live reports through QOL

PI

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How to manage your research budgetsWhat reports are available?

• Reports that show all R projects within the School, giving summary information

Head of School

• Via QOL and PURE can see reports for projects that you are named onPI

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Sample reportsResearch Management

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Sample reportsResearch Management

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Claims processHow is income profiled?

• There are a number of ways that sponsors can profile income….

All upfront Split evenly over the life of the project

Initial large advance instalment, then split

over life of project

To match expenditure incurred on project

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Claims processAudit and vouching

• Typically RFO need to prepare claims or issue invoices to the sponsor

• Sponsor needs to confirm that costs are real, actual and relevant to the project

• The level of audit and vouching of claims depends on the sponsor, ranging from

– Visiting University every 3-4 years for ~1 week to test systems etc., looking for evidence that well equipped to manage funds

– Requiring an independent audit on each claim which is then verified by the sponsor and may be subject to further audit

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Summary – key pointsPre-award finance administration

Variety of expert support available from R&E and RFO

Costing using FEC principles ensure the viability of individual projects sustainability of the School and wider University

RGAS form: Key control 1

Important to communicate outcome of application to RFO

Importance of contract/letter of offer

RAF: Key control 2

Information on applications and awards available

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Summary – key pointsPost-award finance administration

Agreeing budget and project set up

Roles and responsibilities in relation to financial management – RFO there to support

RFO report on budget to various parties

Importance of claims, audit and vouching

Final reporting, closing the project

financial management training research finance

Documents

research applicationrfopre

research strategy

research fundingif

terms of research funding

appropriate support

preaward administrationwho

postaward financial

high level view