CAUBO 2006 Conference
June 25, 2007

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

• 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

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

(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

(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

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

(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

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

(cont’d)
Impacts
• “Conflict of interest”/Source of funds
Trudy Pound-Curtis, Assistant Vice-President Finance & CFO CAUBO 2007 Conference, June 25, 2007 / 9

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

(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

(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

(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

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

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

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

1. Restructured Research Accounting; replacing staff vacancies with increased skill levels;
2. Introduced new Research Administrator positions at Faculty level for post-award support;
3. Vice-President Research and Innovation established
Research Officer positions at Faculty level for pre-award assistance;
4. Introduced new Accountability Agreements for all researchers;
5. 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

(cont’d)
6. 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
7. Increased training to researchers:
• Small groups
• Faculty-specific
Trudy Pound-Curtis, Assistant Vice-President Finance & CFO CAUBO 2007 Conference, June 25, 2007 / 18

(cont’d)
8. Workshops and reference manuals for CFI awardees;
9. Established dedicated Procurement Professional to support
CFI awardees;
10. Implemented monthly checklists on all CFI grants;
11.
In process of obtaining funding for a “Central Fund of last resort”;
12. 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

(cont’d)
13. Developed guidelines for Managing Foreign Currency
Contracts;
14. Ontario Universities have requested CAUBO to assist in dealing with the Federal Agencies regarding their requirement for extensive copying.
15. 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