Presented by: Melissa Squires, Manager, Research Accounting

1. Canadian Foundation for Innovation GrantsA Presentation by Research Accounting on CFI Grant Management Presented by: Melissa Squires, Manager, Research Accounting Angela Crant, Staff Accountant, Research Accounting Ros Whitten, Project Accountant, Research Accounting

2. Presentation Objectives • Topics to be discussed: • The roles and responsibilities of our department and yours • The use of grant funds including a listing of eligible and non-eligible expenses and required supporting documentation • How to handle deviations from your original budget • In-kind contributions • Circumstances that would change a CFI’s contribution • CFI’s installment schedule policies • Construction/renovations of a larger undertaking • Financial reporting and documentation retention • Delays and extensions • To provide contact information and to gather feedback

3. Programs Leaders Opportunity Fund Major Leading Edge/New Initiatives Fund College Industry Innovation Fund Major Science Initiatives Fund

4. Roles and ResponsibilitiesMemorial University • To monitor usage of grant and award funds • Provide administrative and financial support to grant holders • Liaison with granting agencies • Monitor the eligibility status of grant holders • Annual reporting to the granting agency

5. Roles and Responsibilities:Grant Holders and Departmental Administrators • Management of grant funds • Compliance with the agencies policies and guidelines • Justify expense(s) as being related to research • Timely notification of changes in eligibility status • Timely notification of delays and/or changes in the project • Annual reporting to granting agencies

6. Infrastructure Projects – Related Expenses Eligible • Research Equipment including: shipping, Transportation and installation of research infrastructure, including brokerage fees, excise taxes and duties • Direct construction or renovation costs including adjacent space • Warranty and or service contract • Software Licences • Laboratory furniture • Communications infrastructure “essential” for the research activities described in the proposal. • Travel to a manufacturer, dealer or supplier to select research infrastructure • Initial Training for the main operator • Professional, technical and managerial personnel • Construction or renovation of space • Acquisition of a database

7. Infrastructure Projects – Related Expenses Ineligible • Purchase or lease of real property • Renovation or construction of non-research space including meeting/conference rooms, landscaping, and art collections • Relocation of existing tenants • Infrastructure primarily used for teaching or clinical care • Office Furniture, supplies and consumables • Internal Fees for the use of infrastructure owned by the institution • Operating costs related to the general maintenance and overhead of the research infrastructure • Trainee stipends and researcher salaries • Research related costs and administrative costs • Conference Travel

8. Infrastructure Operating Fund - IOF • Infrastructure Operating Fund is a program that funds the costs of operating and maintaining the CFI-Funded infrastructure project. There is no partner funding required.

9. Infrastructure Operating Fund Conditions • The infrastructure item to which it relates must have been funded by the original CFI • The CFI funded infrastructure project to which it relates must have passed the stage of award finalization • The operating and maintenance activities are needed to ensure the infrastructure can be used to carry out the proposed research • The infrastructure must still be used for research purposes.

10. Eligible Vs. Ineligible Expenses - IOF Eligible • Salaries of highly qualified personnel • Training for the main operator • Extended warranties & service contracts not included in the infrastructure award • Extensions to warranty coverage and software licences • Maintenance and repairs • Replacement of a CFI funded infrastructure only if replacement is cheaper than repairs. • Services (Electricity, security etc). • Supplies/Consumables needed to operate the research infrastructure

11. Eligible Vs. Ineligible Expenses - IOF Ineligible • Purchase or lease of real property • Cost of equipment, installation and construction or renovation • Upgrades related to the infrastructure • Extended warranties and service contracts that were included in the infrastructure project • Telephone, internet, cable or satellite television • Insurance • Costs not directly related to the CFI funded infrastructure • Trainee Stipends • Administrative, secretarial or clerical personnel • Dissemination of information • Expenses reimbursed by another source

12. Financial Supporting DocumentationFor both capital and operating grants • Have separate project accounts for each CFI project (CFI, matched funds and IOF) • Maintain an audit trail for all transactions reported to CFI • Financial records must identify the various funding sources • Financial records must identify the full cost of all eligible items • Cash expenses and contributions that are related to the eligible items should be tracked separately • Eligible in-kind contributions can be tracked on an excel spreadsheet • Financial records (Banner) must reconcile to the financial report submitted to CFI

13. Financial Expenditures Supporting Documentation • Purchase requisitions • Request for bids and all bids received following a competitive bid process • Documentation justifying an exception if a competitive bid process was not undertaken • Must be permitted under MUN policy and procedure • Summary form documenting bids received and the evaluation with rationale for selection of the supplier • Purchase Order • Receiving documentation • For travel costs, boarding passes or other evidence supporting that travel has taken place • Invoice

14. Personnel Supporting Documentation • A CFI personnel form must be completed and returned to Research Accounting prior to submitting the financial report • The template can be found on the CFI website or can be requested from Ros Whitten • Time records signed by the individual and approved by the supervisor or a single time record covering the entire period since the last filing • CFI will accept confirmation from the project leader if that person is knowledgeable of the time spent and the activities performed

15. Deviations from Original Budget: • Changes to an infrastructure or purchase of a new item not included in the proposal are eligible if all of the criteria's are met: • The institution will still be able to complete the remainder of the project • Infrastructure is directly related and essential to the project • Proposed Change has a positive impact on the project • New or replacement item is an eligible cost • Institution will be able to operate and maintain the infrastructure over its useful life and assume all costs.

16. Deviations from Original Budget:For both Capital and Operating Grants • Prior approval that must be obtained from CFI if: • Any change having a negative impact on a project and its research objectives, regardless of cost implications • Any new item for which the cost exceeds $50,000

17. Eligible In-Kind Contributions: • Defined as non-monetary resources that external partners offer as a contribution towards a CFI funded project • Include the value, in whole or part, of eligible capital items or non-capital items • In-kind contributions to the operating costs of research are ineligible • Recognizes eligible items involving in-kind contributions as fair market value • Contributions made by the institution or participating institutions are considered cash contributions

18. Valuation of In-Kind Contributions: • CFI recognizes eligible items involving in-kind contributions at their fair market value at the time of transfer of ownership • In some cases the value is known • Although some cases it is unknown and it must be assessed using commonly accepted methods (eg depreciated value) • Institution should contact CFI if it is unable to establish the fair market value of an item • All quotes must state the in-kind is “CFI” related • In-kind will need to be monitored due to cash payments being directly related to the CFI and matched funds percentages.

19. Valuation of In-Kind Contributions: • Obtain from a supplier a confirmation of the price that would have normally been charged to the institution for the item • Compare other bids that have been received as part of a competitive bid process and that provide market comparisons • The cash consideration paid in a previous purchase of the same item • Institutions experience with a suppliers discount structure • Appropriate documentation should be kept on file to support the fair market value

20. Valuation of In-Kind Contributions in excess of $500,000: • Must tender the item for fair market evaluation • Valuation methods are similar to other in-kind methods with the exception: • Tendering clerk (Frank Pippy) must assess the fair market value of the competitive bids • If this is not possible, a third party appraisal will be requested to CFI • Keep all supporting documentation for this assessment (eg. bids, invoices for similar purchases) on file for audit purposes

21. Construction or renovations that is part of a larger undertaking Documentation • If the construction/renovation of the space you will be occupying is a part of a larger construction/renovation (Eg. One room of a full floor renovation) please notify Ros Whitten in Research Accounting • The actual reporting of these expenses will need to be calculated as a prorated expenditure • There are two methods that are acceptable: • Cost Allocation Method or the Simplified Method • A framework for the evaluation of cost allocation and simplified can be found at www.innovation.ca/en/OurFunds

22. Changes to CFI Contributions: • CFI will not normally increase its contribution to a project and will only consider adjusting it under exceptional circumstances • CFI made an administrative error • Project is unique and complex • Confronted with an exceptional situation that was unpredictable • Funding shortfall that jeopardizes its success, timeliness and relevance • Unexpected cost increases

23. Installment Schedule • 10% holdback of funds which is released upon final review • >1 million dollars, CFI makes installments over one or more years • Installments are usually quarterly • CFI will withhold all payments when an institution does not comply with reporting requirements for all projects

24. Financial Reports • Research Accounting prepares and submits an annual financial report by June 15 for the period ending March 31 fiscal year • Projects under 1 million require a financial report every two years • Financial reports are signed by the Director of Financial Services and the Vice President of Research • Researcher and Departmental Administrative staff need to review the expenses, properly categorize these expenses to the financial statement and advise of any changes

25. Retention of Documentation • Institution must keep all financial records and supporting documentation for each transaction to comply with Canada Revenue Agency Requirements • Documentation is to be kept for at least six years plus current and provide it upon request • CFI may request that the documentation be kept for a longer period if this is required for audit purposes.

26. Delays in the Project • Monitor quarterly for higher risk projects and monitor annually for lower risk projects • Any delays that are expected to have a negative impact on a project • CFI will require justification regarding the nature of the delay and its impact on the project

27. Project Extension • Must complete the project within the anticipated end date as indicated in the Award Agreement • Automatic 6 month extension from the award end date. It is important to ensure the end date for any matched funds are inline with the 6 month extension • Approval is required from CFI if the project extends beyond the 6 months

28. CFI Link • CFI Policy and Program Guide: • http://www.innovation.ca/sites/default/files/essential_documents/Policy_and_program_guide_en.pdf

29. Memorial University PoliciesEnsure familiarity with University policies • Hosting Policy: • http://www.mun.ca/policy/site/policy.php?id=107 • Travel Policy: • http://www.mun.ca/policy/site/policy.php?id=187 • General Research Pool Policy: • http://www.mun.ca/policy/site/policy.php?id=136 • Purchasing Policy: • http://www.mun.ca/policy/site/policy.php?id=181

30. Contact Information Address: Financial and Administrative Services Research Accounting Arts and Administration Bldg.; Room A1027 Staff: Melissa Squires– Manager smelissa@mun.ca Ext. 2471 Angela Crant – Staff Accountant coopera@mun.ca Ext. 2489 Ros Whitten – Project Accountant roschafe@mun.ca Ext. 2468 Julia Byrne– Project Accountant jib031@mun.ca Ext. 2641 Allison Rose – Accounting Clerk amr405@mun.ca Ext. 7824 Connie Dinn – Accounting Clerk cdinn@mun.ca Ext. 8227

31. Questions?

32. Thank you for attending!