On Going Financial Information
Changes to the Budget
Changes between 5% and 10% of the total of each expense account within the cost centre do not normally require outside approval. Yet changes exceeding a proportion of 10% of the budgetary expense account within the cost centre must be submitted and approved by Research Management Services, which will then take the steps required to complete the modifications.
Transfer of Expenses and Correction of Errors
When an encumbrance has not been debited from the correct account or cost centre, a journal entry must be made by the administration officer responsible or any other authorized person in order to correct the error.
Journal entries are registered in the FORM system for which a user code is necessary to obtain access. FORM transactions are approved by the Financial Services and are transferred to the ledger during Smart Stream financial system updates (Tuesday, Thursday and Friday evenings).
Journal entries are also used to register internal sales, reprography services, postal fees, etc. You must communicate the cost centre number of the concerned project when you buy goods or services from these units.
Foreign Currency
More and more, agencies and companies outside Canada negotiate research contracts or award research grants to the University. As a general rule, an estimate of revenues of the first year is calculated according to the current exchange rate and credited into the cost centre. Positive or negative adjustments are then made by Financial Services when payments are received from the agency. By doing so, excess or loss of exchange is avoided.
Advances Against Future Instalments
When a researcher can demonstrate that additional expenditures are essential to the continuation of the project, advances against future instalments may be granted.
To obtain an advance the researcher must:
i) Obtain approval from the Department chair;
ii) Obtain approval from the Dean of the Faculty; and
iii) Obtain approval from Research Management Services, using the "Request for Loan against next Installment" form.
All requests for authorization of additional expenses must be fully justified and accompanied by a plan of action to return the centre to a positive balance as soon as possible. The researcher requesting an authorization to overspend is responsible for research grant commitments.
Deficit Accounts
In the Smart Stream financial system and the FORM-journal entry module exists a security device. Purchase and journal entry transactions in cost centres where funds are not available are automatically blocked by the system.
However, it is possible, by exception, to approve a transaction. In order to do so, the responsible administrator must provide the Financial Services with justifiable arguments.
Such security does not exist for transactions pertaining to wages. If a salary commitment causes a centre to go in to a deficit, the researcher must reimburse the loss of income or clearly indicate, in writing, how he/she plans to finance that salary expenditure.
In order to avoid problems, it is essential that you ensure funds are or will be available when hiring research assistants.
Researcher's responsibilities:
As mentioned in the statement of the researcher's administrative responsibilities and in policy 85 (section 12), the principal investigator is responsible for overspending (deficits) in his research projects.
A monthly report of new deficit centres is sent to all concerned department administrators. The research and trust section also sends a memorandum in which it is asked that the situation be redressed or to inform by writing of the way and time of reimbursement of the deficit.
If the researcher cannot reimburse an accumulated deficit in a short term, he/she will have to submit to his/her faculty, Research Management Services, and Financial Services a recovery plan specifying how he/she plans to correct the situation.
Surplus Accounts
Ideally, the researcher should ensure the spending of the amount granted for his/her project by the established end date.
Some agencies are conscious that it is sometimes difficult to coordinate everything by the project's end date and grant a period of time allowing researchers and administrators to finalize transactions; not all organizations grant this deferral.
If you judge it impossible to respect deadlines originally established, you must ask the agency, in writing, for a prolongation by briefly explaining the grounds for your request.
The agency's written response will have to be communicated to the Office of Research Management Services which will advise Financial Services if the system's end date needs to be modified.
It may occur that the whole amount granted for your project was not needed and thus the remainder must be returned. An officer from the Research and Trust section at Financial Services will communicate with the responsible Department's administrator and ensure that the Researcher authorizes the reimbursement before returning the excess amount.
