Department Administrator Session #14 October 30, 2014 Agenda • Internal Audit of Tri-Agency grants – Internal audit report released Mar 2014 – Observation by Internal Auditor – Management Action • Tri-Agencies Monitoring Review – Updates • Reminders – Release of Funds – Airfare eligibility – Change of Status • Next Session Internal Audit Report Travel & Hospitality Observation made by Internal Auditor Tri-council Claim Certification form not attached Management Action - Travel Claim Form will prompt claimants to fill out Tri-council Form if the claim is from Tri-council grant Changes implemented eff. Sept. 17, 2014 - Expense claim should be authorized Rubber stamp (instead of with original signature grantee’s original signature) - If approver is not available in person, form can be faxed/scanned back was used - Signature stamp is unacceptable Internal Audit Report Travel & Hospitality Observation made by Internal Auditor Management Action Insufficient supporting - Appropriate supporting documentations should be submitted with all expenses claimed documentation - Specific to Hospitality Charges: Purpose, #of attendees names and affiliation of attendees Internal Audit Report Travel & Hospitality Observation made by Internal Auditor Insufficient supporting documentation Management Action - Specific to Travel charges: Purpose of trip Dates and destinations (person or location visited) Conference Agenda Prospectus/program indicating dates of conference Details of any vehicle used Original receipts (credit card slips are not valid receipts) - such as hotel, meals, Car rental agreements Original air travel ticket receipts Boarding passes Affiliation of Traveler to grant leader Travel & Hospitality - discussion • Due to increasing accountability and audits, it is essential that claimants provide more details on expense claims. • Remember that more info is better than no info. • Treasury Operations will sort through info provided. It is difficult when the information is missing to determine what happened and make good judgement about expense eligibility and compliance. • To re-word, your expense claim should tell the story of the trip and add as many notes as required. This will eliminate the guessing game. • For hospitality expenses, always include names and the number of attendants • If at any time you are unclear about what to include with the claim, please contact Treasury Operations. Internal Audit Report Travel & Hospitality Observation made by Internal Auditor Management Action - As per Tri-council guidelines, Car Rental Insurance cost is an eligible Ineligible Expenses – Car cost if the car rental cost is directly Rental Insurance Costs related to the research for which the grant is awarded - Gift is NOT eligible expense Ineligible Expenses – Duplicate - Please make sure expenses are Meal Expenses and Gift claimed only once Direct Billing for Travel • Budget Car receipts should be attached with travel claims and noted as ‘Previously Claimed’ on the claim even though it has been paid by A/P • The original receipt should remain with A/P and copy should be included with the travel claim • It is possible that some types of expenses bypass the dept. and are paid directly by UOG (rental cars and travel agencies). This results in no authorization of the expense • A new authorization form has been created which requires pre-approval by the department and this form must be submitted to the Travel Agency and they must attach the signed form to the invoice for payment by UofG. – This form will ensure greater controls and address an observation made by Internal Audit in their Tri-Agency Review Internal Audit Report Travel & Hospitality Observation made by Internal Auditor Management Action - Effective, Economical & Essential Expenditures - - One Claim – One Trip Requirement As per Tri-council, “funds must be used effectively and economically and the expense must be essential for the research…” Airfare, hotel and meals etc and all other expenses should fit under above Tri-council Guide. Upon completion of the trip, previously paid expenses are to be entered on the final claim to capture the entire trip’s cost and to meet Tricouncil requirement Effective, Economical & Essential Expenditures discussion • If travelling before/after conference date, will need to indicate the reason • Eg. Attending the conference 3 days in advance because of involvement with preconference • By providing these extra details it will explain the purpose and remove all the guess work of the reviewer. This can be added in the Notes section • A good note to remember: – Tell a story about your trip. We are experiencing more accountability and audit requirements so the more info you provide on your claim, the better. Personal purpose of extending stay on travel claim • Must ensure they are not claiming hotel, meals, car rental etc. • Please indicate in Special notes. This will keep Treasury Operations informed of the story. • Document the difference between UOG & personal expenses • If decide to change trip to different location will need to justify. Tell the story and each case will be reviewed separately. Internal Audit Report Travel & Hospitality Observation made by Internal Auditor Management Action Ineligible Expenses – Expenditures after the end date - Expenditures must be incurred before the end of the grant. - It can be processed after end date Use of Pre-paid Gift Cards - Detailed receipts should be provided to support actual use of a gift card Internal Audit Report Operating Expenses Observation made by Internal Auditor Management Action Not appropriately authorized - Grant leader or an approved delegate should authorize the expense - Management is currently reviewing options to establish approval review process for SMCs, Internal charges etc. Insufficient supporting documentation - All appropriate supporting documentations (invoices, approvals, calculations etc.) should be maintained. Travel & Hospitality - Discussion • Travel claim form must be approved with all supporting documents including original detailed receipts (invoices will indicate HST) • Credit/debit slips are not invoices • Any previously reported travel must be included on the travel claim • Please use special notes for additional comments Internal Audit Report Operating Expenses Observation made by Internal Auditor Ineligible Expenses Management Action - Transaction audited was for Office Supplies which is ineligible expense - For Expense eligibility please visit 2013 TriAgency Financial Administration Guide http://www.nserc-crsng.gc.ca/ProfessorsProfesseurs/FinancialAdminGuideGuideAdminFinancier/index_eng.asp Ineligible expense - discussion • This all comes back to the story to determine if the expense is eligible. • So please include all documentation and any additional notes that may be required! • Please refer to Tri-Agency Financial Administrative Guide or follow up with Research Financial Services • Expenses need to be incurred before the grant end date • Please verify date of the expense to ensure it is eligible Tri-Agencies Monitoring Review Updates • Overall … it was a great review • Tri-Agencies happy with the initiatives and corrective action taken since our last review Tri-Agencies Monitoring Review Updates • A number of strong controls have been identified. The most notable are: – Training • Insider publication by Office of Research • Powerpoint slides from our Department Administrator sessions – Ownership/Disposal of assets • Proceeds from sales of equipment remain Tri-Agencies Monitoring Review Updates • Controls that require some improvement: – Delegation of Signing Authority • Not appropriate to delegate to administrative staff – Review of Expenditure for Compliance and Eligibility • Specific reference to PCARDs and Internal Stores – New or Emerging Ethics requirements • Can not rely solely on the researcher – CIHR Research Allowance accounts • Awardee (student) must have full authorization of use of account • Ethics clearance before releasing next installment Reminder – Steps to Release Funding Ongoing Grants Certification(s) in Place Office of Research to Validate Protocol(s) RFS release funds Communication to RFS Reminder – Steps to Release Funding New Grants Certification(s) in Place Office of Research to Validate Protocol(s) RFS release funds Completed Signing Authority Form Communication to RFS Reminder - Travel Cost - Airfare Tri-Agencies Policy • Air travel must be claimed at the lowest rate available, not to exceed full economy fare. http://www.nserc-crsng.gc.ca/ProfessorsProfesseurs/FinancialAdminGuide-GuideAdminFinancier/index_eng.asp University of Guelph policy • Air Travel Economy or similar fare is to be used whenever possible. Travellers claiming for the cost of air travel in a class of travel higher than economy must obtain the approval of their respective Dean or Vice President. This approval must be provided for each occurrence. https://www.uoguelph.ca/finance/travel-policy-procedure-fi-20 Reminder - Change in Status • The institution must notify the Agency's Finance (NSERC and SSHRC) or Program Delivery (CIHR only) Division as soon as a grantee's eligibility changes at any time during tenure of the grant. These changes could include: – a change in position at the institution, – a change from full-time to part-time status, – a change to a term position during the course of the grant, or – taking a position outside of Canada (academic or other). www.nserc-crsng.gc.ca/ProfessorsProfesseurs/FinancialAdminGuide-GuideAdminFinancier Thank you • Thank you to everyone that provided information, documentation, etc. for either of these audits/reviews over the last 12 months. Next Session • We will plan the next session for January 2015. • Enjoy the Holiday Season!!