Corporate Finance (Research)

1. Corporate Finance (Research) Presentation 18 September 2008

2. Agenda Proposed changes in relation to Fundraising and Advancement Services HERDC ARC and NH&MRC preparation DVC (Research) internal funding update Academic Research reports and the implementation plan for budgets to be uploaded in Hyperion ERA, what is it & its impact on faculty finance staff… RIMS – changes to processes; account clearing and closing; what’s next?

3. Corporate Academic Portfolios As at 4 June 2008 DVC (Research) Chief Financial Officer DVC (International) PVC (Learning & Teaching) Deputy Chief Financial Officer & Director, Corporate Finance Paul Slater DVC (Community) Executive Assistant Raewyn O’Connor University Librarian Corporate Finance Manager (Research) Moira McAllister Senior Corporate Finance Accountant Conita Hung Senior Corporate Finance Accountant (International) Thomas Chau Senior Corporate Finance Accountant (Library/ Learning & Teaching Raymond Wu Senior Corporate Finance Accountant (Community) Yee-Fong Lee • Office of DVC • Research • Research Office • Ethics • Dean of Graduate • Studies • Research Development • Associated Research • Institutes • EMU • Key Centre – • Microscopy • Nano MNRF • Corporate Academic • Portfolios Reporting Design and Production • Management Reporting • Compliance Reporting • Training • Office of DVC • International • International Office • Centre for English • Teaching • Summer School • International House • International Institute • RIAP • International Networks • Office of PVC • Learning and Teaching • Awards of Scholarships • Learning Centre • Maths Learning Centre • E-learning • Institute for Learning • & Teaching • Koori Centre • Institute for • Indigenous Studies • Law Extension • Committee • Office of • University Librarian • Collections and • Access • Branch Librarians • Library Services • Digital and • Technical Services • Office of DVC Community • Office of the Registrar • Student Administration • and Support • Marketing and • Communications • Community and Alumni • Engagement • University Museums • Philanthropy & • Development • Community Foundations • Student Associations • Seymour Centre

4. Fundraising Reporting – G.L. Account Structure • Financial reports driven by class codes • Management reports driven by:- • Project Code – type of fundraising activity • Responsibility Centre – beneficiary/custodian of fundraising

5. DVC (Research) Prof. Merlin Crossley • Research Funding Allocations • RIBG • Cancer Research Fund • Central Research Initiatives • USYD Funded Academic Staff Support Schemes (Research Fellowships) • USYD Funding for Commonwealth Academic Staff Support Schemes (Federation/ ARC/NHMRC Fellowships) • USYD Funded P-G Scholarships (UPAs/IPAs) • USYD Funding for CRCs/ARC Centres • Research Portfolio Operations • Dean of Graduate Studies • Research Development • Research Office • Ethics • External Research Scholarships • NHMRC/ARC Stipends • Bequests • APA • Cross Faculty Research Units • Microscopy (including EMU/Key Centre) • Bioinformatics • Synchrotron • Institutes DVC (Research) Portfolio As at August 2008 People PVC Research Prof. Carol Armour

6. Acting DVC (Research) Professor Merlin Crossley 6

7. HERDC Income 2003 to 2007 7

8. HERDC

9. HERDC FOR DEEWR Research Training Scheme Institutional Grants Scheme Research Infrastructure Block Grants Scheme Australian Postgraduate Awards Scheme Commercialisation Training Scheme Endeavour International Postgraduate Research Scholarships Scheme In conjunction with data from the Higher Education Student Data Collection, DEEWR determines HEPs’ grants for the following schemes: (Value ► ~$125m) RELATIVE 9

10. Changes to the HERDC process in 2009 following internal and external audits

11. Joint Ventures • Inserted into the guidelines in 2007 for 2006 income • Driven by the Warwick Dawson, Director RO • A joint venture is a contractual arrangement whereby two or more parties undertake a research activity that is subject to joint control. • Must have a Joint Venture Contractual Agreement (JVCA) • The JVCA can include non-HEP participants. • It should not include contributions in the form of capital injections or in-kind contributions.

12. Joint Ventures Process • USYD (CFR) to document the JV process • USYD to ensure that the JV partners are quite clear about HERDC guidelines & what can be included • CFR to attain documentation (ledger printout) from the JV partners to substantiate the inclusion of the income in the first instance • Argued that external audits are impractical

13. Joint Ventures Process • Sampling to be undertaken by NSW Audit Office in March/April • CFR has agreement that the management representation letter is incorporated into the JV agreement • USYD asked the NSW Audit Office to discuss this process with other audit partners so there was an agreed process for all HEPS

14. Joint Ventures Process • Medicine JVs – managed by the FFD • Non Medicine JVs – managed by CFR in consultation with the RO • JV Questions: • Is this OK to be a JV? → Warwick Dawson • What evidence do I need? → CFR

15. Changes to the HERDC process in 2009 following internal and external audits Post the external and internal audits undertaken this year there are some measures we need to put in place to ensure compliance

16. The Audits This year for the first time we were audited by both Internal Audit as well as the standard External Audit. Key points included…. • In the internal audit requested by Bob Kotic it was suggested that the University could be under reporting our Research Income. “Highlights the importance to educate the Faculties/schools of maintaining post-award grants accurately and providing substantiating evidence in a timely manner as not doing so exposes the University to the potential loss of funding’ Ref: Recommendation 1 of the review of Higher education Research Data Collection

17. Requirements of the External Audit • CFR was asked to reduce additions e.g. miscoded transactions • List and reconcile shared grants • Clarity on Externally funded positions • Reconcile the 2008 Research Income in the annual accounts to the 2008 HERDC Income submission • Limit the number of versions

18. Requirements of the External Audit • All additions that are requested to be added to the HERDC report after the close will need to be completed on a standard template (available on our website) • Additions line by line – 104, not 105 – and cross referenced • Need to be accompanied by a SUGLQ 104 as well as substantiating documentation. • Any request that does not fulfil this criteria will be sent back until it is provided in the format as required by the NSW Audit Office.

19. Solutions • CFR will endeavour to educate and assist the Faculties/Schools prior to the close. We are here to assist and advise. If in doubt, ask. • CFR will be running exception reports in an attempt to identify possible problems/miscoding • CFR will be sending out a preliminary HERDC report to each area as soon as possible, identifying suspect research income

20. The best solution is Preparation! • Simple steps to ensuring the ledger is correct prior to the close will mean less additions, chasing of paperwork and a more accurate, automated report …… • The following checks should provide a sound base for a clean HERDC report.

21. Where is the money????

22. EFP (Externally Funded Positions) • Class 3700 v 3702 what % (if any) is research? • There will be a template on our website for you to complete and submit so that the reconciliation is inline with the contract and the ledger. • Principle: • Ledger $ (SUGLQ106) - % claimed - $ claimed

23. Things to look for • Have shared grants been invoiced for (A6 & N5)? If not this needs to be done as soon as possible using class 2119 • Non research Donation/Bequest income in research Donation/Bequest project code and vice versa (D1, B3) • Non research class in research account and vice versa. • Keep copies of all invoices to do with research grants as we are often asked to provide them to the auditor.

24. The big one……….. • Shared grants, Invoices paid under class 6713 v 6712 • CFR will identify all errors that we can and correct them in the ledger on the faculty’s behalf. If the payee in a Non-HEP USYD can count the funds. • But we need your help! Please ensure that any payments made under 6713 are truly shared grants. • If the funds are being paid for a contractor or work to be carried out at another university but does not have a Multi-Institutional agreement the class needs correcting to 6712 so your faculty/school can count the funds. • You will be asked to verify Shared Grants as well as income next year Mistakes lose the University/Faculty/Department funding

25. Procedure for opening new D1/B3 accounts – What is required? • Income that is received from a Research Donation or Bequest can also be included in the HERDC return. But to ensure it is counted it needs to be in the correct account. • Therefore here is what is required……

26. Complete the PeopleSoft ChartField request form found at http://www.finance.usyd.edu.au/docs/Peoplesoft_project_grants.xls • Obtain all supporting documentation that substantiates that the funds are solely for research. This should be from the donor/benefactor. • Email to: CorpFinance.research@usyd.edu.au

27. New policy with B3/D1 accounts • It has been agreed with Greg O’Dea that Advancement Services is to call CFR if staff wish to deposit funds into a D account with a D1 reference prior to D1080. • This is to allow CFR to check if there is expected funding for that year. • If this is not the case we will contact the faculty to request substantiation that the funds are from the same donor for the same research or if there is the need to establish a new account if for a new donation.

28. Account Code Explanation • The following slides are a brief explanation of the coding system that we use to identify the correct category of funding. • As these may be useful as a guide when back in the office all slides from this presentation will be available on our website: http://www.finance.usyd.edu.au/about/research.shtml

29. University Research Grants

30. ARC Research Grants

31. NHMRC Research Grants

32. Other Research Grants

33. Post-Grad Research Scholarships

34. New Project/Grant Code Creation as of 1 SEPTEMBER 2008 • With all the changes of late, CFR felt that a breakdown of who to contact for in varying scenarios would be of use. As things evolve we will keep this updated and available on our website and as well as emailing it out as appropriate.

37. CORPORATE FINANCE (RESEARCH) Managing expenditure in ARC/NHMRC accounts to minimise excess carry-forwards Salary supplementation for Fellows Invoicing of Linkage Industry Partners & Collaborating organisations NHMRC Equipment grants due at the end of November 37

38. CORPORATE FINANCE (RESEARCH) Managing expenditure in ARC/NHMRC accounts Maximum Carried Forward Amount Rules: ARC 75% of Current Year Income NHMRC 25% of Current Year Income Report has been sent out to alert parties concerned -Relocation/Maternity Claims - Forward document to CFR for review 38

39. CORPORATE FINANCE (RESEARCH) Salary supplementation for Fellows Quarterly exercise Template to assist By using the template - Help us to help YOU - Detecting bugs - Refining the template 39

40. CORPORATE FINANCE (RESEARCH) Invoicing of Linkage Industry Partners & Collaborating organisations - Depends on Contract Execution date - Pre-2008 Invoice issued by Faculty/School - Post 2008 Invoice issued by Shared Services 40

41. CORPORATE FINANCE (RESEARCH) NHMRC Equipment Grants Acquittal due at the end of November CFR prepares the statement for your review Obtain CI’s signature Complete Excess Carried Forward Form if applicable Return Original to CFR by Mid November 41

42. CORPORATE FINANCE (RESEARCH) Proposed ARC/NHMRC Projects Acquittal Process CFR prepares the statement based on ledger (same format as last year) Forward to CI by individual email (early February 2009) A copy of statement will be forwarded to you for reference CI completes Excess Carried Forward Form if applicable Return scanned copy to CFR by mid-February 2009 42

43. CORPORATE FINANCE (RESEARCH) Q&A Thanks 43

44. CORPORATE FINANCE (RESEARCH) DVC-R INTERNALLY FUNDED SCHEMES 44

45. Internally funded academic support schemes USYD Bridging Support Grants Research Fellow Establishment Grants Bridging Support Fellowships International Visitor Fellowships USYD Post-doctoral Research Fellowships USYD Senior Research Fellowships USYD Professorial Research Fellowships 45

46. USYD Bridging Support Grants “Near miss scheme” for applicants who missed out on the external funding grant (ARC, NHMRC) but were closest to funding cut-off One year grant No applications necessary Offers made in November after ARC and NHMRC outcomes are known Between $10,000 and $50,000 - 62 new grants in 2008 46

47. Research Fellow Establishment Grant (or Post-doc Fellowship Start-up funding) Available to first time recipients of early-career research fellowships from ARC & NHMRC and other externally funded schemes Purpose is to support new fellows to USYD and/or existing fellows getting established in independent positions No application required Grants allocated annually ($20,000) 8 grants in 2008 47

48. Bridging Support Fellowships Available to USYD employees “Near Miss Fellowship” Up to one year between the expiry of the current award and 31 December of the current year DVC-R pays 50% of salary & oncost (may vary) Faculty journals funds over to supplement the salary cost 11 new fellowships in 2008 NEW! Salary contribution calculation based on year’s last CPI salary increase => no need of annual reconciliation (DVC-R slightly overpays) 48

49. International Visitor Fellowships Support to researchers living overseas to undertake part of their research at USYD 2 rounds of awards during the year Living allowance of $1500/week (2-12 weeks) Paid on arrival, no receipts needed Use per diem (5702) and airfare (5711) classes 52 new fellowships in 2008 49

50. International Visitor Fellowships NEW! Max support is $20,000 including airfare as government made changes in visa conditions. NEW! On fellow’s arrival only living allowance will be paid. Economy airfare up to $2500 will be paid on request by the department as reimbursement against receipt. 50