Recent changes to the Research Grants, Contracts & Consulting Policy have brought about numerous enquiries by academic and professional staff alike. Clarification on the four key changes to the policy and their implications in the financial set up of contract research and consultancy projects is outlined below.
If you have further questions please don’t hesitate to contact firstname.lastname@example.org.
Upper Limit Increase to $50K for Limited Agreements (LAs)
The ceiling value for the use of Limited Agreements (LAs) has been increased to $50k. Limited Agreements are standard University agreements covering limited risk (LOW) and value ($50k). They can be used for both contract research and consultancy work and are approved directly by the HoS. Processing is simple and straightforward to help reduce transaction cycle time and better service clients.
Templates and additional resources are available to support you through the process.
Indirect Cost Allocation (ICA)
At the time of the contract set-up in the PeopleSoft Grants Module, the ICA (previously levies) is set up against each milestone billing event per the percent allocation advised in Inteum. The ICA is automatically deducted from the revenue and allocated to Faculty/School/DRI project defaults once an invoice is generated.
Upon activation of the contract in the PeopleSoft Grants Module, the contract activation report is sent to the CI and Faculty Finance email addresses. Research Management Accounting (RMA) will attach in Orbit the Agreement, Sub-contractor Agreement, Contract Research Project Cost Calculator and Variation Agreement against the relevant project.
The Contract Research Project Cost Calculator will record the salary details per individual on a year per year basis.
Faculty Finance will transfer salaries either via HR payroll or by journal as described in the salary category in the Contract Research Project Cost Calculator.
From 2019 at the time of project closures of research contracts, RMA will perform a compliance check to ensure all Direct Costs as described in the Contract Research Project Cost Calculator have been charged.
The Tied Research Funds Policy will apply to the treatment of any remaining unspent funds.