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Policy & Procedure
Policy Title :
Financial Reporting and Compliance Policy
Policy Number :
V. 13
Responsible Party :
Research
Effective Date :
21/05/2015
Revised Date :
_______________________

Purpose

The purpose of the Financial Reporting and Compliance policy and procedures is to ensure that proper financial reporting and compliance with the terms of the research contracts be maintained for all research, programs and projects (sponsored or internally funded). The procedures are to ensure that proper disclosure is made available to all stakeholders. Prince Mohammad Bin Fahd University (PMU) recognizes the importance of accurate and timely financial reporting and compliance of all related research activities.

Statement :

Financial reporting and compliance is an integral element of the overall research effort of Prince Mohammad bin Fahd University. This policy is to ensure that proper and timely disclosure of financial information and compliance is to be made available to the stakeholders for effective decision making. Generally, sponsors of research, programs and projects have an informational need of how the sponsored research, programs and projects are executed financially, whether cost allocations are allowable expenses within the sponsored contract agreement.

PMU recognizes that compliance and financial reporting of research, program and project activities serves an important function of building trust with the sponsors, establishing a policy in this area will strengthen a trusting relationship between the University (PMU) and the sponsors. Accurate and timely disclosure to sponsors will incentivize the sponsors to increase their participation in future research, programs and projects.

Therefore, The University (PMU) established a policy to provide timely and relevant financial information and compliance disclosure to all. This policy will enhance the credibility of the University (PMU) and maximize future funding for sponsored research, programs and projects.

Similarly, due to its research related financial transparency and compliance disclosure, the University (PMU) will effectively compete with other Universities for limited funded research, programs and projects.

The University is aware of the cost – benefit implications of financial reporting and compliance disclosure, therefore overall disclosure (financial and compliance) will focus on materiality instead of volume.

Policy Content

The University (PMU) in regards to financial reporting and compliance has identified key steps as follows:

  1. Only allowable costs will be charge to the research, program or project, and proper records including supporting documentations will be maintained
  2. Any no-compliance regarding the terms of the contract agreement will be identified and addressed on a timely manner
  3. Repeated violations of the terms of the contract agreement may result in the revocation of the contract (sponsored or internally funded)
  4. Recipients of research contract need to periodically furnish the deanship of research with expense reports, reaffirmed compliance statement, and reporting of any violation (advertent or inadvertent), or compromising event, to the deanship of research and graduate studies for advice or consideration.
  5. Interim financial information and compliance report will be generated for the stakeholders
  6. Final financial information and compliance report will be generated for all stakeholders
  7. Any disbursements to recipients will be properly recorded in the specific accounting general ledger
  8. Final financial reports should include a full reconciliation statement, to ensure the sponsors how the funds were spent in a fully compliant manner.

Benefits

Financial reporting and compliance accrues benefit to all the stakeholders within the academic environment and beyond. Potential benefits includes but not limited to the following:

  1. It will inform students about the reporting and compliance requirements and how to maintain proper records and maintain compliance throughout the research, programs and
  2. It will inform faculty about the reporting and compliance requirements and how to maintain proper records and maintain compliance throughout the research, programs and
  3. It will encourage sponsors to fund future research, programs and projects. Transparency in sponsored research, programs and projects is crucial for sustainability and growth of funded research, programs and projects.
  4. It will enhance the credibility of the University (PMU), and can be used a marketing tool for future sponsored projects.

Implementation

The implementation of financial reporting and compliance is facilitated through the office of the Deanship of Research Development and PMU Management. The following steps are necessary for effective implementation.

  1. Identify all compliance areas and financial reporting requirements
  2. Communicate the compliance areas and financial reporting requirements to all stakeholders
  3. The Deanship of Research Development and PMU Management will set up a system to monitor compliance and accurate financial reporting
  4. Violations will be addressed in a timely and effective manner
  5. Stakeholders will be periodically updated with compliance issues
  6. Periodic audit of financial information and compliance
  7. Continuous communication with sponsors regarding the progress of sponsored research, programs and project as it relates to financial reporting and compliance
  8. Final disbursements subject to full compliance with contract terms and financial reporting requirements

Roles

The Deanship of Research Development has a role of ensuring full compliance with contract agreements, including financial reporting. Other designated committee or University officers may serve to monitor and ensure overall compliance with contract agreements.

Responsibilities

  1. The Deanship of Research Development is responsible for all research related issues of the University (PMU), including financial reporting and compliance
  2. Any other Committee established for overseeing research financial reporting and compliance

Procedures

Establishing and implementing cost sharing is accomplished through a sequence of events as follows:

  1. Established financial reporting and compliance policy
  2. Monitoring compliance
  3. Timely provision of financial reports or information
  4. Addressing violations or non-compliance in a timely manner
  5. Providing updates on changes in compliance and financial reporting requirements
  6. Providing guidance regarding compliance and financial reporting
  7. Post-research audit for overall compliance