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Policy & Procedure
Policy Title :
Management of Project Expenditure: Policy
Policy Number :
V. 14
Responsible Party :
Research
Effective Date :
21/05/2015
Revised Date :
_______________________

Purpose

This policy and its procedures are to ensure that the research project expenditures are monitored, well managed and spent in accordance with the research project budget.

Statement :

The successful managing of the funds of a research project involves spending funds on a timely manner in order to ensure efficiency in the management of the project.

The funds allocated to a research project must be spent following the strict guidelines of the budget and keeping clear and transparent justification of all expenditures. This policy is put in place to monitor funds and allocations of any research project in order to ensure that they agree with the requested fund. Following a strict monitoring system of the research project funds ensures a high research conduct, credibility and successful planning.

The outcomes of adapting a successful management of project expenditure policy will help minimize the risk of mismanagement/corruption, provide smooth transfer of projects’ fund and ensure a better performance of researchers in the university. Overall a successful management of funds will lead to a stronger organizational accountability.

The success of the principal investigator of a research project is measured by the expenditures that happen within the allocated budget and the final report on financial issues based on the stipulated expenditures of the budget. A principal investigator that self-monitors the budget has strong potential for future grant application.

The role of the University is to monitor and facilitate the transfer of the funds through an assigned project accountant administrator that will enable transparent and efficient spending and monitoring tools.

The management of expenditures policy applies to all funded projects. The policy lists the benefits of providing an efficient managing of research project’s expenditures to the different divisions of the university, the means on managing expenditure, the roles and responsibilities of the key personnel such as the principal investigator (PI) and project accountant administrator and the procedures for a successful application of the policy.

Policy Content

The management of research project expenditure is a joint task and responsibility between the Principal Investigator (PI) and an accountant administrator assigned by Prince Mohammad bin Fahd University. The roles and responsibilities of each individual is explained in the following sections of this policy as well as the implementation and procedures are detailed I order to provide clarity in the direction of this policy.

Benefits

Prince Mohammad bin Fahd University will benefit at large by adopting a transparent system of management research project expenditures that will reinforce credibility and transparency in the management of external funds.

The faculty and students of PMU will be the direct beneficiaries of the policy by ensuring external agencies that research funds granted will be responsibly managed and spent.

Implementation

The management research project expenditures policy of Prince Mohammad bin Fahd University ensures that:

  1. The Principal Investigator (PI) and the accountant administrator share the responsibility of payments made for awarded grants.
  2. The Principal Investigator (PI) and his/her research staff communicate with the accountant administrator to guarantee a timely receipt of the awarded fund.
  3. The research project PI and accountant administrator keep full documentation of the expenditures receipts.

The policy and its implementation will be evaluated regularly. The first review of the policy will take place after 12 months from its initial implementation. The Dean of Research Development and the academic staff will be consulted during this evaluation. The evaluation criteria will include the degree of compliance with the policy and its effect on the University. The University Research Council and the manager of the Department of Finance will review procedures and check for compliance. Regular audits of project’s expenditure shall take place to determine compliance. Audits will be conducted by appointed accountant administrator.

Roles

University Research Council

  1. Organizes a package for the Principal Investigator (PI) and the designated accountant administrator that includes the following documents:
  2. Award letter and conditions
  3. Budget breakdown sheet and details
  4. Award allocation letter
  5. Project Number
  6. Award Number
  7. Any other specific requirements/obligations

Departments/PIs

  1. PIs ensure that all costs charged to the project account are reasonable, allowable and within the requested budget.
  2. Provide progress and technical reports.
  3. Ensure a timely submission of project deliverable.
  4. Keep records of all receipts and document all expenditures.

Accountant administrator

  1. Review expenditures to ensure all costs of the research project are all within the allocated budget and include a final closeout.
  2. Prepare invoices, letter of credit and reconciles billing and payments.

Responsibilities

The Principal Investigator has the main responsibility for both the technical and financial management of the research project. The PI oversees the management of the project within the terms and conditions of funding, observance to reporting requests and timely communication of significant project changes. In relation to the project expenditure, the PI is to:

  1. Ensure that all costs charged to the project account are reasonable, allowable and within the requested budget.
  2. Provide progress and technical reports.
  3. Ensure a timely submission of project deliverable.
  4. Keep records of all receipts and document all expenditures.

The responsibility of accounts and cash receivable management for research projects is shared between the principal investigator (PI) and an appointed accountant administrator. The accountant administrator performs a number of duties to ensure a sensible and timely delivery of the project expenses. These include:

  1. Performing letters of credit drawdowns.
  2. Approving invoices.
  3. Following up on outstanding receivables.
  4. Recording payments
  5. Preparing and submitting financial reports detailing payments and expenses.
  6. Reviewing expenditures to ensure all costs of the research project are all within the allocated budget and include a final closeout.
  7. Preparing invoices, letter of credit and reconciles billing and payments.

Procedures

The University Research Council will send the Principal Investigator (PI) and the designated accountant administrator a package that includes the following:

  1. Award letter and conditions
  2. Budget breakdown sheet and details
  3. Award allocation letter
  4. Project Number
  5. Award Number
  6. Any other specific requirements/obligations

An account number for each project shall be established for each awarded research project. All expenses should be recorded against this number.  Once the set-up process has been completed, the award and project numbers will be activated in the general ledger and the PI can spend against the project number. The accountant administrator shall identify payments requested by the PI on the research account number and transfer payment electronically to the PI.

Expenditures are to be charged to the account for which the purchase is intended, must be consistent with the given budget and conditions and should only be incurred from the actual project start and end dates. Any deviation from the awarded budget should be identified and approved by the University Research Council.