Archived in January 2013 Schedule 1: Financial Management

This information has been archived. Visit the  Agreement on the Administration of Agency Grants and Awards by Research Institutions page for current information.

1. Financial Accountability

1.1 Policy

The Agency is subject to the  Financial Administration Act and related guidelines such as the  Policy on Transfer Payments (Terms & Conditions).

2. Responsibilities

2.1 Responsibilities of the Institution

The Institution agrees to:

1. establish and maintain policies, systems, procedures and controls that require and ensure Grant Holders' and Award Holders' compliance with the policies and requirements of the Agency as published in its formal guides and program literature. As a minimum, this shall include systems and procedures related to:
   1. the maintenance of individual grant accounts which record all eligible charges and credits to those accounts;
   2. audit trails, with full supporting documentation, for all financial transactions in the accounts;
   3. travel-related expenditures charged to accounts;
   4. proper delegation of signing authority with respect to these accounts;
   5. termination of grants and awards; and
   6. transfers of grants between Institutions.
      
2. withhold or withdraw approval of expenditures proposed by a Grant Holder that, within the knowledge of the Institution, has contravened the Agency’s requirements or the Institution's policies;
   
3. advise an Agency without delay if they have knowledge that grants or awards made by the Agency have been used in an inappropriate manner;
   
4. process scholarship payments promptly;
   
5. establish and maintain effective policies, systems, procedures and controls to ensure–prior to the release of research funds–compliance with all conditions and regulatory certification requirements with respect to research involving humans, animals and biohazards;
   
6. support researchers in managing their research funds through the provision of appropriate working advice and financial and program information, and through promotion of professional financial management practices;
   
7. adhere to the reporting requirements as specified in the formal guides of the Agency, as well as to any other special requirements that may be associated with individual grants and awards; and
   
8. provide access to all accounts, records and other information related to a grant or award that the Agency may reasonably request during the course of an on-site monitoring visit or investigation; and respond fully and frankly to any requests the Agency may make for information concerning specific grant accounts.

Each Agency agrees to:

1. provide for the timely issue of funds in accordance with methods of payment and payment schedules specified in the formal program guides of the Agency;
   
2. provide supporting information for each payment, which, at a minimum, identifies the grants and awards (including the application or grant number and its term), amounts and names of investigators for which the payment(s) are made;
   
3. provide Institutions and Grant and Award Holders with clear and concise information as to the purpose for which each grant and award is made and the expenditures eligible to be charged to the account;
   
4. provide timely and consistent responses to requests for information, issues and policy interpretations related to the administration of grants and awards;
   
5. consult with Institutions about, and provide adequate lead-time for, the introduction of major changes to financial policies and other requirements affecting matters of financial administration of grants and awards;
   
6. consult with Institutions about, and provide adequate lead-time for, on-site visits related to the monitoring of grants and awards; co-ordinate monitoring visits with other funding agencies when possible; and provide timely reports about the results of monitoring visits and related reviews; and
   
7. promote a collegial working relationship with the Institution and researchers aimed at achieving continuous improvement of accountability for funds and ensuring best practices in financial management.

3. Good Practices

The Agencies Manual of Good Practices Observed During Monitoring Visits is available on the Web at: www.nserc-crsng.gc.ca/_doc/NSERC-CRSNG/ManualofBestPractices.pdf.

4. Resolution of Issues of Non-Compliance

Should compliance issues arise between an Agency and an Institution, the Agency will follow the procedures described in Schedule 8 at the entry level appropriate to the situation.

5. Transfer of Funds

When a Primary Institution transfers grant or award funds to a Secondary Institution, Schedule 9 applies.