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Standard Operating Procedure

Financial Management of Research Monies

Aim To ensure all research projects involving Auckland DHB (ADHB) have clear and

accurate financial management.

Principle All financial aspects of research projects conducted must be adequately

managed to ensure the costs of research are identified and recovered.

Personnel responsible

Research Accountants Researchers (from any institution) who are performing research within, or utilising the resources of, ADHB A+ Trust Accountant Assistant Accountant healthAlliance Accounts Receivable healthAlliance Research Office ADHB Finance Managers ADHB Management Ultimately it is the responsibility of the Director of Service to ensure that ADHB processes and procedures are followed.

Scope From 1 August 2006 all research related costs and revenue for research (including

donations and other support) will be accounted for within the Auckland DHB Charitable Trust (A+ Trust).

General Principals 1. All monies received for research purposes must be deposited with the A+ Trust.

2. Expenditure will be incurred initially by the ADHB research RC and recharged to the A+ Trust on invoice.

3. The overhead recovery will be recognised in each service area’s management RC, so that the specific ADHB research RC will be break even or better at month end. Research RC’s within ADHB should not be in deficit.

4. All invoicing to external parties will be carried out by the A+ Trust. 5. All research costs will be incurred within the Service research RC and must be

reconciled monthly by the Research Accountant. 6. Each month the Research Accountant will invoice the A+ Trust for all research

costs incurred, using the appropriate template. All invoice requests are to be signed by the Research Finance Manager.

7. The A+ Trust does not allow deficit projects to be closed. There may however be temporary deficits during the life of the projects relating to timing and the deficit must be resolved on completion of the project.

8. Research areas may operate as a programme i.e. a collection of projects; however they cannot collectively be in deficit; although individual projects within the programme may have temporary timing deficits.

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Table of Contents 1. Setting up NEW Projects in the A+ Trust 2. Month End Requirements for ALL Research Projects 3. Research Project Amendments 4. Research Invoicing Processes 5. Accessing/requesting use of department research surplus’ 6. Budgetary Support Utilising General A+ Trust Funds 7. A+ Trust Reporting 8. Research Project Budget Reviews 9. Research Project Closure

Procedure 1. Setting up NEW Projects in the A+ Trust

1.1 New projects will only be set up in the A+ Trust if they have been reviewed by the Research Review Committee (RRC) and granted full institutional approval. Research Accountants need to liaise with the researcher and Research Office on the progress of project approvals.

1.2 The Research Office will advise the A+ Trust when a project has been activated for set-up in Oracle. A copy of the final budget and institutional approval is to be forwarded to the A+ Trust Accountant and Assistant Accountant healthAlliance

1.3 The Budget Template available on the Research Office (RO) site is the only template allowable for budget submission.

Budget Template The following information is mandatory for all projects and must be included in

the budget template in the spaces provided: • Research Office Project Number (e.g. A+6500) • Ethics Number, if known • A+ Trust RC Number (e.g. RC 31-471-0802) • A+ Trust Research Fund/Department Name (e.g. Renal) • Project Short Title (limit of 30 characters including spaces) • Project Funder if different from Sponsor Organisation • Project Billing/Invoicing Contact Person • Project Billing/Invoicing Contact details (address, phone no. and e-

mail);please ensure this information is also provided to the Research Office

• Any other details or comments that need to be provided on the billing invoices (i.e. protocol number, purchase order, reference etc.)

• Total contract funding amount • GST status (15%, zero rated or exempt) • Name of Researcher (PI) and Research Accountant

Failure to provide the mandatory information will result in your budget being rejected in Oracle and subsequently delay the project set-up.

1.4 Enter the approved budget information, phased by year over the life of the research project. It is acknowledged that for most research this is an estimate. Cash flow phasing details can be provided during the project life, and should be reviewed by the Research Accountants quarterly.

All figures entered MUST be rounded to the nearest dollar. In the revenue section of the budget, enter the figure as a negative amount. See budget example below:

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Project Number: ADHB 6499 Ethics: NTX 2345 Trust RC: 31-471-0805 Dept Name:Title:Title: (limit of 30 characters including spaces)

1

Financial Year 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 Project Total

Projected Participant Numbers:based on attached timing schedule

ScreenedRandomised

Financial Section. (All Budget amounts are to be GST excl)EXPENDITURE 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 Project TotalDIRECT COSTS:Working Expenses (GST Excl) Pts Cost $ $ $ $ $ $ $

Laboratory Lab set up 5,000 $5,000

$0

Total Laboratory Costs $5,000 $0 $0 $0 $0 $0 $5,000

Pharmacy Pharmacy Set up 2,000 $2,000

$0

Total Pharmacy Costs $2,000 $0 $0 $0 $0 $0 $2,000

Radiology Set up 3,000 $3,000

$0

Total Radiology Costs $3,000 $0 $0 $0 $0 $0 $3,000

Other Consumables (itemise) Other Set up 500 $500

$0

Total Other Costs $500 $0 $0 $0 $0 $0 $500

Miscellaneous (list below) Filing 4,000 $4,000

$0

Total Miscellaneous Costs $4,000 $0 $0 $0 $0 $0 $4,000

Total Working Expenses (GST Excl) $14,500 $0 $0 $0 $0 $0 $14,500

Salaries hrs rate $ $ $ $ $ $ $

Research Coordinator / Nurse Time 15,000 10,000 $25,000ACC, superannuation, allowances $0

Total Labour Costs $15,000 $10,000 $0 $0 $0 $0 $25,000 Total Direct Costs $29,500 $10,000 $0 $0 $0 $0 $39,500INDIRECT COSTS: Fixed Fee 4 6500 $6,500 $6,500 ADHB Overhead Recovery (Should not be Less than 0) $6,700 $5,000 $0 $0 $0 $0 $11,700 Total Indirect Costs $13,200 $5,000 $0 $0 $0 $0 $18,200

Total Expenditure (GST Excl) $42,700 $15,000 $0 $0 $0 $0 $57,700

INCOME (GST Excl) (enter as a negative. i.e.. -1000) 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 Project Total

$ $ $ $ $ $ $External Funding sources (name) $0

XYZ Limited -40,000 -25,000 -$65,000Internal Funding sources A+ Trust (ref number) $0Internal Funding sources A+ Trust Accumulated Pool (ref number) $0

Total Income (GST Excl) -$40,000 -$25,000 $0 $0 $0 $0 -$65,000Note: All requests for A+ Trust or pool funding require a completed A+ Trust Application form to be submitted at the same time.

Expedited Request <$500 Standard Requests >$500

Net Surplus(F) / Deficit(U) $2,700 U -$10,000 F $0 U $0 U $0 U $0 U -$7,300 F

SAVINGS (Optional Information) 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 Project Total$ $ $ $ $ $ $

Operational Contribution* $0Savings* (describe in RRC form) $0Total Savings $0 $0 $0 $0 $0 $0 $0

Sponsor / Funder / Invoice SectionThe following information is essential if your budget is to be accepted for review.

Name of Sponsor INVOICING DETAILS:

Invoice Company Name (If different from sponsor)

Invoice Contact Person

Address

GST Chargeable (Delete two) 15.00%e-mail Invoice Contact Person Email Address

FaxPhone

Comments/ details for invoice etc

Date: 15-Oct-14

RESEARCH PROJECT BUDGET SUMMARY

CONFIDENTIAL - FOR ADHB INTERNAL PURPOSES ONLY

Neurology Research

Do not change the formulary on this page as it will impact on the formulary in wizard

The study of XYZ

Version No:XYZ Study

Penn RoseXYZ Limited

XYZ Limited company name or charity who is contracting /paying for the research etc If the sponsor is not whom is to be invoiced (i.e. via a CRO) then enter

the name of the person whom the invoice is to be sent to

Penn.Rose@xyz.co.nz

the address where the invoice is to be sent (full physical and postal address required)

Please enter if there is essential data to be included i.e. Protocol number etc

You must delete the two that are not relevant to your study. Without this

Protocol # XYZ 456

PO Box 9999, Penrose, Auckland 1111, New Zealand

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Procedure 2. Month End Requirements

2.1 Each month end, the responsible Research Accountant is required to complete the following activities:

2.1.1 By Run 1 close, all entries finalised in the ADHB Research RC. This includes the overhead recovery and revenue accrual from the A+ Trust.

2.1.2 After Run 2 close, the Research Accountant is required to submit an authorised reimbursement request to the Assistant Accountant healthAlliance.

2.1.3 All requests are GST inclusive. 2.1.4 An electronic copy (excel spread sheet) of the reimbursement

request is also required. See example below:

Service Area WOM, CHILD, CARD, OR&A - OR & Anaesthesia & CSSD

A+ Trust RC Code: 31-471-0831

A+ Trust RC Name: Anaesthesia Research

Expenditure Period: Oct-14

Project No. Project Net Amount GST TotalName Org Serv Dept Acct SubAcct

5862 03487-0817:5862 Relief 03487-0814 7,109.00$ 1,066.35$ 8,175.35$ 03 487 0817 1844 014675967 03487-0818:5967 Neurovision 03-487-0814 2,723.00$ 408.45$ 3,131.45$ 03 487 0818 1844 014674028 03487-0824:4028 GAS Trial 85670 192.00$ 28.80$ 220.80$ 03 487 0824 1844 014675015 03487-0828:5015 Balanced HRC 85670 7,168.00$ 1,075.20$ 8,243.20$ 03 487 0828 1844 01467

SGR2014184 03487-0831:00230A Misc & Archiving 85670 4,665.00$ 699.75$ 5,364.75$ 03 487 0831 1844 014675943 03487-0833:5943 METS study 03487-0814 100.00$ 15.00$ 115.00$ 03 487 0833 1844 01467

-$ -$

Total Reimbursement Requested: 21,957.00$ 3,293.55$ 25,250.55$

Pay to Bank account 03-0252-0453671-00

Prepared by: Geetha Avulamanda Signature:________________ Date: Research Accountant

Approved by: Dheven Covenden Signature:________________ Date: Finance Manager

15-Oct-14

15-Oct-14

ADHB Request for Reimbursement of Research ExpensesIncurred on Behalf of the A+ Trust

Credit ADHB account:

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2.1.5 The Oracle WEB ADI spreadsheet must also be completed for all reimbursement requests, and emailed to the A+ Trust (ResearchAcc@adhb.govt.nz). Enter the following mandatory fields: Batch Name, Expnd Ending Date, Expnd Item Date, Project Number, Task Number, Expnd Type, Quantity, Category DFF, Original Trans Ref.

2.1.6 All reimbursements will be tabled at the monthly A+ Trust meetings for formal approval by the Trustee’s. Reimbursements will be processed in Oracle in the same month that they are approved by the A+ Trust.

2.1.7 The Research Accountant will be advised if further clarification is required for the reimbursement request. The A+ Trust is unable to fund reimbursements that exceed the cash held for each Research RC.

2.1.8 Following approval, the Assistant Accountant healthAlliance will process the Web ADI template to update the project. The invoice payment will be processed the following month by EFT.

2.2 The Research Accountant will prepare the overhead journal.

2.2.1 The overhead recovery will be recognised in account 8348. The Finance Manager in consultation with the Director of Service will determine the appropriate Management RC to recognise this recovery.

2.2.2 The overhead is to be included in the monthly invoice request submitted to the A+ Trust.

* List - Text* List - Text

* Value* Date

List - Text

Upl Expnd Item Date Project Number Task Number Expnd Type Quantity Expenditure Comment Attribu Category DFF Original Trans Ref Negative Txn Flag Messages* Date * List - Text * List - Text * List - Text * Value * List - Text * Value

27-Oct-14 5862 1 Research Labour Costs 4,800.00 PJ-ADI PJ-ADI.31.000.0000.9515.00000 4,800.0027-Oct-14 5862 1 Research Laboratory 91.00 PJ-ADI PJ-ADI.31.000.0000.9515.00000 91.0027-Oct-14 5862 1 Research Miscellaneous 2,218.00 PJ-ADI PJ-ADI.31.000.0000.9515.00000 2,218.0027-Oct-14 5967 1 Research Radiology 2,723.00 PJ-ADI PJ-ADI.31.000.0000.9515.00000 2,723.0027-Oct-14 4028 1 Research Labour Costs 192.00 PJ-ADI PJ-ADI.31.000.0000.9515.00000 192.0027-Oct-14 5015 1 Research Labour Costs 4,038.00 PJ-ADI PJ-ADI.31.000.0000.9515.00000 4,038.0027-Oct-14 5015 1 Research Other Consumables 3,130.00 PJ-ADI PJ-ADI.31.000.0000.9515.00000 3,130.0027-Oct-14 SGR2014184 1 Research Labour Costs 4,665.00 PJ-ADI PJ-ADI.31.000.0000.9515.00000 4,665.0027-Oct-14 5943 1 Research Laboratory 100.00 PJ-ADI PJ-ADI.31.000.0000.9515.00000 100.00

Tip: This is not the end of the Template. Unprotect the sheet and insert as many rows as needed.

* Required Field

Operating Unit ADHB Charitable Trust

Spreadsheet for Expenditure EntryDatabase MMHXDB01.HEALTHALLIANCE.CO.NZ.EBSPRD

Transaction Source Web ADI

Organization Name ADHB Charitable Trust

Batch Name 1140803487-0814Expnd Ending Date 27-Oct-14

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Procedure 3. Research Project Amendments 3.1 In some instances amendments to projects occur. These include increase in

length of the study (i.e. 3 years to 5), additional tests or consumables, change in timing of payments or just an increase in funding to reflect changes in real costs over time etc.

3.1.1 Researchers must review proposed amendments and advise the Research Accountants if a budget amendment is required.

3.1.2 Where there is a change in the total revenue amount (i.e. due to time extension, additional testing etc.), a budget addition template will be submitted.

3.1.3 The Researcher and Research Accountant will review and revise budgets every quarter. The project to date expenses and revenue received must be taken into consideration when formulating a revised budget. Ensure the document version control number is updated and submit with all other documents to the Research Office.

3.1.4 The Research Office will initiate legal review of the contract and indemnity documents if relevant.

3.1.5 Concurrent with the legal review, the Research Office should inform the Assistant Accountant healthAlliance of all budgetary changes, who will in turn email acceptance of the amended budget.

3.1.6 Under delegated authority, the A+ Trust Chairperson is the approver of all contract documents and budget amendments. However, contract amendments will not be signed if either the budget amendment results in a deficit or the current financial status of the project is in deficit and the amendment will not produce a favourable budget.

3.1.7 Once approved, the Assistant Accountant healthAlliance can then upload the new budget version.

Procedure 4. Research Invoicing Processes 4.1 For all research projects the Research Accountant or Research Coordinator

will initiate an invoice request to the A+ Trust via Accounts Receivable healthAlliance, who then generates an invoice to the external party. However, Research Accountants and Researchers need to ensure that Accounts Receivable receives the correct details for inclusion in the invoice to ensure prompt payment.

4.2 The following diagram is a copy of the invoice request form (see new A+ Trust Template below) required by Accounts Receivable to invoice the project Funder/Sponsor. The template is to be completed by the Research Accountant and/or Research Coordinator.

4.3 It is essential that the invoice details provided have been reviewed by the

Researcher prior to submission of the request to Accounts Receivable healthAlliance. The invoice request template is found on the Intranet: (http://adhbintranet.adhb.govt.nz/CorpFinance/charitable_trust.htm).

4.4 The following details must be included on all invoice requests: • Customer name and address to whom the invoice is to be sent

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• Invoice contact person and email address • A brief description of the products or services provided including detail

the funder requires to recognise the invoice purpose i.e. Protocol number, Principal Investigator, Grant number, Purchase Order, etc.

• Detailed breakdown of the billing amounts • Confirmation whether GST is to be charged or not • Confirmation of the currency required for the invoice • A+ Trust RC Code • Unique ADHB Project Number • Short Project Title • ADHB Contact

4.5 Invoice requests are to be sent electronically to ACCReceive@adhb.govt.nz

Procedure 5. Accessing / Requesting use of Department Research Surpluses 5.1 In some departmental Research RC's, there are clearly identifiable surpluses;

all project surpluses are aggregated into departmental research pools. 5.2 These surpluses can be used to support: 5.2.1 New research projects 5.2.2 Funding deficit projects to enable closure or 5.2.3 Research related acquisitions that are not attributable to a specific

project, but of benefit to the departmental research team. 5.3 The fund number for this type of request is the 5 digit A+ Trust Research Pool

number e.g. Neurology reference would be 00203. 5.4 For supporting New Research projects: 5.4.1 When developing the budget, enter in the Revenue section the A+

Trust RC for your department and the amount spread across the timeline as appropriate.

Complete an A+ Trust Application Form, obtain appropriate approval signatures and submit to the A+ Trust with a photocopy of the application remitted to the Research Office with your research application documents. (Internal mailing address: A+ Trust Office, Level 15, Support Building, ACH). A+ Trust application form to be used - Standard Request > $500

5.4.2 Submit a copy of the A+ Trust application with the research application for review per the standard research approval process. Refer to RO website below:

http://www.adhb.govt.nz/ResearchOffice/ADHB%20Research_Process.htm 5.4.3 Subject to the project receiving RRC approval, the A+ Trust will review

the funding application to ensure sufficient funds are available to cover all associated project costs.

5.4.4 Email approval will be sent to A+ Trust applicants, Research Accountants and the Research Office at the conclusion of each A+ Trust meeting.

5.5 Funding a Deficit project/s: 5.5.1 Complete the standard A+ Trust application Form, obtain appropriate

signatures and submit to the A+ Trust Accountant with a photocopy to the Research Office with your application documents. (Internal mailing address: A+ Trust Office, Level 15, Support Building, ACH).

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A+ Trust application form to be used - Standard Request > $500 5.5.2 The A+ Trust will review the application against the department RC

account and confirm available surplus. 5.5.3 Email approval will be sent to A+ Trust applicants, Research

Accountants and the Research Office at the conclusion of each A+ Trust meeting.

5.6 For non-project research acquisitions 5.6.1 The standard A+ Trust application form is to be completed. The form is

available on the intranet - Standard Request > $500

5.6.2 For purchases that fall within the Capex process ensure that the completed Capex ( Capex Form) is attached with to the A+ Trust application.

5.6.3 Justification for the use of surplus funds must be detailed and all supporting documentation supplied.

5.6.4 The signatures required to access research surpluses are the same as for normal A+ Trust applications.

5.7 Applications should be in accordance with the Delegations of Financial Authority, and must be prospective.

5.8 Applications will be tabled at the next scheduled A+ Trust meeting. Meeting dates can be found at the following link: http://adhbintranet/CorpFinance/CharitableTrust/CTMeetingDates.htm

5.9 A list of approvals is sent to all applicants after each meeting.

Procedure 6. Budgetary Support Utilising General A+ Trust Funds 6.1 Within the A+ Trust there are a number of general A+ Trust funds available to

support departmental research. 6.2 To view funds available and their purpose go to the A+ Trust link

http://adhbintranet/CorpFinance/charitable_trust.htm 6.3 To access these funds Researchers must confirm with the Research

Accountant the balance available is sufficient to cover the budgeted costs. The A+ Trust Accountant can also be contacted for this information.

6.4 A completed A+ Trust application must be submitted to the A+ Trust for use of these funds with the Research Project budget.

Standard Request > $500 6.5 The research project is submitted for review according to the approved

ADHB research approval process. 6.6 Within the budget baseline template, enter the A+ Trust fund number, name

and the amount requested (this can be provided by the A+ Trust Accountant)

See example below:

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Procedure 7. A+ Trust Reporting 7.1 A month end project summary report will be generated for each Research

Department (i.e. Gastroenterology, Neurosurgery or as defined by the research teams) and lists: all active projects, life to date revenue, life to date expenditure, available cash, total outstanding debtors balance, estimated liability, Internal A+ Trust grants awarded, forecast project budget revenue and expenditure (example below).

These reports will only reflect activities that have already occurred within the Trust and due to timing differences may not reflect all activities that have occurred within ADHB. An Aged Trial Balance (ATB) report is also generated and lists all outstanding invoices at the end of the month by customer.

7.2 The reports will be circulated monthly to Senior Management, Finance Managers, Research Accountants and Research Office Personnel.

7.3 It is the responsibility of the Research Accountant to disseminate the report to each of the relevant researchers.

7.4 Accounts Receivable will issue overdue statements of account to debtors at 60 days. The A+ Trust Accounts Receivable policy is the standard ADHB policy, where invoices are written-off if they deemed uncollectible when the debt reaches 91 days.

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Procedure 8. Research Project Budget Review’s 8.1 The Trustees have requested quarterly budget reviews for all active research

projects. 8.2 After review is complete, the Research Accountant is to provide a list of all

active reviewed projects to the Assistant Accountant healthAlliance. 8.3 For projects requiring budget updates, the Research Accountant is to provide

a budget addition template to the Assistant Accountant healthAlliance. Procedure 9. Research Project Closure 9.1 The Research Accountants and Research Coordinators will determine those

projects that need to be closed after consultation with the Principal Investigator.

9.2 A project can only be closed once all project costs have been incurred and all revenue collected, the minimum requirement is a break-even result or surplus. Projects will not be closed when their resulting outcome is a deficit balance.

9.3 Projects cannot remain open when the research activity and financials are complete. Projects are to be closed on completion and surpluses transferred to the appropriate departmental research pool.

Research Accountants and Research Coordinators are required to complete the project closure template, obtain the appropriate signatures and submit to Assistant Accountant healthAlliance to action the request.ee example below:

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9.4 Project surplus will be transferred to the respective departmental pool funds as indicated in the form.

9.5 Where projects are in deficit and need to be closed a further intervention by the Service is required to resolve the issue. The Research Accountant must to liaise with the respective manager on funding the deficit.

9.6 If the deficit is to be funded from the department’s accumulated pool, the Research Accountant will complete the standard A+ Trust application form, obtain appropriate signatures and submit to A+ Trust for approval. Refer to Procedure 5 for further information.