Grant Administration

Financial Procedures Applicable To Sponsored Research

Introduction

The purpose of this document is to establish a practical operating process that facilitates AUB financial operations according to University policies. It outlines seven main types of financial operations that are frequently used by Faculties and Departments at AUB for processing project expenditures, and outlines the routing and lifetime of various transactions as they pass through the different Offices.

The document could also be useful in:

• Assisting staff, project directors and principal investigators in their day-to-day work.
• Training staff on following procedures.
• Enhancing communication between all AUB departments.

The document was jointly prepared by a Task Force Committee which consisted of representatives from the Office of Grants and Contracts, the Comptroller's Office, the Purchasing Department, the Regional External Program (REP), and primary investigator and research assistant.

The seven types of financial operations for processing payments are:

1. Payment Vouchers (Payment Vouchers for Vendors, Payment Vouchers for Faculty Consultants, Payment Vouchers for Casual Labor)
2. Item Requisition from AUB Stores (purchase of items and return of ordered items)
3. Items or Services Requested from AUB Departments (Inter-departmental services)
4. Item Requisition from External Suppliers - Departmental Low Value Order
5. Purchase of Supplies and Equipment - Non-Catalogued Requisition
6. Appointment of Personnel (Consultancy Agreements)
7. Travel Requests

1. Payment Voucher (s)

Payment vouchers (PVs) are mainly used to reimburse vendors, faculty consultants, casual labor or persons who perform a specific task. AUB does not pay or reimburse money for any employee or vendor without issuing a payment voucher.

1a. Payment Vouchers for Vendors

The following steps are usually followed and adhered to:

A memo requesting payment should be addressed to the Dean of the faculty. It should include the following information:

- Amount to be reimbursed or paid.
- Name of vendor/company to be reimbursed or paid
- Account and center to be charged (either for a department or a project).
- A description of the item purchased.
- Approval and signature of the Chairman of the department or the Project Director.

For paying faculty consultants a memo approved by the Dean of the respective faculty should be sent to OGC or REP depending which Office is administering the project. OGC or REP then issues the payment voucher accordingly and will send it to the Comptroller's Office for payment.

The memo approved by the Dean should include the following information:

- Name of the faculty member to be paid and his/her ID number
- Amount to be paid.
- Name and cost center of project to be charged.
- Description of task that the named person or consultant accomplished
- Approval and signature of the Chairman of the department or the Project Director.

Payment vouchers with foreign address: payment vouchers are treated on first come first serve basis. The vendors' section issues checks once per week and it takes approximately five working days for the checks to be signed and sent to the Cashiers Office or to the foreign address as requested.

1c. Payment Vouchers for Casual Labor

For paying casual labor a memo approved by the Dean of the respective faculty should be sent to OGC or REP (depending which Office is administering the project). Once received OGC or REP will approve and send it to the Comptroller's Office for payment.

The memo approved by the Dean should include the following information:

- Amount to be reimbursed or paid.
- Name of the person to be reimbursed or paid and his/her ID number in case he/she is an AUB student, staff, or member.
- Name and cost center of project to be charged (either for a department or a project).
- A description of the task rendered and a time sheet specifying hours worked.
- Approval and signature of the Chairman of the department or the Project Director.

2. Item Requisition from AUB Stores

AUB Faculties and Departments can order catalogued items that are available at the University Stores by filling a Store Requisition Form (SRF) which consists of three copies: a white, pink and yellow copy. Catalogued items are those available in stock in the Medical Center and Campus Supply Stores. A listing of supplies can be provided by the Supply Department. The list includes such info as the "Stock Number", "Description of Item", "Issue Unit", and "Unit Price."

The following information must be completed on the Store Requisition Form (SRF):

1. Name of requesting department and its three letter abbreviation code.
2. Date requested.
3. Cost Center (fund number) to be charged, could be department or sponsored project.
4. Program code (if applicable).
5. Stock number (found on the supply list).
6. Description (found on the supply list).
7. Issue unit (found on the supply list).
8. Quantity required.
9. Delivery instructions (date, address, room number, extension...).
10. Name and extension of person to be contacted for further information.

The steps followed are:

• The person preparing the SRF must sign in the space provided for that purpose, and send to the dean or director of project.
• The dean (for academic departments) or the director/manager (for non-academic departments) must counter sign the SRF in the space provided for that purpose.
• If the project being charged is administered by REP, the white & pink copies of the SRF should be sent to the REP office for approval, and REP will forward to the Supply Department. As for projects administered by OGC, the SRF copies should be sent directly to the Supply Department.
• The supply department will in turn send it to the comptroller's office.
• Upon receipt of ordered item(s), the originating person signs the Store Request Voucher (SRV) and takes the second sheet while the Supply Department keeps the Original (First Sheet).

1. The department returning the ordered goods should contact the Stock Control Supervisor who will review the reason of return on a case by case basis.
2. If the Stock Control Supervisor approves the request to return the goods, a Store Return Voucher should be filled and sent to the Stock Control Supervisor for his/her signature. The voucher contains the following information:
a. Name of department returning the goods
b. Store Number to which the goods are to be returned
c. Date
d. Stock Number
e. Description
f. Account to be credited
g. Issue Unit
h. Quantity returned
3. The department will arrange with the Storekeeper for the delivery of the goods back to the store.

3. Items or Services Requested from AUB Departments (Inter-departmental services)

In order to request any service or item from another AUB department such as core laboratory analysis (service), or purchasing of goods from AUB's Bookstore, the requesting department will:

1. Send an approved Inter-Department Transfer Notice (IDTN) to the servicing department indicating the following:
• Name of Requesting department (department ordering item or requesting service).
• Name of Servicing department.
• Service description.
• Item Number.
• Amount (L.L. or $).
• Department to be charged.
2. The IDTN is signed by the project director or Chairman of Department then sent to the Dean for his approval. The IDTN is then forwarded to REP for approval and REP will in turn forward to the servicing department. For projects being administered by OGC the IDTN should be forwarded directly to the servicing department after director or chairman approval.
3. The Servicing department fills the account to be credited on the IDTN and sends it to the Comptroller's office to be processed accordingly.

4. Item Requisition from External Suppliers - Departmental Low Value Order

A Departmental Low Value Order (DLVO) procedure has been established to make purchasing of goods as convenient as possible for University faculties and departments. Under this procedure, University departments are authorized to make direct purchases from already approved suppliers only on condition that the value of the item does not exceed $200/ L.L.300,000 and the needed items are not available at AUB stores. The Purchasing Department has established agreements with a number of suppliers from which items can be purchased directly.

Departments are allowed to purchase supplies needed to support the functions of their department or research projects whose value does not exceed $200 / LL 300,000 per order except for the following:
• Store Items (items available in University Stores).
• Purchases for personal use.
• Contracted items (medical gases).
• Professional fees.
• Travel, meals, entertainment.
• Representation allowance expenditures.
• Gifts and contributions.
• Splitting purchases to circumvent the $200 - Limit.

How to Buy Items/Supplies Using DLVO?

• Choose the requested item from the list of contracted suppliers, ensuring that none of the items selected fall within the unauthorized purchases and it does not exceed the $200 value.

• Fill out a Departmental Low Value Order form (3 copies) and obtain the approval of the authorized person in the department. The Departmental Low Value Order (DLVO) should include the following information:
- Purchase order number (already assigned)
- Supplier's name and address
- Department name and address
- Item description, quantity, price and authorized signature
- Account and center to be charged

• Send the original copy of the DLVO o the supplier either in person or by fax.

• The ordered items may be delivered by the supplier or hand carried by a person from the department along with the supplier's invoice.

• The person receiving must not be the same person authorizing the purchase.

• The person receiving the items must sign on the invoice and the first and second copies of the purchase order.

• The original invoice must be attached to the first copy of the DLVO and sent to the Comptroller's Office for payment.

• Copies of invoices and DLVO must be kept in the departmental files for any inquiries and auditing purposes.

5. Purchase of Supplies and Equipment - Non-Catalogued Requisition

The Purchasing Department is the central authority for the procurement of goods required by any University or Hospital department and which are not available in the University stores. No individual other than the Director of Purchasing has the authority to place an order with a supplier or to obligate AUB to an outside supplier in any way unless:

1. The President of the University or the Vice President for Administration specifically authorizes an individual or group to do so.
2. The Director of Purchasing delegates purchasing authority to specific individuals.

Procurements or other commitments made by unauthorized personnel are not legal and not binding upon AUB and may result in a personal obligation for the individual making the procurement or commitment. On rare occasions, the Director of Purchasing may make an exception and issue a confirming purchase order. The Director of Purchasing may require a written explanation by the individual making the commitment with a signed approval from the appropriate vice-president. This explanation and the vice president's approval will be included in the purchase order file.

For ordering supplies and equipment, the following steps are taken:

• The user initiates and submits a Non-Catalogued Equipment & Supplies Requisition electronically using i-procurement. Usually staff members who have a grant budget are given access to i-procurement. It is the responsibility of the user to follow up on the status of his/her requisitions until they are approved electronically.

• Once the Purchasing department receives the approved requisitions, it ensures that all the requirements and needed information are available and a purchase order is issued. The purchase order is generated electronically on the system with a system generated serial number.

• The purchase order is sent to the supplier and once the goods are delivered, the receiving clerk matches the quantity requested for each item on the purchase order against the quantity delivered by the supplier, and then delivers the items to the requesting department for final approval. User should check quantity and quality before approval. Partial receipt of material or equipments is allowed but discrepancies should be reported to the Purchasing Department. The supplier sends the invoice to the Comptroller's Office for payment.

• The role of the Purchasing Department ends when goods are delivered and accepted by user.

6. Appointment of Personnel

Appointment of personnel on sponsored research grants must be approved by the Office of Grants and Contracts, and must follow the procedures and policies set by the Human Resources department.

6. a. Consultancy Agreements

The selection and appointment of consultants to provide professional services shall be made in accordance with the university policies. Consultancy agreements are used to hire consultants for special tasks or jobs to be charged on service contracts or research projects.

The following procedure is followed:

• The project director requests (in writing) from the Office of Grants and Contracts (OGC) or the REP Office (depending on the nature of the project: research or service contract) to prepare a consultancy agreement. The memo should include the following information:

- Name of project and funding agency.
- Cost center (of project to be charged).
- Consultant name.
- Expertise of the consultant.
- Terms of reference (specify the tasks to be carried out).
- Period of performance.
- Remuneration & payment schedule.
- Citizen Declaration Form

• Once the agreement is prepared, two original copies are signed by either the REP or OGC director and returned to the project director.
• The project director must ensure the signature of the consultant on both original agreements. One original is given to the consultant and the other is sent back to either the REP or OGC. The project director must keep a copy of the agreement for his/her records.

7. Travel Requests

Travel requests on sponsored research projects must be processed through the Department of Business Services and according to AUB policies. Faculty members must process their requests through the auxiliary service department.