There are five overall principles to managing the financial transactions of sponsored research funds. Policies and procedures withinResearch Accounting Services have been developed in support of these principles. The five principles are consistency, timeliness, justification, documentation, and certification.
Consistency
Transactions must be handled in a consistent manner. That is, policies and procedures have been established to address similar types of transactions in a routine manner.
Timeliness
Transactions must be handled within a reasonable period of time consistent with time frames outlined for federal agencies, a private sponsor, and Drexel University.
Justification
There must be a reason for the transaction that supports the project's goals, and adheres to guidelines outlined by federal agencies, a private sponsor, and Drexel University.
Documentation
Sufficient documentation to support the transaction must exist. The documentation must be retained, organized, and complete enough to stand up to an audit.
Certification
Transactions must be approved and carry all the correct authorizing signatures.
Documents/Forms
As an expert in financial management for sponsored research funds, my in-depth knowledge and practical experience uniquely position me to discuss the essential principles and concepts involved in effectively managing the financial transactions of such funds.
Firstly, the article highlights five overarching principles crucial to the management of sponsored research funds: consistency, timeliness, justification, documentation, and certification. These principles serve as the foundation for ensuring the proper handling and accountability of financial transactions within the realm of sponsored research.
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Consistency:
- Transactions must be handled consistently, with established policies and procedures addressing similar types of transactions routinely. This ensures uniformity in the treatment of various financial activities related to sponsored research funds.
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Timeliness:
- Financial transactions must be processed within a reasonable period, aligning with specified time frames outlined by federal agencies, private sponsors, and the academic institution involved, such as Drexel University in this context. Adhering to these time frames is crucial for compliance and efficient financial management.
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Justification:
- Every transaction must be accompanied by a clear and valid reason that aligns with the project's goals. Additionally, these justifications must adhere to the guidelines set forth by federal agencies, private sponsors, and the policies of the academic institution. This ensures that financial activities are purposeful and in line with the intended objectives of the sponsored research.
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Documentation:
- Comprehensive documentation is a cornerstone of effective financial management. The article emphasizes the importance of maintaining sufficient, organized, and complete documentation that can withstand an audit. This documentation serves as evidence of the legitimacy and appropriateness of each financial transaction.
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Certification:
- Transactions must undergo approval processes and carry the correct authorizing signatures. Certification ensures that the financial activities related to sponsored research funds are authorized, valid, and compliant with established policies and procedures.
Furthermore, the article references various tools, documents, and forms that support the financial management process. These include FastLane, Fixed Asset Confirmation Tool, Portfolio Allocations, Uniform Guidance Audit, Fringe Benefit Rate Agreements, Effort Reporting Calendar, and various forms for fund requests, salary/budget redistribution, and more.
In addition to the principles, the article outlines an array of topics related to financial transactions management for sponsored research funds, including project setup, project administration, roles, allowable costs, travel, meals & entertainment, consultants, subawards, changes requiring prior approval, and financial compliance. Each of these aspects contributes to the overall framework of effective financial management within the context of sponsored research funds at institutions like Drexel University.
