Canada Foundation for Innovation “New Tools for the New Economy ”

1. Canada Foundation for Innovation“New Tools for the New Economy”

2. Financial Reports Information SessionAgenda • Award finalization • General information on financial reports • Accessing and editing the report • Completing the report • Final reports - Additional requirements • Printing and submitting the report • Other topics (records keeping, contribution audits) • Examples of financial reports for on-going and final projects • Question period Financial Reports Information Session

3. Award Finalization • Documents to be provided to CFI : • Itemized list • Summary of Secured Contributions • Confirmation of Award Conditions • Award Agreement • Confirms maximum CFI amount, total eligible costs per Itemized list and agreed CFI share of eligible costs • Planned instalments • Signed by President or Designated representative AND Account Administrator Financial Reports Information Session

4. General Information • Submission requirements: • June 15th of every year for the previous April 1 to March 31 period (cumulative results) • Need to submit if funding has been received at March 31 • Need to submit every year until project is completed • Final report and request for last payment is due within 6 months of end of project Financial Reports Information Session

5. General Information • Information to include in the report: • Actual expenditures and cash flow projections (for ongoing projects) • Forecasted eligible costs and contributions per the award agreement • Revised eligible costs and contributions at the reporting date • Explanation for significant variances between original plan for the project and the actual or forecast plan • Funding sources (actual and forecasted) Financial Reports Information Session

6. General Information • Use of financial reports by CFI: • Assess if project is on track • Assess appropriateness of cash flow projections for future instalments for multi-year projects • Verify that CFI’s contribution will not exceed agreed CFI share of eligible costs • Determine the portion of the holdback to be released every year • Ensure sufficient resources available (when requested in agreement) • For final reports, certification that project has been completed and that matching funds have been received and spent • For final reports, determine the final payment to be made by CFI. Financial Reports Information Session

7. Accessing and Editing the Report • How to access the report: • Template is on CFI’s web site at www.innovation.ca • Located in the Forms and Download section of the web site • Password required to access the report Financial Reports Information Session

8. Accessing and Editing the Report • How to access the report: • Enter the project number to access the Project Financial Reports screen Financial Reports Information Session

9. Accessing and Editing the Report Financial Reports Information Session

10. Accessing and Editing the Report • How to edit the report: • Sequential screens to facilitate original data entry Financial Reports Information Session

11. Completing the ReportOverview of project funding Financial Reports Information Session

12. Completing the ReportTotal eligible contributions from partners (Lines 5 to 12) Financial Reports Information Session

13. Completing the ReportTotal eligible costs - Actual and forecast(Lines 13 to 23) Financial Reports Information Session

14. Completing the Report • Total eligible costs (Attachment): • Need to complete for FINAL reports only • Provides a detailed list for each expenditure type presented at lines 13 to 22 • List needs to be created separately using either Word, WordPerfect, Excel, Lotus 1-2-3 or a PDF file format and attached to the report • Screen example Financial Reports Information Session

15. Completing the Report Financial Reports Information Session

16. Completing the Report • Format of the List should be the same as the Itemized list provided to finalize the award agreement and should make reference to the specific line number of the financial report Example Financial Reports Information Session

17. Completing the ReportActual or forecast contribution (Lines 1 to 4) Financial Reports Information Session

18. Completing the ReportList of in-kind contributions Financial Reports Information Session

19. Completing the ReportDetails of eligible funding from eligible partners Financial Reports Information Session

20. Completing the ReportFinancial resources for operations Financial Reports Information Session

21. Completing the Report • Differences between original and actual or forecast plan: • Required to provide explanation of significant variances (greater of 10% of CFI’s contribution or $50,000) in : • forecast contributions VS actual/forecast contributions • forecast expenditures and actual/forecast expenditures • time required for development/acquisition/installation of infrastructure • actual or planned use of infrastructure used for research and other purposes • actual and forecast operating costs and funding available for operating costs Financial Reports Information Session

22. Completing the Report • Differences between original and actual or forecast plan: • Must also explain how identified problems have been or will be corrected • Info used by CFI to : • assess adequacy of timing of cash disbursements • appropriateness of CFI % of funding • assess adequacy of corrective actions • Level of details provided must be sufficient to allow CFI to make above assessment Financial Reports Information Session

23. Completing the ReportRequest for final payment Financial Reports Information Session

24. Final Reports - Additional Requirements • Final Reports - Additional Requirements: • Complete the “Details of eligible funding from eligible partners”, “Total eligible costs (Attachment)” and “Final report - Request for final payment” section of the financial report • Submit a hard copy of the financial report with original signatures (in addition to submission on the web) • Signatures of the Account Administrator and from the CEO or an authorized representative required • Note : Final holdback only released after reception of the signed hard copy Financial Reports Information Session

25. Printing and Submitting the report • Printing and submitting the report: • A hard copy of the report can be printed by clicking on the Print icon in the “Project Financial Report” screen (Screen example - slide 9) • Recommend that print the report and verify accuracy before submitting • A verification outline is included in the instructions manual to assist in the verification of accuracy • Report should be submitted electronically by the account administrator Financial Reports Information Session

26. Printing and Submitting the report • Printing and submitting the report: • Two security levels: • Data entry • Submission (Account administrator) • Passwords required • Finance contact at the institution - Communicate to CFI if this person is other than the Account Administrator Financial Reports Information Session

27. Planned Improvements andCFI Contacts • Planned Improvements • List of projects with report due by June 15 • Access to planned instalments • By Project • By Date • Feedback on CFI review of reports submitted • Your suggestions are always welcome • Questions and comments should be addressed to:Christine Charbonneau Manon HarveyManager, Finance Vice-President, Corporate ServicesTel: (613) 943-1289 Tel: (613) 947-6497christine.charbonneau@innovation.ca manon.harvey@innovation.ca Financial Reports Information Session

28. Records Keeping • Institutions must maintain financial records and project accounts with revenues for each CFI award • Records must identify various eligible funding sources and eligible costs • Need to maintain a verifiable audit trail for all eligible cost (including in-kind contributions) • Need to keep all supporting documentation for at least 5 years following completion of a project • No need to submit documentation to CFI unless requested Financial Reports Information Session

29. Contribution Audits • CFI performs an audit of all projects with total eligible costs of more than $10 million • CFI reserves the right to review and audit any project • A representative sample of reports will be reviewed every year • Institutions will be notified when one of its projects is selected for an audit Financial Reports Information Session

30. Contribution Audits • Discussion and tests performed by auditors • General accounting and controls over funds received • Procurement policies and procedures (for assets purchased) • Method of evaluating in-kind contributions • Selected vouching of support documentation for expenditures • Preparation of financial reporting to CFI • Tour of the facilities/equipment related to the project • Information to be prepared by the institution before the audit • List of people to meet during the audit (Research, Finance, …) • Invoices of assets purchased and backup for in-kind contributions • Bids solicited for construction and for purchase of equipment • Summary of eligible costs incurred and contributions received Financial Reports Information Session

31. Question Period Financial Reports Information Session