Friday, 23 February 2018

SOP-VI: PROJECT FINANCING

PURPOSE

This policy document establishes policy and procedures for the following aspects of project financing: (i) timing of initial financing, (ii) advance payments and recoupments, (iii) allowable overhead costs, (iv) retainage, (v) maximum participation levels (percentage of time) in STCU projects and (vi) inclusion of Project Manager family members into project teams.

POLICIES

  1. Timing of initial financing.
    1. Funding Party (EU, CA, and US) and Government Partner Funded Projects. Project funds will be disbursed upon signature of the project.
    2. Non-Government Partner Projects. Project funds will be disbursed when the funds for the first quarter are received.
  2. Grant advance payment.
    1. At the beginning of the project, grantees receive advance grant payment in the amount equal to one third of the budgeted grantee pay for the first quarter.
    2. The advance pay for project participants will be recouped (deducted from) the first quarter grant payment.
  3. Allowable overhead costs. The maximum allowable percentage for overhead is 10 %. Institute has authority to spend this amount as they deem fit.
  4. Retainage. One half of the allowable overhead costs will be retained by the center until project completion and approval is received on the project's final technical report by the responsible Deputy Executive Director.
  5. Administrative Fee. STCU fee is calculated as an extra 5% of total project cost for partner projects and 7% of total project cost for Sponsor funded projects. The Executive Director, at his discretion, may waive or alter this fee.
  6. Redistribution of Funds Within Budget Line Items. During the term of the project, Senior Specialists may approve the redistribution of project funds within budget lines up to a maximum of $2,500. Above that sum, but not more than $25,000 (plus collaborator approval when available), requires the approval of the responsible Deputy Executive Director. Requests in excess of $25,000 (plus collaborator approval when available) require the approval of the Executive Director.
  7. Unused Project Funds. Unused funds at the completion of a project are to be returned/retained by the STCU for redeposit into the appropriate funding party bank account.

    Project managers may submit a written request a minimum of 3 months prior to project completion for utilization of some or all of the unused funds, with appropriate supporting documentation, to the responsible STCU individual as per above Point F Redistribution of Funds Within Budget Line Items. The limits outline in Point F above, are also the approval limits for the authorization of unused funds.
  8. Project Participant Changes. All requests for changes to the composition of the project team shall be submitted to the responsible Deputy Executive Director or the Executive Director. The senior specialist will consider the changes to the project team, taking into careful consideration the impacts on the ratio of the number of weapons scientists on the projects, and make a recommendation to the responsible Deputy Executive Director.

    The responsible Deputy Executive Director has the authority to approve changes to the composition of the project team if both of the following two criteria apply: (1) the suggested changes affect fewer than 30% of the project participants, and; (2) the suggested changes do not lower the percentage of weapons scientists below 50% of the total project team. The Executive Director has the authority to approve changes to the composition of the project team outside of the aforementioned two criteria.

    Requested changes to the composition of the project team within the first month of the project involving grantees that have already received their grant advances but have not worked enough to cover the amount of the grant advance, should be accompanied by a letter of explanation from the project manager to the responsible Deputy Executive Director. The Deputy Executive Director and the Chief Financial Officer will work together to ensure that the changes are required and justified.
  9. All persons listed on the payroll of Projects managed through STCU should be fully qualified for the job. At the time of submission of the proposal to STCU the Project Manger must disclose existing family and marital relations in writing. This is reviewed by STCU's Senior Specialists and the following aspects are considered:
    1. Is the person on the job because of his or her relationship with the project manager or someone else working on the project?
    2. Does the person have the necessary technical or administrative qualifications (appropriate education, skills, background or other experience) that indicate that he or she is fully qualified for performing the job on the project?


    The Senior Specialist makes the determination. In the case where a Senior Specialist cannot decide, then his or her recommendation will be referred to the supervising DED for final decision. STCU's decision is placed into the record of the Project.

    A relative is considered to be one or more of the following:
    1. Husband
    2. Wife
    3. Brother
    4. Sister
    5. Mother
    6. Father
    7. Uncle
    8. Aunt
    9. Brother-in law
    10. Sister-in-law
    11. Mother-in law
    12. Father-in-law
    13. Son
    14. Daughter
    15. Niece
    16. Nephew

EFFECTIVITY

This procedure is effective 01 June 2012.

M. Michael Einik
Executive Director